BUSINESS STRATEGIES OF ENTERPRISES IN THE CONDITIONS OF MILITARY ECONOMY
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.
References
Czapla A. Strategie biznesowe w warunkach niepewności - działania przedsiębiorstw w czasie pandemii COVID-19. ZN WSH. Zarządzanie. 2022 (4). S. 2022. 107–120. DOI: 10.5604/01.3001.0016.2181.
Hoffman F.O., Hammonds J.S. Propagation of uncertainty in risk assessments: The need to distinguish between uncertainty due to lack of knowledge and uncertainty due to variability. «Risk Analysis» 1994. T. 14. Nr. 5.
Moore A. Measuring economic uncertainty and its effects. «Economic Record». 2017. T. 93. Nr. 303.
Семенча І. Є., Гордієнко С. О. Формування стратегії розвитку бізнесу з урахуванням умов воєнної економіки України. Економічний простір. 2022. № 181. С. 143–150. DOI: https://doi.org/10.32782/2224-6282/181-25. URI: http://srd.pgasa.dp.ua:8080/xmlui/handle/123456789/9812. (Дата звернення: 29.02.2024)
Втрати від війни.URL: https://www.ukrinform.ua/rubric-economy/3827 525. (Дата звернення: 29.02.2024)
Mintzberg H., Lampel J., Quinn J.B., Ghoshal S. The strategy process: Concepts, contexts, cases. Pearson Education. Edinburgh. Harlow. Essex. 2002.
The art of the long view. New York. Doubleday. 2001. 450 р.
Strategic Management: Consept and Cases. University of Alabama. Business Publication Inc. 4-th ed. Plano. Texas. 1987. 345 p.
Chandler A.D. Strategy and structure: Chapters in the history of the industrial enterprise. Boston. MA: MIT. Press.1962.
Corporate Strategy: Resources and the Scope of the Firm. Irwin. Chicago. 2007. 570 p.
Mintzberg H., Ahlstrand B., Lampel J. Strategy Safari: A Guided Tour through the Wilds of Strategic Management, Free Press. New York. 1998.
Quinn J.B., Strategies for change: Logical incrementalism, Irwin, Homewood 1980.
Lynch R. Strategic management. Pearson. Harlow. 2015.
Eisenhardt K.M., Martin J.A. Dynamic capabilities: what are they? Strategic Management Journal. 2000. T. 21. Nr. 10/11. S. 1105–112.
Teece D.J., Pisano G., Shuen A. Dynamic capabilities and strategic management. Strategic Management Journal. 1997. T. 18. Nr 7. S. 509–533.
Mitręga M. Dynamic marketing capability – refining the concept and applying it to company innovations. Journal of Business & Industrial Marketing. 2019. T. 35. Nr 2. S. 193–203.
Teece D.J. Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal. 2007. Nr 28. S. 1319-13.
Verreynne M.L., Hine D., Coote L., Parker R. Building a scale for dynamic learning capabilities: The role of resources, learning, competitive intent and routine patterning. Journal of Business Research. 2016. T. 69. Nr 10.S. 4287-430.
Генрі Міцберґ Анатомія менеджменту. Ефективний спосіб керувати компанією. Наш формат. Київ. 2018.408 с.
Hine D., Parker R., Pregelj L., Verreynne M. Deconstructing and reconstructing the capability hierarchy.Industrial and Corporate Change. 2014. T. 23. Nr. 5. S. 1299-1325.
Czapla A. (2022).Strategie biznesowe w warunkach niepewności – działania przedsiębiorstw w czasie pandemii COVID-19. ZN WSH. Zarządzanie. (4). S. 107-120. DOI: 10.5604/01.3001.0016.2181.
Hoffman F.O., Hammonds J.S. (1994). Propagation of uncertainty in risk assessments: The need to distinguish between uncertainty due to lack of knowledge and uncertainty due to variability. «Risk Analysis». T. 14. Nr. 5.
Moore A.(2017). Measuring economic uncertainty and its effects. «Economic Record». T. 93. Nr. 303.
Semencha I. Ye., Hordiienko S. O.(2022). Formuvannia stratehii rozvytku biznesu z urakhuvanniam umov voiennoi ekonomiky Ukrainy.[ Formation of a business development strategy taking into account the conditions of the military economy of Ukraine]. Ekonomichnyi prostir. 2022. № 181. pp.143–150. DOI: https://doi.org/10.32782/2224-6282/181-25. URI: http://srd.pgasa.dp.ua:8080/ xmlui/handle/123456789/9812. (Аccessed February 29, 2024).
Vtraty vid viiny. [Losses from the war] .URL: https://www.ukrinform.ua/ rubric-economy/3827525. (Аccessed February 29, 2024).
Mintzberg H., Lampel J., Quinn J.B., Ghoshal S. (2002). The strategy process: Concepts, contexts, cases. Pearson Education. Edinburgh. Harlow. Essex.
The art of the long view. New York. Doubleday. 2001. 450 р.
Strategic Management: Consept and Cases. University of Alabama. Business Publication Inc. 4-th ed. Plano. Texas. 1987. 345 p.
Chandler A.D. (1962) Strategy and structure: Chapters in the history of the industrial enterprise. Boston. MA: MIT. Press.
Corporate Strategy: Resources and the Scope of the Firm. Irwin. Chicago. 2007. 570 p.
Mintzberg H., Ahlstrand B., Lampel J.(1998). Strategy Safari: A Guided Tour through the Wilds of Strategic Management, Free Press. New York.
Quinn J.B. (1980). Strategies for change: Logical incrementalism, Irwin, Homewood
Lynch R.(2015). Strategic management. Pearson. Harlow.
Eisenhardt K.M., Martin J.A. (2 000). Dynamic capabilities: what are they? Strategic Management Journal. T. 21. Nr 10/11. S. 1105–112.
Teece D.J., Pisano G., Shuen A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal. T. 18. Nr 7. S. 509–533.
Mitręga M.(2019). Dynamic marketing capability – refining the concept and applying it to company innovations. Journal of Business & Industrial Marketing. T. 35. Nr 2. S. 193–203.
Teece D.J.(2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal. Nr 28. S. 1319–13.
Verreynne M.L., Hine D., Coote L., Parker R. (2016). Building a scale for dynamic learning capabilities: The role of resources, learning, competitive intent and routine patterning. Journal of Business Research.T. 69. Nr 10.S. 4287–430.
Mintsberh, H. (2018). Anatomiia menedzhmentu. Efektyvnyj sposib keruvaty kompaniieiu.[Anatomy of management. An effective way to manage a company]. Kyiv: Nash format [in Ukrainian]
Hine D., Parker R., Pregelj L., Verreynne M. (2014). Deconstructing and reconstructing the capability hierarchy.Industrial and Corporate Change. T. 23. Nr. 5. S. 1299–1325.
This work is licensed under a Creative Commons Attribution 4.0 International License.