FEATURES OF ENTERPRISE’S DEVELOPMENT IN THE CONTEXT OF MODERN TRANSFORMATIONS OF THE INTERNATIONAL ENVIRONMENT
Ключові слова:Sustainable business, development, global economy
Introduction. Beginning of the ХХІ century became the new stage of international economic relations’ development. Global economy turned into hierarchic system of relations, interests’ achievement, access to world resources and unequal possibilities. Active transformation processes of globalization and new goals and objectives of modernization determine the need for enterprises to adapt to external challenges in order to ensure the stable development. The latest trends of globalization processes development affect the every enterprise’s development. Some of those changes in society and economy can create entrepreneurial possibilities for new services and goods .
Objectives. The thesis is aimed at researching the main trends in the enterprise’s development in the aspects of global changes in the international environment.
Methods. Such methods as analogy, analysis and synthesis, observation and comparison were used during this research.
Results. In the past two decades the sustained growth of international business has been one of the most noticeable and important trends in the world. For most goods, many services, and especially for financial instruments, markets have become truly global. World product trade has expanded by more than 6% a year since 1950, which is more than 50% faster than growth of output. Every day billions of dollars are transacted in the global markets, of which more than 90% represent financial transactions unrelated to trade or investment. The rapid dissemination rate of new technologies speeds the pace at which enterprises must adjust to external events .
Why are those transformations coming about, and what exactly are they? The reason is that during the past few decades, the emergence of corporate empires in the world economy, based on the contemporary scientific and technological developments, has led to the production globalization. As a result of international production, co-operation among global productive units, the large-scale capital exports, global corporations consider the whole of the world their production place, as well as their market and move factors of production to wherever they can optimally be combined. They avail fully of the revolution that has brought about instant worldwide communication, and near instant-transformation .
Those transformations include environmental concerns, such as climate disruption caused by man-made greenhouse gas emissions, and societal issues, including rising income inequality and other forms of social injustice. There are few ways that businesses choose in response to these challenges. Some enterprises are accepting deteriorating environmental, social, and economic conditions and are managing through the decline by adapting to limitations. Other enterprises make choices between what is good for the environment and society or doing what is good for the economy. Addressing social and ecological concerns can create business opportunities that benefit both society and the enterprise. This is one of the core philosophies of sustainable business practices and a focus of modern organizations. Sustainable businesses can help address society’s concerns while providing profit-making opportunities for business .
Sustainable business is in large part about changing business practices. Successful sustainable organizations are focused on the creation of new services, products, or practices that mitigate social and environmental concerns in new ways. Success in implementing sustainable business practices relies on entrepreneurship and innovation. Those concepts are relevant in many different sustainable business contexts. Entrepreneurship and innovation are fundamental for the success of start-up companies that provide innovative solutions to overcome social and environmental challenges. This applies all the way up to multinational companies, such as Microsoft or General Electric, and all the way down to small- to medium-sized companies, like Oakhurst, Green Mountain Coffee, Timberland, and Stonyfield .
Conclusions. Modern global transformations in the international environment definitely lead to changes in enterprise’s functioning and give them new opportunities for the development. At a broad societal level, they are presented as the result of forces—such as the development of a new technology or changes in understanding and knowledge, — that give rise to new opportunities and challenges. These forces constantly open up new opportunities for entrepreneurs. Enterprise mobility requires capabilities to sense and seize new business opportunities quicker than competitors. However, acquiring those potentialities, such as continuous delivery and scaling agility to product programs, business models, and portfolios is challenging in many enterprises .
Thesis Supervisor: Dunska A.R., Doctor of economic sciences, Associated professor