Comprehensive Business Diagnostics of a Company's Activities

Abstract

Purpose

The purpose of this chapter was to develop a framework for comprehensive business diagnostics, which can be integrated into the management of small and medium-sized businesses.

Design/Methodology/Approach

The chapter proposes a multiloop model of comprehensive business diagnostics, which provides the company with timely and objective information about the dynamics of its key performance indicators. The model allows enterprises of the real sector to optimize the information acquiring process with the help of the express diagnostics indicators and ensure the high quality and efficiency of the obtained information. Testing of the multiloop model at the Pavlovo Posad Shawl Manufactory JSC involved three stages: express diagnostics (ED), general diagnostics (GD), and comprehensive diagnostics (CD).

Findings

The results determined the need to move to the comprehensive diagnostics (CD) loop of the model. The approbation of the suggested model at the shawl manufacture, particularly the CD loop, allowed the authors to identify the key factors influencing the company's main economic and financial indicators.

Practical Implications

The proposed multiloop model can be used at enterprises with different forms of ownership, including small and medium-sized businesses, both in Russia and abroad.

Social Implications

A multiloop model of comprehensive business diagnostics provides managerial staff with qualitative real-time information that helps them make informed and effective management decisions.

Originality

The proposed multiloop model allows businesses to acquire data about the dynamics of key indicators, determine the factors' impacts on key financial and economic indicators, and ensure high efficiency of management decisions with minimal cost.

Citation

Aliyeva, N., Chernov, S., Babaskina, L. and Zakharova, M. (2022), "Comprehensive Business Diagnostics of a Company's Activities", Lawrence, K.D. and Pai, D.R. (Ed.) Applications of Management Science (Applications of Management Science, Vol. 21), Emerald Publishing Limited, Leeds, pp. 87-99. https://doi.org/10.1108/S0276-897620220000021008