Developing the production and economic system of an industrial enterprise as a way to increase its market value

Abstract

Subject. The article investigates the basic principles of business valuation and ways to increase it within the development of the production and economic system of an industrial enterprise. Objectives. We focus on examining the possibilities of business valuation and the parties interested in its implementation, consider modern approaches and corresponding methods used in valuation activities, propose directions for increasing the market value of an industrial enterprise, and assess their economic feasibility. Methods. The study rests on the content analysis of available domestic and foreign sources. We employ general scientific methods, i.e. analysis, synthesis, deduction, induction, analogy, and special methods, like empirical, quantitative and qualitative analysis, situational and systems analysis, comparative, financial, and economic analysis. Results. We reveal the need to improve the efficiency of enterprise management in the context of economic instability in the country, resulting in an increase in its market value. We considered an industrial enterprise operating in the construction sector that was seriously affected by the pandemic. Using this case, we demonstrate the implementation of the lean production concept, which has proven to be successful. Conclusions. In the current economic conditions, Russian enterprises are forced to look for new ways of development and to improve the efficiency of business management. The optimal solution for an industrial enterprise can be the ‘lean production’ cost-saving concept. If implemented, the concept shows decent results, strengthens the enterprise’s position in the market, and increases its fair value.