Gonchar V., Yakimenko I. The assessment of the impact of external environment determinants on the competitiveness of metallurgical enterprises.

Abstract

Domestic production today is characterized by far from complete use of management factors providing the increase of its competitiveness. Strategic management is based on the strategy of production development, worked out for the long term that allows it to adapt to realities of the market within a shorter period of time and to react in good time to changes both in internal and external environment. One of such approaches might be working out the strategy of development which takes into account the assessment of the impact of external environment determinants on the competitiveness of metallurgical enterprises. The proposed model provides for impact assessment of external environment factors in three stages. The first stage is identification of the determinants that will directly influence the competitiveness of an enterprise. It is advisable to conduct it on five forces of competition, proposed by М. Porter: competitors, substitutes, customers, branch competitors, suppliers. The second stage requires studying changes of external environment and their threats. This stage is crucial for working out the strategy of enterprise development. The third stage consists in assessing the influence of potential future consequences of changes in the external environment on the future results of enterprise activity. While using this model of enterprise, it is possible to counteract the competition forces and achieve success. Effective realization of the strategy requires: development of purposeful strategic plans for coordination of actions of all subdivisions in the enterprise, concerted team work.