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Economic Analysis: Theory and Practice
 

Company sustainability management based on monitoring and diagnosing its external and internal environment

Vol. 13, Iss. 48, DECEMBER 2014

Available online: 19 December 2014

Subject Heading: ECONOMIC STABILITY DIAGNOSTICS AND PREDICTION

JEL Classification: 

Pages: 58-66

Vasin N.S. State University - Education-Science-Production Complex, Orel, Russian Federation
vasinn@rambler.ru

Chistyakov V.V. State University - Education-Science-Production Complex, Orel, Russian Federation
petrovka141@bk.ru

Importance The specific feature of the modern stage of Russian economy development is significantly growing uncertainty of external environment of domestic enterprises, which is a contributory factor to increasing trends towards loss of stability of their operations.
     Objectives The objective of this work is to analyze the problems related to developing and using by enterprises of efficient and modern diagnostic systems to detect near-crisis events long before they occur.
     Methods In this paper, we used the methodology of time series analysis and defined trends in the factors of external and internal environment.
     Results We have considered information processing, which is obtained as a result of monitoring and diagnosing the external environment of an enterprise, and which enables to shape trends in the change of figures indicating stable or unstable state of an enterprise. We have developed theoretical and methodological approaches to sustainability assessment based on monitoring and joint analysis of time-matched trends in external and internal environment indicators to identify changes in the external environment having the greatest impact on the indicators of the internal environment, which characterize the stability of an enterprise.
     Practical Application The results of the study may serve as a tool for enterprise state diagnostics.
     Conclusions and Relevance We conclude that when performing a correlation analysis of the impact of external environment factors on the internal environment parameters, the smoothing of time series may cause loss of information about correlation of these dependencies. The analysis of dynamics of changes in diagnostic parameters, which was performed in the mode of parallel monitoring of external and internal environment indicators under the moving window method, enables to discover a tendency towards loss of stability of company functioning before the stability is lost. This allows finding a cause of possible failure and eliminating it in a timely manner.

Keywords: economic sustainability, diagnosing, external, internal, environment, enterprise

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