Sustainable Profitability Research Articles

Determinants of Sustainable Profitability of the Serbian Insurance Industry: Panel Data Investigation

This paper aims to investigate the main drivers of sustainable profitability trends in the Serbian insurance industry over the years 2008–2019 (inclusive). Our study is motivated by the fact that insurance companies contribute to economic growth, and thus it is essential to understand the factors that contribute to their financial strength and stability. We use a set of standard panel regression models, including the mixed-effects model, followed by a more robust GMM estimation to uncover the linkage between selected micro-specific, macroeconomic, and institutional factors, and return of assets (ROA) and return on total premiums (ROTP). The present paper constitutes a significant contribution to the existing literature on the account of its comprehensiveness both in terms of the institutional datasets that we use, and in terms of the methodologies we apply (in particular, mixed effects and the generalized method of moments (GMM)). The estimated parameters are model-specific, and we find that firm size, GDP, the population growth rates, political stability, and the degree of specialization (in some empirical models) all lead to higher profitability. On the other hand, we observe that excessive risk-taking and inflation (in some specifications) are inversely related to profitability. Finally, we note that regulatory quality, average wage, and life expectancies are found to be not statistically significant. Accordingly, we argue that a profitability-centric managerial strategy should be based on expanded market share and stringent risk management protocols. At the macro level, we conclude that pro-growth and pro-population policies, combined with a well-oiled institutional setting that ensures political stability, constitute the best possible prescription for strong operational performance and profit sustainability in the Serbian insurance industry.

Dynamic scheduling of heterogeneous resources across mobile edge-cloud continuum using fruit fly-based simulated annealing optimization scheme

Achieving sustainable profit advantage, cost reduction and resource utilization are always a bottleneck for resource providers, especially when trying to meet the computing needs of resource hungry applications in mobile edge-cloud (MEC) continuum. Recent research uses metaheuristic techniques to allocate resources to large-scale applications in MECs. However, some challenges attributed to the metaheuristic techniques include entrapment at the local optima caused by premature convergence and imbalance between the local and global searches. These may affect resource allocation in MECs if continually implemented. To address these concerns and ensure efficient resource allocation in MECs, we propose a fruit fly-based simulated annealing optimization scheme (FSAOS) to serve as a potential solution. In the proposed scheme, the simulated annealing is incorporated to balance between the global and local search and to overcome its premature convergence. We also introduce a trade-off factor to allow application owners to select the best service quality that will minimize their execution cost. Implementation of the FSAOS is carried out on EdgeCloudSim Simulator tool. Simulation results show that the FSAOS can schedule resources effectively based on tasks requirement by returning minimum makespan and execution costs, and achieve better resource utilization compared to the conventional fruit fly optimization algorithm and particle swarm optimization. To further unveil how efficient the FSAOSs, a statistical analysis based on 95% confidential interval is carried out. Numerical results show that FSAOS outperforms the benchmark schemes by achieving higher confidence level. This is an indication that the proposed FSAOS can provide efficient resource allocation in MECs while meeting customers’ aspirations as well as that of the resource providers.

The Correlation of Risk Management and Internal Control in Budget RKAP 2020 PT Hutama Karya (Persero)

The income statement performance of PT Hutama Karya (Persero) for the last five years is very volatile and tends to decline. PT Hutama Karya (Persero) has not been able to maintain sustainable profit growth even though PT Hutama Karya (Persero) has high value-added resources. In 2020 the Company recorded revenues of IDR 21,643 billion or decreased by 17.99% compared to the previous year of IDR 26,392 billion. Meanwhile, compared to the annual target that has been prepared, the Achievement of revenue has reached 88.44% of IDR 24,473, gross profit has reached IDR 1,866 billion or 66,26 % of IDR 2,816 billion. The increase in the cost of revenue from 88,49 % to 91,38 % was the primary lead of not achieving gross profit other than unachieved revenue. The achievement of the company's target at this time which is facing high uncertainty related to the disruption era and VUCA – Volatility, Uncertainty, Complexity, Ambiguity phenomenon has caused very rapid changes so that we need a principle as a foundation in RKAP implementation, namely risk management and internal control. In this study, the author has conducted a Correlation Analysis to determine whether there is a correlation between two independent variables, namely Risk Management (X1) and Internal Control (X2), and one dependent variable, namely Target Achievement, and how strong that correlation is in Hutama Karya. Data used by the author is primary data from several sources such as the company financial statements, compliance scoring of risk management and internal control, and secondary data from reliable sites. The population for this study is from 112 Hutama Karya projects in 2020. This study has determined that Risk Management (X1) has a "Medium Correlation" to Target Achievement (Y), while Internal Control (X2) has a "Strong Correlation" to Target Achievement (Y). Also, Risk Management (X1) and Internal Control (X2) are simultaneously correlated to Target Achievement at the degree of "Strong Correlation".

Assessing conceptual dimensions of quality service

The study aims at examining various literatures on service quality dimensions to dupe prefers strategy and policy for service oriented organizations. It also aspires to identify the relative importance of service quality dimensions analysis as one of the most important factors which influence the organization directly. This study also introduces the ROPMIS quality dimensions. This study, fully focused on service quality issues, will help to understand service dimensions issues for an organization of the earlier research work, which can be followed by service sectors to promote true quality service. Moreover, this model can be guideline for the top levels managers to understand the different aspects of service quality dimensions so that they can be able to choose the right dimensions and instruments to offer competitive service for the sate of holding sustainable growth and profitability of the organizations.

Candidate Genes and Their Expressions Involved in the Regulation of Milk and Meat Production and Quality in Goats (Capra hircus).

Simple SummaryDuring the present decade, highly selected caprine farming has increased in popularity due to the hardiness and adaptability inherent to goats. Recent advances in genetics have enabled the improvement in goat selection efficiency. The present review explores how genetic technologies have been applied to the goat-farming sector in the last century. The main candidate genes related to economically relevant traits are reported. The major source of income in goat farming derives from the sale of milk and meat. Consequently, yield and quality must be specially considered. Meat-related traits were evaluated considering three functional groups (weight gain, carcass quality and fat profile). Milk traits were assessed in three additional functional groups (milk production, protein and fat content).Despite their pivotal position as relevant sources for high-quality proteins in particularly hard environmental contexts, the domestic goat has not benefited from the advances made in genomics compared to other livestock species. Genetic analysis based on the study of candidate genes is considered an appropriate approach to elucidate the physiological mechanisms involved in the regulation of the expression of functional traits. This is especially relevant when such functional traits are linked to economic interest. The knowledge of candidate genes, their location on the goat genetic map and the specific phenotypic outcomes that may arise due to the regulation of their expression act as a catalyzer for the efficiency and accuracy of goat-breeding policies, which in turn translates into a greater competitiveness and sustainable profit for goats worldwide. To this aim, this review presents a chronological comprehensive analysis of caprine genetics and genomics through the evaluation of the available literature regarding the main candidate genes involved in meat and milk production and quality in the domestic goat. Additionally, this review aims to serve as a guide for future research, given that the assessment, determination and characterization of the genes associated with desirable phenotypes may provide information that may, in turn, enhance the implementation of goat-breeding programs in future and ensure their sustainability.

Financing in the alternative securities market: Economic and financial impact on SMEs

In Latin America, SMEs have difficulty accessing sources of financing that allow them to obtain more significant growth and strengthen their economic activity. Therefore, this paper aims to determine the impact of financing in the alternative securities market (MAV) on the economic and financial situation of Peruvian SMEs during 2017–2020. The methodology used in this study is a quantitative approach, descriptive, non-experimental design, and longitudinal measurement. In addition, a documentary analysis technique is employed. The population included 17 SMEs financed in the MAV; the paper considers the financial statements of 6 companies in the last 4 years as a sample. The results obtained show that SMEs financed through the MAV are of different categories and economic activities. Likewise, there is a predisposition of these in the issuance and placement of short-term instruments, determining a favorable economic and financial situation through the analysis of financial indicators, with sustainable profitability growth and an acceptable liquidity and solvency situation. The conclusion is that financing in the alternative securities market has contributed to the improvement of SMEs’ economic and financial state, allowing for sustainable growth and opportunities to diversify their operations.

Reconciling productivity, profitability and sustainability of small-holder sugarcane farms: A combined life cycle and data envelopment analysis

CONTEXTSustainable crop production is critical to address the grand challenges of climate change and food security, and eco-efficiency is increasingly used to assess systems sustainability. Sugarcane is a major high biomass, high input sugar and bioenergy crop but with a relatively large carbon footprint. China is the third largest sugarcane producing country. However, its production eco-efficiency remains unclear. A reliable assessment of sugarcane crop production eco-efficiency is necessary to identify the most important targets and effective strategies to improve its economic and environmental outputs. OBJECTIVESThis study aimed to i) establish an eco-efficiency assessment model framework suitable for sugarcane crop production system in general, ii) quantify the eco-efficiency of sugarcane production in China, and iii) propose strategies to improve sugarcane crop productivity, sustainability and economic profit, while reducing its environmental cost. METHODSHere, based on farmer survey data, we combined life cycle assessment (LCA) and data envelopment analysis (DEA) to determine eco-efficiency and sustainability of small-holder sugarcane farm production system in southern China. Six modelling approaches, including both input- and output-oriented, were used to assess sugarcane agriculture eco-efficiency. RESULTS AND CONCLUSIONSAn output-oriented DEA model with yield and profit as desirable and carbon footprint as undesirable outputs proved to be superior to the other approaches for sugarcane production eco-efficiency assessment. The estimated average eco-efficiency of plant (first year) and ratoon (second year) crops were 0.803 and 0.869, respectively. Under this model, yield and profit were increased by 16.6% and 180% for plant crop, and 9.62% and 38.2% for ratoon crop, respectively, with a substantial reduction, up to 28%, in carbon footprint. The farm performance analysis indicated that the most eco-efficient farmers had large farms with crop rotation systems, lower fertiliser input, a relatively higher education, more acceptance of new farming practices and products, and better access to agriculture resources, compared with eco-inefficient farmers. SIGNIFICANCEAdopting the model outputs reported here will help eco-inefficient farmers to narrow their productivity gap, increase profit and make Chinese sugarcane farming more eco-efficient. This is the first report of eco-efficiency and sustainability assessment in sugarcane production using LCA + DEA framework, with potential for adopting it to other agricultural systems.

Optimal harvest strategy based on a discrete age-structured model with monthly fishing effort for chub mackerel, Scomber japonicus, in South Korea

Currently, the catch of fishery resources in South Korea has fallen more than 40%, from 1.73 million tons in 1986 to 1.01 million tons in 2018. In particular, the amount of chub mackerel, one of the most favored fish species by South Koreans, caught in 2017 was 103,870 tons, which was only 25% of the total catch, compared with 415,003 tons in 1996. The total allowable catch system and the closed season are currently in place as a countermeasure to the continued decline in fishery resources; however, their effectiveness is questionable. Our study aims to maximize fishing profits by controlling the monthly fishing effort while maintaining the amount of chub mackerel. Discrete age-structured mathematical model was established with an optimal harvest control system. Density-dependent mortality was applied at the juvenile stage to reflect fish mortality because it is highly dependent on population density in the underage phase. The conditions of the parameters guaranteeing the existence of optimal harvest strategies were demonstrated and obtained using Pontryagin's maximum principle. We compared an optimal harvest strategies and the actual harvest strategies of fishing effort from July 2010 to June 2020. In addition, we compared the profit and biomass of the optimal harvest strategies when designating one month in a year as closed season. We also conducted sensitivity analysis by varying the price of chub mackerel and cost of fishing effort. As a result, the optimal harvest strategies are to have the highest amount of fishing effort from August to September and gradually reduce the amount of effort. The optimal harvest strategies could improve the maximum economic yield and the maximum sustainable yield by 11.9% and 10.9%, respectively, over the observed strategy. To the best of our knowledge, forecasting analysis of the maximum economic yield and closed season conducted based on optimal harvest control system for Chub mackerel in South Korea. The appropriate allocation of monthly fishing effort can increase sustainable catch and profit. In addition, it is better to implement a closed season in July to maximize the profit of fishing and in June to the resource recovery.

Changing dynamics of practice ownership

Orthodontic practice ownership currently faces challenges around sustainable profitability, revenue growth and equity transition. While these challenges are expected to accelerate in the coming years, the current and intermediate-term market outlook brings with it numerous opportunities for financial success and scale. We will assess recent history to understand what has brought us to this point, then evaluate where we find ourselves presently. Most importantly, we will give guidance on both mindset and outlook for the coming years to take advantage of the opportunities at hand.

IS THERE ANY DAY-OF-THE-WEEK EFFECT AMID THE COVID-19 PANIC IN THE MALAYSIAN STOCK MARKET?

Using daily data from January 2, 2020 to May 31, 2021, this study empirically examines the day-of-the-week effect in the Malaysian stock market during the coronavirus disease 2019 (COVID-19) outbreak. We also test the impact of the lockdown policy and market sentiment index on the stock market. We resort to ordinary least square regression with generalized autoregressive conditional heteroscedasticity specification. The finding shows that the day-of-the-week effect persisted during the COVID-19 outbreak. Monday’s returns on all selected indices were negative except for the access, certainty, efficiency market. The positive impact of the lockdown policy on Bursa Malaysia is identified after accounting for the day-of-the-week effect. This is due to the market expectation that the lockdown policy can stop the spread of COVID-19, which will lead to recovery. Further analysis uncovers that smaller capitalization stocks benefited more from the government lockdown policy announcements, which come with various stimulus packages that are more favorable to smaller companies. We also find that the United States market sentiment index negatively impacts all indices. This study unlocks and validates the contribution on calendar anomalies’ response during the COVID-19 period for Malaysia. The investment opportunity is available even during the pandemic era, leading to sustainable profit in the long term.

Impediments to the digitalization of agriculture in Africa

After gaining independence from colonial powers many African governments were preoccupied for several decades with solving the problems of food security, poverty, high unemployment and slow economic growth. Many experts believe that one of the promising areas for reducing the effect of these problems is an accelerated transformation of agriculture in African countries based on the introduction of the latest achievements in the field of digital technologies. Modern digital technologies in agriculture may not only contribute to sustainable development, increase productivity and profitability, and create new job opportunities, but also positively affect the living conditions of small farmers – the main agricultural producers in Africa. The present paper describes the most common and widespread digital information and advisory solutions and discusses how small farmers benefit from using these digital services. The paper offers an analysis of the use of mobile and Internet communications as a basis for the introduction of digital technologies. Based on these findings, the author draws conclusions about the reasons for the underutilization and slow adoption of digital technologies in Africa’s agriculture.

A grounded theory approach to understanding in-game goods purchase.

Video game companies are increasingly diversifying their profit models. Rather than relying exclusively on the sale of video game titles or the subscription model, video game companies are maximising the revenues and extending the lifecycle of their games by means of a strategy based on the sale of in-game goods. This study contributes to the theory on in-game goods purchases by explaining why and how video game players purchase different types of in-game goods. We used an inductive approach involving qualitative data analysis based on grounded theory. Six types of in-game goods are grouped into three categories: functional-based goods, probability-based goods, and ornamental-based goods. After acknowledging the heterogeneity of the categories, a conceptual framework is developed by conducting 21 in-depth interviews, from which it emerges that players purchase functional-based goods, probability-based goods, and ornamental-based goods for different motives and through the different behavioural processes. First, the purchase of functional-based goods is a strategy for entering the flow experience. Second, the purchase of probability-based goods is a compromise for purchase restrictions. Third, the purchase of ornamental goods is driven by the synergism of intrinsic motivations and exposure in the virtual world. Therefore, video game researchers should not treat in-game goods as a homogeneous concept. The findings also suggest that it is critically important for video game developers to strike a balance between the challenges of the gameplay and the skills of players because excessively raising (or lowering) the level of difficulty could pose a threat to the company’s sustainable profit.

Atlantic mackerel (Scomber scombrus) change skin colour in response to crowding stress.

Wild capture can be stressful for fish. Stress has the potential to induce mortality in released unwanted catches or negative flesh quality consequences in retained ones. Such effects compromise sustainable natural resource management and industry profitability. Mitigating stress during capture is therefore desirable. Biological indicators of stress can objectively inform fishers as to the functional welfare status of catches during fishing operations. If they are to be of practical use in mitigating stress during wild capture events, such indicators must be quantifiable, respond rapidly, reflect the level of induced stress and be easily observable. Atlantic mackerel (Scomber scombrus) are extensively targeted by purse seine fisheries in European waters but are particularly vulnerable to stress. Excessive crowding in the net is thought to be the principal stress mechanism. There is therefore a need to develop indicators of crowding stress for this species so that catch welfare can be improved. Here, we demonstrate that S. scombrus exhibit a skin colour change from predominately green to predominately blue when exposed to crowding stress. In sea cage trials, we induced various degrees of stress in groups of wild‐caught S. scombrus by manipulating crowding density and its duration. Skin colour was quantified in air using digital photography. The colour change occurred rapidly (within the typical duration of crowding events in the fishery), and its magnitude was correlated to the severity and duration of crowding. Bluer fish were also associated with higher levels of plasma lactate. No appreciable colour change was observed in uncrowded (control) groups during the treatment period. Nonetheless, unstressed S. scombrus did turn blue <1 h after death. Together, these results indicate that skin colour change has the potential to be a useful real‐time indicator of crowding stress for S. scombrus and could therefore be used to improve welfare during wild capture fishing.

Increasing Bike-Sharing Users' Willingness to Pay - A Study of China Based on Perceived Value Theory and Structural Equation Model.

Bike sharing, as an innovative travel mode featured by mobile internet and sharing, offers a new transport mode for short trips and has a huge positive impact on urban transportation and environmental protection. However, bike-sharing operators face some operational challenges, especially in sustainable development and profitability. Studies show that the customers’ willingness to pay is a key factor affecting bike-sharing companies’ operating conditions. Based on the theories of perceived value, this study conducts an empirical analysis of factors that affect bike-sharing users’ willingness to pay for bike-sharing through measurement scales, user surveys, and structural equation models. We designed a five-point Likert-type scale containing 11 latent variables affecting willingness to pay and a total of 34 measurement items. We investigate bike-sharing users in China’s first and second-tier cities, with a total of 502 participants. The results show that perceived value, payment awareness, trust, and environmental awareness constitute key factors that directly affect bike-sharing users’ willingness to pay. And perceived usefulness, perceived ease-of-use, perceived cost, and perceived risk indirectly affect bike-sharing users’ willingness to pay. However, we found no significant effects of perceived entertainment on perceived value or word of mouth on willingness to pay. Our results are expected to provide theoretical and practical implications for bike-sharing programs.

Eager to Develop Sustainable Business Ideas? Assessment through a New Business Plan (BP4S Model)

This article presents the BP4S (Business Plan for Sustainability), which builds on the literature about business models, as an innovation that considers sustainability as a characteristic of a business. Sustainability becomes the objective of business instead of being an attribute of business. This article also proposes the Global Sustainability Project Index (GSPI) as a metric to measure the effect of a business venture on sustainability to help with the decision-making on the viability of a project in supporting the pillars of sustainability. Additionally, a collection of indicators for the 3Ps of sustainability (planet, people, and profit) is also an asset of this article.

Effect of chelated mineral supplementation on productive and reproductive performance of lactating buffalo

The present study was conducted to assess the effect of chelated mineral mixture supplementation on the productive, reproductive performance and economics of lactating buffalo. Trial was conducted on 40 buffaloes of nearly at the same lactation stage, milk yield and parity selected from village- Bhakhrana, Block- Kotputli, District- Jaipur, Rajasthan. Buffaloes were divided in two groups; 20 buffaloes were kept in each group, viz. control and treatment group. Two buffaloes of each farmer were selected to maintain similarity in feeding and management practice. Treatment group was fed with chelated mineral mixture @ 40 g/buffalo/day till 90 days of early lactation period, whereas the control group was not supplemented. The data were recorded by the farmers daily in the morning and evening and by the researcher at fortnightly interval. Analysis of data revealed that supplementation of chelated mineral mixture increased the milk yield by 1.55 lit/day (15.82%) in treated group. Similarly, reproductive performance traits such as onset of first estrum after calving, no. of AI required for conception and service period were also recorded at the same interval between these groups. The B:C ratio of chelated mineral mixture supplementation was observed 1:7.75 under farmer management practices. These findings may suggest that supplementation of chelated mineral mixture enhanced the productive and reproductive performance for getting higher return and sustainable profit from buffalo farming.

Habitat requirements of Boreal Owl (Aegolius funereus) and Pygmy Owl (Glaucidium passerinum) in rear edge montane populations on the Balkan Peninsula

Rear-edge populations of montane species are known to be vulnerable to environmental change, which could affect them by habitat reduction and isolation. Habitat requirements of two cold-adapted boreo-alpine owl species — Boreal Owl (Aegolius funereus) and Pygmy Owl (Glaucidium passerinum) — have been studied in refugial montane populations in the western Rhodopes, South Bulgaria. Data on owl presence and forest stand attributes recorded in situ have been used to identify significant predictors for owl occurrence. The results revealed Boreal Owl's preference for comparatively dense forests (high canopy closure values), big trees (diameter at breast height ≥50 ​cm) and large amount of fallen dead wood in penultimate stage of decay. For Pygmy Owl the only significant explanatory variable was the total amount of fallen dead wood. Results suggest preference of both owl species for forests with structural elements typical of old-growth forests (i.e., veteran trees, deadwood), the Pygmy Owl being less prone to inhabit managed forests. Being at the rear edge of their Palearctic breeding range in Europe both Boreal and Pygmy Owls are of high conservation value on the Balkan Peninsula. Hence, additional efforts are needed for their conservation in the light of climate change and resulting alteration of forest structural parameters. Current findings can be used for adjusting forest management practices in order to ensure both, sustainable profit from timber and continuous species survival.

The role of sustainable HRM in supply chain, profitability and resource utilization

The objective of this study was to examine the role of sustainable human resources management (HRM) in supply chain, profitability and resource utilization. The mediating role of operational accuracy was also examined. Finally, the relationship between sustainable HRM, operational accuracy, supply chain, profitability and resource utilization were also examined. The relationship was investigated among the cement manufacturing companies and cement manufacturing companies of Indonesian were selected for the purpose of this study. Finally, data were collected from the Indonesian companies and employees of these companies were the respondents of the study. Finally, 450 questionnaires were distributed among the cement manufacturing companies. The results of the study show that sustainable HRM has a major role to increase operational accuracy. Sustainable HRM practices had a positive effect on supply chain, profitability and resource utilization. Moreover, operational accuracy maintained a positive role to enhance supply chain, profitability and resource utilization among the cement manufacturing companies. Moreover, sustainable HRM showed positive role in operational accuracy and operational accuracy showed positive role to enhance supply chain, profitability and resource utilization.

Global Automakers. CSR Reporting and Targeted Stakeholders 2018-2020

This paper deployed a network-based computational content analysis approach to uncover the major themes and targeted stakeholder groups presented in the top leadership’s corporate social responsibility (CSR) reports’ introductory letters for eleven major global vehicle manufacturers for the period 2018-2020. Themes were based on the 3Ps of sustainability (people, planet, and profit), basic busi­ness practices (economic, legal, ethical, and philanthropic) in the context of CSR, time orientation of the themes whether short- or long- term, and identified target­ed stakeholder groups. This study is unique in that the extant literature reveals no research examining CSR disclosure in the automobile industry from both a sus­tainable goal-directed and practices perspective incorporating potential influenc­es of the COVID-19 pandemic. Results revealed that some vehicle manufacturers focused on investor and economic activities while others communicated a general social responsibility message. During 2020, greater emphasis was placed on in­vestors and somewhat less on society in general. Findings suggest the need for a more balanced representation geared toward addressing pandemic and post-pan­demic challenges as well as traditional automotive manufacturing considerations.

ПРОЕКТНОЕ УПРАВЛЕНИЕ В РАЗВИТИИ РОССИЙСКИХ ПРОМЫШЛЕННЫХ ПРЕДПРИЯТИЙ

Currently, in conditions of fierce competition and under the influence of constantly changing external factors, the development of enterprises and the modern economy in Russia is taking place. In the modern world, all transformations occur at an unprecedented speed, overcoming the path in a few days from the idea of emergence to its implementation. These innovations concern all spheres of activity, the management and development of industrial enterprises is no exception. These trends are pushing more and more enterprises to resort to project management. These actions lead to the following changes in the organization: openness and transparency of conducting activities, setting specific goals and achieving them, attracting more employees, since everyone is interested in the success of the project, because they have their own interests. The success and sustainable development of an organization in the market depends on its ability to create and implement various innovative ideas: the creation and release of an innovative product, the development of new technologies, the application of progressive methods of conducting the organization’s activities, etc. To date, the project management method is actively used in the development of Russian industrial enterprises, as it is one of the tools for the development of the country’s economy. Project management in Russia is a new doctrine in the understanding of Russian society and every year there is a growing interest in the use of project management methods at enterprises. The advantages of this method of enterprise management consist in a clear justification of projects, control of funds and resources, minimizing risks, saving time and, in general, the effectiveness of the organization’s management. The universality of the applied project management as a tool for the development of industrial enterprises is associated with its advantages, connection with strategic management, result orientation. The importance of this approach is great in the strategic planning system, since project management is applicable in the management of state programs, large investment projects, where the key problem in implementation is low efficiency with huge budget investments. The implementation of project management in project offices in the activities of federal and regional state executive authorities has been carried out over the past years on the initiative of the President and the Ministry of Economic Development of the Russian Federation. Project management is increasingly being applied in the engineering and electronics industries, in the energy and oil industries. This management method is applicable in any organization that needs to change the system in order to develop innovative products, modernize production, needs sustainable development and profitability from doing business. The language of modern business is the language of project management, which has become the main method of management. In modern business, they say that if a company does not have project management, then it is a dying company.