Development of strategic guidelines for mining enterprises in the management of their business activities

Authors

DOI:

https://doi.org/10.15587/2706-5448.2020.220559

Keywords:

diversified company, asset utilization efficiency, competitive advantages, strategic areas of management, growth rate, target approach.

Abstract

The object of research is the process of determining the strategic guidelines for mining enterprises. The strategic positions of Metinvest B. V. (Netherlands) are analyzed using the BCG Grows-Share Matrix. It is found that this is the limiting position between the «Children» and «Dogs» quadrants. The deteriorating market conditions are indicated. It is found that getting rid of strategic business units and main strategic areas of management in the portfolio is inappropriate given the effect of «currency dumping». It is determined that its use became possible in conditions of a fall in the exchange rate of the national currency in relation to the main currency of international settlement transactions. It is determined that out of the five key strategic areas of business of Metinvest B. V., represented by the main export markets to the countries of Central and Eastern Europe and Asia, the volume of sales of the company's products only to China has a growing trend. The conclusion about the stage of the life cycle «Growth» is made. It is revealed that for all four markets of Central and Eastern Europe, the general linear trend is downward, and these strategic economic zones are located in the «Cows» square. The role of the markets of Central and Eastern Europe in the portfolio of the analyzed company as generators of cash flow («donors»), which practically do not require additional funding, is formulated. It is proposed to invest funds received from the sale of iron ore products to the markets of Central and Eastern Europe in increasing supplies to China (position «Children»), which has the largest growth prospects in the company's portfolio. It is taken into account that for China, Ukrainian mining companies are not the main suppliers. The key economic indicators of the world leaders of the mining industry are predicted until 2025. It is proposed to take into account the global dynamics in the formation of strategic management of business activities of Ukrainian enterprises. This will allow to correctly prioritize and focus on achieving competitive advantages, at least at the regional level. The result of this research is the developed strategic guidelines for mining enterprises. The use of the developed strategic guidelines will allow to introduce a targeted approach to business management of mining enterprises, taking into account the relevant environmental conditions.

Author Biographies

Volodymyr Nusinov, Kryvyi Rih National University, 11, V. Matusevycha str., Kryvyi Rih, Ukraine, 50027

Doctor of Economic Sciences, Professor, Academician of Academy of Economic Sciences of Ukraine

Department of Accounting, Taxation, Public Administration and Administration

Mykola Ishchenko, Kryvyi Rih National University, 11, V. Matusevycha str., Kryvyi Rih, Ukraine, 50027

Doctor of Economic Sciences, Professor, Vice President of the Academy of Mining Sciences of Ukraine

Department of Accounting, Taxation, Public Administration and Administration

Irina Polishchuk, Kryvyi Rih National University, 11, V. Matusevycha str., Kryvyi Rih, Ukraine, 50027

PhD, Associate Professor

Department of Economics, Organization and Management of Enterprises

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Published

2020-12-30

How to Cite

Nusinov, V., Ishchenko, M., & Polishchuk, I. (2020). Development of strategic guidelines for mining enterprises in the management of their business activities. Technology Audit and Production Reserves, 6(4(56), 28–34. https://doi.org/10.15587/2706-5448.2020.220559

Issue

Vol. 6 No. 4(56) (2020): Economics of enterprises. Macroeconomics

Section

Reports on research projects

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Copyright (c) 2020 Volodymyr Nusinov, Mykola Ishchenko, Irina Polishchuk

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