Academic journal article European Research Studies

Optimization of the Company Strategic Management System in the Context of Economic Instability

Academic journal article European Research Studies

Optimization of the Company Strategic Management System in the Context of Economic Instability

Article excerpt

1. Introduction

As it is stated in the work of Vershinina et al. (2016) "The rapid development of the financial market requires the improvement of already existing financial institutions and the emergence of new ones". The 2008-2010 global economic crisis and the financial crisis in Russia in 2014-2015 determined the need to develop strategic planning in general and level planning in particular because many companies happened to be unready for unpredictably changing conditions. The problem is that even having qualified specialists in this area and opportunity to organize their involvement, these methods are not adequately used in our country.

The authors make the following hypothesis: difficult current macro-economic situation in Russia requires to change the work of enterprises management in terms of forming strategies related to developing the activity of legal entities they control as a whole and forecasting results of the activity on various levels of the enterprise in particular within improving the efficiency of the organization activity in the context of unstable environment.

In order to check out the hypothesis, it is necessary to answer a number of questions:

* What is a key element of the company management under conditions of instability?

* What methodological basis should commercial organizations choose to form their forecasting and development strategies under conditions of turbulence?

* What ways can the enterprise use to form the optimal system of strategic management during the effect of unstable conditions?

2. Methodology

2.1. Theoretical and Methodological Basis of the Research

The article is based on scientific works and applied developments of Russian and foreign scientists and experts on the researched problems in the area of strategic management of enterprise as a whole and focus on stability of the company competitive advantage under conditions of dynamisms and globalization of markets, in particular. The work used the dialectical method of cognition and system approach to studying the problem. General scientific and special methods of research were used, including analysis, particularly, comparative analysis, synthesis, analogue, classification, as well as historical and logical methods and graph techniques.

The informational basis of this work includes statutory and legal acts of the Russian Federation that regulate the activity of commercial organizations. When writing the article, official statistical foreign and Russian informational resources, as well as data from official websites of research and informational business portals, institutes and other organizations were used.

3. Results

3.1. Level Approach in Strategic Planning as a Key Element of the Company Management

In order to stipulate the need to use a strategy when managing companies under modern conditions, as well as to reveal the dependence of the company activity success on the way of its development, it is necessary to study the essence of the strategy, its components and tools of formation.

Research and methodological sources show a lot of ways to define strategic management that aim at revealing aspects of this difficult management process. Strategic management is the management of the enterprise that is based on the personnel potential, performed on the basis of flexible regulation and timely changes, focuses on production activity related to clients' demands, and allows achieving competitive advantages in the perspective of its development (Bondarchuk V.A., 2007).

Taking into account generalization of the existing interpretations of strategic management (Bondarchuk V.A., 2007; Kruglova N.Yu., Kruglov M.I., 2003; Porter M., Michael E., 1998; Grant R., 2012; Utkin E.A., 1994; Ansoff I., 1999; Igoshin N. V., 2008; Dmitrishina and Uskov 2015; Kosinova, et al., 2016; Sibirskaya, et al., 2015; Stroeva, et al. …

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