Strategic Evaluation of the Enterprise Relationship with the Economic Impact Groups

The article outlines the problem of the strategic evaluation of the enterprise relationships with the economic impact groups (stakeholders). This evaluation is a part of the strategic controlling and lies in quantiiable (absolute or relative) determining of the enterprise interests concerning the economic impact groups, its contribution to their activities and vice versa – interests and contributions of economic impact groups to the enterprise activity in order to balance their interests. Purpose – The article aims to justify the main objectives, indicators and methods of strategic evaluation of enterprise relationships with the economic impact groups. Design/Methodology/Approach – In the article, which is the result of a case study, the methodological basis of the study is fundamental provisions on enterprise development strategy in the context of its cooperation with economic impact groups and methods of strategic evaluation of this cooperation. Findings – Methods of strategic evaluation of enterprise cooperation with the main economic impact groups have been developed. Originality/Value – Scientiic substantiation of possible ways of strategic evaluation of enterprise cooperation with internal and external economic impact groups feasibility and effectiveness. Article type – Original paper.


Introduction
Peculiarities of the market competitive relations in conditions of globalization shape new requirements to quality management, and thus to the methods of its implementation. Considerable volatility of a inancial-economic environment, its dependence on political, social and environmental factors dictate the need to focus attention not only on management of internal business -processeses, but also on the identification and Strategic Evaluation of the Enterprise Relationship with the Economic Impact Groups 61 2 position in the market and create an effective strategy for economic development.
In the activity process each company interacts with a wide range of economic and social subjects that operate both in the environment of the enterprise and beyond. Some subjects can affect business processes, and, hence, the financial and economic performance as well as market position of the enterprise, while others -such as public environmental organizations -show the interest to its activity results, but do not have direct leverage. Those socio-economic subjects, who can directly or indirectly influence the organizational and economic aspects of the enterprise, and because of thisits financial performance -are called the economic impact groups or stakeholders. The researchers emphasize that analyzing the environmental factors, the enterprise attention should be focused on the emphasizing, evaluation, planning and prediction ofthe relationships results with major economic impact groups.
According to Robert Edward Freeman -developer of the stakeholders management theory, selection of the economic impact groups and understanding of their interests as well as mechanisms for business influence enables to structure and optimize the process of relationships management with them. In his concept he distinguishes six stages of the analysis process of stakeholders impact on enterprise and management of their expectations (Freeman, 1984), which are presented in a somewhat simplified form in Figure 1. Babiak, 2013). Cherep and Severyna (2012) stress on the necessity of controlling of inluence results onthe enterprise of subjects, economically interested in its activity. However, despite some achievements on this problem, the issues on the organization and methods of the system formation and functioning of the processes strategic controlling and the results of enterprise interaction with major groups of economic impact, including strategic evaluation, are not investigated enough.

The economic impact groups and the need for assessment of the relationship with them
There could be a large number of economic impact groups on the enterprise activity. Detailed classiication of the economic impact groups is done in Oleksiv (2013), where almost ten classiication features are distinguished. However, we believe that classiication features, which are listed in Table 1, are the most essential for the controlling economic assessment of enterprise relationship with such groups. The economic impact groups divided into internal and external according to the environment to which they belong to ( Figure 2).
The internal impact groups include the owners (shareholders, stockholders), managers and employees of the enterprise and their professional and civic organizations. The special place among these groups belongs to the enterprise owners, as they, on the one hand, represent the enterprise, and, on the other hand -are interested in the growth of its value, income and revenue and are able to inluence it. The peculiarity of this group is that the interests of internal stakeholders are often contradictory and sometimes antagonistic. For example, the desire of workers to receive bigger salary is contrary to the needs of management to reduce costs and the desire of management to gain bigger autonomy -the desire of shareholders to have bigger control over the enterprise. However, an effective solution to this problem, as is observed by the most scholars, lies in reconciling of the interests of different groups, particularly in building motivation system, which is based on the enterprise results in general.
External impact groups are public authorities, suppliers, customers, investors, creditors and other groups. These groups can inluence: • capacity utilization of the enterprise; • production output and realization of the product and its quality; • enterprise resources eficiency; • effectiveness of management decisions making and implementation (management effectiveness); • social protection of workers; • costs and risks of operating, investment and inancial activity of the enterprise; • the image of the enterprise and its brand.
Many economists believe that the beginning and development of the global inancial crisis of 2008-2009 was caused by the fact that the company management was carried out on the basis of agency theory, according to which the main purpose of the enterprise is to maximize the welfare of the owners, without proper taking into consideration the interests of other socio-economic subjects. Statistical data show that consideration of the workers interests, consumers, society and the environment in the development strategy of the leading companies in the world, belonging to the Fortune 500 list, helped to improve the inancial performance of their activities. Therefore, in order to ensure a sustainable competitive position in the market the enterprise needs not only eficiently use its own resources, but also to interact actively with key groups of economic impact. According to the theory of stakeholders (economic impact groups), an enterprise is not only economic integrated structure and income source but also an element of a system in which the enterprise operates, feeling the impact of the external environment and, in turn, inluencing it. Thus, the enterprise can avoid many economic problems, if it is able to develop effective relationships with different economic impact groups. This requires assessment of the mutual interests and contributions of both enterprise and economic impact groups as well as understanding of the need to balance them.

Objective of the strategic evaluation of the enterprise relationships with economic impact groups
In modern conditions the enterprise relations with major groups of the economic impact should be one of the most important objects of its production and economic activity strategic controlling.
Strategic controlling of the enterprise relationships with economic impact groupsa system of information and methodological support of management decisions concerning cooperation development with key groups of stakeholders, which involves the integration of prediction methods, planning, inancial and economic diagnostics, coordination, control, formation of information security and internal consulting for growth of the enterprise competitiveness in the short-and long-term perspective. One of the most important components of such controlling is a strategic assessment of their relationship.
Different economic impact groups have their interests concerning the enterprise and, at the same time, ensure its activity with certain contributions in the form of capital, qualiications, investment, credits, inancial resources, etc. Interests of the economic impact groups can have both inancial and non-inancial nature. Besides, these interests may change or have alternate direction and cause conlicts of interests as well as related risks. Deining the strategic objectives of development, the enterprise must not only take into account, but also use the interest of stakeholders to ensure sustainable competitive positionat the market.
The organization of strategic controlling of the enterprise relationships with key economic impact groups is intended to provide information and methodological support of management decisions making aimed at improvement of such relationships effectiveness, reduction of the level of associated with them costs and risks, improvement of inancial and economic activity results, and, therefore, the market value and competitiveness in the current and long periods. Formation of strategic controlling system of the enterprises interaction processes with stakeholders should be directed at the major tasks solution that are shown in Figure 3.
The main objects of strategic assessment of enterprise interaction with stakeholders in the strategic controlling system should be: the interests of the enterprise and stakeholders on the activities of each other; enterprises contributions in the activities of stakeholders and stakeholders in the activities of the enterprise; processes of enterprise relationships with stakeholders and their consequences ( Figure 4).
Taking into account the fact that the number of key groups of different enterprises economic impact can be quite large, and their composition differ for the simpliication

Evaluation of the Enterprise
Relationship with the Economic Impact Groups of the strategic controlling system, it is appropriate to systematize all groups according to the following features: 1) the group impact level on the enterprise activities results; 2) level of the enterprise inluence on the economic entities indicators interested in its functioning. Materiality of the enterprise and stakeholders mutual inluence can be estimated by analyzing the indicators of their actual or estimated share in the capital, revenues and proits, costs, volumes of supplies of resources, loan portfolio, investments, etc. On the basis of this assessment it is possible to develop variants of the enterprise strategic behavior in different stakeholders groups ( Figure 5).
Options alternativity for strategic behavior with regard to the economic impact groups causes the use of different approaches to the controlling organization. Obviously, the main attention should be focused on the processes controlling and the implementation of relationship of business entities groups with high level of inluence intensity.

Strategic controlling objects of the enterprise relationships with stakeholders
The enterprise contribution to the stakeholders activities The enterprise interests on the stakeholders activity  It should be noted that under certain conditions the inluence of some groups of stakeholders on the results of the enterprise activity may be positive, and of the othersnegative. Therefore, the next task, and thus stage of system formation and instruments choice of strategic controlling should be identification of the impact type of major stakeholders groups, namely determining the conditions under which a certain group favorably or adversely will affect the enterprise activity. This will help to determine the potential possibilities for further development of economic relationship between the contractors and improvement of their eficiency, identify sources of cooperation risks appearance and, thus, to form an appropriate system of measures concerning its improvement.
One of the most important tasks of strategic controlling of enterprise relationships with economic impact groups is assessment of their interests peculiarities with regard to the enterprise activity and contributions to this activity. Interests of the economic impact groups are associated with beneits and compensations in whatever form that they may receive as a result of cooperation with the enterprise. In order to receive the expected results, the economic impact groups, in turn, must perform certain contributions to the activities of the enterprise in material, inancial, labor or other forms.

System of the eficiency indicators of enterprise relationships with the stakeholders
System formation of the eficiency indicators of enterprise relationships with major groups of economic impact requires the following research: 1) strategic interests and strategic guides of economic impact groups activity regarding the enterprise in the market environment; 2) expectations of enterprises and economic impact groups regarding the development of internal and external operating conditions; 3) incentives for the formation of formal and informal relationships between the enterprise and the economic impact groups; 4) mutual obligations that arise in the relations of the enterprise with major economic impact groups; 5) contribution of the enterprise and economic impact groups to the formation and development of market relations; 6) inancial and non-inancial results of the interaction between the enterprise and stakeholders.
In order to identify strategic goals, interests, expectations, as well as external and internal stimuli of the relationship development between the enterprise and major economic impact groups it is possible to use methods of the strategic analysis, the results of which allow one to establish and organize types of obligations which arise between the enterprise and stakeholders. In particular, it is necessary to identify and assess the level of economic, legal (legislative, contractual), social, ethical mutual obligations and their possible changes.
To implement existing commitments and meet the mutual interests of both enterprise and economic impact group -dues are made to the promotion and development of market relations in the form of capital, logistical and inancial resources, technologies, labor, intelligence and so on. The list of interests and dues of economic impact groups in the economic activity of the enterprise and vice versa (interests and fees of enterprise in the activities of key economic impact groups) and the main indicators of their evaluation are provided respectively in Table 2 and Table 3.

Methods of feasibility evaluation and enterprise relationship effectiveness with stakeholders
The feasibility and effectiveness of enterprise relationship with stakeholders can be assessed by comparing their dues to the development of each other. For enterprises it is desirable when its dues to a certain economic impact group do not exceed the dues of this group in the enterprise, 11 enterprise; Timeliness of payments for the sold products Duration of the granted delay on payments for the delivered products Suppliers Volume, delivery time, price and quality of resources ---------------------------------Volume, quality and range of supplied products; The level and dynamics of prices for the delivered products; The share of innovative products; Duration and volume of the obtained commercial loans and discounts The money paid for the products purchased from suppliers;

Methods of feasibility evaluation and enterprise relationship effectiveness with stakeholders
The feasibility and effectiveness of enterprise relationship with stakeholders can be assessed by comparing their dues to the development of each other. For enterprises it is desirable when its dues to a certain economic impact group do not exceed the dues of this group in the enterprise, where, i Bn та i Bc -respectively, enterprise dues to the i-th group of economic impact and dues to the i-th group in the enterprise. For the totality of the economic impact groups with which the enterprise has mutual relationship, formula (1) will look as follows: where,

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The level of profitability from sales; The level of prices for products; Duration of orders realization by the enterprise; Timeliness of payments for the sold products services; The volume of the provided price discounts; Duration of the granted delay on payments for the delivered products

Suppliers
Volume, delivery time, price and quality of resources ---------------------------------Volume, quality and range of supplied products; The level and dynamics of prices for the delivered products; The share of innovative products; Duration and volume of the obtained commercial loans and discounts The volume of paid interests on received loans; The volume of paid commission payments; The volume of placed deposits Source: Authors' own study.

Methods of feasibility evaluation and enterprise relationship effectiveness with stakeholders
The feasibility and effectiveness of enterprise relationship with stakeholders can be assessed by comparing their dues to the development of each other. For enterprises it is desirable when its dues to a certain economic impact group do not exceed the dues of this group in the enterprise, where, i Bn та i Bc -respectively, enterprise dues to the i-th group of economic impact and dues to the i-th group in the enterprise. For the totality of the economic impact groups with which the enterprise has mutual relationship, formula (1) will look as follows: The level of profitability from sales; The level of prices for products; Duration of orders realization by the enterprise; Timeliness of payments for the sold products services; The volume of the provided price discounts; Duration of the granted delay on payments for the delivered products

Suppliers
Volume, delivery time, price and quality of resources ---------------------------------Volume, quality and range of supplied products; The level and dynamics of prices for the delivered products; The share of innovative products; Duration and volume of the obtained commercial loans and discounts The volume of paid interests on received loans; The volume of paid commission payments; The volume of placed deposits Source: Authors' own study.

Methods of feasibility evaluation and enterprise relationship effectiveness with stakeholders
The feasibility and effectiveness of enterprise relationship with stakeholders can be assessed by comparing their dues to the development of each other. For enterprises it is desirable when its dues to a certain economic impact group do not exceed the dues of this group in the enterprise, where, i Bn та i Bc -respectively, enterprise dues to the i-th group of economic impact and dues to the i-th group in the enterprise. For the totality of the economic impact groups with which the enterprise has mutual relationship, formula (1) will look as follows: -respectively, enterprise dues to the i-th group of economic impact and dues to the i-th group in the enterprise. For the totality of the economic impact groups with which the enterprise has mutual relationship, formula (1) will look as follows: where n -number of the economic impact groups that have a relationship with the enterprise. Obviously, the relationship of the enterprise with major economic impact groups will develop effectively if their interests and dues meet the activities objectives and support the expected results receiving. Thus, the system functioning of the strategic controlling system of the relationship between enterprise and stakeholders should ensure the balance of their interests and dues of the respective commitments and, on this basis, increasing of competitiveness and the market value of the enterprise.
where n -number of the economic impact groups that have a relationship with the enterprise. Obviously, the relationship of the enterprise with major economic impact groups will develop effectively if their interests and dues meet the activities objectives and support the expected results receiving. Thus, the system functioning of the strategic controlling system of the relationship between enterprise and stakeholders should ensure the balance of their interests and dues of the respective commitments and, on this basis, increasing of competitiveness and the market value of the enterprise.
In order to establish a list of the most important stakeholders for the enterprise it is appropriate to use the method of expert estimates. At expert assessment it is desirable to consider not only the current character and level of the enterprise interests and individual stakeholders, but also to predict their development in the short-, mediumand long-term periods.
To ensure the model simplicity, interests and dues of stakeholders and enterprise should be assessed according to no more than three major indexes.
Quantitative assessment of the interests and dues of the enterprise and stakeholders can be made using the methods of strategic analysis and prediction, such as the method of construction of the enterprise proile, the method of standardized assessments, benchmarking, coeficient method and others.
In the process of controlling it is necessary to identify and estimate values of interests indicators and stakeholders dues with regard to the enterprise activity, interests and dues of the enterprise in the stakeholders activity and analyze the balance indicators of the enterprise and stakeholders mutual interests.
As an example of the strategic evaluation of the enterprise relationship with economic impact groups we consider relationship with managers (internal inluence group) and customers (external inluence group). For this, we use the coeficient method which provides the opportunity to make values ranging of the studied indicators. The source of information for this assessment is the information which is formed in the managerial accounting. Quantitative assessment of the managers interests and of buyers concerning the enterprise activity and their dues to this activity are presented in Table 4.
Quantitative assessment of the enterprise interests with regard to managers and customers activity, and their dues to this work are presented in Table 5.
From the data presented in Table 5, interests and dues of the enterprise with regard to Managers 1 and 4 and Customers 3 and 5 are unbalanced. Thus, for the enterprise, it is advisable to increase dues to the activity of Manager 4 and Customer 3, to develop interests and control dues to the activity of Manager 1 and Customer 5.
Also, comparison of the indicators meaning of the interests level of and dues listed in Tables 4 and 5, allows one to make the conclusions that dues of Managers 3 and 4 and Customers 1 and 2 in the enterprise activity exceed the enterprise dues in their activities. Therefore, the enterprise must develop and organize activities concerning the development of business interests with these counterparties.
From the data presented in Table 4 and 5, it is possible to make conclusions on the balance of interests and dues of the enterprise and stakeholders. However, for the economic evaluation of the cooperation results between them is not enough. This requires additional calculations. We will show this by the example of suppliers, who play almost the most important role among external economic impact groups. In fact, it is impossible to do economic activity or realize a certain project without having machinery and The main interests of the enterprise in relation to suppliers are: • scope of delivery -the enterprise in terms of implementation of control functions for deliveries better to have a contractual relationship with the least number of suppliers; • products range -ceteris paribus the enterprise will prefer supplier who can provide the widest range of products; • quality of a supplier's product must meet quality predicted by technological regulations for production, because if the quality is below the required, it results in lower quality of manufacturer production, whereas high quality means an increase of its price; • price of the products unit -the enterprise always chooses a supplier who will offer their products at a lower price. However, one should take into account such factors as: the need for advance payment or the possibility of avoiding it, postponing of payments for delivery (commodity credit), the presence of different types of price discounts (reduced prices for regular customers, the number of purchased goods, for payment in cash, for the timely payment of the delivered goods, for complete purchase of goods, etc.). This allows you to consider not only the direct beneit of the enterprise from the collaboration with a supplier, but also indirect beneits. The main stages of the selection of suppliers and economic evaluation of the possible results of cooperation with them are shown in Figure 6.
On the hypothetical example, we consider a procedure to assess the enterprise interests with regard to its suppliers, selection of suppliers and determining of the deliveries volume of their products. Let the enterprise obtain the necessary goods of a certain products group froma certain product line from six suppliers. The amount of monthly purchases (needs) -5,000 products. The average price of one product unit at the time of evaluation -205 UAH. Assessing the quality of the supplier's products, the enterprise determined that the quality of two of them is lower than it needs by technological card of this company making products. Thus, these suppliers further will not be considered, and, therefore, there are only four suppliers left. Evaluation of the direct beneits of cooperation with each of them is shown in Table 6.

Supplier
Price of production unit of supplier, UAH 1,000 (205-200)= 5,000 3,000 (205-203)= 6,000 2,000 (205-206)= -2,000 2,500 (205-207)= -5,000 Source: Authors' own study. their products at a lower price. However, one should take into account such factors as: the need for advance payment or the possibility of avoiding it, postponing of payments for delivery (commodity credit), the presence of different types of price discounts (reduced prices for regular customers, the number of purchased goods, for payment in cash, for the timely payment of the delivered goods, for complete purchase of goods, etc.). This allows you to consider not only the direct benefit of the enterprise from the collaboration with a supplier, but also indirect benefits. The main stages of the selection of suppliers and economic evaluation of the possible results of cooperation with them are shown in Figure 6. Assessing its interest, the enterprise must consider not only the direct beneit based on a comparison of the average prices wih the price of the supplier, but also beneit associated with deferred payments for goods (with suppliers providing commercial credit) and with possible price discounts. This beneit can be calculated at the price raised to purchase goods of inancial resources on the basis of: inancial resources volume; the duration of their involvement; loan interest rates. Example of calculation considering indirect beneits is presented in Table 7.
To meet the enterprise needs in suppliers products in the amount of 5,000 units (including indirect beneits per unit of output) -it can be due to the supply from: Supplier 1 -1,000 it.; Supplier 2 -3,000 it.; Supplier 4 -1,000 it.

Conclusions
Strategic assessment of enterprise relationship with economic impact groups is a part of the of strategic controlling -one of the most effective systems of management functional support. Analysis of the enterprise environmental factors provides isolation, evaluation, planning and prediction of cooperation results with the major groups of economic impact. The main objects of strategic assessment of such cooperation should be the interests of the enterprise and stakeholders with regard to the activities of each other, enterprise dues in stakeholders activity and stakeholders in the activities of the enterprise as well as enterprise relationships processes with stakeholders and their consequences. These objects allow one to form a system of indicators on which strategic assessment methodology of feasibility and effectiveness of enterprise relations with contractors is based. Results of the strategic assessment form the basis of the interests balance of both enterprise and each economic impact group.