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Abstract

CONTENT

Introduction

Strategic management is management that relies on human potential as the basis of the organization, directs the production activity to the needs of consumers, flexibly reacts and conducts timely changes in organizations that meet the challenge from the environment and enable them to achieve competitive advantages, which together gives the organization the opportunity to survive in the long term, while achieving its goals.

Strategy is a qualitative sequence of actions and states that are used to achieve the objectives of the enterprise. The strategy, as a single activity, is part of the work on the corporate plan in terms of the most thoughtful use of available resources and concepts to achieve strategic goals [1].

In this study, the most known models of strategic management are considered, aimed at a diverse analysis of the indicators and capabilities of the enterprise, taking into account the specifics of the internal state.

Thus, the essence of strategic management is the formation and implementation of the development strategy of the organization on the basis of continuous monitoring and evaluation of the ongoing changes in its activities with a view to maintaining the ability to survive and operate efficiently in an unstable environment.

Also, the paper considers the formation of an emergent concept, as the most acceptable for enterprises of the agro–industrial complex. The importance of implementing this concept lies in the ability to change components within a single system, which gives such strategic management the flexibility and adaptive condition of the external environment.

Relevance of the research topic

The relevance of the study of concepts, methods and models of strategic management lies in the instability of the environment surrounding the enterprise, which requires from them increasingly complex and detailed control systems. It is important not only to be able to properly develop a management strategy, but also be able to apply it correctly, respond quickly to strategic challenges and prevent them in time. For this, concepts and methods should be analyzed.

Purpose and object of research

The purpose of the study is to study theoretical provisions on the concepts of methods and models of strategic management.

The object of the study is the process of strategic management in the sphere of agro industrial complex.

The subject of the research: theoretical and methodological foundations for the formation of effective strategic management in the sphere of agroindustrial complex.

1. Theoretical aspects of the strategic management of the enterprise

1.1 Strategic Management Concepts

The concepts of strategic management are characterized by the development of many different directions and scientific schools. The choice of the concept of strategic management means choosing a platform of strategic thinking, methods of forming strategies and their implementation.

Strategic management of the enterprise should proceed from the ultimate goal of the enterprise and ensure that this goal is achieved in practice. If this is not the case, if there are only separate private goals, then we will have only limited, limited cases of strategic management.

The concept of management by objectives (MBO)

One of the many interpretations of MBO can be considered the use of the well–known principle of SMART, according to which the goals should be:

  • Specific – specific to the organization / division / employee;
  • Measurable;
  • Achievable – achievable, realistic;
  • Result–oriented – results–oriented;
  • Time–based – time–based.

The concept of a Balanced Scorecard (BSC)

According to the plan of Kaplan and Norton, Scorecard contains a textual, graphical and numerical part.

The first includes the wording of mission, vision, strategic objectives, initiatives to achieve strategic goals, the names of metrics (measures) – indicators to measure the extent to which strategic objectives are achieved.

The graphical part of Scorecard is a schematic representation of the strategy in the form of a tree of strategic goals–subgoals.

The numerical part of Scorecard contains the values of key indicators (metrics) – current and target. As a basic option, BSC suggests using 4 groups of indicators (perspectives):

  • financial perspective;
  • customers (customer perspective);
  • internal perspective;
  • training and growth.

The concepts of strategic management were formed under the influence of the conditions of entrepreneurship, increased unpredictability of external processes, and increased professionalism of personnel. In addition, the emergence of a new concept did not exclude the previous one, but complemented it: prescriptive strategic management was based on long–term planning, competitive – supplemented by the previous analysis of the external environment and the position of the enterprise in it, cognitive – in addition to the indicated positions includes the process of cognition and learning in the process of strategic management, adaptive – not excluding previous developments, provides for flexibility of management and adaptation to external conditions, emergent – emphasizes adaptive ways in real time [7].

1.2 Methods and models of strategic management

In the strategic management of enterprise activities, as shown by domestic and foreign experience, a variety of methods and models are used. In the domestic economic literature, a model is understood as a formalized in terms of economic and mathematical methods a reflection of economic processes and phenomena. In the market economy, the notion of a model as a tool for developing strategies, not necessarily formalized in the form of mathematical relationships, but reflecting the dynamism of processes occurring in the external and internal environment, is widely spread.

The most famous models of strategic management are presented below.

The product life cycle model underlies the analysis of market dynamics and serves as a guide for choosing the appropriate strategy. At each stage of the product life cycle, there are problems in mastering the market, so the specific strategies of the individual phases can be taken into account with the appropriate strategies. It should be noted that there may be different life cycle configurations depending on the types of goods.

In a market economy portfolio models of strategy analysis are widely used. The classic portfolio model is the matrix of the Boston Advisory Group (BCG). The model uses two variables: the relative market shares and the growth rate. Based on these criteria, a strategy selection matrix is constructed, on which the various business lines of the enterprise are applied. This analysis helps to assess the balance of the portfolio of goods, for which the goods are placed in the matrix growth – market share. The benefits of the BCG model include its use both within the enterprise as a whole, and in its separate divisions. Undisputed advantage of this model is its visibility and ease of use.

The PIMS business analysis model is able to assess the suitability of the enterprise's capabilities to the needs of the market. It was proposed by GE on the basis of the generalization of the experience of more than 3000 enterprises in Europe and North America, is an empirical model for the possibility of comparing with it the data of a particular enterprise.

Domestic enterprises can only use the general approaches proposed in the PIMS model. To form such a model, it is necessary to generalize the experience of a large number of enterprises of different industries.

The PIMS model allows management to take into account the experience of other enterprises in their activities.

It should be noted that this method was developed for saturated, highly developed, stable markets.

The McKinsey 7C model is a way of understanding the main internal factors of an enterprise that affect its present position and future development.

The 7C model, firstly, shows the importance of taking into account when determining the quality strategy of the work and qualification of employees, i.e. skills and shared values, expressing human relations and personal needs of workers, bearing in mind the organizational culture of the enterprise; secondly, the model establishes the dependence of skills and shared values on such factors as:

  • structure (organizational charts, hierarchy in organizations, regulations and instructions, rules, etc.);
  • system (workflows at the enterprise, order and process of their implementation, accounting and control);
  • employees (determining the number of employees required by the state enterprise – quantity, occupation, qualification level, cultural level, professional suitability, etc.);
  • style (personal style of leadership and the behavior of all employees of the enterprise).

The Five forces of competition model, according to M.Porter, is one of the most common models of analysis of competitive positions of the enterprise.

M.Porter identified three main strategies that are universal in nature and can be applied to any of the above–mentioned competitive forces [2].

To such universal strategies he attributed: the strategy of leadership in reducing costs; strategy of differentiation; strategy of focusing.

Thus, the choice of this or that model of portfolio analysis should be carried out taking into account the specifics of a particular enterprise, its products and depending on the availability of information for analysis. In some cases, it is desirable to combine the models and methods used in the analysis [6].

1.3 The concept of strategic management of the development of enterprises of the agro–industrial complex

Turning to the formation of the concept of strategic management of the development of agricultural enterprises, let us dwell on the emergent concept as its main characteristic – the most complete and acceptable for the industry. Emergence (from the English emergent – arising, unexpectedly appearing) is characterized by the variability of the components within a single system. As noted by researchers, the main idea of emergent strategies is that the strategy must be developed constantly, i.e, all the time, since any organization operates in a rapidly changing environment. Consequently, emergent strategic management is a spontaneous, flexible, adaptive condition of the external environment, which is ensured by timely reaction to bifurcation processes, non–linear changes in trends of external indicators. An example of the emergent concept of strategic management is Microstrategies as an alternative to long–term strategic planning in conditions of uncertainty, presented by Logan D. and Fisher–Wright H. The main idea of the microstrategy is that they are short–term oriented, moving from one short–term goal to another. This allows the enterprise to adjust its actions in the process of achieving a global goal. The principle of emergence in our case will be realized on the formation of various blocks of information, the totality of which will give an overall picture of the development vector of agro–industrial enterprises [4].

Theoretical and methodological basis of the concept of strategic management of the development of agricultural enterprises are theories of management, decision–making, bifurcation, games. Consider the relationship between these theories and theoretical approaches to the emergence of emergent strategic management.

The basis of the concept of strategic management of the development of agricultural enterprises is a management theory that allows to form a systemic vision of the process of impact on the management object (in our case – the strategic potential) to achieve the desired strategic goals. Considering the need for a comprehensive generalization of the elements of such a vision, considering them in interrelation, the concept should also be based on a general theory of systems, where strategic management is integral, but at the same time consisting of interdependent subsystems, each of which contributes to the functioning of the system.

It should also be noted the theory of synergetic, justifying the emergence of qualitative changes in development based on the interaction of the totality of elements of an open system.

Like any theory of active management, the emergent concept of strategic management must take into account aspects of decision theory based on the concepts and methods of mathematics, statistics, economics, management and psychology in order to study the patterns of people choosing ways to solve various tasks, as well as ways to find the most profitable of them. possible solutions [8].

At the same time, adaptability as a property inherited from the concept of adaptive strategic management is realized on the basis of the theory of adaptive control, i. e, it should allow adapting the regulator parameters depending on the change in the parameters of the control object. The situational approach, which is inherent in the theory of adaptive management, presupposes an alternative to strategic management options, based on the compilation of elements of which the most acceptable one is chosen to achieve the goals. In this case, one should also mention the theory of games, which helps to choose the best strategies, taking into account the views of other participants, their resources and their possible actions.

The use of such a set of fundamental theoretical and methodological components implies the use of a number of methods, which together are a methodical approach to assessing strategic potential as an object of strategic management and the criterion for making managerial decisions, as well as a mechanism for forming a strategy based on them.

Conclusions

The growing dynamism of changes in the company's environment, increased competition, increased threats and opportunities for business, the globalization of economic processes and a number of other factors have necessitated strategic management. Strategic management, carried out by the top management of the organization, involves establishing dynamic interaction of the organization with the external environment in order to search for and use the opportunities that enable the organization to survive in the long term in the face of tough competition.

The means for implementing strategic management are concepts, methods and models. Each of these tools is selected based on the mission and objectives of the organization, to analyze the environment, the firm's potential, the dynamics of the product's life and a number of other factors. The definition and choice of concepts and methods depends on what purpose the enterprise pursues.

In the study of strategic management, its methods, models and concepts, the most common were analyzed.

Summing up the analysis of the models of strategic management, we should note that the choice of the model should be carried out taking into account the specifics of a particular enterprise, its products and depending on the availability of information for analysis.

Thus, the introduction of an emergent strategy in strategic management will provide us with the following advantages:

  • focus not on the competitor, but primarily on the consumer;
  • engaging creativity and strategic thinking;
  • characteristic processes here: controlling, a combination of elements and variability [9].

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