Modeling the Strategic Choice of the Agro-Industrial Enterprises Under the Current State Agricultural Policy

DOI

10.2991/aebmr.k.200324.007How to use a DOI?

Keywords

strategy, strategic management, agricultural policy, 3-D model (three-dimensional model)

Abstract

Modern science has a significant potential of theoretical and applied research concerning the problems of strategic management of socioeconomic systems at different levels. At the same time, sectoral aspects of strategic management in the agricultural sector at the business level require further development, taking into account modern economic conditions, the need for sustainable development of the sector and enhancing the state’s influence on its functioning. Because of the specifics of this sector (regarding both the production process and the market operation process), economic performance is more difficult to achieve than in other economic sectors. Therefore, the strategic component of managing the agro-industrial complex is of significant importance. The central element of the strategic management system of an enterprise is the definition of the strategy. That’s why the theme of this study seems to be urgent and practically significant. The strategic management researchers have proposed a number of models that allow to make the strategic choice for the enterprise development for the long term on the basis of analyzing certain indicators and factors. There exist some known two-dimensional models (matrices). Unfortunately, they lack the direct connection between the strategy choice based on the matrix and the strategic analysis that precedes the choice and that includes the study of the internal and external environment of the organization. 3-D matrixes increase the validity of the strategic choice but the considered models are not able to provide effective strategic solutions for the enterprises, whose strategic choice due to the industry or other specifics is dominated by the factor that does not have a similar effect in other sectors. We believe that the matrix should also preserve the classical objects of strategic analysis: the external environment and the internal environment, which influence the strategic choice of any enterprise, although it is necessary to make their comprehensive evaluation in view of the influence of the factors which are the most important for a particular industry. Since the strategic development of the agro-industrial complex enterprise is influenced by the agricultural policy of the state, the authors have proposed a 3-D model (three-dimensional model) for choosing a strategy taking into account the evaluation of three parameters: the external environment, the internal environment and the existing agricultural policy. Depending on the enterprise’s current position, the model allows choosing the right strategy from eight possible ones. The proposed 3-D model for choosing the development strategy of the enterprise of the agro-industrial complex will contribute to the informed strategic decision-making, taking into account the most significant factors that influence the enterprise under the current state agricultural policy.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Elena Rodionova
AU  - Anna Glebova
AU  - Tatiana Baibakova
PY  - 2020
DA  - 2020/03/30
TI  - Modeling the Strategic Choice of the Agro-Industrial Enterprises Under the Current State Agricultural Policy
BT  - Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)
PB  - Atlantis Press
SP  - 32
EP  - 36
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200324.007
DO  - 10.2991/aebmr.k.200324.007
ID  - Rodionova2020
ER  -