Abstract
The article examines the integration process from the perspective of three dimensions, which characterize the increase in quantity and appearance of new relationships; strength, character and stability of emerging communications; dynamics and the proper form of the process. The authors identify the development trends of the integration processes in the metals market and provide justification for the breaking of the period of Russian metal trading for 1991–2016 into five stages of development. We propose a step by step approach to the implementation of the integration process, and we developed a methodical approach to the economic feasibility assessment of integration processes between metal manufacturing companies and metal traders, including three consecutive stages of its implementation, which are based, respectively, on the principles of reflexive control, entropy approach, and the traditional assessment of mergers and acquisitions. An algorithm for the realization of the author’s approach is suggested, which allows to identify the optimal route for the integration process seen as a series of horizontal and vertical integration steps.
Highlights
The volatility in the global metals market determines the need to find new forms of development of the metal business that would ensure higher added value and reduce various risks
The first perspective refers to the process of increasing the number of connections and establishing new ones, which determines the quantitative characteristics of the future economic system; the second perspective refers to the strength and character of the resulting relationships, their stability and their importance for the improvement of the economic efficiency of the system; the third perspective is required for the evaluation of the dynamics of the process and is instrumental in the selection of the most appropriate form of the integration process, contributing to the manifestation of synergy in the new integrated system
The phase points in the economic space include companies, which are described by a set of parameters of the integration process
Summary
The volatility in the global metals market determines the need to find new forms of development of the metal business that would ensure higher added value and reduce various risks. The first perspective refers to the process of increasing the number of connections and establishing new ones (with the emerging market agents), which determines the quantitative characteristics of the future economic system (horizontal and vertical integration, mergers and acquisitions, etc.); the second perspective refers to the strength and character of the resulting relationships, their stability and their importance for the improvement of the economic efficiency of the system; the third perspective is required for the evaluation of the dynamics of the process and is instrumental in the selection of the most appropriate form of the integration process, contributing to the manifestation of synergy in the new integrated system Such an understanding of the integration process allows us to review the process by stages and introduce the concept of a “step of the integration process.”. Such optimization is a really challenging task, we believe that certain groups of companies can manage to solve this problem
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