The Theoretical and Methodological Principles of the Value-Oriented Approach to Business Management

Abstract

The research is aimed at analyzing the value-oriented conceptions of business management and studying the possibility of their implementation in the activities of Ukrainian enterprises. The carried out analysis of the literature shows the considerable attention paid by the scientific community to the issue under research, since the use of value-based conceptions in Ukrainian realities is quite problematic due to a lack of understanding of their specifics and features. The publication carries out a chronological analysis of the interpretation of the essence of the conception of «business value» by various scientists during 2011-2020. The value of the business is a volume-based indicator, thanks to which it is possible to understand the further prospects of the enterprise development and its investment attractiveness. According to theoretical research, the value of business is understood as the value of invested labor and labor resources; as the results obtained by the company from operational, investment and financial activities; as an expression of the price at which the company positions itself in the market and can potentially be reorganized. The value-oriented management should be applied at all levels – from operational to strategic. It is determined that career growth, an effective system of motivation, exchange of information and knowledge are among the few factors that affect the formation of the value of enterprise. Among the methodological approaches that allow to conduct a thorough assessment of the value of business, attention is focused on earnings, value-based, market-based and optional methods. Prospects for further research relate to a more detailed analysis of the specifics of value-oriented conceptions and analysis of domestic market conditions for the possibility of spreading the value-based management approach among managers of Ukrainian companies.