Social Component of Business Model Competitiveness: Analytical Dimension and Management Approaches

Abstract

The article studies the role and significance of the social component infortifying competitiveness of the company's business model. The main management technologies used to ensure the development of the social component of a business are outlined. The main purpose of the study is the theoretical and practical substantiation of the impact the social component has on the business model competitiveness and further improvement of management measures for its development. The study areas were focused on: A) analysing the impact the social component has on the business model competitiveness of an enterprise; B) assessing the business model competitiveness for a trading company: C) identifying areas for improving the management of the internal social component in the company. Among other things, the study was basedon the results obtained from a survey of entrepreneurs on the social component of business model competitiveness. In order to position themselves in the face of intensifying global competition, companies need to link their social component to their operations and business model in such a way that they can operate cost-effectively and competitively. The social component of the competitiveness of a company's business model is presented as a ‘soft technology’ for gaining competitive advantages. The initial indicators used to test the competitiveness components of the business model of a trading company were systematised. A matrix of potential advantages for trading companies that implement social competences in conditions of increased dynamism and uncertainty of the external environment was presented. Practical recommendations for evaluating social investments within the scope of internal audit for management purposes were provided. For this purpose, the document “Assesment of the company's social investments based on qualitative indicators” was developed.