Theory of improving business efficiency at enterprises The concept of business efficiency In the current market economy; to ensure the strong existence , stability and long term development of enterpr.
1.1 Theory of improving business efficiency at enterprises 1.1.1 The concept of business efficiency In the current market economy; to ensure the strong existence , stability and long-term development of enterprises, to cover capital to ensure and to constantly improve the living standards of employees, while ensuring the independent development of enterprises , while satisfying To satisfy the requirements of society, there is no other way than the production and business activities of enterprises must be effective In a general sense, business performance is a measure of quality of business activities, reflecting the level of management capacity, using elements of the business process in the enterprise, in order to achieve the highest results at the lowest cost At present, it is difficult to find a consensus on the concept of economic efficiency According to the first concept, Stephen E Margolis supposed that "Efficiency is the result achieved in economic activity is the revenue from the consumption of goods"[ CITATION Mar87 \l 1033 ] According to this concept, efficiency is identified with the indicator reflecting production and business results With this concept, efficiency shows the business scale of the enterprise ; the level of meeting market needs as well as the company's competitiveness in the market, which most directly shows the entire business process of the enterprise However, this concept is synonymous with the assumption that equal revenue is the same, and that increasing revenue is more efficient, which does not reflect the level of input costs to achieve that revenue and it is difficult to explain the increase in revenue due to increased input costs If, with the same result, there are two different costs, it is also considered effective from this point of view This view is only true when: production and business results increase at the same rate as costs The second concept says that: "Business efficiency is measured by the difference between the business results obtained and the costs spent to achieve that result", which is the profit (profit, loss) from business activities business The advantage of this concept is that it reflects the essential relationship of efficiency to economic efficiency It has been associated with results with all costs, with