Search results

1 – 10 of 90
Book part
Publication date: 1 August 2019

Svetlana V. Lobova, Anna V. Bodiako, Liudmila V. Dontsova, Yevgeniy An and Viktor N. Salin

Purpose: The purpose of the work is to study the approaches to classification of modern business systems from business managers through the prism of making of managerial…

Abstract

Purpose: The purpose of the work is to study the approaches to classification of modern business systems from business managers through the prism of making of managerial decisions.

Methodology: The methods of classification, comparative and systemic analysis, induction, deduction, and formalization are used.

Conclusions: As a result of the research, five conceptual approaches to classification of modern business systems are distinguished: organization-oriented, externally-oriented, management-oriented, socially-oriented, and innovations-oriented. Within each of them, various (mutually supplementing) criteria of classification are used, which allow distinguishing a lot of types of modern business systems. In the conditions of the Fourth Industrial Revolution, which includes transition to Industry 4.0, a new classification of modern business systems according to the criteria of their technological mode is offered, and the systems of the mode 3.0 and 4.0 are distinguished. Transition to the new technological mode is connected to additional business risks, which complicates the process of making of managerial decisions.

Originality/value: The performed analysis of classification of modern business systems from business managers showed that all peculiarities of these systems influence the process of making of managerial decisions in them, including the sectorial structure of business environment, size of business systems, sphere in which business systems function, involvement in business environment, internal and external integration of business systems, scale and complexity of business environment, organizational and legal form, business structure and business culture of business systems, types of benefits that they sell, level of legitimacy, responsibility, innovational activity, and technological mode of business systems.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Olga G. Tretyakova, Olga P. Osadchaya, Elena I. Kostyukova, Mikhail V. Sirotenko and Irina V. Gimelshtein

Purpose: The purpose of the work is to study the essence and to determine the algorithm and methodology of decision making as a choice of the existing alternatives…

Abstract

Purpose: The purpose of the work is to study the essence and to determine the algorithm and methodology of decision making as a choice of the existing alternatives according to the scientific approach to this process of management of modern business systems.

Methodology: The research is conducted with the help of the method of process analysis, which allows determining the stages of the process of decision making in modern business systems and determining its algorithm; the method of formalization, which allows presenting the obtained algorithm; and the method of comparative analysis, which allows comparing the existing methods of decision making as a choice of the existing alternatives.

Conclusions: As a result of generalization and systematization of the existing scientific knowledge in the sphere of managerial decisions in modern business systems and reconsideration (logical analysis) of this process, its algorithm is compiled. Four stages of the algorithm of making of managerial decisions in modern business systems are distinguished – determining the needs of business system for managerial decisions, determining the possibilities of business system in making of managerial decisions, compiling alternative variants of managerial decisions, and implementation of the made managerial decision and further evaluation of its optimality. Also, methodological tools of each stage are determined.

Originality/value: The developed algorithm possesses the following advantages as compared to the existing scientific descriptions of this process: completeness, complex solution of the problems of the business system through managerial decisions, connection of the methodology of managerial decisions to each stage of the algorithm, and systemic character of the methodology of decision making as a choice of the existing alternatives.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 10 February 2020

Özlem Kuvat and Burcu İşgüden Kılıç

The confidence in the qualifications and independence of the audit activities and professionals has been lost due to the financial scandals that have arisen over time…

Abstract

The confidence in the qualifications and independence of the audit activities and professionals has been lost due to the financial scandals that have arisen over time. These scandals in the accounting and auditing fields caused both enterprises and investors to suffer from large amounts of losses and thus the need for reliable financial statements and corporate governance increased.

Both investors and decision-makers need independent assurance to achieve transparent, reliable, and impartial financial information. The fulfillment of this requirement is possible through independent auditing activity and independent audit firms. Business management shall carry out the selection of independent auditors based on various criteria (fee, reputation, audit team, relations, etc.). In addition, it may also be necessary to periodically change an independent audit firm due to rotation or other reasons (fee, disputes, relationships, etc.).

In this study, a ranking of the importance level of the evaluation criteria, for the selection and change of the independent audit firm in an enterprise in Borsa İstanbul (BIST) 100 in Turkey, was conducted. Analytical Hierarchy Process (AHP), which is one of the multicriteria decision-making techniques, was used for ranking. In the hierarchy established for the selection of the independent audit firm, the main criteria of the “audit fee” and the “reputation and qualifications of the audit firm” have been established. According to the findings obtained as a result of binary comparisons, the first four ranks among sub-criteria are “provision of international service,” “quality of technical expertise of audit firm,” “industry expertise of audit firm,” and “suitability of fee offered by audit firm.”

For the change of audit firm, four main criteria “audit fee,” “disputes arising during the audit process,” “relations with the audit firm,” and “rotation” are taken into consideration. For sub-criteria, first four criteria were “rotation of independent audit firm,” “rotation of independent auditor,” “audit firm’s inability to adequately practice proactive audit approaches,” and “inadequate communication.”

Details

Contemporary Issues in Audit Management and Forensic Accounting
Type: Book
ISBN: 978-1-83867-636-0

Keywords

Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Leonid F. Malinovski, Tamara G. Stroiteleva, Maxim M. Sharamko and Vera V. Dvoretskaya

Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business…

Abstract

Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business systems and to determine the directions of managing the organizational culture depending on the set criteria of decision making.

Methodology: A proprietary classification of the types of organizational culture of modern business systems according to the criterion of employees' involvement into decision making is offered. This classification uses two dimensions of employees' involvement into decision making for classification of the types of organizational culture of modern business systems. First dimension: interest of business manager in involvement of employees into the process of decision making. Second dimension: employees' inclination for participation in the process of making of managerial decisions. The factors that influence these dimensions are determined.

Conclusions: Connection between organizational culture and specifics of decision making in modern business systems according to the criterion of employees' involvement in decision making is determined. The minimal level of involvement envisages independent decision making by business manager without participation of employees. In this case, a lot of problems of the business system remain unsolved and possibilities remain unused. Resource intensity of decision making is the highest, and their practical implementation is complicated by employees' dissatisfaction, but this process is conducted very quickly. The medium level of involvement envisages either collective discussion, but decision making by business manager, or collection of feedback by business manager with low interest in it from employees. In this case, resource intensity of decision making is lower, and decisions could be made and implemented faster. The highest level of involvement is connected to collective decision making by employees and business manager. This allows determining problems and using possibilities of the business system with minimal resources. Though the duration of the process of decision making is the highest, solutions are implemented quickly due to employees' support.

Originality/value: The determined specifics show the necessity for considering the influence of the organizational culture on specifics of the process of decision making in modern business systems. It is substantiated that no type of organizational culture of modern business systems according to the criterion of employees' involvement in decision making can provide a guarantee of decisions' optimality. The directions of managing the organizational culture depending on the set criteria (completeness, speed, resource intensity) of decision making are recommended.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Andrei V. Berezhnoi, Igor S. Mezhov, Olga V. Titova and Olga G. Kryukova

Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.Methodology

Abstract

Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.

Methodology: During studying the perspectives of decision making in modern business systems by the principles of outsource, the method of logical analysis (analysis of causal connections), the method of structural and functional analysis, and the method of formalization are used.

Conclusions: Perspective directions, advantages, and drawbacks of application of outsource for decision making in modern business systems at different stages of this process are determined. Possible variants of decision making in a modern business system by the principles of outsource and their consequences are determined: information and consultation decision support, business system's overcoming a crisis, optimization of certain business processes, and loss of independence of business system and path to its reorganization.

Originality/value: As a result, it is substantiated that outsource is a perspective tool of making of managerial decisions in modern business systems. Various directions of application of this tool are accessible at each stage of the process of making of managerial decisions in a modern business system. The advantages of decision making by the principles of outsource are attraction of additional resources, access to possibilities of automatization, and low expenses, and the drawbacks include the complexity of organization of this process and temporary character of obtained advantages. Too active usage of outsource and transfer of most managerial decisions to it may lead to loss of independence of the business system and increase of the risk of its reorganization. That's why the principles of outsource are recommended for making of certain managerial decisions by business systems in the period of crisis and by newly formed business systems and those that experience deficit of resources.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 19 July 2022

Ayesha Banu

Introduction: The Internet has tremendously transformed the computer and networking world. Information reaches our fingertips and adds data to our repository within a…

Abstract

Introduction: The Internet has tremendously transformed the computer and networking world. Information reaches our fingertips and adds data to our repository within a second. Big data was initially defined as three Vs, where data come with greater variety, increasing volumes and extra velocity. Big data is a collection of structured, unstructured and semi-structured data gathered from different sources and applications. It has become the most powerful buzzword in almost all the business sectors. The real success of any industry can be counted based on how the big data is analysed, potential knowledge is discovered and productive business decisions are made. New technologies such as artificial intelligence and machine learning have added more efficiency to storing and analysing data. This big data analytics (BDA) becomes more valuable to those companies, focusing on getting insight into customer behaviour, trends and patterns. This popularity of big data has inspired insurance companies to utilise big data at their core systems and advance the financial operations, improve customer service, construct a personalised environment and take all possible measures to increase revenue and profits.

Purpose: This study aims to recognise what big data stands for in the insurance sector and how the application of BDA has opened the door for new and innovative changes in the insurance industry.

Methodology: This study describes the field of BDA in the insurance sector, discusses the benefits, outlines tools, architectural framework, the method, describes applications in general and specific and briefly discusses the opportunities and challenges.

Findings: The study concludes that BDA in insurance is evolving into a promising field for providing insight from very large data sets and improving outcomes while reducing costs. Its potential is great; however, there remain challenges to overcome.

Details

Big Data: A Game Changer for Insurance Industry
Type: Book
ISBN: 978-1-80262-606-3

Keywords

Book part
Publication date: 1 August 2019

Margarita V. Melnik, Tatiana V. Skryl, Elena A. Gureeva, Irina F. Vetrova and Aleksandr V. Vetrov

Purpose: The purpose of the chapter is to determine the regularities and tendencies of decision making in business systems by the example of modern Russia.Methodology: The…

Abstract

Purpose: The purpose of the chapter is to determine the regularities and tendencies of decision making in business systems by the example of modern Russia.

Methodology: The method of logical analysis (analysis of causal connections) and the method of dynamic analysis of development of socioeconomic systems are used. These methods are applied with the current statistical and analytical information. The information and analytical basis of the research is the materials of the Federal State Statistics Service for 2018.

Conclusions: The factors of functioning and development of modern business systems, related to development of E-commerce, liberalization of state regulation of business systems, growth of their competition and corporate responsibility, change of technological mode, and crisis are determined. Influence of these factors on managerial decisions is connected to reduction of resource provision of business systems, accessibility of new managerial tools, complication of made decisions (growth of the number of accessible decisions), growth of the number of new technologies of decision making, and increase of the risk component of decisions. Regularities and tendencies of decision making are determined: striving for saving resources during decision making, more active usage of new managerial tools during decision making, striving for acceleration of the process of making of more complicated managerial decisions, more active usage of new technologies during decision making, and striving for minimization of risks of made decisions.

Originality/value: It is substantiated that the determined regularities and tendencies of decision making lead to increase of contradiction during making of managerial decisions in modern business systems, connected to growth of complexity of this process and simultaneous reduction of resources and time that are accessible to business managers. In order to solve this contradiction, it is necessary to implement cardinal changes into the process of making of managerial decisions in modern business systems, which allow – with minimum managerial cost – determining multiple alternative variants of solutions of the whole specter of current problems of a business system and comparing them as to mutually excluding criteria, thus making complex decisions.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Alina V. Chesnokova, Yulia I. Dubova, Tatiana N. Yudina and Olga I. Kontorovich

Purpose: The purpose of the chapter is to analyze the experience of managerial decisions in modern North American business systems, to develop an American model of…

Abstract

Purpose: The purpose of the chapter is to analyze the experience of managerial decisions in modern North American business systems, to develop an American model of decision making in modern business systems, to determine the possibilities of making of optimal decisions according to this model, and to substantiate the perspectives of its improvement.

Methodology: The authors use the methods of systemic, problem, and logical analysis, as well as modeling and formalization.

Conclusions: An American model of decision making in modern business systems is compiled – it is based on divisional organizational structure. This model is contradictory and, like other regional models, has advantages and drawbacks. On the one hand, an important advantage of the American model is making of well-balanced managerial decisions that conform to the interests of all interested parties in the business system (investors, management, employees) and beyond it (consumers, society). This advantage is achieved due to active and systemic marketing, which ensures the fullest consideration of the possibilities of business environment and high adaptability of business systems to its changes. Managers' readiness to take a risk allows them to make nonstandard decisions, thus strengthening the uniqueness and competitive advantages of the business system. On the other hand, high risk component of managerial decisions leads to unsustainable development of business systems in countries of North America and their strong susceptibility to internal and external crises. Another drawback of the American model of decision making in modern business systems is duration of this process due to necessity for consideration of opinions of all interested parties and marketing at all stages.

Originality/value: It is determined that in the conditions of crisis, the American model cannot ensure timely decision making, and this leads to their nonoptimality, which defines the perspectives of improving this model.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 2 December 2019

Larisa A. Ilyina, Yuliya A. Panteleeva, Dmitry L. Skipin, and Alexandra N. Bystrova

The purpose of the research is to determine the signs of nonoptimality of managerial decisions that are made by Russian business systems and to determine the barriers on…

Abstract

Purpose

The purpose of the research is to determine the signs of nonoptimality of managerial decisions that are made by Russian business systems and to determine the barriers on the path of making of optimal decisions in business systems by the example of modern Russia and perspectives of overcoming them.

Methodology

The information and empirical basis of the research consists of statistical materials of the World Economic Forum, RIA Rating and Samuel Centre for Social Connectedness for 2018, according to which signs of nonoptimality of managerial decisions of Russian business systems, which are observed at the macro-level, are determined. During the research, the method of systemic, problem, and logical analysis (analysis of causal connections) and the method of formalization are used.

Conclusions

It is determined that drawbacks of the process of making of managerial decisions in modern Russian model of this process, connected to the functional organizational structure, low marketing activity, and underdevelopment of internal business communications, create barriers on the path of making of optimal decisions: high expenditures for making of managerial decisions, duration of the process of making of managerial decisions, high complexity of choice of alternative decisions, and incomplete accounting of possibilities and problems during decision-making.

Originality/Value

Perspectives of overcoming the determined barriers are connected to the usage of outsource during the making of managerial decisions, refusal from functional organizational structure of managerial staff, usage of means of authomatization of making of managerial decisions, and development of systemic feedback and marketing. According to the studied practical experience of the largest and well-known Russian business systems – Rosneft, Lukoil, Gazprom, and Sberbank – these perspectives (2018) are not implemented in Russia.

Details

The Leading Practice of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-83867-475-5

Keywords

Book part
Publication date: 12 September 2017

Katsuya Hihara

The relationship between airports and airlines is very interesting from an economics perspective, and analysis of this relationship is wide open for new research…

Abstract

The relationship between airports and airlines is very interesting from an economics perspective, and analysis of this relationship is wide open for new research endeavors. For instance, airport and airline interactions can be viewed as a zero-sum game of deciding, say, airport landing charges, while at the same time both entities have an incentive making a joint effort to enhance their ability to generate passenger demand and to contribute to growing regional economies. Within this theoretical framework, their relationship consists of not only a binary choice of conflict or cooperation, but also suggests the possibility of complex mixtures of conflict and cooperation. While understanding the interdependence of airports and airlines is an important issue in transportation economics, research examining the complexity of airport and airline relationships is relatively new to the field. This chapter contributes to this research area, in part, by introducing one very interesting example of an airport and airline relationship that considers an element of conflict and cooperation. Specifically, this chapter examines the economic consequences of a risk sharing contract. Analysis of the risk sharing contract recognizes the relevance of microeconomic theories, such as contract theory and principal–agent theory and reveals how these concepts can be applied to traditional transport economics. Predictions of risk sharing between airlines and airports using these theories are derived using numerical examples. Findings reveal that the risk-sharing agreement based on the Noto Airport Load Factor Guarantee Mechanism (LFGM) contract enables the airport side and the airline side not only to share the monetary consequences of demand fluctuation, but also to secure air flights from a local airport to Tokyo, to jointly enhance their various demand-inducing efforts, and to increase their utilities in order to meet the common target they set in the contract. With the LFGM contract, both sides have consistently maintained the air transport network in a relatively low demand area for more than 10 years without significant outside financial assistance. The findings from this chapter also contribute to better understanding the complex relationships among aviation entities, to the recognition of importance and potential to design properly the airport and airline contract, and to the advancement of economic and public policy analysis of this sector.

1 – 10 of 90