Strategy as a tool for ensuring the efficient functioning of the enterprise

Theoretical developments, scientific and practical substantiation of the expediency of using strategizing as a guarantee of long-term effective functioning of enterprises under the conditions of strengthening transformational processes in the economy.

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Khmelnytskyi National University

STRATEGY AS A TOOL FOR ENSURING THE EFFICIENT FUNCTIONING OF THE ENTERPRISE

Valentyna LUKIANOVA,

Tetiana HOLOVACH,

Iryna ZAKRYZHEVSKA

Annotation

The real sector of Ukraine's economy is currently characterized by crisis phenomena that hold back the pace of its recovery. In this regard, focusing on short-term development programs, the absence or wrongly chosen strategy leads only to the localization of losses and to a decrease in the efficiency of enterprises in the long term. In turn, this necessitates the implementation of strategic management, which provides an opportunity for enterprises to ensure economic growth and get out of a crisis state. The article presents developments in the field of strategic management, highlights methodological problems of strategizing. Theoretical approaches to the formation of enterprise strategies are considered. It was established that the process of strategic management in Ukraine requires the use of modern technologies and tools. That is why there is a need to deepen research into the theoretical and methodological foundations of strategic management at all levels.

The necessity of using the strategizing system as a tool for mobilizing internal reserves, taking into account external factors, forming and implementing strategies, promoting the development of the enterprise in the long term, is substantiated. By considering the stages of the process and strategizing tools, it is possible to conclude that the chosen strategy meets the goals, opportunities, and requirements of the enterprise's external environment.

To characterize the real (initial) strategic processes taking place at enterprises, it is necessary to take into account the peculiarities of different types of enterprises, their branch affiliation and competitive status. The initial strategic processes determine the individuality of the strategic choice of business processes for their further optimization, and the criteria for their selection are formed.

Timely detection of problems and implementation of measures to adjust the process or content of strategy implementation, review of goals, is impossible without the use of strategic control, the key element of which is the system of indicators. This system should contain indicators that are control points for evaluating the effectiveness of strategy implementation at each stage. The presented control indicators are differentiated according to the main classification features.

Keywords: strategy; strategic management; strategizing; strategic management tools; strategic control.

Анотація

Валентина ЛУК'ЯНОВА, Тетяна ГОЛОВАЧ, Ірина ЗАКРИЖЕВСЬКА Хмельницький національний університет

СТРАТЕГУВАННЯ ЯК ІНСТРУМЕНТ ЗАБЕЗПЕЧЕННЯ ЕФЕКТИВНОГО ФУНКЦІОНУВАННЯ ПІДПРИЄМСТВА

Реальний сектор економіки України на сьогодні характеризується кризовими явищами, що стримують темпи його відновлення. У зв'язку з цим орієнтація на короткострокові програми розвитку, відсутність або невірно обрана стратегія приводять лише до локалізації втрат та до зниження ефективності діяльності підприємств у довгостроковій перспективі. У свою чергу це зумовлює необхідність здійснення стратегічного управління, що надає можливість підприємствам забезпечити економічне зростання та вийти з кризового стану.

У статті представлені напрацювання у сфері стратегічного управління, висвітлено методологічні проблеми стратегування. Розглянуто теоретичні підходи формування стратегій підприємства. Встановлено, що процес стратегічного управління в Україні потребує використання сучасних технологій та інструментів. Саме тому з'являється необхідність поглиблення досліджень теоретико-методологічних основ стратегічного управління на всіх рівнях. Обґрунтовується необхідність застосування системи стратегування як інструменту мобілізації внутрішніх резервів з урахуванням зовнішніх факторів, формування та реалізація стратегій, сприяння розвитку підприємства у довгостроковій перспективі. За допомогою розгляду етапів процесу та інструментів стратегування можна зробити висновок про відповідність обраної стратегії цілям, можливостям та вимогам зовнішнього середовища підприємства.

Для характеристики реальних (вихідних) стратегічних процесів, що відбуваються на підприємствах, необхідно враховувати особливості різних типів підприємств, їх галузеву приналежність та конкурентний статус. Вихідні стратегічні процеси визначають індивідуальність стратегічного вибору бізнес-процесів для подальшої їх оптимізацїї, сформовані критерії їх вибору.

Своєчасне виявлення проблем та здійснення заходів щодо коригування процесу чи змісту реалізації стратегій, перегляду цілей, неможливо без застосування стратегічного контролю, ключовим елементом якого є система показників. Ця система повинна містити індикатори, що є контрольними точками для оцінки ефективності реалізації стратегії на кожному етапі. Представлені показники контролю диференційовані за основними класифікаційними ознаками.

Ключові слова: стратегія; стратегічне управління; стратегування; інструменти стратегічного управління; стратегічний контроль.

Statement of the problem in a general form and its connection with important scientific tasks

Crisis phenomena that, starting in 2019, are holding back the pace of recovery of the real sector of Ukraine's economy, are COVID-19, the rise in energy prices, the presence of a global shortage of raw materials and components, the narrowing of national production borders, etc. In February 2022, the military invasion of the Russian Federation affected the ability of businesses to fully function and led to huge financial and other losses in the country's economy. In particular, the total loss of small and medium-sized businesses in July 2022, according to the results of research [1], reached 85 billion dollars. 46.8% of enterprises completely or almost completely stopped working. Only 12.4% of enterprises have not changed or increased the scope of work compared to pre-war times, but 19% are forced to relocate. The reduction in the scope of activity led to the reduction of more than a million workers. Of them, 20% of the staff were sent on vacation, 27% are working under the conditions of reduced wages. In modern conditions, the main obstacles to business development are: a decrease in the solvency of customers in the domestic market, the lack of sufficient capital, the unpredictability of the situation, the unavailability of credit resources, the deterioration of the quality of material resources, the destruction of supply chains and inefficient logistics, the aging of technologies and equipment, incorrectly set goals and tasks, the lack of a clear strategy, the loss of flexible adaptation of the enterprise to factors affecting the external environment, a decrease in competitive potential.

Therefore, the absence or incorrectly chosen strategy of the enterprise leads to the localization of losses and a decrease in the efficiency of the enterprises in the long term. In turn, this necessitates the implementation of strategic management, which allows enterprises to get out of a crisis situation and ensure economic growth. There are growing demands for raising the scientific level of enterprise management based on the revision of principles, methods, and approaches to work organization at all levels. Special attention should be paid to important theoretical questions of the methodological plan, especially to strategizing, as the main approach to the development and implementation of enterprise strategies, the mobilization of its internal reserves taking into account the factors of the external environment and the creation of the most favorable conditions for the operation of the enterprise in the long term.

Analysis of recent research and publications

The works of many domestic and foreign researchers are devoted to the issue of theoretical support of the strategic management system and the features of strategizing. Namely, such as I. Ansoff, A. Thompson, G. Hamel, J. Hentze, O. Williamson, R. Miles, D. Miller, P. Senge, K. Snow, A. Strickland, K. Hofer O. Vikhansky, V. Katkal, J. Lempel, D. Lviv, I. Vakhovich, L. Yemelianenko, B. Koretsky, N. Kuharska, D. Stechenko, Z. Shershnyova and others.

Highlighting previously unresolved parts of the general problem, to which the article is devoted

Analysis of scientific research in the field of strategic management of Ukrainian enterprises allows us to conclude that insufficient attention is paid to this issue. In this context, there is an urgent need to deepen research into the methodological foundations of strategic management at all its levels. This explains the direction of the chosen research.

Formulation of the goals of the article

strategizing enterprise economy transformational

The purpose of the article is to generalize theoretical and methodological developments and scientific and practical substantiation of the expediency of using strategizing as a guarantee of long-term effective functioning of enterprises under the conditions of strengthening transformational processes in the economy of Ukraine.

Presenting main material

In modern conditions of enterprise management, to ensure effective functioning not only in the short term, but also in the long term, there is an urgent need to develop and apply new approaches to enterprise management. In global practice, strategic management is considered an effective tool in this aspect.

The essence of strategic management is the preparation of available resources for a timely response and rapid adaptation to unpredictable changes in the environment. The first significant scientific developments in the field of strategic management in the second half of the 20th century were the works of A. Chandler, K. Andrews, and I. Ansoff. It was these scientists who substantiated the necessity of applying strategic management in the activities of enterprises [2].

Today, the main task of enterprise managers is to choose a methodology that would be mutually consistent with the general management system of the enterprise and best correspond to the individual characteristics of its activity [3]. Based on this, the most important feature of the modern economic paradigm is the consideration of strategic management based on the concept of "strategizing" (from the English "strategizing"). The English term "strategy" was first used by the classic economist, Nobel Prize laureate Oliver Williamson.

There is no clear understanding of the term "strategizing" in the scientific literature. Let's consider the opinions of various scientists regarding the concept of strategizing (Table 1).

Table 1

Definition of the concept of strategizing by some scientists

The authors

The content of the concept

Banar O.I. [4]

Strategizing derives from specific goals and mechanisms, detailing the plan to achieve the set goals, this is its distinguishing feature. That is, the strategy envisages the following scenario: the goal - solutions and methods, sources of funding, economic levers and incentives to achieve the final result, step-by-step monitoring

Batchenko L.V., Gonchar L.O., Gul E.A. [5]

Strategizing involves a set of measures and measures that allow the enterprise to choose the optimal way to realize its vision not only for the future, but also at every moment of the functioning of business processes. The application of strategizing is impossible without strategic thinking and establishing strategic communication at various organizational levels of the enterprise

Chemeris V. S., Kazmir L. P. [6]

Strategizing is a holistic process of development and practical implementation of strategic goals, which has its own potential for self-development

Mc Gee John [7]

Strategizing refers to the management of the enterprise as a whole, when a balance is achieved between a set of market-oriented activities, the necessary resources and processes needed to achieve the highest positions of the enterprise's development in the future. In this sense, strategizing is not just a business process like strategic planning, and it is not a branch of futurology where you can get information about the directions of development, it is the main way of thinking about the future of the enterprise. Strategizing behavior involves creative changes in its configuration of activities, in the nature of its resource sets, as well as in the procedures and processes that link resources to activities

J. Matthews [8]

The concept of "strategizing" means "maneuvering enterprises in positioning and differentiating them from each other and finding a competitive advantage over each other in conditions of imbalance. Strategizing is based on three fundamental categories designed to explain the strategic choices of enterprises: their resources; actions that can be taken in relation to resources and procedures that would combine the two previous categories"

So, according to scientists, the concept of "strategizing" has different meanings. We agree with the opinion of V.V. Gurochkin, the author of the work " Strategizing as a tool for the development of industrial enterprises in an emerging economy" [9], that "strategizing development at the macro level (enterprise), unlike strategy, involves a broader coordination of all levels of enterprise management and a system of continuous management in the direction of forecasting, planning and implementation of the development strategy in the future". That is, strategizing refers to the management of the enterprise as a whole, when a balance is achieved between a set of market-oriented activities, the necessary resources and processes needed to achieve the highest positions of the enterprise's development in the future. The main advantages of using the mechanism of strategizing include the use of new methods and tools for working with the future (methods of development, "mapping" of movement, etc.), systematic study of tasks related to the formation and implementation of strategies, improvement of existing strategic planning, formation of strategic management mechanisms on the basis of partnership [4].

The process of strategizing is a system of mechanisms and institutions related to time, finances, material and technical resources, aimed at realizing the priorities of the economic entity, ensuring by achieving the ultimate goals and the multiplier effect of its sustainable socio-economic development [4].

The stages of the strategizing process are presented in fig. 1.

Fig. 1 Stages of the strategizing process

Compiled by the authors according to the source [4]

The tools of strategic management and strategizing provide an answer to whether the chosen strategy meets the opportunities, goals, and requirements of the enterprise's external environment. These include [10, 11]:

1) SWOT-analysis, which makes it possible to identify those strengths and weaknesses that require the most attention and effort from the enterprise;

2) a balanced system of indicators, which is a format for describing activities using a set of indicators that correspond to certain strategic perspectives and is closely related to business processes aimed at meeting the needs of consumers;

3) the model of Lawrence Maisel (Lawrence S. Maisel) is almost completely similar to the balanced system of indicators, only the perspective of learning and growth is replaced by the perspective of human resources (innovation, education and training, development of products and services, competence and corporate culture);

4) the TEMPLES technique allows you to consider a group of issues related to the external environment, dividing them into several subgroups for appropriate definition and classification. Each of these factors is subjected to appropriate analysis in order to find out what difficulties may arise when working in this field and what positive opportunities open up here;

5) Tableau de Bord. A system that combines a set of financial and non-financial indicators to measure the performance of all units of the institution. Indicators are divided into functional and target, between which causeand-effect relationships are determined. Operational efficiency indicators (non-financial) are used at the lower levels of management, financial indicators are added at the upper levels;

6) The EP2M model ensures the implementation of the strategy. In addition, attention is paid to such areas of activity as customer service, improvement of internal processes (increasing efficiency and profitability), change management, freedom of action, etc.;

7) measurement of achievements according to the version of "Ernst & Young" verifies the compliance of the critical success factors of the company with its strategies;

8) the "Business Management Window" model is focused on strategic management and growth in external and internal spheres;

9) GAP analysis, or "strategic gap" analysis, is a tool used to analyze deviations between actual and planned (desired) indicators. The strategic hatch is the difference between the expected value of the indicator and the target. An indicator can be profit, revenue, profitability, market share or marginal revenue.

To assess the company's strategy, some scientists suggest using approaches based on the definition of a number of integral, normative and actual indicators.

Note that in order to characterize the real strategic processes taking place at enterprises, it is necessary to understand the peculiarities of different types of enterprises, the industry and competitive context. Each enterprise has its own configuration of initial strategic processes that determine the individuality of its strategic choice. Scientists O.O. Zavadovska, L.P. Artemenko, authors of the work "Methods for evaluating the implementation of the company's strategy" [12] suggest using the following criteria for choosing business processes for their further optimization (Table 2).

Table 2

Criteria for selecting business processes for further optimization

Criterion name

Content

The importance of the business process

It characterizes the degree of contribution of the business process to the achievement of the company's strategic goals. To optimize the activity of the enterprise, first of all, you need to choose the most important business processes, because it is their improvement that will give the greatest effect

Problematic business process

If the business process is important, but at the same time its indicators are at an acceptable level, then in most cases there is no need for its priority optimization. The degree of difficulty of business processes should be evaluated not simply as a gap between the desired and the real, but as the difference between the key indicators that determine the competitiveness of the company and its main competitors on the market

The possibility and cost of making changes to the business process

First of all, those processes that can be improved with the lowest costs are chosen. At the same time, in addition to financial costs, it is important to evaluate non-financial ones as well. Such are the moral "costs" accompanying the implementation of changes, "costs" that lead to a possible deterioration of the psychological climate in the organization, etc. All negative consequences that may arise during process optimization should be considered

Compiled by the authors according to the source [12]

Strategic control for timely identification of problems, review of goals and implementation of measures to adjust the process or content of strategy implementation. Strategic control gives an answer to the question "whether it is possible to continue to implement the adopted strategy in the chosen way and whether its implementation will lead to the achievement of the set goals." The main tasks that are solved in the process of monitoring the implementation of the strategy include: determination of what and by what indicators to check; assessment of the state of the controlled object in accordance with accepted standards, regulations or other reference indicators; clarification of the reasons for deviations, if such are revealed as a result of the conducted assessment; making adjustments, if necessary and possible. The key element for strategic control is the system of indicators. The system of indicators should be developed at the stage of forming strategic goals and contain indicators that will serve as certain control points for the effectiveness of strategy implementation at certain, defined stages. Table 3 shows the control indicators for the main classification features [13].

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