Enterprise Development Management: Clarification of Theoretical Principles
Iastremska O. M., Iastremska O. A.

Iastremska, Olena M., and Iastremska, Olesia A. (2020) “Enterprise Development Management: Clarification of Theoretical Principles.” The Problems of Economy 1:214–226.
https://doi.org/10.32983/2222-0712-2020-1-214-226

Section: Economics and Enterprise Management

UDC 658.1

Abstract:
The aim of the article is to clarify the theoretical principles of industrial enterprise development management. The study sets the tasks of analyzing scientific approaches to the formation of a categorical and conceptual apparatus for managing development of industrial enterprises; defining the theoretical principles of development management by principles, directions, areas and types of management; developing a model of the mechanism for managing development of industrial enterprises. Based on the study, the concept “industrial enterprise development management” is clarified. It is considered as the process of positive changes in an enterprise, arising under the influence of external and internal environment to fulfill the enterprise’s mission and achieve strategic goals of increasing the level of development in all areas of its activity. To define the theoretical principles of industrial enterprise development management, there determined the necessary criteria – features of classification: by scientific approaches, areas of activity, types of potential, life cycle of the enterprise, types of planning and development. All the features are consistent with the management principles and functions. The implementation of theoretical principles is carried out using the control mechanism. The article proposes a model of the mechanism for enterprise development management, the basis of which is represented by its components, namely: analytical, technical and technological, organizational and economic, administrative legal ones. Each of the components of the mechanism uses its own methods, tools and control levers. The classical management methods (economic; administrative legal; organizational) are supplemented by economic and mathematical ones, computer programs and technologies since, under modern economic conditions, it is impossible to carry out management without using the mathematical apparatus and computer technologies. Management tools are grouped by traditional areas of activity – economic, social and environmental. Each group of tools is detailed in terms of type and control levers. Management tools are selected in accordance with international studies conducted annually by Bain & Company. The tools require specification concerning the normative indicators (control levers) established by the state or the enterprise, with the help of which actions aimed at achieving sustainable development by an industrial enterprise are carried out. Thus, the presented developments allow an enterprise to clearly define the goal, principles, functions, approaches, directions, areas and types of management, build an effective management mechanism to achieve sustainable development as most progressive.

Keywords: development, industrial enterprise development management, theoretical principles, management mechanism.

Fig.: 3. Tabl.: 3. Bibl.: 50.

Iastremska Olena M. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Management, Logistics and Innovations, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkіv, 61166, Ukraine)
Email: Iastremska_om@hneu.net
Iastremska Olesia A. – Candidate of Sciences (Economics), Associate Professor, Candidate on Doctor Degree, Department of Management and Business, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkіv, 61166, Ukraine)
Email: iastremska.o@gmail.com

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