Management of competitive development of enterprises: methodological aspect

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Dmytro Motornyi Tavria State Agrotechnological University

Management of competitive development of enterprises: methodological aspect

Nesterenko S.A., Dockor of economics, Professor

Abstract

Keywords: System, system approach, competitiveness, potential, competitive position, competitiveness, management.

Анотація

Управління конкурентним розвитком підприємств: методичний аспект

Нестеренко С.А., д.е.н., проф. Таврійський державний агротехнологічний університет імені Дмитра Моторного

У статті розкриті теоретико-методологічні підходи формування системи забезпечення конкурентоспроможного розвитку підприємств. Конкурентоспроможний розвиток підприємств, як об'єктивно функціонуючих головних суб'єктів суспільства та національної економіки можливо здійснити лише в умовах комплексного підходу до формування системних передумов забезпечення ефективного функціонування підприємств в часовому і просторовому вимірі.

Ключові слова. Система, системний підхід, конкурентоспроможність, потенціал, конкурентна позиція, конкурентостійкість, управління.

Introduction

Problem statement. Global trends in communications development, expansion of geographical segments of the market, growth of success factors in the enterprise activities, new tasks of environmental, social, innovation, integration and other directions require a new approach to establishment of competitive development management system for business structures. Dynamically changing environment, structural transformations, etc. reinforce the need to establish efficient activity management systems for enterprises of competitive type.

Analysis of recent researches and publications. Fatkhudinov R.A., Osovska H.V., Leheza D.H., Hudzynskyi O.H., Sudomyr S.M., Yevchuk L.A. and other scientists in their works studied the problems of establishment and development of the enterprise competitiveness management system. Scientific works are mainly focused at studying of components of ensuring the enterprise competitiveness. However, it should be noted that there is little research on the system approach to the establishment of efficient systems of enterprise competitiveness management as system integrity in the context of forming competitive potential management; socially responsible enterprises competitiveness management; business structures competitiveness management by the areas of development (anti-crisis, growing, innovative and other). Therefore, the problematic issues arise requiring reinterpretation of scientific approaches to research areas and development of theoretical and methodological provisions for establishment of efficient management systems of enterprise competitive development.

Goals of the article. The purpose of the study is to substantiate the scientific approach to establishment of effective competitive development management of enterprises as a system integrity.

Statement of basic materials

Competitive development of enterprises as objectively functioning main actors of society and national economy can only be possible under conditions of comprehensive approach to establishment of systemic prerequisites for ensuring the effective functioning of enterprises in temporal and spatial dimensions. We represented the system of prerequisites by a set of components systematised and formed according to the following main blocks:

- block of basic requirements (principles) that should underlie an efficiency evaluation of the chosen enterprise development direction;

- block of enterprise behaviour types by the development directions: growing, strategic, anti-crisis, innovative, social, sustainable, economic, social and economic as integrity, competitive and others;

- block of functionally supporting subsystems development: marketing, logistic, information, accounting and analytical, financial support, resource support, etc.

- block of value orientation and targets;

- block of competitive potential;

- block of information, accounting and analytical support of management;

- block of targeted and functionally supporting strategies;

- block of strengths (capabilities) and weaknesses (threats) etc.

When substantiating enterprise competitive development directions, we proposed the system of factors determining the specific behaviour of competitors in the Strategic Business Zones (SBZ) of competitive environment, namely: types of markets; solvency potential of demand entities; cultural potential of SBZ demand entities; established potential of SBZ competitors; potential of a competitive force field in SBZ; activity in the competitive environment; value orientation of SBZ entities; level of perception in the regional agricultural sector of the economy, level of state support for regional territorial development, etc.

Taking into account the above factors of external orientation, the competitive potential of proposal entities is established based on the system approach methodology and covering the following: general methodology of establishing the efficient management systems of enterprise activities and, in particular, competitiveness; mechanism of establishing and fulfilling the competitive potential of enterprises as a system; development directions and behaviour types of enterprises as system integrities; marketing support system of the enterprises' activities; value orientation components; competitive positions establishment matrices; strategic actions in the competitive positions implementation system; features of the competitive potential management system; control and social responsibility system; innovative and creative component of managing the enterprises competitive potential development, etc.

Methodology of the system approach to establishment of effective management of the enterprises competitiveness development requires clarification of the scientific conceptual apparatus of competition as a systemic phenomenon.

Economic literature uses the "competitive ability and competitiveness" concepts. The competitive ability is considered as "...the potential of established competitive advantages that can be implemented in the course of activities" (1), when the competitiveness is defined as "...the market-recognised established and implemented competitive ability of the social and economic systems materialised in the form of goods or services" (1).

We support this position of scientists and found it sufficiently substantiated. Competitive performance of business structures can be only ensured by the competitive ability and competitiveness in their organic unity. This is confirmed by the results of our empirical study.

The proposed approach is the basis for establishing the potential of competitive ability and competitiveness, which in their system integrity act as competitive potential management objects.

Scientific approach to establishment of the management system of organisational entities' competitive ability is being developed (5). In the context of this approach we consider the following: in-depth competition theories through revealing its essence as economic theory in the aspect of: way of life and driving force of society development; power of competition in competitive market environment; forming a portfolio of firms' market behaviour strategies (5). We revealed the methods of evaluation and development of entities' competitive ability standards in the context of scientific approach to establishment of the management system of organisations' competitiveness (5).

The logic behind this approach is of scientific and practical interest. It is suitable for solving the issues of improving the efficiency of enterprise competitiveness management system both at the stage of designing and at the stage of strategic components diagnostics and monitoring functions performance under the developed technologies according to the scheme: selection of diagnostics technology stages, definite target orientation of technological actions, definite target orientation of actions, substantiated system of evaluation criteria and system of indicators, selected control and analysis objects (2).

The scientific foundations for establishing efficient management system of enterprises' strategic competitiveness development are being formed in the context of considered methodological approaches.

In this context, we should note that it is necessary to apply the system approach to the analysis of both economic and territorially isolated relations in order to understand the essence of the enterprise's competitiveness, in particular, strategic competitiveness, in current conditions.

Herewith, the enterprise development should be considered as an integrated process of changes in its economic, social, political, environmental, spatial and spiritual spheres, leading to qualitative changes and, ultimately, to changes in living conditions of the population, that is, fulfilment of its main goal. Recently, the strategic management concept has been increasingly introduced into the enterprise management practice.

The dynamism and uncertainty of external environment are often the reason for transition to strategic management.

Based on the concept of strategy for longterm social and economic development of Ukraine, the mission of enterprises is to promote social and economic development, name^ly:

- improving the welfare and quality of life of the population in Ukraine;

- ensuring sustainable high-quality economic growth rates;

- ecological safety;

- strengthening the competitive position of Ukraine and its regions in the world.

Mobilisation of activities of Ukrainian enterprises and increasing the efficiency of using their resources will enable social and economic transformations, on the one hand, that will increase the GDP and improve the quality of life of the population, and will allow carrying out a set of measures to strengthen Ukraine's competitive position in the world market, on the other hand. The strategic goals of Ukraine's policy at this stage of the country's development are:

- ensuring Ukraine's global competitiveness;

- stimulating the process of consolidating the resources of Ukrainian enterprises for accelerated economic growth and changing the economy structure;

- development of human capital, increase of spatial and qualification mobility of the population;

- improving the environmental situation in Ukraine for balanced economic development;

- improving the quality of finances management and use at all levels.

At the same time, achieving the goal of ensuring the enterprise strategic competitiveness is aimed at:

- ensuring effective integration of enterprises into the world market, acceleration of social and economic development of Ukraine due to correct distribution of productive forces on the territory (in accordance with the market forces action logic);

- development of the population settlement system at the social and economic growth sources,

- development of the infrastructure base for social and economic growth in the territories;

- establishment of globally competitive territorial production clusters, including in innovation-intensive economy sectors;

- ensuring the transition to polarised development and creating a new production basic structure for the country with enterprises of all forms of ownership.

In current post-crisis conditions, one needs to correct the very concept of the enterprise strategic competitiveness in order to determine effective ways of its development. The author believes that, first of all, the essence of the enterprise strategic competitiveness development lies in transition to a new qualitative state on the basis of innovative transformations in all its spheres. The goal of the enterprise strategic competitiveness development should be achievement of the long-term sustainable competitive advantages ensuring sustainable social and economic development and high living standards.

The intended purpose of the enterprise strategic competitiveness management is as follows:

- establishing and ranking important and long-term goals of the reproduction process meeting the requirements of competition strategic development in general;

- assessing and critically considering the possible ways to achieve the set strategic goals in the expected external and internal conditions of the enterprise's operation;

- selection and phased implementation of solutions that ensure the rational implementation of economically feasible projects in the conditions of existing economic system, on the one hand, and effective adaptation of the reproduction process to unexpected external changes, on the other hand.

Therefore, one of the main purposes of the enterprise strategic competitiveness management is the long-term provision of constant increase in its competitive advantages in the rapidly changing environment.

The activities on the enterprise strategic competitiveness management, first of all, are aimed at achieving its leading competitive position, which should ensure long-term strategic competitiveness.

The perspective, policy, strategic goals, strategy and resources for their implementation are the content component of management. The final product of strategic competitiveness management can be represented as two components:

1. Established strategic competitive potential of the enterprise able to ensure long-term competitiveness in the domestic and world markets.

2. Created internal structure ensuring sensitivity of enterprises to changes in the external environment.

Therefore, the enterprise strategic competitiveness management is related to the establishment and development of future competitive potential, which includes its ability to restore cost and generate new material, investment, innovative, financial, human and information resources, as well as to produce new competitive goods and services created on the basis of new technologies with a high quality and competitiveness level, as well as novelty, which will be in demand with consumers. Ability of enterprises to continuously establish, constantly update and develop their strategic competitive potential is an important and key indicator of the efficiency of strategic competitiveness management. In conditions of the ongoing financial and economic crisis, the enterprises should not only be able to effectively use their resource and competitive potential, but also to create the conditions for development of new competitive advantages.

As mentioned above, the problem of ensuring the enterprise strategic competitiveness is even more relevant now due to the fact that the entire world economy is affected by the financial crisis, which results in even greater increase in competition, both in the domestic and foreign markets. Furthermore, when developing the concept of the enterprise strategic competitiveness management, one should take into account the impact of globalisation promoting development of competition between economic entities, inflow of direct and portfolio investment, which objectively violates the economic balance. In these conditions, the advantage of enterprises is determined by the high technologies and innovative entrepreneurship development strategy.

All the above predetermines the need to develop the concept of the enterprise strategic competitiveness management, optimise its strategic resource potential on the basis of scientifically substantiated methods and technologies and justification: policy, targets, value orientations and portfolio of strategies that are inextricably linked. management competitiveness profitability information

The enterprise strategic competitiveness policy is its main promising directions and goals. At the same time, the policy of enterprise strategic competitiveness management should be implemented, first of all, in the form of purposeful selection and design of specific projects and programs in accordance with the selected strategic priorities.

The target orientation of strategic competitiveness management follows from the goals of its social and economic development, which in turn are a component of the social and economic development of the country as a whole. The goals of the enterprise strategic competitiveness management set the image of future state of competitiveness and the ways to achieve it.

Determining the goals of the enterprise strategic competitiveness management should be based on assessment of positions from two points of view: from the perspective of consumer needs, i.e. satisfying social and other needs of the population in future new goods and services, and from the perspective of solving problems of ensuring the enterprise development.

Determining the goals in the enterprise strategic competitiveness management consists of the following stages:

1. Turning the perspective into strategic goals for strategic competitiveness;

2. Establishing control criteria for the strategic competitiveness in the form of specific and at the same time defined quantitative and qualitative indicators of success of the set goals implementation;

3. Encouraging the region to become inventive and focused in the strategy implementation, that is, capable of ensuring its implementation.

The enterprise strategic competitiveness management goals are multifaceted, so the enterprise resource capabilities should be taken into account during their development. Every enterprise chooses own strategic competitiveness management goals, which reflect its features, but among them we can distinguish those that are common. These strategic goals are the following:

- increase in future employment of the population, increase in income and improving the quality of life of the population, preserving the natural environment and improving the environmental situation;

- establishing a higher strategic resource potential;

- improving the enterprise strategic competitiveness and planning of production of innovative and competitive products that will gain ground both in the domestic and foreign market;

- increasing investment attractiveness and attracting new investors;

- creating a favourable competitive environment for small and medium-sized businesses;

- attracting new consumers for the goods of enterprises;

- creating a positive image of the enterprise.

The concept of the enterprise strategic competitiveness management is a strategy required since the future is largely hard to predict and there is no absolute certainty of the future.

It should be noted that the current type of changes in the external environment, increase in the amount of knowledge and information flows is so great that the choice of strategy is the only way to formally predict the solution of problems of regional strategic competitiveness of the economy and opportunities for its improvement. We believe that establishment of strategic competitiveness of the region is a regional strategy of transition to a globally integrated and competitive region.

Extended abstract. The article reveals theoretical and methodological approaches to establishment of the system for ensuring competitive development of enterprises.

The prerequisite system was developed for management object of competitive advantages, which are systematised and formed according to synergism blocks.

We substantiated the technology of diagnostics of factors as competitive advantages potential components aimed at ensuring the efficiency of enterprises competitiveness management; factors determining the specific behaviour of competitors in SBZ competitive environment; approaches to establishing the competitive potential of proposal entities based on the system approach methodology.

We determined the components of the general methodology of establishing efficient enterprise competitiveness management system.

We clarified the content of scientific conceptual apparatus of the competition as a system integrity.

Conclusions and suggestions

The efficiency of the enterprise competitiveness management will be determined by: the system approach to establishing components of its competitive potential as system integrity; management development level and its ability to fulfil the competitive potential in the system of organisational interactions between the supply and demand entities.

References

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