Managing business competitiveness in the conditions of economical sustainability

Abstract

Competitiveness of organizations is related to the increasing level of managerial decision-making and implementation. Any facility of effective management is impossible without a deep knowledge of its processes and evaluation. The competition theory of the comparative and absolute advantage can be applied in different levels of economic systems: as for single entity and for the industry, both at regional or national levels. In the fast-changing markets and industries competitive dynamics of environmental conditions require constant monitoring, appropriate management decisions to ensure the growth of effective changes. In this article is made the analysis of theoretical aspects of competitiveness and competitive advantage, and made the assessment of competitiveness research methods, opportunities and application. Competitiveness is a complex category so it is difficult to measure and characterize it by several parameters. Competitive advantage is the entity's ability to develop the value that could exceed the value created by competitors effectively for a long term, and to achieve profitability of the branch higher than average at the same time. Internationalization process is taking part in the modern world economy, all of this inevitably affect the competitive process in which the formation of a new phenomenon is coming into force - economic consistency, and ruthless competitive struggle replaces the cooperation. This leads to a new approach in which competition is not seen as a struggle to destroy the opponent, but like co-operation, based on matches and rivalries. Subjects shaping of their business strategy, effects to competitiveness by regrouping and combining resources in a given environment. So the response to changes in each of the levels will be different because of the different available resources. To achieve an appropriate environmental conditions of economic sustainability, businessmen and governments of countries need to mobilize forces. This requires the development of large network system: economics, community, resources, technology, environment, ecology.