Algorithm of developing competitive strategies and the trends of realizing them for agricultural enterprises - Статья

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The main stages of the development and implementation of strategies to improve the competitiveness of enterprises. Characteristics of competitive behavior of effective development of agrarian enterprises with different degree of cunning of firms.

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УДК 338.43:631.1.016 DOI: 10.15587/2313-8416.2016.60349 ALGORITHM OF DEVELOPING COMPETITIVE STRATEGIES AND THE TRENDS OF REALIZING THEM FOR AGRICULTURAL ENTERPRISES V. Boiko The main task of agricultural enterprises in market economic conditions is to enhance competitiveness and efficient activity, which is a precondition of their strategic development. It becomes possible in the following conditions: rapid adaptation of agricultural producers to the environmental changes; timely identification and support of their own competitive advantages; realization of the innovative model of development; optimization of investment support and rational distribution among the activities. 1. Analysis of the previous research findings and publications The problem of competitiveness of agricultural enterprises has been essential for such scientists as S. Kvasha [1], M. Malik [2], O. Nuzhna [3], O. Shkolnyj [4] and others. I. Hutorova [5], V. Zbarskyi [6], M. Misevych [7], L. Yevchuk [8] have studied the problems of evaluation of agricultural enterprises based on the identification of different factors of their impact on competitiveness. 2. Task statement In the Ukrainian scientific editions the theoretical and methodical approaches to choosing an optimal variant of strategies for agricultural enterprises with a low level of competitiveness, i. e. for the enterprises- outsiders, have been substantiated insufficiently. The purpose of the article is substantiation of the theoretical and methodical principles of developing and enhancing competitiveness of agricultural enterprises, working out alternatives and competitive strategies of their development based on the diagnostics of the business environment. 3. Generating competitive strategies of the development of agrarian enterprises with identifying management decisions In order to increase competitiveness of agricultural enterprises in the region it is expedient to develop their competitive strategies, i. e. to define the priority trends of the enterprise development based on the identification and efficient use of competitive advantages. The paper represents the competitive strategies developed for different groups on the basis of using analytical information and conducting marketing research and evaluating the competitiveness of the resource potential and products of the agricultural enterprises in the region. Therefore, the choice of a competitive strategy of the enterprise depends on the purposes of its activity and the chosen way of achieving the competitive advantages. The paper claims that the process of developing and achieving competitive strategies of agricultural enterprises must imply the stages from diagnosing the business environment to developing a certain strategy of increasing the competitiveness of agricultural enterprises. Considering the above mentioned information we have offered the algorithm of developing the strategy of increasing the competitiveness of an agricultural enterprise, which is given in Fig. 1. Taking into account the State strategy of developing the agrarian sector of Ukraine’s economy (for the period till 2020) [9], the mission of the investigated agricultural enterprises is to provide the consumers of the region with different incomes with qualitative, safe, variable agricultural products meeting European standards and for reasonable prices. This will make it possible to develop competitive advantages, increase the level of efficiency and competitiveness of agricultural enterprises and create an economic base for sustainable development of the agrarian sector and rural areas of the region. In order to achieve this mission it is necessary to bring its content to each level of a management system and an executor at the enterprise, define everybody’s contribution into the strategic success of the enterprise on the whole. It can be provided by decomposing aims and tasks, i. e. building “the tree of aims”, where certain quantitatively determined tasks are set, which form the basis of certain types of work. The strategic aims of the activity of agricultural enterprises in Kherson region are: - to provide food safety of the region; - to increase competitiveness of products, productivity of the branches, efficiency of production; - to work out activities concerning the environment protection, restoration, conservation and increasing soil fertility; - to increase the income of farmworkers in the region; - to promote the social development of rural areas; - to use and preserve land resources rationally. The major trend of realizing the competitive strategy of an agricultural enterprise till 2020 must lie in increasing the competitiveness of agricultural production. It is possible only in the following ways: 1. Reducing the cost price of agricultural products depending on the structure of production and type of products by 3-9 % at the expense of increasing the volume of production and intensifying crop production and enhancing productivity and ex

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