A procedure for evaluating development potential in the area of production capacity

Abstract

Development potential understood in a general sense is a criterion for assessing a given system (companies, institutions or the national economy), measuring the possible achievement of projects at a high level of effectiveness and the ability to increase wealth and stimulate growth in various areas of activity (reflecting the value of strategic potential). The paper presents the characteristics of a company’s development potential and its measurement at the level of a multi-criteria analysis. This formula is presented in the context of qualitative research which is referred to different assessment criteria. Because of the diversity of primary criteria and sub-criteria, development potential estimations are based on aggregate qualification. It results from the fact that development potential can be considered from the perspective of partial components or as an aggregate. The author proposes IPXi as a measure for estimating development potential. It refers to a company’s production capacity which can be estimated at different qualitative levels: considerable potential, satisfactory potential and the lack of potential.