Influence of the performance of management decisions on the process of using the strategic potential of the enterprise

Abstract

The article examines the specifics of the influence of management decisions' effectiveness on using the company's strategic potential. For the strategic potential of the enterprise to be used effectively, it is necessary to establish the process of making effective management decisions. Many domestic and foreign scientists deal with the issues of studying the potential of the enterprise in general and the strategic potential of the enterprise in particular. However, the influence of management decisions on using the enterprise's strategic potential has practically not been investigated. An analysis of the main theories of the essence of the definition of «potential» was carried out. The structure of the strategic potential of the economic entity, which includes various types of local potentials, is summarized. Management of the process of forming the company's strategic potential in today's challenging conditions is critical because it makes it possible to analyze the influence of external and internal environmental factors and predict the presence of potential threats and opportunities to eliminate them. The main stages that should be included in strategic potential management are considered. In general, to assess the management of the strategic potential of a business entity, it is necessary to use three main methods: analysis of the internal and external environment of the enterprise's functioning, analysis of competitiveness and competitive advantages, and analysis of the life cycle concept. «Potential Square» is used to comprehensively assess and analyze the state of enterprises' strategic potential. This method assesses four main blocks of strategic potential: production, distribution, and sales of products; organizational structure and management; marketing, logistics, and service. In the process of using the strategic potential of the enterprise, the effectiveness of the management decision becomes essential, and it is crucial not only to manage management decisions but also to know the requirements for the correctness of the chosen decision. Keywords: enterprise, potential, performance, strategic potential, strategic management, management decision.