Formation of organizational development strategy of enterprise in context of changes in international environment

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Simon Kuznets Kharkiv National University of Economics, Kharkiv, Ukraine

Formation of organizational development strategy of enterprise in context of changes in international environment

Nataliia Parkhomenko

Abstract

The strategy of organizational development of the enterprise provides on the basis of the analysis of internal possibilities of the enterprise and an estimation of changes of the international environment of formation of a trajectory of development which provides adaptation to operating conditions; integration of divisions and business processes to achieve development indicators, substantiation of effective organizational structure, choice of organizational and legal form of business, optimization of business processes, interaction of the enterprise with components of the international environment. The aim of the study is to improve the methodological approach to the formation of organizational development strategy of the enterprise in the context of changes in the international environment based on assessing the current state of the enterprise and strategic guidelines for its development. Methodical tools are presented by methods of analysis and synthesis, comparison, matrix method, and generalization. The study formed a procedure for developing a strategy for organizational development of the enterprise, which consists of five consecutive actions. Based on the comparison of organizational development strategies, alternative strategic ways of development were formed. The matrix of choice of strategy of organizational development of the enterprise in the context of changes of the international environment which provides a choice of a direction of realization of the chosen trajectory of development was offered. The scientific significance of the study is to improve the methodological approach to the formation of organizational development strategy of the enterprise. Recommendations for developing an organizational development strategy in the context of changes in the international environment are of practical importance.

Key words: strategy, organizational development, international environment, forms of business organization, strategy of organizational development of the enterprise.

Формування стратегії організаційного розвитку підприємства в контексті змін міжнародного середовища

Пархоменко Наталія Олександрівна

Харківський національний економічний університет імені Семена Кузнеця, Харків, Україна

Анотація

international environment integration

Стратегія організаційного розвитку підприємства передбачає на основі аналізу внутрішніх можливостей підприємства та оцінювання змін міжнародного середовища формування траєкторії розвитку, яка забезпечує пристосування до умов функціонування; інтеграцію структур, підрозділів та бізнес-процесів для досягнення показників розвитку, обґрунтування дієвої організаційної структури, вибору організаційно-правової форми бізнесу, оптимізації бізнес-процесів, взаємодії підприємства із складовими міжнародного середовища. Метою дослідження є удосконалення методичного підходу до формування стратегії організаційного розвитку підприємства в контексті змін міжнародного середовища на основі оцінювання поточного стану підприємства та стратегічних орієнтирів його розвитку. Методичний інструментарій представлений методами аналізу та синтезу, порівняння, матричний методом, узагальненням. В результаті дослідження сформовано процедуру розробки стратегії організаційного розвитку підприємства, яка складається з п'яти послідовних дій. На основі порівняння стратегій організаційного розвитку сформовано альтернативні стратегічні шляхи розвитку. Запропоновано матрицю вибору стратегії організаційного розвитку підприємства в контексті змін міжнародного середовища, яка забезпечує вибір напряму реалізації обраної траєкторії. Наукова значущість дослідження полягає в удосконаленні методичного підходи до формування стратегії організаційного розвитку підприємства. Практичне значення мають рекомендації щодо розробки стратегії організаційного розвитку в контексті змін міжнародного середовища.

Ключові слова: стратегія, організаційний розвиток, міжнародне середовище, форми організації бізнесу, стратегія організаційного розвитку підприємства.

Introduction

In an international environment, the enterprise operates in more unpredictable and complex conditions. Effective activities are provided by constructively developed and implemented organizational development strategies that take into account potential development opportunities, determining the benchmarks. Insufficient justification of the choice of organizational development strategy contributes to unprofitable activities, unforeseen losses, which slows down sustainable development. That is why the methodological approach to developing a strategy for organizational development of the enterprise in the context of changes in the international environment requires significant attention. The development and implementation of an effective organizational development strategy requires a methodology that would provide an opportunity to conduct a strategic analysis of the enterprise in order to determine the effectiveness of the existing strategy and identify problems with the functioning of the enterprise; to form possible strategic alternatives; justify the choice of the optimal organizational strategy and directions of its implementation; evaluate the results obtained according to the agreed criteria in terms of competitiveness, customer loyalty, profitability, ease of doing business, etc.

Literature review

Issues of strategic planning, namely the development and implementation of strategies are quite common among foreign and domestic researchers. Scientists who have studied the problems of formation and justification of enterprise development strategies are Agyapong and Acquaah (2021), Ahmadi et al. (2020), Amatori and Colli (2007), Choi and Kim (2020), Contractor and Kundu (1998), Da Silva Lopes et al. (2019), Kun (2021), Latysheva et al. (2021), Oncioiu et al. (2021), Pan et al. (2016), Parkhomenko (2020), Romelaer and Beddi (2015), Shirodkar and Shete (2022) and others. The study proves that there is no single approach to monitoring the evaluation criteria or the list of indicators that are the basis for choosing an organizational strategy for enterprise development. It is determined that the result of choosing a certain organizational strategy of enterprise development is based on the use of a set of methods, namely expert evaluation of certain indicators of enterprise activity, SWOT and PESTLE analysis, matrix methods of choosing strategies according to certain evaluation criteria. The basis for choosing an organizational strategy is a comprehensive study of the effectiveness of the enterprise in production, technological and property, personnel, social, financial, material, supply, marketing, foreign trade indicators, which assess the potential of the enterprise, its competitiveness, investment attractiveness, competitiveness, market opportunities, adaptability, product quality, financial stability, profitability etc. In addition, the assessment of the international environment allows to determine the attractiveness of the market, the capabilities of suppliers and consumers, the behavior of competitors in the market and so on. Therefore, the urgent issue is the formation of methodological support for the development of organizational strategy of the enterprise, which would ensure the process of finding rational directions of operation and new opportunities for the enterprise in the international environment.

Paper objective

The main purpose of the study is to improve the methodological approach to the formation of organizational development strategy in the context of changes in the international environment based on assessing the current state of the enterprise and strategic guidelines for its development. The objectives of the study are to improve the methodological approach to the formation of organizational development strategy, comparison of organizational development strategies, development of a matrix of choice of organizational development strategy of the enterprise in the context of changes in the international environment.

Methodology

Procedural and situational approaches were used in the research process. In forming a methodological approach to the formation of organizational development strategy and determining the development procedure used methods of analysis and synthesis, to determine the features of organizational development strategies of the enterprise is the method of comparison, to choose the strategy of organizational development in the context of international environment is matrix method, to form a general conclusion about the prospects of enterprise development in the international environment is method of generalization.

Result and discussion

A well-founded and detailed strategy of enterprise development allows to increase the performance of its operation, ensure reliability and solvency, ability to adapt and flexibly adapt to changes in the international environment, create and maintain competitive advantages in foreign markets. Thus, the formation of the procedure for developing a strategy of organizational development will conceptually substantiate the strategic model of enterprise development and ensure its adaptation to changes in the international environment. The choice of tools for the development and implementation of organizational development strategy will ensure the dynamic functioning of the enterprise and the planned results. The formation of the strategy of organizational development of the enterprise in the context of changes in the international environment is a process of finding the most rational directions of operation, finding new opportunities to ensure competitive advantage and the desired position in the market. Methodological support for the formation of organizational development strategy in the context of changes in the international environment are presented in table 1.

Table 1. Methodical approach to the formation of the strategy of organizational development of the enterprise in the context of changes in the international environment

Source: own study

Thus, the methodological approach to the formation of organizational development strategy in the context of changes in international support takes into account the analysis of both internal capabilities of the enterprise and changes in the international environment, which ensures its faster adaptation to operating conditions and changes; integration of structures, divisions and business processes to achieve the planned development indicators. Strategies of organizational development of the enterprise are mainly focused on the formation of an effective organizational structure, the choice of organizational and legal form of business, optimization of business processes, the use of effective ways of interaction with the international environment and more. In the table 2 in order to form alternative strategies of organizational development provides a comparison of the main strategies of organizational development.

Thus, in the case of a stable international environment and sustainable development of the enterprise, the overall strategy of organizational development is a strategy of stabilization or without change; in the case of constant changes in the international environment, innovative development of the enterprise, taking into account national and global trends, the growth strategy and its varieties are effective for application; in a situation of negative trends in the development of both enterprises and the international environment, a reduction strategy will be favorable.

We will form a matrix for choosing the type of organizational development strategy, which will take into account the overall development strategy, the current state of the enterprise, the presence of changes in the international environment, determining the necessary organizational changes that are appropriate in its implementation. Thus, the current state of the enterprise can be characterized by three types of starting positions for development: low level of efficiency is defensive position; intermediate level is offensive position; high level is neutral position. The choice of strategic alternatives for enterprise development is made by correlating the positions of the current state and general strategies for the development of business systems (Fig. 1).

Fig. 1. Matrix of choice of strategy of organizational development of the enterprise in the context of changes of the international environment on the basis of a ratio of positions of a current condition and the general strategies of development Source: own study

Table 2. Comparative characteristics of organizational development strategies of enterprises

Source: compiled by the author after (Amatori and Colli, 2007; Choi and Kim, 2020; Parkhomenko, 2020; Romelaer andBeddi, 2015)

Thus, taking into account the overall strategy of enterprise development and the current state of development, we can identify 15 quadrants on possible strategic alternatives to organizational development. It is advisable to determine the current state of the enterprise on the basis of calculations of an integrated indicator that takes into account not only financial performance, but also property status, level of innovative development, human resources, market opportunities and more. The overall development strategy depends on the priority areas of activity formed by the company's management in the context of changes in the international environment.

Absolutely stable state of the enterprise allows the management either to increase opportunities at favorable changes of the international environment, or to minimize risks, considering negative changes. The normal state of development of the enterprise allows to conduct an active offensive strategy, diversifying areas and areas of activity, creating network structures with partners, and in case of adverse changes in the international environment, focusing on domestic growth. Unstable state of the enterprise at favorable changes allows to adhere to strategies of growth, at unfavorable changes allows to be guided by corresponding reductions. The crisis state of the enterprise determines the passive-offensive or defensive development strategy, related to the retention of existing positions, possible integration to strengthen positions or reductions. The critical state of enterprise development is about errors in the strategic management of enterprise development, in which case the strategy will be aimed at reducing and if it is impossible to eliminate the negative changes, aimed at curtailing activities.

Conclusion

Thus, improving the methodological approach to the formation of organizational development strategy allowed to form a procedure for developing organizational development strategy, which consists of five consecutive actions, namely strategic analysis of enterprise development, formation of alternative organizational development strategies, choice of organizational development strategy, organizational development strategies, evaluating the effectiveness of organizational development strategies in the context of changes in the international environment. The basis for the formation of strategic alternatives for organizational development of the enterprise was a comparison of organizational development strategies, which identified features, advantages and disadvantages of each strategy, as well as to present the successful implementation of these strategies by leading companies. The choice of strategy is proposed to be carried out on the basis of the formed matrix of choice of strategy of organizational development of the enterprise in the context of changes of the international environment which provides definition of a direction of realization of the chosen trajectory of development.

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