USE OF ECONOMIC CONSULTING IN THE PROCESS OF DEVELOPING MANAGEMENT DECISIONS AT THE ENTERPRISE

Author
, PhD in Economics, Associate Professor, Kharkiv, Marshal Bazhanov, 17

In heading

 Economic theory;

Signed print

 20.09.2019

Issues number

 2019 - № 3 (38)

Page

 62-78

Type of articles

 Scientific article

Code UDK

 334.7:005.21

ISSN print

 2411-5584

Abstract

 Problem setting. Currently, most companies in developed and developing countries use consulting to determine the most promising directions of their development. The most popular are operational and financial consulting. However, they are highly specialized. Therefore, economic consulting which will be an economic diagnosis of all aspects of the enterprise: production, finance, personnel, innovation, etc., should be of particular relevance
at present.
Recent research and publication analysis. Modern market consulting services research are carried out worldwide. The trends of this market in Ukraine and abroad are being studied, its structure is being determined (V. A. Zhukov, O. K. Trofimova, V. Senko, N. V. Yurova, D. I. Chalevich, T. M. Kaminska). Differences in the use of certain types of consulting in developed and developing countries (N. N. Bricheeva) are revealed. The structural elements of consulting are considered in different studies (L. S. Shevchenko, O. S. Marchenko, O. M. Levkovets). Problems that hinder the development of the consulting market in Ukraine are considered in the study by K. G. Gubin. A great number of studies is presented in the form of surveys and analysis of the consulting services market in Europe and in the world (Adroit Market Research, Global Management Consulting Services Market 2019, Business Management Consulting Service Market by Type, Application, Element, & by Region, Marketing for Consultants Study (2019), European Federation of Management Consultancies Associations, Europe management consulting services market).
Paper objective. The purpose of the article is to investigate the feasibility of using economic consulting in the process of management decision-making by economic entities and its advantages over existing types of consulting.
Paper main body. The paper studies the dynamics of foreign trade in professional and consulting services. It was revealed that in Ukraine the export surplus for this category is negative, which indicates the greater popularity of foreign consulting agencies.
Studies of the structure of the consulting services market have shown that currently the most common types of consulting are management consulting, outsourcing, corporate finance management and management accounting, investment consulting, audit and information technology consulting. On the other hand, one can distinguish strategic, operational, management consulting, HR consulting and IT consulting.
The analysis carried out by the Consultancy.uk group showed that in Europe the most popular are operational consulting (about 30 % of the consulting services market) and financial consulting (about 25 % of the consulting services market). Moreover, the use of consulting services in developed countries involves determining the possibility of innovative development, and in developing countries – maintaining market share.
The negative factors that affect the development of the consulting services market in Ukraine are the following:
1) the lack of information that is able to objectively reflect trends in the market or industry;
2) the lack of understanding of the nature of consulting and the need for its use;
3) a low level of professionalism of consultants, and as a result there is a distrust of consulting in general;
4) the lack of professional associations in the consulting market, as well as their low activity;
5) insufficient use of international experience by consulting companies of Ukraine;
6) the lack of understanding by the management of enterprises of the need to attract specialists in the field of consulting;
7) underdevelopment of the consulting services market, which leads to a low level of their use.
Thus, the low activity in the use of any type of consulting by enterprises in Ukraine requires the appearance of economic consulting, which will result in a comprehensive assessment of the enterprise and its development prospects in all areas of activity.
Economic consulting should include the following components: production, finance, personnel, innovation, marketing, business reputation, legal support, social responsibility. It is such a combination of various aspects of the enterprise and their diagnostics that will most accurately determine the necessary measures for the development of a business unit. Thus, the work proposed an algorithm for the implementation of economic consulting at
the enterprise. In addition, it was revealed that the results of economic consulting will differ for enterprises of various scales of activity. It was also noted that it is for large enterprises that economic consulting should be carried out in four stages:
1. Theoretical and practical documentary review with the aim of establishing aspects of the industry or market.
2. Determining the need for a strategic diagnosis based on the study of limitations in the activities and potential of the main enterprises of the industry or market, taking into account the competitive advantages of the region or country.
3. Development of proposals to expand the database of industry or market activities based on international and national knowledge related to the economic system of enterprises operating in this field.
4. Diagnostic procedure of enterprises that are at the core of an industry or market.
Thus, the application of economic consulting will allow enterprises whose activities vary in scale, but which operate in the same industry (or in the same market), to identify their competitive advantages and develop them.
Conclusions. Studies have shown that the use of consulting allows enterprises to achieve higher positions in the market, apply innovative technologies, improve their product quality and conquer new consumer audiences. However, the most appropriate is the use of economic consulting, since its main method is a comprehensive diagnosis of all aspects and activities of business units.
Short Abstract for an article
Abstract. The article discusses the problems of providing consulting services in the world and in Ukraine. The dynamics of the volumes of professional and consulting services in the foreign trade of Ukraine and the structure of the consulting market in Europe are examined. It was revealed that European companies prefer operational and financial consulting. Despite this, it is most advisable not to separate the consulting services provided to enterprises by their areas of activity, but to use economic consulting. It is this type of consulting that combines the assessment of all components of the enterprise’s potential at the same time, which provides an opportunity to win the competition with the greatest probability.

Keywords

 consulting, consulting services market, economic consulting, potential, management decisions.

Reviewer

External reviewer

Article in PDF

 62-78

Bibliography

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Code DOI

 10.31359/2411-5584-2019-38-3-62

20.09.2019