ANALYTICAL CHARACTERISTICS OF THE PROFITABILITY MANAGEMENT PROCESS OF THE ENTERPRISE IN MODERN CONDITIONS

Abstract

This study is dedicated to providing a comprehensive and analytical exploration of the management process involved in ensuring the profitability of entrepreneurial entities. The research delves into the examination of functional features, key stakeholder groups, and contemporary approaches to organizing effective profitability management systems. The article takes a critical stance on the conventional understanding of profit, challenging the common misconception of simplifying it to a mere mathematical difference between income and expenses. Instead, it places emphasis on unraveling the multifaceted role that profit plays in the dynamic development of markets. The study meticulously identifies and characterizes four primary functions of profit, underlining its dynamic and diverse nature in response to the ever-changing landscape of market dynamics. Throughout the exploration, the study consistently highlights the varied and sometimes conflicting interests of stakeholders deeply invested in the profitability of the enterprise. In addition to providing a theoretical foundation, the authors delve into the practical aspects by navigating through the specific tasks that confront enterprises in the complex landscape of managing profitability formation through process management. They advocate for a comprehensive problem-solving approach that spans strategic, organizational, and systemic dimensions, aiming to address the multifaceted challenges associated with profitability in a holistic manner. Furthermore, the article explores the practical application of the factor model for enterprise profitability management, offering valuable insights into how enterprises can navigate the complexities of profitability management through a structured and strategic approach. It presents a formalized circular sequence of management steps, providing a practical guide for organizations seeking effective profitability management. Going beyond the current state of practice, the study identifies and discusses promising directions for advancing profitability management processes. These include incorporating design thinking to foster a creative work environment, adopting integrated risk and income management strategies, and enhancing responsibility in management through a system that integrates economic, social, and environmental considerations. The authors underscore the paramount importance of a systematic approach to profitability management, aligning with market practices rooted in creativity, inclusiveness, and social responsibility.