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Management concept of economic potential development of Donbass coal mining enterprises

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  • I. V. Petenko
  • I. V. Kochura

Abstract

Balanced development of all aspects of a company’s activity requires creating appropriate development strategies with economic potential as the basic category. The issue of efficient company management and its development is connected with the management of its economic potential development. Special attention should be drawn to Donbass coal mining enterprises which have been seriously affected by the political situation in the state environment of the Ukraine. Due to the abolition of subsidies and reduction of budget investments a huge number of unprofitable mines have been closed. Problems with supplies of utilities and sales of coal outside Donetsk region interfere with the smooth manufacturing process. Thus, development of coal mining industry is impeded by lack of market pricing mechanisms and appropriate railway traffic, poorly developed banking and other social, economic and environmental problems. Yet, mining is one of the most significant industries and occupies an important place in the economy of Donetsk region, and is very capable of increasing its production volumes. The authors have analized the research on the problem of management of economic potential development of economic entities of different levels. They introduce the notion of «potential development of coal mining entreprise». The authors have analized the macroenvironment of the region and used it to reveal limitations, threats and opportunities of development of coal industry. They present qualitative analysis of the internal environment of mining enterprises which identifies factors and parameters of their economic potential and suggest the most appropriate method for its assessment and prognosis. They have created a concept of management of economic potential development of a company adapted to the modern conditions and specific character of coal mining enterprises of Donbass.Â

Suggested Citation

  • I. V. Petenko & I. V. Kochura, 2020. "Management concept of economic potential development of Donbass coal mining enterprises," Russian Journal of Industrial Economics, MISIS, vol. 13(2).
  • Handle: RePEc:ach:journl:y:2020:id:794
    DOI: 10.17073/2072-1633-2020-2-193-205
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