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A Modern Model for Effective Domestic Enterprise Development and Competitive Growth

Abstract

This research is aimed at discovering new ways to increase the effectiveness of domestic enterprise development and competitiveness. Aim. To propose and substantiate a business model for effective development and competitive growth in domestic enterprises. Tasks. (1) To substantiate the importance of effective management in domestic enterprises considering the context of natural scarcity, gradual loosening of production control by administrative methods, and production intensification. (2) To determine and expand on the contents of major structural components of the model for the effective development and competitive growth of domestic enterprises. (3) To discern the structural components of the model in detail and substantiate the role that each component plays in increasing the effectiveness of domestic enterprise development. Methods. The research uses a complex methodology based on the system’s application. Structural and process approaches are used as methods of scientific cognition to increase the effectiveness of domestic enterprise development. Comparative analysis and synthesis were the methods used while working with source material and databases. Results. The article proposes a business model for effective domestic enterprise development for competitive growth. The structural components of the model are primarily based on the conventional components of management, such as tools and measures of operational and strategic management, functional approaches to management (innovative, production, staff, and financial management). However, the author believes that it is viable for enterprises to situate their long-term focus on the three basic elements (R&D work, effective management, and effective production, which are unorthodox for most Russian companies) while maintaining the importance of the fundamental strategic basis-the people-in order to increase effectiveness and competitiveness. Conclusions. An enterprise must continuously develop to remain effective and competitive in modern conditions. Development must be based on the three conventional components of management and production supplemented by new forms, technologies, and tools. Production activity must be altered in a way that allows it to meet individual requirements and motivates the staff to achieve the highest possible results while regulating exchange relationships and extensively using the latest scientific and technological developments.

About the Author

Galina Sergeevna Feraru
Belgorod State National Research University
Russian Federation


References

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Review

For citations:


Feraru G.S. A Modern Model for Effective Domestic Enterprise Development and Competitive Growth. Economics and Management. 2016;(1):38-44. (In Russ.)

Views: 375


ISSN 1998-1627 (Print)