Next Article in Journal
Energy Efficiency in Buildings: Performance Gaps and Sustainable Materials
Previous Article in Journal
Biorefinery Based on Multiple Raw Materials and Wastes for the Production of Energy: A Proposal Tailored to Southwestern Europe
 
 
Font Type:
Arial Georgia Verdana
Font Size:
Aa Aa Aa
Line Spacing:
Column Width:
Background:
Entry

Enterprise Development Management

by
Łukasz Brzeziński
Faculty of Management and Logistics, Poznan School of Logistics, 61-755 Poznań, Poland
Encyclopedia 2024, 4(4), 1396-1410; https://doi.org/10.3390/encyclopedia4040091
Submission received: 7 August 2024 / Revised: 17 September 2024 / Accepted: 20 September 2024 / Published: 25 September 2024
(This article belongs to the Section Social Sciences)

Definition

:
Enterprise development is a multifaceted and strategic endeavor that serves as the cornerstone of an organization’s long-term success and sustainability. It represents not merely growth or expansion but a comprehensive transformation that enhances a company’s capabilities, market presence, and internal processes. This development is driven by a deliberate and systematic effort to improve performance across all areas of business activity, aligning with stakeholders’ aspirations and organizational goals. In this context, enterprise development encompasses the strategic management of the organization’s trajectory through effective planning, execution, and evaluation of development initiatives. It demands an adaptive and responsive approach to the rapidly evolving business environment, where challenges and opportunities arise constantly. This requires leveraging modern management practices and analytical tools to integrate various components of the company’s operations, including human resources, finances, technology, and marketing, fostering a cohesive and dynamic growth strategy. The essence of enterprise development lies in the organization’s ability to remain agile—capable of swiftly responding to market changes while proactively seeking and capitalizing on new opportunities. This involves not only addressing external competitive pressures but also mitigating internal risks, ensuring that the enterprise is well-positioned to navigate and thrive in complex environments. The issues related to the phenomenon of enterprise development refer to the geographical area of the so-called Global North. The aim of this entry is to explore and critically analyze contemporary strategies and models that facilitate effective management and acceleration of enterprise growth, providing a framework for organizations aiming to achieve excellence and innovation in the modern economic landscape.

1. Introduction

An organization, or more precisely, an enterprise, in order to survive in the market, strives for development, which means coordinated changes in the entity’s systems, adapting them to the constantly changing environment. These adjustments are effective if they enable the organization to achieve and maintain a competitive advantage, which is a necessary condition for staying on market. The development processes of an enterprise do not occur automatically; moreover, they are rarely confined within one organization, but on the contrary—they require joint internal and external activities. The management system, organizational skills, and relations with the environment also play important roles. The concept of development refers to the process of transformation and change, leading to more complex or improved states or forms in specific aspects of the functioning of the enterprise [1].
It should be noted that enterprise development is a concept that, on the one hand, has extensive literature, but on the other, is ambiguous and imprecise. The variety of definitions indicates various aspects of considerations through which the development of an enterprise should be interpreted. As Matejun [2] points out, the discussion on the concept of enterprise development is mainly determined by two different conceptual trends. In the first one, the authors treat the development of the enterprise only as a qualitative phenomenon, contrasting or supplementing it with a separate category of growth (identified as quantity changes). This approach referred to as qualitative-results from the belief that not every company has to grow, but each should develop, if only to adapt to the variability and complexity of the environment. The second trend derives from praxeology, where development is understood as the complementary occurrence of quantitative (organizational growth) and qualitative changes. In this approach, development means not only quantitative phenomena related to the expansion of the enterprise, but also qualitative phenomena, which include such dimensions as: growth, differentiation, structural changes, mastering organizational speed, and balance. What is extremely important is that there are mutual relations between these two dimensions of change.
The method of organizational development is defined as a collection of diverse methodologies that share a common nature. When applied, these methodologies impact one or more subsystems of the organization and alter its qualitative characteristics. All actions taken to ensure the achievement of set objectives are interconnected. Therefore, any decision to alter the form of an organization’s existence inevitably results in changes to the management system, including its structure, processes, and methods. Variations in technology lead to the creation of new production and labor management systems, which in turn support the necessary measures for effective human resource management [3,4].
Based on the above, enterprise development can be defined as a process of continuous improvement and adaptation of the organization in order to achieve higher levels of efficiency, competitiveness, and sustainable growth. It includes a number of activities aimed at increasing the company’s ability to respond to market changes, innovate products and services, and improve internal processes. The development of a company can be considered in quantitative terms, such as revenue growth or market expansion, and qualitative categories, such as improving organizational culture, increasing employee competencies, or enhancing customer satisfaction. The key element of this process is management, which integrates various aspects of the company’s activities into a coherent and effective whole, enabling the achievement of long-term goals.
The concept of enterprise development is multifaceted, and its interpretation varies significantly across different global contexts, particularly between the Global North and South. In the Global North, organizational development often emphasizes innovation, technological integration, and advanced management systems to maintain competitive advantage in rapidly evolving markets. Here, enterprises might focus on leveraging cutting-edge technology and data analytics to drive efficiency and customer engagement.
Conversely, in the Global South, enterprise development might prioritize local community engagement and sustainable practices that address socio-economic challenges. In these regions, development strategies often incorporate capacity building and resource optimization to overcome infrastructural constraints and tap into local market opportunities. This nuanced understanding is crucial, as it reflects the diverse challenges and opportunities that enterprises face globally.
This entry contributes to the broader discourse on enterprise development by examining contemporary strategies and models that are used in these diverse contexts. By incorporating relevant parameters such as cultural, economic, and technological differences, it aims to provide valuable insights for both academics and practitioners. The aim is to highlight the adaptability of enterprise development strategies to various global challenges, making the work not only relevant but also practical for a wide audience. This entry consists of two parts. The first part describes enterprise development models based on the organizational life cycle, indicating their strengths and weaknesses, as well as their relevance in the context of contemporary business conditions. The second part describes modern approaches related to managing enterprise development through a strategic approach or activities related to a certain type of organizational philosophy—which is currently an important aspect of enterprise development.

2. Selected Models of Enterprise Development

Similarly to defining the concept of enterprise development, in the professional literature, one can find many concepts aimed at describing this phenomenon. It should be emphasized that both researchers and practitioners often refer to models that compare organizations to living organisms. According to these models, as organizations develop, they go through various stages (phases) of life—birth, growth, maturation, and aging [5]. At the same time, there are also integrative and strategic approaches to this phenomenon.

2.1. Models of Phase Development of Organization

The theoretical framework for studying enterprise development is provided by organizational development theories such as the enterprise life cycle, also called phase theories. The development of these theories began in the 1960s, when McGuire, building on Rostow’s growth theory, developed a model of phased company growth. Since then, many models have been created that describe different numbers of phases with different names [5].
It is worth noting that models of enterprise development or growth phases take into account not only development phases, but also founding phases. Equally important is the way the company is introduced to the market, as this has a significant impact on its further operation and development. Development stage theories focus on the period from the establishment of a company until it reaches resource maturity. In contrast, life cycle theories cover the entire period of a company’s existence, including its collapse or cessation of operations [6].
Selected models of phase development are presented in Table 1.
It can be said that, at a given moment, each enterprise is at a specific stage of development characterized by particular problems: the adopted management system, a specific organizational structure, the scale of operations, the level of efficiency, and the technology used. Effective adaptation to the environment and introduction of changes enabling further development largely depend on proper recognition of the current stage of organizational development of the enterprise.
Analyzing the described models, it can be indicated that it is important to highlight both the strengths and weaknesses, as well as their modern-day relevance. The models of phase development of organizations offer a robust framework that portrays enterprise growth as a series of stages, similar to biological life cycles. This approach is rooted in the foundational work of McGuire in the 1960s, which itself was influenced by Rostow’s growth theory. Since that time, these models have evolved, accounting for various phases of enterprise development and including considerations for a firm’s founding and its subsequent journey to maturity.
One notable strength of these phase development models is their ability to provide a structured roadmap for organizational growth, which helps in identifying potential challenges and opportunities at each stage. For instance, McGuire’s model clearly delineates a trajectory from small-scale operations to professional management, which can be invaluable for managers looking to anticipate the requirements of scale, such as increased production capacity and mature management practices. Similarly, models like Greiner’s acknowledge organizational crises as natural catalysts for substantive change and development, emphasizing the importance of strategic leadership during transitions.
However, these models also exhibit limitations. Their structured, linear depiction of growth can oversimplify the complexities of modern business environments, which are often characterized by rapid technological changes and non-linear challenges. For instance, the assumption that organizations evolve predictably from simplicity to complexity, as suggested by models like Thiane’s, may not hold true in dynamic markets teeming with disruptive innovations. Moreover, many of these models, such as Mitzberg’s, emphasize internal structural changes but perhaps underrepresent the influence of external environmental factors, such as regulatory impacts or competitive pressures, which can unpredictably affect an organization’s trajectory.
In today’s fast-paced and interconnected business climate, the relevance of these models lies in their foundational insights, but they require adaptations in order to remain applicable. The traditional phase theories are invaluable for conceptualizing growth and management transitions, but must be integrated with flexible, agile frameworks that take into account the nuances of digital transformation and globalization. For instance, while Adizes’ model on organizational growth through structured leadership needs provides a deep understanding of internal management dynamics, contemporary organizations might necessitate agile leadership that is responsive to global market forces rather than merely procedural management styles.
Thus, while these theoretical models serve as essential tools in understanding organizational development, they must be dynamically applied and continuously updated to reflect the realities of today’s business environment. The challenge for modern enterprises is to harness these models for strategic planning while also embracing adaptive strategies that keep pace with technological advancements and complex market dynamics.

2.2. Integrated and Systemic Approaches to Enterprise Development

R. E. Quinn and K. Cameron presented an integrated model of enterprise development, moving away from the traditional linear concept of the life cycle. They used a coordinate model based on a combination of factors, such as the directions of the enterprise’s orientation (internal or external) and the type of means and goals of action. During its development, the company takes on various forms, acquiring features typical of all the models presented, with the differences being in the distribution of these features. The authors distinguished four stages of enterprise development, differing in the level of effectiveness: the stage of entrepreneurship, the stage of teamwork, the stage of formalization and control, and the stage of adjustment and renewal. Individual stages on the coordinate system have the shape of irregular lines—convex and concave [5].
In the first stage, i.e., entrepreneurship, the enterprise operates as an open system whose main goal is to achieve the threshold of survival. Creativity and entrepreneurship are the company’s assets, but as the organization grows, they become insufficient. At this point, it is necessary to create a team capable of cooperation. The open-system model must be enriched with elements of interpersonal relations. The second stage, i.e., the teamwork stage, involves the involvement of employees in the implementation of the company’s mission and goals, while the organizational structure and communication system are informal. The formalization stage is characterized by the effort to consolidate proven patterns of behavior that ensure effective functioning. At this stage, procedures, information systems, planning, and control are created and performance measures are established.
The model proposed by R.E. Quinn and K. Cameron differs from the classic phase models of enterprise development, emphasizing that enterprise management must not only take into account the current stage of development, but also integrate many different, often contradictory trends [5].
Another concept useful for analyzing the development of a company is the Ansoff matrix, which was first published in the Harvard Business Review in 1957. Ansoff, in his article “Diversification Strategies”, presented a set of strategies in the form of a matrix for companies seeking growth. H.I. Ansoff indicated the development paths of the organization using vectors in the so-called product–market matrix. In addition, he developed general principles for formulating strategies and the basis of SWOT analysis, which is still used in strategy creation today. Later, the concept was modified by other authors, and instead of vectors, it presents methods of operation: market penetration, product development, market development, and market penetration. In this approach, the H.I. matrix Ansoffa is a tool used to identify opportunities for intensive development of the company. First, it is checked whether the company can develop in existing markets with the current product, and then it considers introducing a new product or expanding into new markets. The basic strategies proposed by Ansoff, based on the product–market structure, indicate specific directions of strategic activities for enterprises. An important aspect of the interpretation and application of these strategies is their alternative nature. Although these strategies are called alternatives, the company should pursue several of them simultaneously, especially the expansion strategy. The author also suggests the sequential use of three strategies: market penetration, market development, and product development. Once the expansion strategy has been fully exploited, the company can move on to a diversification strategy [8].
In a strategic approach to enterprise development, Wasilczuk [9] emphasizes the importance of planning and choosing the appropriate strategic orientation, such as specialization, vertical integration, or diversification. Among the activities supporting development, it also indicates domestic and international expansion, introducing new products and exploring new market segments, improving existing products and activities aimed at maintaining and acquiring customers, as well as identifying and using market niches [10]. These strategies should be selected taking into account external conditions, which is crucial in an approach that takes into account the organization’s environment. It is important to take into account various factors in the global context (mega-environment), the EU and national context (macro-environment), the regional context (meso-environment), and the local context (micro-environment). These factors influence two main levels of the environment: proximal (competitive or task-related) and distal (intermediate or general). Additionally, the features of the external environment should be taken into account, such as variability, complexity, potential, attitude, time, plasticity, reactivity, reality, and predictability [11,12].
Another aspect of the model involves designing enterprise development across three key areas: strategy formulation, strategic identity creation, and establishing a developmental transformation system for the company. Extensive literature covers strategy creation, often critiquing classical approaches to strategic planning and discussing analytical perspectives relevant to contemporary business environments [13].
The internal development of a company begins with shaping its strategic identity. This process is driven by systemic factors and aims to align organizational units so that the company is recognized and valued both within the organization and in its external environment. Strategic identity encompasses shared values and core competencies that need to be enhanced from a strategic standpoint. From the perspective of the company, strategic identity can be understood through the following concepts [14]:
  • A success concept that motivates employees to act according to competitive principles (similar to vision);
  • A concept that defines the company’s future market position, allowing customers to associate the company with a specific competitive edge;
  • A concept focused on acquiring new competencies aligned with the company’s vision and providing employees with a sense of stability.
Conceptually, strategic enterprise identity represents a fundamental link between the attractiveness of the company’s future offerings (measured by the product’s value to customers) and the development of competencies that reflect the benefits for the company. It is important to note that identity is not solely centered on achieving specific targets (such as market leadership), but on creating value—a state defined by objectives from the company’s perspective. Developing strategic identity involves transforming customer values and initiating cultural changes that occur alongside acquiring new competencies and meeting the company’s goals [14].
The combination of internal and external factors as a growth determinant was also included in the model of J. Wiklund, H. Patzelt, and D.A. Shepherd [15]. In this approach, the growth of an enterprise depends on the entrepreneurial orientation, environmental conditions, organizational resources, and the owner–manager’s attitude to development processes. Each of these variables is defined and measured using a number of detailed factors.
Integrated and systemic approaches to enterprise development offer a comprehensive framework that breaks from traditional linear models, emphasizing a more holistic understanding of organizational growth. The integrated model presented by R.E. Quinn and K. Cameron illustrates enterprise development as a multifaceted process where organizations navigate through various forms and stages, such as entrepreneurship, teamwork, formalization, and renewal. This model’s significant strength lies in its ability to capture the complex, nonlinear nature of business evolution, recognizing that development involves integrating diverse and sometimes opposing trends. This is particularly relevant today, as businesses face multidimensional challenges that require flexibility and responsiveness.
However, the model’s complexity can also be seen as a weakness. The broad scope of factors, such as enterprise orientation and varied goal types, might lead to ambiguity in prioritizing actions, making the model difficult for some organizations to implement effectively without tailored guidance. Additionally, while the model provides a strategic framework, it may lack specific operational directives necessary for rapid adaptation, a critical need in today’s fast-evolving markets.
The Ansoff Matrix complements these systemic approaches by focusing on strategy formulation through a structured product–market perspective. This model excels in guiding businesses in strategic planning, particularly through its straightforward strategies like market penetration, development, and diversification. It has remained relevant due to its clarity and adaptability to different market conditions. Nonetheless, its primary limitation is the focus on market-driven strategies rather than incorporating internal competency development and innovation, which are increasingly crucial for sustaining competitive advantage in the contemporary environment.
Moreover, Wasilczuk’s emphasis on strategic orientation highlights the necessity of adapting strategies to external conditions, aligning internal resources with broader environmental realities. This alignment is vital as it ensures the enterprise is responsive to external pressures from various environmental contexts—from global to local. Yet, this approach demands extensive environmental analysis, which can be resource-intensive, potentially limiting its applicability for smaller enterprises with less analytical capacity.
In terms of strategic identity, the development of a strong, coherent strategic identity is argued to be fundamental for aligning organizational behavior with market expectations. By fostering a success-oriented culture, organizations can enhance their competitive edge and ensure long-term sustainability. This aspect is increasingly relevant as businesses strive for differentiation in saturated markets. However, developing and maintaining this identity requires significant investment in cultural and capability-building initiatives that may pose challenges, especially during periods of rapid change or under economic constraints.
Finally, the model by J. Wiklund, H. Patzelt, and D.A. Shepherd underscores growth as a result of both internal entrepreneurial initiatives and external environmental conditions. This perspective is highly relevant today, as it encapsulates the need for a balanced focus on internal strengths and external opportunities or threats. Nonetheless, accurately quantifying and balancing these diverse elements can be complex, requiring sophisticated metrics and ongoing adaptations as market dynamics shift.
In conclusion, while these integrated and systemic approaches provide robust frameworks for understanding enterprise development, their application in today’s business environment necessitates a nuanced approach tailored to each organization’s unique circumstances and strategic objectives. Businesses must blend these theoretical insights with agile, practice-based strategies to effectively navigate the contemporary landscape marked by rapid technological change and evolving market conditions.

3. Modern Approaches to Managing Enterprise Development

In the face of a dynamically changing business environment, enterprise development management has become a key area for organizations striving to maintain competitiveness and ensure sustainable development. Modern challenges, such as rapid technological progress, changing markets, and evolving customer expectations, make traditional management and strategy methods insufficient. It is imperative to adopt modern approaches that integrate innovative practices and frameworks to effectively drive organizational development and transformation.
Modern approaches recognize that the development of an enterprise is not a linear process, but a dynamic interplay of internal and external factors. Organizations must address complex challenges while seizing new opportunities. This requires a comprehensive approach that combines strategic forecasting with operational execution, enabling companies to respond effectively to market changes and technological innovations.
In recent years, the landscape of enterprise development has evolved, necessitating innovative approaches that transcend traditional management practices. The rise of digital technologies, evolving customer expectations, and the demand for sustainability have prompted organizations to rethink their development strategies. Consequently, this discussion will delve into the modern approaches that underscore flexibility, adaptability, and a holistic perspective on growth. The integration of such practices—ranging from artificial intelligence to ecosystem-based interventions—offers organizations the tools necessary to leverage new opportunities and effectively address the dynamic interplay of factors influencing their development trajectory.
By examining these modern interventions in enterprise development, this section seeks to provide a coherent understanding of how contemporary strategies can drive sustainable growth and enhance competitive advantage, thereby aligning with the core objectives of effective enterprise management.

3.1. Combinatorial Model of Artificial Intelligence for Decision Making about the Organizational Development

As Kuzior, Kwilinsk, and Tkachenko [16] point out, in order to effectively support the sustainable development of an organization, it is worthwhile to implement systems with elements of artificial intelligence. Such a step will enable decisions to be made based on artificial intelligence models that formally describe operating processes in qualitative terms. The use of artificial intelligence does not mean giving up traditional methods and recommendations based on a probabilistic approach to the business management processes of a specific organization. Artificial intelligence models complement traditional modeling approaches to create hybrid intelligence models [17]. This approach to reporting simplifies decision making and, at the same time, reduces risk.
This approach to reporting simplifies decision making and, at the same time, reduces risk. The use of artificial intelligence models requires the appropriate collection and processing of expert information, including the definition of linguistic variables that describe the parameters of the business management system and the formalization of decision-making rules. Expert ratings allow for the combination of the experience and knowledge of specialists with statistical analyses, leading to more realistic results. An additional advantage of the reporting approach to modeling is the ability to assess situations that have not yet occurred in the organization’s commercial activities and that have not yet been formalized.
In expert knowledge-based information systems, the rules (or heuristics) used to make decisions in specific domains are stored in a knowledge database. An artificial intelligence system receives tasks in the form of a set of facts about a given situation and uses these facts to draw conclusions supported by a knowledge database [18].
There is a known method of building decision models which involves selecting decisions that take into account actual uncertain situations occurring in the examined facility and matching them to situational patterns. Experts identify a list of such patterns and also match combinatorial decisions to each pattern. The process of making decisions regarding development involves comparing the actual state of the organization with model states. It is necessary to select the most appropriate pattern state for a given situation, and then, based on the matched pattern, a combinatorial decision is made regarding development parameters [19].
The authors indicate that the assignment of benchmark situations in the system promotes further sustainable development of the organization because they are used to adjust decisions in the form of uncertain matching. This is a key advantage of the model because it eliminates the need to precisely define decision-making rules, which simplifies the procedure of adapting the information management and decision-making system based on this model. It is possible to introduce various simplifications of the model, which may concern, for example, precise matching between the elements of the set of situational patterns and the elements of the set of decisions made regarding development parameters [16].
It should be noted that the use of artificial intelligence in the area of enterprise development is promising, and a significant increase in the use of this type of solutions is expected in the coming years [20].
Below are examples of applications of the described approach by selected companies:
  • Netflix: utilizes AI-driven algorithms to analyze viewer preferences and behavior, allowing it to make informed decisions about content creation and distribution. By employing a combinatorial approach that integrates AI insights with traditional market research, Netflix creates tailored content that aligns with audience demand. This strategy has led to significant audience growth and engagement, showcasing how AI can identify opportunities for organizational development based on data analysis while considering qualitative aspects of viewer preferences [21].
  • Zara: the fashion retailer employs AI in its supply chain and inventory management processes. By collecting real-time data from sales and integrating AI algorithms, Zara can respond swiftly to fashion trends while optimizing its inventory levels. This combinatorial model allows Zara to blend traditional business insights with AI predictions, enhancing its responsiveness to market changes and consumer preferences, ultimately driving organizational development [22].
  • Coca-Cola has integrated AI in its marketing strategies and consumer engagement efforts. By utilizing AI to analyze social media data, customer feedback, and market trends, Coca-Cola can refine its marketing campaigns and product offerings. This approach provides a more nuanced understanding of consumer preferences, allowing the company to adjust strategies in alignment with emerging trends and survey data, thus fostering organizational development [23].

3.2. Managing Enterprise Development by Improving Competitiveness

Increasing competitiveness is a key task of an enterprise, requiring not only modernization and launching new entities, but also shaping an innovation policy based on the assessment of its own achievements in comparison with those of the best enterprises in the areas of research, engineering, technology, environment and finance, marketing, and others [24]. In this respect, it requires the development of a control mechanism that would take into account, among others, the experience and achievements of the best enterprises [25,26,27].
The mechanism proposed by the authors will enable improvements in the control of the enterprise’s development factors by considering the experiences and achievements of leading enterprises to ensure its efficient functioning in both operational and prospective periods, thereby increasing its competitiveness. Currently, many issues related to the control of enterprise development factors remain insufficiently developed. The external environment has a strong impact on the functioning of the enterprise. Environmental factors not only have influence, but can also cause various problematic situations for the company [28,29,30,31].
Early detection and taking into account changes in the external environment is the most important task of the company’s management. The effectiveness of their solution. The tasks depend on the ability to recognize threats and achievements of other enterprises and, in due time, prevent them or use them for the purposes of one’s own development. A mechanism for controlling enterprise development factors has been developed, which allows not only for the identification of threats, but also for the assessment of the achievements of other enterprises, on the basis of which changes are introduced in specific areas of enterprise development.
The proposed mechanism will make it possible, using the achievements and experience of leading enterprises, to improve the company’s management system and increase its efficiency and competitiveness in both the current and future periods. This state of affairs may allow the company to manage its development and move to higher levels of development based on data provided by industry leaders [24].
Below are examples of applications of the described approach by selected companies:
  • Tesla, Inc. has continuously modernized its product offerings and engineering processes to enhance competitiveness in the electric vehicle market. A crucial part of Tesla’s strategy involves benchmarking its performance against traditional automotive leaders like General Motors and Ford. By leveraging cutting-edge technology and innovative manufacturing practices, Tesla has maintained a significant lead in electric vehicle production efficiency. Their incorporation of advanced data analytics for real-time performance monitoring allows Tesla to identify potential operational weaknesses early, adapt quickly, and implement best practices. This competitive advantage fuels Tesla’s ongoing growth and leadership in the renewable energy sector [32].
  • Amazon takes the approach to maintaining its competitive edge using data-driven decision making and innovative logistics solutions. By continuously assessing its supply chain performance against industry benchmarks, Amazon refines its processes, such as implementing AI for warehouse management and delivery route optimization. Furthermore, Amazon routinely innovates its service offerings in response to customer demand, enhancing its e-commerce platform’s competitiveness. This dynamism enables early identification of market trends and consumer needs, allowing for proactive management of development factors across various operational areas [33].
  • Nike has implemented an innovative business model known as “direct-to-consumer” (DTC) to improve its competitiveness in the athletic apparel and footwear market. By direct engagement with consumers through its website and mobile apps, Nike collects valuable data that influence product design and marketing strategies. The company constantly benchmarks its performance against rivals like Adidas and Under Armour, using insights from competitors to refine its approach. Nike’s focus on sustainability and innovation in materials has further set it apart as a market leader [34].

3.3. Development of Enterprises Based on the Organization Culture

The corporate culture of modern domestic industrial enterprises is a system of values and behaviors that are imposed and accepted by both the company and its employees. It is based on moral and ethical principles applied during work and communication. The discrepancy between an employee’s values and the values of the organization may make it difficult, and sometimes even impossible, to implement professional skills in a way that would contribute to the development of the company. Corporate values constitute the foundation of organizational culture and require active investment in development, support, and absorption by employees. Employee performance does not depend solely on the development of the skills and competencies necessary to perform their duties. Improving the performance of an industrial enterprise is a complex process that depends on both corporate culture and discipline [35].
Corporate culture is a key factor in the development of industrial enterprises because it affects organizational effectiveness and employee communication. In a dynamically changing world, companies must develop and adapt to changing conditions. Therefore, flexibility and readiness to meet the needs of the market and consumers become mandatory for a successful industrial enterprise. Companies must deal with the opposition between innovation and adaptation, as well as between preserving tradition and optimizing. To compete effectively, a company should always be prepared for the challenges of the times, which emphasizes the importance of the management style and decision-making system in the company—factors influencing the perception of the company by its employees [35].
The personal characteristics of company leaders are of particular importance. Their ideals and values become part of the organizational culture only when they are accepted by all interested parties, especially managers and employees. Corporate culture, which includes beliefs, values, behaviors, and decision-making strategies, shapes employee actions and defines the organization’s core identity and its interactions with society. Therefore, it plays a special role in the activities of an industrial enterprise.
To create a positive experience in interactions between employees and company management, comprehensive resources must be utilized, including specialized training to improve business interactions. Corporate culture, with its values and standards, is crucial to ensuring the long-term success of a company. Belak developed an integrated management model, MER [36], according to which the key factors of an enterprise’s success are: compliance, competitiveness, efficiency, culture, trust, ethics, ecology, entrepreneurship, synergy, and philosophy. To ensure a company’s success, its management should take into account both the external and internal environment. This means that the development of the company should correlate with the real needs of the market environment and the needs of employees in order to motivate and stimulate their innovative behavior [35].
Below are examples of applications of the described approach by selected companies:
  • Google is often cited as a prime example of an organization that has successfully developed a strong corporate culture centered around innovation, transparency, and inclusivity. The company emphasizes values such as collaboration, creativity, and employee well-being, which are integral to its organizational culture. Google’s innovation initiatives, like the “20% time” policy that allows employees to spend a portion of their work hours on projects they are passionate about, have fostered an environment where creativity thrives, leading to the development of successful products like Gmail and Google Maps [37].
  • Microsoft: Under the leadership of CEO Satya Nadella, Microsoft has undergone a significant cultural transformation aimed at fostering inclusivity and collaboration. The company adopts a “growth mindset” culture, which encourages continuous learning and adaptation among its employees. This cultural shift has led to improved employee engagement, innovation, and productivity, allowing Microsoft to regain its competitive edge and continue to thrive in the tech industry. Nadella’s focus on empathy and collaboration in leadership has reshaped Microsoft’s corporate identity and performance [38].
  • Patagonia: The outdoor apparel company is deeply committed to environmental sustainability and social responsibility, which are key components of its corporate culture. The company encourages employees to participate in environmental initiatives and empowers them to act as advocates for sustainability both within the company and in broader society. By aligning corporate culture with its commitment to the environment, Patagonia not only retains passionate and motivated employees, but also attracts consumers who value corporate responsibility, driving sustainable growth [39].

3.4. Development of Enterprises Based on Analytical Support of Strategic Management

In support of the strategic decision, Alieinykov et al. [40] developed a methodology for the fuzzy assessment of officials’ actions. It is necessary to formalize the process of fuzzy assessment of information and analytical support. The authors propose conducting research by developing a fuzzy assessment model, which is an integral part of the methodology for assessing information and analytical support for strategic management. It is assumed that there is a set of indicators whose values reflect the results of measuring or assessing the relevant properties of a set of complex objects or alternatives. All sets of indicators are organized by hierarchical levels. At each level of the hierarchy, indicators form subsets, each of which corresponds to an indicator at a higher level of the hierarchy. At each level of the hierarchy, starting from the second, there may be pointers that do not form subsets of the lower level (“leaf”). At the first level of the hierarchy, there is a subset of one (generalized) indicator. Each indicator is assigned a weight. Indicators belonging to the same subset form a fuzzy compatibility relationship.
The fuzzy evaluation model in question makes it possible to take into account all the requirements regarding the evaluation conditions and decision selection, characterized by the following properties [40]:
  • It has a flexible hierarchical structure of indicators, which allows the task of multi-criteria evaluation of alternatives to be reduced one criterion or uses a vector of indicators for selection. This allows for a fuzzy representation of compliance metrics and relationships, allowing for the implementation of a variety of relationships. It supports both forward and backward fuzzy evaluation methods.
  • It takes into account the different importances of individual indicators by assigning appropriate weights to them.
  • It contains the necessary formalization tools for software implementation and minimizes the influence of a person (expert) on the strategic assessment process.
This model eliminates the shortcomings of commonly used assessment systems, including:
  • It enables the assessment of a situation (object) and the relationship between them.
  • It allows for the processing of heterogeneous quantitative and qualitative data and offers unlimited model dimensions.
  • It enables the description of an object and its relationships, which simplifies decision making in conditions of uncertainty.
It is recommended to use this model as part of the fuzzy assessment methodology for information and analytical support of strategic management. The practical value of the results obtained lies in the development of practical recommendations aimed at increasing the effectiveness of information and analytical support for decision makers [40]. This is an aspect that significantly affects the company’s development opportunities.
Below are examples of applications of the described approach by selected companies:
  • IBM Watson: IBM has successfully integrated its Watson AI capabilities to assist organizations in making strategic decisions. Using fuzzy logic and machine learning, Watson analyzes vast amounts of unstructured data to provide insights that guide decision making. Companies like the American Express and Walmart use Watson to evaluate customer data and market trends, enabling them to make informed strategic choices based on comprehensive analytical reports. This approach enhances the effectiveness of their organizational strategies, allowing them to adapt swiftly to changing market conditions [41].
  • Ford Motor Company implemented a fuzzy logic model to improve its supply chain efficiency and resilience. By analyzing multiple criteria such as supplier reliability, cost, and delivery time, the fuzzy model allowed Ford to better assess supplier performance and make informed decisions regarding partnerships and resource allocation. The implementation of this model resulted in increased supplier performance recognition and better management of risks associated with supply chain disruptions [42].
  • Walmart employed a fuzzy logic-based decision support system to enhance its inventory management capabilities. The model helped to assess factors such as demand variability, stock levels, and supplier performance while allowing for uncertainty in sales forecasting. This approach improved stock availability and reduced excess inventory, thereby optimizing operational costs and increasing customer satisfaction. These are the questions that stimulate opportunities for development [43].

4. Conclusions

Contemporary enterprise development management in the face of dynamic changes in the business environment has become a key area for organizations striving to maintain competitiveness and ensure sustainable development. Traditional management and strategy methods prove to be insufficient in the face of challenges such as rapid technological progress, changing markets, and evolving customer expectations. It is imperative to adopt modern approaches that integrate innovative practices and frameworks to effectively drive organizational development and transformation.
Modern approaches recognize that enterprise development is not a linear process, but a dynamic interaction of internal and external factors. Organizations must address complex challenges while seizing new opportunities. This requires a comprehensive approach that combines strategic forecasting with operational execution, enabling companies to respond effectively to market changes and technological innovations.
Today’s enterprise development management methods emphasize flexibility, adaptability, and a holistic view of growth. Instead of rigid adherence to classic patterns, modern methods focus on the ability to quickly adapt and take advantage of emerging opportunities. They cover a wide range of strategies, such as the use of digital technologies, development management by improving competitiveness, organizational culture management, and analytical support for strategic management.
Examples of modern approaches include the use of artificial intelligence in making decisions regarding organizational development, which allows for more realistic decision making by combining expert experience with statistical analyses. Another approach focuses on increasing a company’s competitiveness by improving control mechanisms and benchmarking performance against industry leaders. An important element is also development based on organizational culture, which affects the efficiency and internal communication of the company.
Additionally, enterprise development is supported by analytical approaches to strategic management, such as the uncertainty assessment model, which enables effective data analysis and decision making in conditions of uncertainty. Modern approaches to enterprise development management are, therefore, key to effectively adapting to the changing environment and achieving long-term success.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

Not applicable.

Conflicts of Interest

The authors declare no conflicts of interest.

References

  1. Kamińska, A. Stymulatory i bariery rozwoju małych i średnich przedsiębiorstw w Polsce. Zarządzanie Teor. Prakt. 2015, 11, 25–32. (In Polish) [Google Scholar]
  2. Matejun, M. Absorpcja Wsparcia w Zarządzaniu Rozwojem Mikro, Małych i Średnich Przedsiębiorstw—Podejście Strategiczne; Wydawnictwo Politechniki Łódzkiej: Łódź, Poland, 2015; p. 26. [Google Scholar]
  3. Saunders, A.; Cornett, M.M.; McGraw, P.A. Financial Institutions Management: A Risk Management Approach; McGraw-Hill/Irwin: New York, NY, USA, 2006; Volume 8. [Google Scholar]
  4. Kwilinski, A. Implementation of Blockchain Technology in Accounting Sphere. Acad. Account. Financ. Stud. J. 2019, 23, 1–6. [Google Scholar]
  5. Puto, A.; Brendzel-Skowera, K. Przegląd wybranych modeli rozwoju współczesnych przedsiębiorstw. Zesz. Nauk. Politech. Częstochowskiej Zarządzanie 2011, 1, 80–82. (In Polish) [Google Scholar]
  6. Golik-Górecka, G.; Skonieczka, R. Determinanty wzrostu i rozwoju modeli biznesowego z uwzględnieniem cyklu życia organizacji. Zesz. Nauk. Politech. Poznańskiej Ser. Organ. Zarządzanie 2018, 77, 49–63. (In Polish) [Google Scholar]
  7. Koźmiński, A.; Piotrowski, W. Zarządzanie. Teoria i Praktyka; Wydawnictwo PWN: Warsaw, Poland, 2007; p. 84. (In Polish) [Google Scholar]
  8. Gorzelany-Dziadkowiec, M. Wykorzystanie Koncepcji, H.I. Ansoffa w Rozwoju Małego Przedsiębiorstwa. In Zarządzanie Rozwojem Małych i Średnich Przedsiębiorstw; Matejun, M., Lachiewicz, S., Eds.; Oficyna Wydawnicza Wolters Kluwer: Warsaw, Poland, 2011. (In Polish) [Google Scholar]
  9. Wasilczuk, J. Wzrost Małych i Średnich Przedsiębiorstw. Aspekty Teoretyczne i Badania Empiryczne; Wydawnictwo Politechniki Gdańskiej: Gdańsk, Poland, 2005. (In Polish) [Google Scholar]
  10. Lindic, J.; Bavdaz, M.; Kovacic, H. Higher Growth the Blue Ocean Strategy: Implications for Economic Plicy. Res. Policy 2012, 41, 928–938. [Google Scholar] [CrossRef]
  11. Matejun, M.; Nowicki, M. Organizacja w otoczeniu—Od analizy otoczenia do dynamicznej lokalizacji. J. Text. Inst. 2009, 100, 546–548. (In Polish) [Google Scholar]
  12. Arzeni, S. SMEs and Entrepreneurship Poland 2010. Key Issues and Policies, OECD Studies on SMEs and Entrepreneurship; OECD: Paris, France, 2010. [Google Scholar]
  13. Badzińska, E.; Wyrwicka, M.K. Models of creation and development of an enterprise—A conceptual approach. Zesz. Nauk. Politech. Poznańskiej Ser. Organ. Zarządzanie 2016, 70, 5–17. (In Polish) [Google Scholar] [CrossRef]
  14. Wyrwicka, M.K. Elements of Enterprise Development. In Integral Management and Governance: Empirical Findings of MER Model. Saarbrucken, Maribor; Duh, M., Belak, J., Eds.; LAP Lambert Academic Publishing: Saarbrucken, Germany, 2015. [Google Scholar]
  15. Wiklund, J.; Patzelt, H.; Shepherd, D.A. Building an Intergratiive Model of Small Business Growth. Small Bus. Econ. 2009, 32, 351–374. [Google Scholar] [CrossRef]
  16. Kuzior, A.; Kwilinski, A.; Tkachenko, V. Sustainable development of organizations based on the combinatorial model of artificial intelligence. Entrep. Sustain. Issues 2019, 7, 1353–1376. [Google Scholar] [CrossRef]
  17. Staub, S.; Karaman, E.; Kaya, S.; Karap Õnar, H.; Güven, E. Artificial Neural Network and Agility. World Conference on Technology, Innovation and Entrepreneurship. Procedia Soc. Behav. Sci. 2015, 195, 1477–1485. [Google Scholar] [CrossRef]
  18. Wixom, B.H.; Todd, P.A. A theoretical integration of user satisfaction and technology acceptance. Inf. Syst. Res. 2005, 16, 85–102. [Google Scholar] [CrossRef]
  19. Muggleton, S. Alan Turing and the development of Artificial Intelligence. AI Commun. 2004, 27, 3–10. [Google Scholar] [CrossRef]
  20. Enterprise Artificial Intelligence Market Research Report Information By Solution (Business Intelligence, Customer Management, Sales & Marketing), By Service (Professional, Managed), By Deployment(Cloud Deployment, On-Premise Deployment), By Industry Vertical (Retail, Healthcare, Automotive, Aerospace, Media and Entertainment, Banking and Financial Services, IT and Telecommunication) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World)—Market Forecast Till 2032. 2024. Available online: https://www.marketresearchfuture.com/reports/enterprise-artificial-intelligence-market-5794?utm_term=&utm_campaign=&utm_source=adwords&utm_medium=ppc&hsa_acc=2893753364&hsa_cam=21370418861&hsa_grp=161806669325&hsa_ad=702037994609&hsa_src=g&hsa_tgt=dsa-2088470526940&hsa_kw=&hsa_mt=&hsa_net=adwords&hsa_ver=3&gad_source=1. (accessed on 3 September 2024).
  21. Krysik, A. Netflix Algorithm: How Netflix Uses AI to Improve Personalization. Available online: https://stratoflow.com/how-netflix-recommendation-algorithm-work/ (accessed on 3 September 2024).
  22. Case Study: Zara’s Comprehensive Approach to AI and Supply Chain Management. Available online: https://aiexpert.network/case-study-zaras-comprehensive-approach-to-ai-and-supply-chain-management/ (accessed on 3 September 2024).
  23. Rogers, C. Coca-Cola: The Future is ‘AI Meets Human Ingenuity’. Available online: https://www.marketingweek.com/coca-cola-artificial-intelligence/ (accessed on 3 September 2024).
  24. Pavlenkov, N.M.; Larionov, G.V.; Voronin, M.P.; Pavlenkov, M.I. Enterprise Development Factors’ Control. Eur. Res. Stud. J. 2017, 20, 581–591. [Google Scholar]
  25. Pavlenkov, M.N.; Pavlenkov, I.M. Cross-Functional Problems of the Company’s Management and Controlling Role in its Development. In Controlling of Processes: Theory, Practice: Collected Scientific Works; VVAGS Press: Nizhny Novgorod, Russia, 2009; Volume 1, pp. 34–45. [Google Scholar]
  26. Breckova, P. Family Business in the Czech Republic. Eur. Res. Stud. J. 2016, 19, 3–16. [Google Scholar] [CrossRef]
  27. Epifanova, T.; Romanenko, N.; Mosienko, T.; Skvortsova, T.; Kupchinskiy, A. Modernization of Institutional Environment of Entrepreneurship in Russia for Development of Innovation Initiative in Small Business Structures. Eur. Res. Stud. J. 2015, 18, 137–148. [Google Scholar] [CrossRef]
  28. Kolchanova, A.; Kolchanova, P. Solving Enterprise Management Problem with Cluster Technologies and ERP—Systems (in the Context of Capital CSE System). Eur. Res. Stud. J. 2016, 19, 299–306. [Google Scholar] [CrossRef]
  29. Setyawan, A.A.; Dharmmesta, S.B.; Purwanto, M.B.; Nugroho, S.S. Business Relationship Framework in Emerging Market: A Preliminary Study in Indonesia. Int. J. Econ. Bus. Adm. 2014, 2, 59–72. [Google Scholar]
  30. Theriou, G.N. Strategic Management Process and the Importance of Structured Formality, Financial and Non-Financial Information. Eur. Res. Stud. J. 2015, 18, 3–28. [Google Scholar]
  31. Theriou, G.N.; Aggelidis, V.; Theriou, N.G. The Mediating Effect of the Knowledge Management Process to the Firm’s Performance: A Resource-Based View. Int. J. Econ. Bus. Adm. 2014, 2, 87–114. [Google Scholar] [CrossRef]
  32. Li, C.; Na, J.; Nan, K.; Qin, J.; Wu, M. Tesla’s Product Improvement Strategies in the Electric Vehicle Market. Adv. Econ. Manag. Political Sci. 2024, 92, 177–185. [Google Scholar] [CrossRef]
  33. Onggowidjojo, V.; Ellitan, L. Strategies for Achieving Competitive Advantage: The Case of Amazon. Int. J. Res. 2023, 10, 249–265. [Google Scholar] [CrossRef]
  34. How Nike Engages Customers Through Digital Innovation in Customer Experience (CX). Available online: https://www.renascence.io/journal/how-nike-engages-customers-through-digital-innovation-in-customer-experience-cx (accessed on 4 September 2024).
  35. Putilova, E.A.; Shutaleva, A.V. Corporate culture as one of the key factors of effective industrial enterprise development. IOP Conf. Ser. Mater. Sci. Eng. 2020, 966, 012132. [Google Scholar] [CrossRef]
  36. Belah, J.; Duh, M. MER Model of Integral Management: Its Improvement with Enterprises’ Key Success Factors. In Proceedings of the International Conference on Management, Enterprise and Benchmarking, Budapest, Hungary, 17–22 April 2011; Available online: https://old2.kgk.uni-obuda.hu/sites/default/files/01%20Belak-Duh.pdf (accessed on 4 September 2024).
  37. Cárcel Beltrán, H.; Gulc, A. Business culture of corporate giant—A case study of Google company. Acad. Manag. 2021, 5, 167–176. [Google Scholar]
  38. Cardenas, B. Transformative Leadership: Unveiling Satya Nadella’s Three Revolutionary Strategies at Microsoft. Available online: https://worthyleadership.com/transformative-leadership-unveiling-satya-nadellas-three-revolutionary-strategies-at-microsoft/ (accessed on 4 September 2024).
  39. Everything We Make Has an Impact on the Planet. Available online: https://www.patagonia.com/our-footprint/ (accessed on 4 September 2024).
  40. Alieinykov, I.; Thamer, K.A.; Zhuravskyi, Y.; Sova, O.; Smirnova, N.; Zhyvotovskyi, R.; Hatsenko, S.; Petruk, S.; Pikul, R.; Shyshatskyi, A. Development of a method of fuzzy evaluation of information and analytical support of strategic management. East. Eur. J. Enterp. Technol. 2019, 6, 16–27. [Google Scholar] [CrossRef]
  41. Ibm Watson. Available online: https://www.larksuite.com/en_us/topics/ai-glossary/ibm-watson (accessed on 5 September 2024).
  42. Inside Ford’s Strategic Push for a Digital Future. Available online: https://scw-mag.com/news/inside-fords-strategic-push-for-a-digital-future/ (accessed on 5 September 2024).
  43. Decking the Aisles with Data: How Walmart’s AI-Powered Inventory System Brightens the Holidays. Available online: https://tech.walmart.com/content/walmart-global-tech/en_us/blog/post/walmarts-ai-powered-inventory-system-brightens-the-holidays.html (accessed on 5 September 2024).
Table 1. Selected models of phase development. Source: [5,6,7].
Table 1. Selected models of phase development. Source: [5,6,7].
Author (Date)Model CharacteristicsPhasesKey Development Factors
McGuire, 1963Growth from a traditionally small organization to mass production with the transition to professional management.1. Small organization
2. Growth planning
3. Start of growth, or departure from the current ones conditions
4. Professional introduction management
5. Mass production
Not specified
Thiane, 1972Each stage of development is characterized not only by different goals pursued by managers, but also by different problems to be solved in the management process, types of organizational structures, and principles of functioning.1. Fight for survival
2. Dynamic youth
3. Expansion
Position of the owner, organizational structure, principles of operation.
Mitzberg, 1979The life cycle of enterprises is divided into several stages. At the beginning of the cycle, the organization has a very simple structure. Then, it goes through the stage of classic, mechanical bureaucracy, which in turn transforms into professional bifurcation with the dominant role of specialists and analysts.1. Simple structure
2. Mechanical bureaucracy
3. Professional Bureaucracy
Degree of complexity organizational structure.
Greinr, 1972The company develops until a crisis occurs, corresponding to the development phase. Successful resolution of this crisis, involving changes in the organization, leads to further growth. How the crisis is resolved determines the next phase and the next crisis.1. Product and market creation
2. Leadership
3. Delegation
4. Coordination
5. Cooperation
Age and size of the enterprise, phase of evolution and revolution, coefficient industry growth
Churchill i Lewis, 1983The company grows by going through five phases.1. Existence
2. Survival
3. Success
4. Start of growth
5. Resource maturity
Factors related to the organization: financial, human and system resources (information and planning advancement
and control), business (relations with customers and suppliers, market share, production and distribution processes).
Owner-related factors: unity of business and personal goals, owner’s skills in marketing, invention, production, distribution, managerial skills and owner’s willingness to delegate, strategic skills.
Adizes, 1989The model describes organizational growth through the prism of formalization of policies and procedures. It characterizes leadership needs in individual phases and the essence of management.1. Pre-founding
2. Infancy
3. Growth
4. Puberty
5. Flourishing
6. Stability
7. Aristocratic
8. Early bureaucracy
9. Bureaucracy
10. Death
Entrepreneurship, maintaining flexibility and integrating employees with the enterprise.
Dodge, Robbins, 1992Life cycle phases developed based on empirical research on a sample of 645 organizations from small- and medium-sized enterprises.1. Formation
2. Early growth
3. Late growth
4. Stabilization
Key development factors are perceived as activities aimed at overcoming organizational problems, such as difficulties in contact with customers, marketing planning, and market knowledge.
Smith, Mitchell, Summer, 1995As part of the study, the authors identified three top management priorities combined with suggestions for the identified three stages of the organizational life cycle.1. Establishing a company
2. Growth
3. Maturity
The authors indicated development priorities in each phase of the life cycle.
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

Share and Cite

MDPI and ACS Style

Brzeziński, Ł. Enterprise Development Management. Encyclopedia 2024, 4, 1396-1410. https://doi.org/10.3390/encyclopedia4040091

AMA Style

Brzeziński Ł. Enterprise Development Management. Encyclopedia. 2024; 4(4):1396-1410. https://doi.org/10.3390/encyclopedia4040091

Chicago/Turabian Style

Brzeziński, Łukasz. 2024. "Enterprise Development Management" Encyclopedia 4, no. 4: 1396-1410. https://doi.org/10.3390/encyclopedia4040091

APA Style

Brzeziński, Ł. (2024). Enterprise Development Management. Encyclopedia, 4(4), 1396-1410. https://doi.org/10.3390/encyclopedia4040091

Article Metrics

Back to TopTop