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Strategic management of the competitiveness of industrial companies in an unstable economy

Author

Listed:
  • Tatiana Vitalievna Pogodina

    (Financial University under the Government of the Russian Federation, Russian Federation)

  • Tatiana Viktorovna Muzhzhavleva

    (I. N. Ulianov Chuvash State University, Russian Federation)

  • Natalya Leonidovna Udaltsova

    (Financial University under the Government of the Russian Federation, Russian Federation)

Abstract

This paper is devoted to developing a set of strategic areas within the system of managing an industrial company in an unstable market economy. The authors have explored the genesis of the theory of competitiveness to identify some of the key attributes of industrial companies’ competitiveness in the short and long run. It has been established that both in the short and long run of major significance are financial-economic indicators. The authors have assessed the degree of financial leverage as a summarizing indicator among a set of financial-economic indicators of competitiveness in sectors within Russia’s industry within the period 2015–2017, which, overall, has a negative value. Among the key reasons behind Russia’s current trends are high levels of financial dependence among companies, low returns on assets, and high interest rates on loans. The authors have identified and analyzed three major strategic areas in the management of industrial companies in an unstable economy, which are as follows: (1) development of a corporate strategy for fostering and boosting companies’ competitiveness on an innovation basis; (2) implementation of strategic marketing; (3) implementation of strategic controlling. The paper brings forward a set of priority strategies for competitive industrial companies (horizontal diversification, innovation, or integrated growth), proposes a set of tools of strategic marketing for stimulating technological processes within the industrial complex in an unstable economy, and identifies a set of areas for implemo32enting strategic controlling as a way to practically implement deviation management. The authors accentuate the need to implement a scenaric approach to managing an industrial company. The paper brings forward a technique for assessing the effectiveness of a corporate strategy based on gaps between an industrial company’s strategic plan and its real potential.

Suggested Citation

  • Tatiana Vitalievna Pogodina & Tatiana Viktorovna Muzhzhavleva & Natalya Leonidovna Udaltsova, 2020. "Strategic management of the competitiveness of industrial companies in an unstable economy," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1555-1564, March.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:3:p:1555-1564
    DOI: 10.9770/jesi.2020.7.3(9)
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    1. Silvia Lorincová & Miloš Čambál & Andrej Miklošík & Žaneta Balážová & Zdenka Gyurák Babeľová & Miloš Hitka, 2020. "Sustainability in Business Process Management as an Important Strategic Challenge in Human Resource Management," Sustainability, MDPI, vol. 12(15), pages 1-15, July.

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    More about this item

    Keywords

    industrial complex; unstable economy; strategy for development; strategic marketing; strategic controlling;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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