Implementation of strategic analysis methods to choose a development strategy for the enterprise’s foreign economic activity

Olena Golovko,Galyna Azarenkova,Sergii Yavorsky,Kateryna Oryekhova

doi:10.21511/gg.03(1).2020.01

Olena Golovko, Galyna Azarenkova

Open Access

https://doi.org/10.21511/gg.03(1).2020.01

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Abstract

The article considers stages and methods of strategic management of the enterprise’s foreign economic activity. PEST analysis, SWOT analysis and SPACE analysis of foreign economic activity are used on the basis of a particular enterprise. PEST analysis has highlighted political and legal, economic, social and technological factors influencing the foreign economic activity of the analyzed enterprise. SWOT analysis has allowed identifying strengths, weaknesses, opportunities and threats of the enterprise. SPACE analysis has revealed that in the absence of growth in the services market, the use of a strategy for the enterprise diversification is acceptable. This strategy involves the creation and development of new services. Therefore, it is necessary to constantly monitor the activity of the enterprise in the international economic environment.

Highlights

In the context of globalization, foreign economic activity (FEA) is a major component of the transformational growth of enterprises
Business practice shows that when starting foreign economic activity, companies rarely use strategic management methods that would provide for effective business development
Many enterprises already operating in international markets are facing the challenge of expanding their FEA or, on the contrary, reducing it

Summary

INTRODUCTION

In the context of globalization, foreign economic activity (FEA) is a major component of the transformational growth of enterprises. The solution depends on the goals that the enterprises set for themselves at the stage of introducing products (goods, works, services) to international markets and what strategy they define as the dominant one. Internationalization strategy – developing new international markets through the expansion of exports of products (goods, works, services), and the export of capital. Diversification strategy – mastering the production of new products (goods, works, services), expanding its markets in the international environment, expanding business activities to new lines of business not related to the main ones. Assessing strengths and weaknesses of the enterprise compared to competitors and defining market niches on this basis ket and to make sound strategic decisions on the 30,100 employees and provides an annual profit development of the company FEA, it is obvious to growth of more than 20%. N. d.) include general control, administration, financial management, personnel man-

DISCUSSION

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CONCLUSION