Mechanism of strategic management of development of integration interaction of enterprises

Abstract

Introduction. The impact of globalization processes of the world economy motivates the revision of traditional ap-proaches to strategic management of enterprises in today's dynamic environment, including the establishment of integra-tion. This approach allows you to establish horizontal and vertical economic links between different network participants and get a synergistic effect for each of them. The purpose of the research is to improve the scientific approach to understanding the functional sphere of influ-ence of the mechanism of strategic management of the development of integration interaction of enterprises and to identify strategies of the appropriate level detailing their features and target results. Results. The nature of the concept of "mechanism" is studied and the role of the mechanism of strategic management of the development of integration interaction of enterprises is established, which reflects the system of interconnected ele-ments-components of economic mechanisms of separate subjects of business processes. The need for joint activities of enter-prises on the example of agricultural market participants has been proved: cooperation and integration contribute to the creation of a number of advantages for members of such associations, including the formation of product prices. Features of network organizational structure of management and vertical integration are considered. Variants of strategic decisions are systematized with their target result of application and peculiarities of proceedings. Conclusions. Any company has two basic options for development strategy: internal development and external growth. The specificity of the latter strategies is formed by the fact that small enterprises operate in limited market niches, which narrows the range of possible strategic decisions. The set of possible strategies includes direct, reverse, horizontal integration, market capture or development, product development, concentric, conglomerate, horizontal diversification, joint venture, reduction, rejection, liquidation and combination. The introduction of a mechanism for strategic management of the development of integration interaction of enterprises will help increase competitiveness, reduce production and transaction costs, expand market position, maximize profits and more. Keywords: integration, integration process, integration interaction, enterprise development, strategic management, strategy, management, network structures, mechanism.