ENTERPRISE DEVELOPMENT STRATEGY: ESSENCE AND SIGNIFICANCE
Abstract
The article provides a historical analysis of the origin of the term "strategy" and a comparative analysis of scholars views on the very essence of strategy. The author presents the official point of view on the interpretation of the content of strategy, which is set out in the Methodological Recommendations on Preparation of Strategic Plans by Public Sector Enterprises developed by the Ministry of Economy of Ukraine. Following the logic of the study, the essence of the concept of "development strategy" is analyzed. The key features inherent in the enterprise development strategy and characterizing it are as follows: adequate development of the enterprise potential; results of strategy development; continuity of strategy; focus of strategy. The basic principles that a development strategy should meet are considered: focus on achieving the long-term goals of an enterprise as an economic system and the economic interests of its owners; multivariate development of possible areas of activity, which is determined by the dynamics of the enterprises external environment; continuity of adaptation to changes in the internal and external environment of functioning; synergistic integrity of strategies, relevant strategic actions that take place in accordance with various aspects of the enterprises activities. The author analyzes approaches to classifications of development strategy, in particular, by: the method of describing trends in enterprise change and the method of forming parameters characterizing an enterprise. According to the first approach, there are trend and factor approaches, and according to the second - genetic (or resource) and normative (or target) approaches. Attention is also paid to the classification of strategies depending on the stage of the enterprises life cycle, in particular, active strategies and passive strategies. Active strategies involve the appropriate activities of the enterprise to correct threatening situations, intensify the use of resources, and innovate. Passive strategies are focused on monitoring and taking action as needed as a form of response to market challenges.
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