THEORETICAL AND METHODOLOGICAL APPROACHES TO THE EVALUATION AND SELECTION OF THE MANAGEMENT STRATEGY FOR THE INTRODUCTION OF FOREIGN ECONOMIC ACTIVITY AT THE ENTERPRISE

Abstract

Topicality. The development of international economic integration and globalization of the world economy contributes to the intensification of foreign economic activity of enterprises, which opens up opportunities for economic growth through the expansion of sales channels. At the same time, operations in the foreign market are characterized by a significant degree of risk, the need for a detailed investigation of the political and economic situation ,the legal basis of foreign economic transactions, etc. Small and medium enterprises should be the basis of the economy of a developed country. Nowadays, Ukrainian authorities stimulate the creation of such enterprises and their entry into foreign markets through the Entrepreneurship and Export Promotion Office. The implementation of foreign economic activity in a small enterprise is more risky and challenging than in a large one. Therefore, the study of the peculiarities of the management strategy for the introduction of foreign economic activity at the enterprise is a topical issue today. Aim and tasks. The paper aims to develop and improve theoretical and methodological approaches to evaluation and selection of the management strategy for the introduction of foreign economic activity, which can be used by Ukrainian enterprises for the attraction of additional opportunities to foreign markets. Research results. The research results of theoretical and methodological approaches to the evaluation and selection of the management strategy for the introduction of foreign economic activity at the enterprise are presented. According to the investigation results of the ?strategic management? concept in the scientific literature from a general scientific point of view and taking into account the peculiarities of strategic management of the foreign economic activity, a modern understanding of strategic management is determined. Knowledge of these features allowed showing the logic of foreign economic activity strategic management process at the enterprise. Basic corporate strategies and ways of their implementation are proposed for the foreign economic activity strategy development. Their essence is specified using the sub-strategies, the so-called alternatives to the basic strategy. It is shown that the decision on the optimal choice of alternatives of foreign economic strategy is made by the company's management, taking into account the results of previous analytical work and assessment of potential markets, time constraints, and scale of activity. Analytical tools for the selection of strategic alternatives are offered. It is recommended to conduct a PEST/PESTEL analysis of the most perspective markets to select a market for expansion. Porter's Five Forces model is proposed to investigate the existing competition in the market. It will help to choose the best timing of entry. To choose the scale of market entry, an enterprise should consider the advantages and disadvantages of basic entry modes: exporting, licensing, joint venture, wholly owned subsidiaries. The proposed basic corporate strategies can be used alone or in combination. Conclusion. Strategic management of the introduction of foreign economic activity is part of the company's development strategy and is subject to its mission. The introduction of foreign economic activity is preceded by the development of alternative strategies based on the peculiarities of economic activity of the enterprise; its internal and external environment, and foreign markets. Decisions on the optimal choice of alternatives to foreign economic strategy are made by the company's management, taking into account the results of previous analytical work and assessment of potential markets, time constraints, and scale of activity.