ESSENCE AND PRINCIPLES OF STRATEGIC MANAGEMENT OF ENTREPRENEURIAL ACTIVITY: THEORETICAL ASPECT
Abstract
The article examines the theoretical aspect of strategic management and the principles on which it is based. The definition of the concept of "strategy" is highlighted based on three approaches: "strategy as a plan", "strategy as a vector of development" and "strategy as an analysis". There are two concepts of strategy development, organizational and managerial and philosophical. The philosophical concept emphasizes the general meaning of strategy. Organizational and management strategy is related to competitive actions of strategic activity. Interpretations of the essence of strategic management by both domestic and foreign scientists are provided. During the evolution of strategic management, the functions of current and strategic management were separated. Today, there is no universal method of business management that would allow businesses to quickly adapt to the changes that are taking place. Strategic management is a complex process that involves taking into account various determinants that are constantly changing. The process of development of strategic management of business activity is based on the following approaches: systemic, process and situational. The process of systematizing management strategies that entrepreneurs can apply in their activities is important. Strategic management of business activity is based on a large number of principles that can be combined into three blocks related to management, development and systematicity. Business in countries with a developed market economy, in comparison with the domestic one, has more experience and opportunities in the processes of development and implementation of various management strategies. This is due to the fact that domestic entrepreneurs are limited in financial resources, there is a lack of qualified managers, the instability of economic development, etc. Today, the development of a balanced management strategy is impossible without the use of innovative management tools. These innovative tools can be: non-financial and financial indicators, which in practice will help to balance the interaction of the company's divisions.
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