BUSINESS STRATEGIES OF ENTERPRISES IN THE CONDITIONS OF MILITARY ECONOMY

Keywords: turbulent business environment, dynamic capabilities, strategic context, process of strategy formation, content of strategy, principle of openness, principle of learning, principle of entrepreneurship, principle of change support, spontaneous strategy

Abstract

The purpose of the article is to define possible strategic behaviors of enterprises in the conditions of a military economy, with an emphasis on the current situation. It is established that when the main goal of enterprises is survival, long-term strategic planning loses its significance, and it is necessary to implement new strategies focused on market opportunities search, experimentation, and competitive advantage development. The strategy formed in this way evolves and changes along with changes both within and outside the company. Such enterprise management is also based on the analysis of resources and the external environment, but the vision, mission, and goals of the enterprise are not definitively defined. Enterprises experiment with various strategic options. Based on trial activities, organizations learn and adapt their strategies to the circumstances that have arisen. It is proven that in a turbulent business environment, the most valuable for a company are dynamic capabilities. They are a type of abstract abilities that allow sensing and exploiting opportunities and anticipating threats. Thanks to dynamic capabilities, companies create and adapt their resources, maximizing their alignment with the constantly changing environment. It is substantiated that for choosing a strategy in the conditions of a military economy, three aspects need to be considered: strategic context, the process of strategy formation, and the content of the strategy. These are dimensions that interact with each other. The strategic context includes internal and external conditions that affect the creation and implementation of the strategy; the process of strategy formation relates to the way it is created, participants, time, and the content of the strategy - the effectiveness of the process of its creation. Relevant strategies need to be formed based on current experience, although they often do not keep pace with the pace of change. In this case, spontaneous, unplanned impulsive actions, not based on any plan, can lead to the development of an integrated behavior model - a spontaneous strategy. Regardless of which of these forms of strategy the enterprise chooses, it should be based on assumptions that managers should consider as guiding principles: openness, flexibility, learning, entrepreneurship, and change support.

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Published
2024-02-27
How to Cite
Lipych, L., KushnіrM., & KhіlukhО. (2024). BUSINESS STRATEGIES OF ENTERPRISES IN THE CONDITIONS OF MILITARY ECONOMY. Economy and Society, (60). https://doi.org/10.32782/2524-0072/2024-60-110
Section
MANAGEMENT