Assessment of Economic Sustainability of an Enterprise

In a turbulent economy and increasing economic crises, the question of assessing the economic sustainability of a corporation is quite relevant and in demand in scientific research. At the same time, with a certain degree of conditionality, all works in this direction can be divided into two clusters: works based on traditional indicators of financial stability and ones using original scientific approaches to determining the economic condition of an enterprise. This article belongs to the works of the second cluster. The basis for assessing the economic sustainability of an enterprise is the economic and mathematical modelling of the operating activities of the enterprise based on the well-known Cobb - Douglas production function. A methodology is developed for constructing a mathematical model of the enterprise's activity, for determining elasticity indicators of output according to the resources used in the production process and elasticity of production, on the basis of the dynamics of which an approach to assessing economic stability is proposed. The methodology was tested on the data of PJSC Chelyabinsk Tube Rolling Plant during the implementation of the innovation project "Height 239''.

Keywords

mathematical modelling; economic sustainability; company; production function.

References

1. Schmidt A.V. Modern Methodological Approaches to the Assessment and Forecasting of Indicators of Economic Sustainability of Industrial Enterprises. Bulletin of the South Ural State University. Series: Economics and Management, 2010, vol. 14, no. 20, pp. 37-41.
2. Kolosova Т.V. Ensuring the Sustainable Development of the Enterprise on the Basis of Increasing Its Innovative Potential: the Author's Abstract. PhD Thesis. Nizhny Novgorod, 2011.
3. Mokhov V.G. Methods of Marginal Analysis of Entrepreneurial Activity. Bulletin of the South Ural State University. Series: Economics and Management, 2012, vol. 21, no. 9, pp. 79-83. DOI: 10.1111/j.1530-9134.2011.00328.x
4. Ugolnitsky G.A. Ustoychivoe razvitie organizatsiy. Sistemnyy analiz, matematicheskie modeli i informatsionnye tekhnologii upravleniya [Sustainable Development of Organizations. Systems Analysis, Mathematical Models and Management Information Technologies]. Moscow, Izdatel'stvo fiziko-matematicheskoy literatury, 2011. (in Russian)
5. Bilchak V.S., Borodin A.I. Formirovanie ustoychivogo razvitiya predpriyatiya regiona: mekhanizmy, metody, upravlenie (ekologo-ekonomicheskiy aspekt) [Formation of Sustainable Development of an Enterprise in the Region: Mechanisms, Methods, Management (Ecological and Economic Aspect)]. Kaliningrad, Kant, 2009. (in Russian)