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National Interests: Priorities and Security
 

Management of enterprise's economic sustainability strategy

Vol. 11, Iss. 4, JANUARY 2015

PDF  Article PDF Version

Available online: 18 January 2015

Subject Heading: STRATEGY OF ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 13-22

Lutovinov P.P. Ural Socio-Economic Institute, Branch of Academy of Labor and Social Relations, Chelyabinsk, Russian Federation
lutovinov@ursei.ac.ru

Kozlov D.I. South Ural Railway, Branch of JSC Russian Railways, Chelyabinsk, Russian Federation
kozlovdi555@yandex.ru

Importance The influence of external economic environment on the enterprises' sustainability prompts the need of doing business with such a new management tool as management strategy of economic sustainability of an enterprise. The research investigates management of the economic sustainability of an enterprise.
     Objectives The main objective is to consider the mechanism of implementing the strategy of economic sustainability of enterprises. We assign the objectives as follows: to determine the place of strategy of an enterprise's sustainable development in strategic planning; to consider the process of managing the company's stability; to evaluate the stability of metallurgical enterprises of the Chelyabinsk region.
     Methods The paper builds the curves of internal economic situation of an enterprise's status, analyses the differences with the curve of external economic environment. On the basis of the risk evaluation proposed by strategic risk-management, we have built the ALARP diagram with the explanations to the process of applying the ALARP principle diagram. On the basis of the information about the company's internal and external processes, we visually depict the process of realization of the strategy of economic sustainability of an enterprise. We have identified the possible areas of wide acceptability, the ALARP area and unacceptable areas of the discrepancy of the curves of economic environment for metallurgical enterprises. We suggested that the management of strategy of economic sustainability of enterprises can serve as a basis for strategic planning at the enterprise.
     Results The paper highlights that to form such a basis, it is necessary to undertake a number of administrative decisions in the structure of an enterprise, as well as the development of instruments for developing the sustainability evaluation reports, and to implement their integration into strategic planning.
     Conclusions and Relevance We came to a conclusion that the methods of the sustainability evaluation will be of interest to managers, as well as to employees of planning and economic and financial departments of metallurgical enterprises, students of all forms of learning who study the economic discipline.

Keywords: economic sustainability, economic policy, management

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