DOI: https://doi.org/10.18371/fcaptp.v1i28.163935

USE OF THE METHOD OF THE ANALYSIS OF BENEFITS AND COSTS FOR DECISION MAKING ON THE DEVELOPMENT OF ENTERPRISE FINANCIAL RELATIONS WITH GROUPS OF ECONOMIC INFLUENCE (STAKEHOLDERS)

H. O. Partyn, A. H. Zahorodniy

Abstract


The expediency of using the method of analysis of benefits and costs for the evaluation of the effectiveness of the development of enterprise financial relations with groups of economic influence (stakeholders) is substantiated. This method is a method of making administrative decisions which is used under the condition of complex alternatives or when the information on the entity's operating environment is not entirely clear. The method is based on the concept of rational choice according to which individuals choose an alternative that involves exceeding benefits over costs. The main stages of carrying out such analysis in the process of implementation of measures (projects) of the enterprise cooperation with stakeholders are distinguished. The following stages are: formation of goals and objectives of the analysis of benefits and costs for the assessment of the relations between the company and stakeholders; identification of possible solutions to problems, arrangement them by time, capacity and components; determination of the composition of factors the change of which must be taken into account during the analysis; determination of the volumes of benefits and expenses and their reduction to comparable meters; calculation of the total determinated value of the present value of the net benefit from realization of measures for the development of relations with stakeholders and analysis of its sensitivity to the requirements of individual factors; analysis of the risks of implementation actions; making a final decision on the implementation of measures or projects during the investment horizon. Such an analysis requires careful selection of factors (parameters) for assessing changes in the activity of the enterprise from its cooperation with stakeholders, building a model of incremental effects of benefits and time costs and calculating the volumes of current value of net profit of an enterprise. The method of calculation of incremental effects on the change in benefits and costs volume due to the changes in enterprise activity parameters as well as determination of the amount of the current value of enterprise net benefits from the implementation of measures aimed at improving relationship with a certain group of stakeholders, taking into account alternative options of investing limited financial resources is offered. The need to assess probabilities of the deviation of the values of the analyzed parameters from the basic level in the process of identifying the risks of the projects of the development of enterprise relations with stakeholders is emphasized.

Keywords


analysis; method of the analysis of benefits and costs; enterprise financial relations; making managerial decisions; groups of economic influence (stakeholders).

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770