Strategy of foreign economic activity of flour milling industry enterprises: conceptual model

Authors

DOI:

https://doi.org/10.33987/vsed.1(69).2019.168-178

Keywords:

foreign economic activity, flour milling industry, flour exports, strategic management process, management process operation, assessment of activity direction’s attractiveness

Abstract

The commodity structure of Ukraine’s exports is analyzed in the article. It is proved that the agrarian sector has become a stable source of foreign exchange earnings and makes a significant contribution to the country’s foreign economic activity development and the maintenance of state’s foreign trade balance. An importance of grain processing products export is substantiated. An export’s development in the flour milling industry is analyzed and it is determined that she has become export-oriented in the past ten years. An expert evaluation of the «Flour export» activity direction attractiveness was carried out according to the I. Ansoff method, which takes into account a number of factors that characterize its prospects for profitability and growth, namely: the growth rate of relevant sector; consumer population growth; the dynamics of markets geographical expansion; the degree of product renewal; the degree of technology update; public acceptability of products; state regulation; price fluctuations; aggressiveness of leading competitors; resource market competition; market entry costs; prospects of profitability (favorable and unfavorable factors of profitability). According to the expert evaluation results, the attractiveness of the «Flour export» activity direction for the milling industry enterprises development was established. A critical analysis of scientific developments regarding the composition of main operations a foreign economic activity strategy processes’ forming was carried out. The importance of including in the foreign economic activity strategy formation process of operations risk evaluation of enterprise’s foreign economic activity and economic security potential evaluation is substantiated. A scientific result has been obtained, the novelty of which is in an improvement of the procedure for enterprise’s foreign economic activity strategy forming, which differs from an existing ones by accounting the extremely risky nature of this activity and enterprise’s ability to protect itself from threats.

Author Biographies

Inna Kuznetsova, Odessa National Economics University

Doctor of Economics, Professor, Head of Management Department

Yulia Karpenko, Odessa National Economics University

PhD in Economics, Associate Professor, Management Department

References

State Statistics Service of Ukraine: website [Derzhavna Sluzhba Statystyky Ukrainy: sait], available at: http://www.ukrstat.gov.ua [in Ukrainian]

Ansoff, I. (1989). Strategic management. Trans. from Eng. E. L. Leontyeva, E. N. Stroganov, E. V. Vyshinskaya, M. V. Nikolsky, V. N. Smirnov [Strategicheskoe upravlenie; рer. s angl.] Еkonomika, Moskva, 519 s. [in Russian]

The Food and Agriculture Organization (FAO): website, available at: http://www.fao.org.

Kernasyuk, Yu. V. (2017). Foreign economic risks of Ukrainian agroexport [Zovnishnioekonomichni ryzyky ukrainskoho ahroeksportu], Ekonomichnyi hektar, 23.06.2017, available at: http://agro-business.com.ua/agro/ekonomichnyi-hektar [in Ukrainian]

Rybchynskyi, R. Ukrainian flour market: slow progress [Rynok boroshna Ukrainy: povilna khoda vpered], available at: http://ukrmillers.com/interv-yu [in Ukrainian]

Overview of the over-the-counter grain market for July 2017 – July 2018 (2017; 2018) [Obzor vnebirzhevogo rynka zernovykh za iyul 2017 g. – iyul 2018 g.], Khranenie i pererabotka zerna, No. 8, 2017 – No. 8, 2018 [in Russian]

Kuznetsova, I. O., Kravchenko, V. О., Malyutenko, О. Yu. (2015). Scientific and methodological aspects of the strategic risks management process: monograph [Naukovo-metodychni aspekty protsesu upravlinnia stratehichnymy ryzykamy: monohrafiia], Atlant, Odessa, 188 s. [in Ukrainian]

Galazyuk, N. M. (2013). Strategic planning of foreign economic activity as a basis of enterprise management at the present stage of development [Stratehichne planuvannia zovnishnioekonomichnoi diialnosti yak osnova upravlinnia pidpryiemstvom na suchasnomu etapi rozvytku], Ekonomichni nauky. Seriia: oblik i finansy, No. 10 (2), s. 56–62 [in Ukrainian]

Kosenko, S. V. (2011). Theoretical positions of enterprise’s foreign economic activity strategy: definition and classification [Teoretychni polozhennia stratehii zovnishnoekonomichnoi diialnosti pidpryiemstva: vyznachennia ta klasyfikatsiia], Ekonomika ta upravlinnia pidpryiemstvamy mashynobudivnoi haluzi: problemy teorii ta praktyky, No. 3, s. 117–128 [in Ukrainian]

Babiy, I. V. (2018). Strategic management of enterprises’ foreign economic activity: theory, methods, practice: monograph [Stratehichne upravlinnia zovnishnioekonomichnoiu diialnistiu pidpryiemstv: teoriia, metody, praktyka], Polihrafist-3, Khmelnytskyi, 343 s. [in Ukrainian]

Kuznetsova, I. O. (2011). Paradigms of process approach in management: essence and contradiction [Paradyhmy protsesnoho pidkhodu v menedzhmenti: sutnist ta protyrichchia], Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky, No. 2, T. 2, s. 64–68 [in Ukrainian]

Pergat, L. I. (2014). The essence of strategic management of enterprise’s foreign economic activity [Sutnist stratehichnoho upravlinnia zovnishnoekonomichnoiu diialnistiu pidpryiemstva], Problemy materialnoy kultury. Ekonomicheskie nauki, No. 7, s. 114–119 [in Ukrainian]

Shvets, V. Ya. (2003). Fundamentals of foreign economic activity [Osnovy zovnishnioekonomichnoi diialnosti], Profesional, Kyiv, 176 s. [in Ukrainian]

Konovalenko, Yu. (2013). Sources and factors of transport risk while freight transport by road [Dzherela ta faktory transportnoho ryzyku pry zdiisnenni vantazhnykh perevezen avtomobilnym transportom], Halytskyi ekonomichnyi visnyk, No. 2, s. 10–19 [in Ukrainian]

Gonchar, T. (2010). Theoretical and methodological problems of risks identifying of foreign economic activity of Ukrainian metallurgical enterprises [Teoretiko-metodologicheskie problemy identifikatsii riskov vneshneekonomicheskoy deyatelnosti metallurgicheskikh predpriyatiy Ukrainy], Ekonomist, No. 5, s. 26–30 [in Russian]

Lukyanova, V. V., Sviderska, A. V. (2015). Qualitative analysis of foreign economic risks of machinebuilding enterprises of Khmelnitsky [Yakisnyi analiz zovnishnioekonomichnykh ryzykiv mashynobudivnykh pidpryiemstv Khmelnychchyny], Visnyk Skhidnoievropeiskoho universytetu ekonomiky i menedzhmentu, No. 1, s. 64–71 [in Ukrainian]

Kuznetsova, I. O., Kuehne, O. O. (2016). Strategic management of grain receiving enterprises as a basis of country’s food security: monograph [Stratehichne upravlinnia khlibopryimalnymy pidpryiemstvamy yak osnova prodovolchoi bezpeky krainy: monohrafiia], Mahistr, Odessa, 146 s. [in Ukrainian]

Published

2019-03-26

Issue

Section

Management and business administration