Academic journal article European Research Studies

New Possibilities and Tools for Corporate Strategic Management for Supporting Its High Competitiveness and Economic Effectiveness

Academic journal article European Research Studies

New Possibilities and Tools for Corporate Strategic Management for Supporting Its High Competitiveness and Economic Effectiveness

Article excerpt

Introduction

In the conditions of open market economy, a modern company functions in the dynamically changing external environment, and the flexible approach to management of corporate business processes predetermines the variability of internal environment. Thus, makes it impossible to support its high competitiveness and economic effectiveness of a company, the strategic management of which is based only on experience and tools which were applied previously but are already old morally and physically.

Modern Russian entrepreneurship has two following characteristics. The first is reduction of the indicators of financial activity's efficiency in corporate accounting, due to which most companies in Russia are officially failing. The main motif here consists in the striving to reduce the obligations for tax payment and require state support.

Another characteristic is connected to the Russian companies' inability to compete with foreign companies, which leads to long-term implementation of the state policy of protectionism, which limits the action of the market mechanism and artificially strengthens the positions of Russian manufacturers in internal markets. Both these characteristics show low competitiveness and economic ineffectiveness of Russian companies.

The working hypothesis of the research is that the cause of this problem is usage of old tools for strategic management in the modern Russian companies. It is since in a lot of leading developed countries the level of taxation of business is higher than in Russia, but they do not have a tendency for the artificial transformation of companies into failing ones, and the policy of protectionism is replaced by the policy of free trading which stimulates competition in sectorial markets and stimulates the intensive development of business.

The purpose of the article is to determine new possibilities and tools of corporate strategic management and to substantiate the necessity for using them for the purpose of supporting its high competitiveness and economic effectiveness in modern Russia.

Literature Review

The research was performed on the basis of publications on the issues of strategic management of a modern company, which include (Havlicek et al., 2013; Arunruangsirilert and Chonglerttham, 2017; Eissmann et al., 2017; Baumgartner and Rauter, 2017; Tonysheva and Chumlyakova, 2016; Amberg and McGaughey, 2016; Martin et al., 2016; Engert et al., 2016; Simon et al., 2014; Shen et al., 2014) competitiveness and economic effectiveness of business (Kaur et al., 2017; Niaki and Nonino, 2017; Kamp and Parry, 2017; Bogoviz et al., 2016; Kravets et al., 2014; Bezrukova et al., 2013; Westerlund et al., 2017; Vlachvei et al., 2016; Laitner et al., 2013; Heise et al., 2013; Kossova et al., 2014; Thalassinos et al., 2012; 2013; Zobov et al., 2017; Setyawati et al., 2017; Bondarenko et al., 2017; Breckova, 2016; Akopova and Przhedetskava, 2016; Sibirskaya et al., 2016; Sihua et al., 2015; Theriou, 2015).

Methodology

Based on studying the existing research and publications in the sphere of strategic management of a modern company, the following simple theoretical model of this process was prepared (Figure 1).

This model is used as a theoretical platform of studying the process of corporate strategic management. The information and analytical basis of the research include the materials of the Report on global competitiveness for 2016-2017, prepared within the World economic forum. Article 11 of the national competitiveness (Business sophistication) is the indicator of effectiveness of strategic corporate management in the country. The indicator of success of doing business in this report is evaluation of the following criteria:

--number of local suppliers;

--quality of local suppliers;

--state of development of cluster processes;

--character of competitive advantages of companies;

--width of the chain of added value;

--control of international distribution of goods and services;

--intensity of improvement of the production process;

--activity and width of marketing activity;

--readiness to delegate the manager's authority. …

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