Strategic model of effective management of financial and economic potential of iron ore enterprise

Abstract

Introduction. The success and effectiveness of industrial enterprises functioning largely depends on its financial and economic potential and the efficiency of its use, distribution and accumulation. However, some aspects of financial and economic potential management of economic entities related to its strategic modelling and forecasting have not been sufficiently investigated yet.

Purpose. The article aims to develop and test strategic model of effective management of financial and economic potential of industrial economic entity on the example of iron ore enterprise.

Method (methodology). The method of theoretical substantiation, system and analytical method, method of financial and economic analysis, method of economic and mathematical modelling, method of forecasting, graphic method have been used in this research.

Results. It has been formed a strategic model of effective management of financial and economic potential of iron ore enterprise while taking into account the optimization of the multi-factor multiplier of economic profitability. It has been practically tested the reliability and effectiveness of the proposed model on the basis of analytical data of financial and economic activity of Ukrainian iron ore enterprises for the last three years. Prognostic diagnostics has been carried out. Practical recommendations as for optimization of the financial and economic potential management of iron ore enterprises have been provided.

Scope of results. The results of the work can be applied in practice by the managers of iron ore enterprises in order to optimize the processes of searching, accumulation and distribution of material and financial resources and adjusting strategic plans for long-term development.