CONSOLIDATED ANALYTICAL FRAMEWORK TO EVALUATE BUSINESS DEVELOPMENT AS THE CORE OF MANAGERIAL EFFICIENCY: DIVERSIFICATION AND INTEGRATION STRATEGY APPLICABILITY

Abstract

In the context of neo-technological reproduction, the diversification and integration development strategy will contribute to ensuring long-term effective business performance through extensive use of available business capacities necessary for creating products which foster transformational process cycling within their operating environment. The diversified integrative development is a unique development paradigm that triggers optimally rational use of the enterprise current position specifics, opportunities for diversification, identification of business units within business operational activity structure as well as offers benefits of its integration with attractive stakeholders. In turn, this translates into the need to build a certain consolidated framework for evaluating the above development trend which would enable to determine the feasibility, expediency, and the relevance of such development. This ideally should be grounded upon the promising business processes in the current and strategic periods and thus driving the priority of their efficiency evaluation alongside the opportunity for rationalization of the number and structure of particular business processes to ensure enterprise effective functioning in the neo-technological reproduction settings. The purpose of this article is to build a consolidated analytical framework to evaluate the diversified integrative business development as the core for its managerial efficiency. The research has been carried out by employing the methods of classification; analogy; abstraction; grouping; analysis; synthesis and morphological analysis. The developed consolidated analytical evaluation framework is based on the principles that enable to explore the relevance and the applicability of using the diversification and integration development strategy and to assess its implementation effectiveness. The findings provide rationale for selecting indicators to assess the relevance of implementing the diversification and integration development strategy by using a development trend criterion, since the evaluation results obtained for each unit will facilitate the possibility and specify the need for its application, subject to enterprise business environment specifics as well as its further development prospects. To attain better effectiveness in selecting a promising development trend, a corresponding evaluation framework has been suggested based on performance efficiency indicators, optimality, and the maximum possible effectiveness of the interaction between enterprise business processes, identified within its structural components which boosts these process optimization to ensure successful business development in conditions of rapidly changing environment. It is argued the proposed consolidated analytical evaluation framework will contribute to assessing the enterprise current position, its compliance with modern development trends and opportunities for increasing performance efficiency through rationalization of enterprise business structure (business process optimization), along with providing implications that help selecting an effective area for further successful strategic development.