A comprehensive estimation method for enterprise capability

Abstract

In today’s highly competitive business world, the need for efficient enterprise capability management is greater than ever. As more enterprises begin to compete on a global scale, the effective use of enterprise capability will become imperative for them to improve their business activities. The definition of socio-economic capability of the enterprise has been given and the main components of enterprise capability have been pointed out. The comprehensive method to estimate enterprise capability that takes into account both social and economic components has been offered. The methodical approach concerning integrated estimation of the enterprise capability has been developed. Novelty deals with the inclusion of summary measure of the social component of enterprise capability to define the integrated index of enterprise capability. The practical significance of methodological approach is that the method allows assessing the enterprise capability comprehensively through combining two kinds of estimates – social and economic and converts them into a single integrated indicator. It provides a comprehensive approach to socio-economic estimation of enterprise capability, sets a formal basis for making decisions and helps allocate enterprise resources reasonably. Practical implementation of this method will affect the current condition and trends of the enterprise, help to make forecasts and plans for its development and capability efficient use.