Economic sciences

UDC 005.21:331.101.262

Lytvynenko Olena

Candidate of Economics, Associate Professor

Kharkov Trade and Economics Institute of

Kyiv National Trade and Economics University

ORCID: 0000-0002-8360-4461

Yurchenko Vladyslav

Student of Master’s Degree in Management

Kharkov Trade and Economics Institute of

Kyiv National Trade and Economics University

THE FORMATION OF THE STRATEGIC RESOURCE MANAGEMENT MECHANISM OF THE ENTERPRISE

Summary. The topical issue of enterprise strategy formulation is built up in the article. It was established, that strategic management is the process of adopting and implementing strategic decisions based on the comparison of the enterprise’s own resource potential with opportunities and threats to the external business environment. There is  presented the  mechanism of strategic management of enterprise resources, as stages of the process of the enterprise development strategy forming. It was noted, that the final moment of strategy selection is evaluation and control of implementation, as well as evaluation of alternative options for concentration on the correct strategy.

Key words: strategic management, strategy principles, resource management strategy, strategic management mechanism.

Statement of the problem. At the present stage of development, the strategic management should become both the basis and simultaneously, instrument for effective long-term development of any industry to solve the promising economic tasks and to achieve the socio-economic efficiency.

In strategic management an important role is played by resource strategies, which reach many components and types of resources and provide an opportunity to present the projects prospect, personnel and financial activities of firm on a planned basis [1].

The need to enquiry the meaningfulness and modern vision of strategic resource management of business entities stipulated the relevance of this study.

Analysis of recent research and publications. A considerable contribution to the  theoretical and applied aspects development of strategic management and the formation of the enterprise resource management strategy was made  by such well-known national scientists as V. Vasilenko, O. Gevko, I. Ignatieva, G. Kindratska, A. Naumov, A. Nalivayko, V. Pastukhov, A. Povazhny, V. Stadnik, N. Shved, Z. Shershnyova and others. Also, the significant contribution to the theory of strategic enterprise management and the process of forming management strategies was made by foreign scientists, such as I. Ansoff, K. Bowman, B. Carloff, E. Mayer, R. Mann, G. Mintzberg, A. Thompson, A. J. Strickland, D. Han, H. Falmouth, and others.

However, it should be noted, that there are a number of issues related to the scientific and methodological support of enterprise management and its relation with the strategies of resources management, which still remain unresolved.

Formulation of the article goals. The aim of the article is definition the mechanism of strategic resource management and approaches to its formation.

The main material. At each stage of development, the company has certain parameters that characterize the conditions of its functioning: present state and promise. Today, the need for strategy formation is an important component of successful functioning of any enterprise. The analysis of many publications shows that scientific- methodological approaches of referring to the strategies formation and process structuring of their development require furtherance, both in the scientific and organizational-practical aspect. This is evidenced by the lack of substantiating of a single sequencing for stages of the strategy formation process, the principles of its implementation, methodical recommendations, which would comprehensively consider different characteristics of the enterprises.

To develop an effective strategy of enterprise management, it is necessary to take into account external factors (for example, existence of strategically important information about external environment, knowledge of market conditions, competitive advantages of other firms, efficiency activities, etc.) and internal factors (the existence of relevant knowledge, skills and abilities in the enterprise staff, the competence of the company’s top managers, the forecasting of changes.

In case of selection of the most acceptable enterprise strategy type, it is necessary to consider the following factors [2]:

• influence of external environment factors on the enterprise;
• strengths and weaknesses of the enterprise;
• stage of the enterprise life cycle;
• branches of activities;
• the basic concept of achieving competitive advantages and industry position.

The development of enterprise strategy should be pursued, predicated on such principles [3]:

• the principle of the promise, in other words, the commitment to the long-term perspective. Effective strategic planning and forecasting should be ensured, as the strategic mistakes are very difficult to correct by the operational methods;
• principle of priority – company management must consistently abides to the chosen strategy, subordinating its operational and tactical actions strategic priorities;
• the realization principle lies in the fact that the goals and benchmarks are consistent with the environment;
• the superposition and cyclicity principle due to the fact that the strategy is explained by stages: the resolution of long-term tasks is carried out through the implementation of medium and short-term initiatives;
• the complexity principle lies in the comprehensive analysis and information accounting that allows to react swiftly to changes in the internal and external environment.

Analysis of the principles and mechanism of strategy development and implementation in the company management system allows to establish, that strategic management is the process of making and implementing strategic decisions, the basis of which is the development strategy formation developed on the basis of comparison of the enterprise’s own resource potential with the opportunities and threats of the external business environment, in which the enterprise operates [4].

The strategic management model includes, except of the strategic planning, the implementation of the strategy developed, comprising its evaluation and control. The strategic management system is defined as the technology of the company management, which determines its long-term development in conditions of increased external environment instability and provides the company prompt response to changes of external environment factors and price environment, which leads to the need for strategic maneuver and as a consequence of this, reviewing the goals and adjusting the overall development direction of the company.

The strategic approach to the enterprise management determines the role and place of the business strategy in the overall system of enterprise management. The strategy’s formation and developing process is composed of such steps as the enterprise mission and goals definition; study of the external environment standing; determination of the enterprise competitive advantages; formation of the strategic goal system; development of strategic alternatives; implementation of the measures system aimed to the realization of chosen strategy option. The mechanism formation scheme of enterprise resource management strategy is presented in fig. 1.

Fig. 1. The mechanism formation scheme of enterprise resource management strategy is presented

Source: authors development

In the formation process of the enterprise’s resource management strategy, all functions of modern effective management are implemented: planning, organization, regulation and coordination, motivation and control [5].

Strategy formation should be based on the organization development concept. For this all alternatives are carefully researched and evaluated carefully, taking into account a variety of factors. This is both the type of business, features of the industry in which the enterprise operates, the state of the environment; this is both the enterprise goals nature and the risk level. Particular attention should be paid to such a factor, as the enterprise internal environment, which manifests itself through its strengths and weaknesses. Another important factor, which influences on the choice of strategy is the time element. After all, even the best strategy, new technology or new product will not be able to succeed, if they do not appear on the market in time. Since the strategy choice is influenced by many factors, that makes a case of the necessity to have several strategic alternatives. As a rule, the enterprise has to choose strategy from several possible options.

Various strategies, which are used by the enterprises in their activities, are modifications of several basic strategies, each of which is effective due to certain conditions, the state of the internal and external environment.

Conclusions. Therefore, from the above, it could be concluded, that strategic management is a continuous management process in the enterprise, which is aimed for preservation of its viability and for the competitive advantages achievement based on the external environment opportunities and the internal potential of the enterprise. The goal of the enterprise resource management strategy is to identify potential threats and opportunities, as well as the enterprise’s strengths and weaknesses for the formation and choosing of strategies.

References

1. Kindrytska G. Strategic management : a textbook / G. I. Kindrytska. 2nd edition, revised and corrected. Kyiv : Znannya, 2010. 406 p.
2. Thompson Jr. A. A. Strategic Management. Concepts and Situations for Analysis / A. A. Thompson Jr., A. J. Strickland III. 12th edition.; trans. with English. M. : Ed. «Williams» House, 2006. 928 p.
3. Ignatyeva I. A. Strategic management : a textbook / I. A. Ignatiev. Kyiv: Karavela, 2018. 464 p.
4. Shershnev Z. E. Strategic management : a textbook / Z. E. Shershnev. 2nd edition, revised and corrected. Kyiv : KNEU, 2004. 699 p.
5. Gevko O. B. Strategic management : a textbook / O. B. Gevko, N. M. Shveda. Ternopil : Private Entrepreneur Palyanitsa V. A., 2016. 152 p.