STRATEGIC MANAGEMENT AND INDUSTRY POLICY. HOW TO EVALUATE THE ATTRACTIVENESS OF INDUSTRIES

  • Plekhanova, A.
  • Kolesov, K.
  • Ivanov, A.
  • Ivanova, N.
Abstract:
The relevance of this study is due to the need to improve the methods of industrial policy formation.The development of industrial policy is the area of strategic management of the state and economic entities. The application of mechanisms and instruments of industrial policy should be based on the principles of regulation, coordination, promotion of the most priority areas of activity. Due to the limited resources of any kind, as well as the type of tasks to be solved, the problem of selecting priority options comes to the fore. In the case of industrial policy objectives, such options are industries. Thus, the assessment of the attractiveness of industries is an indispensable component of industrial policy. However, works devoted to assessing the attractiveness of industries are clearly not enough. The aim of the study is to develop an approach to assessing the attractiveness of industries. Developing the methodology for assessing the attractiveness of industries, the authors used methods of logical analysis, methods of portfolio analysis in strategic management, methods of paired comparisons. The strategic characteristics of industrial policy have been identified, which is the rationale for using strategic management tools of companies in another area of management - state management of industries. By analogy with portfolio analysis, the authors propose to use the tools of strategic analysis of companies in relation to industries, the totality of which can be viewed as a kind of "portfolio". The analysis of matrices used for strategic management in business is carried out. The limitations of their application have been revealed. The feasibility of using the strategic management tools for industrial policy purposes is justified. The possibilities of modernization of strategic matrices in the formation of industrial policy are determined. The authors matrix approach to the evaluation and selection of industrial sectors is proposed to formulate measures of state support. The novation of author's approach consists, first, in using the methods of portfolio analysis in a new area - management of industries, i.e. the scope and objects of analysis are expanded. Secondly, usually in assessing the attractiveness static indicators of the current state are used. However, solving strategic problems, it is necessary to take into account the prospects of the analyzed objects. Therefore, authors suggest using the second axis of the matrix for dynamic indicators - indicators of the development of industries, reflecting the rate of change in static indicators. Thus, the evaluated objects will be positioned on the plane in the coordinates of current and dynamic indicators. This approach will allow authors in further studies to develop schemes for the formation of management impacts for certain quadrants of the matrix. The proposed methodology for assessing the attractiveness of industries will improve the effectiveness of decisions taken in solving investment, social and other problems.
SGEM Research areas:
Year:
2017
Type of Publication:
In Proceedings
Keywords:
brunch appeal; strategic management; industry policy; matrix approach
Volume:
17
SGEM Book title:
4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017
Book number:
4
SGEM Series:
International Multidisciplinary Scientific Conference on Social Sciences and Arts-SGEM
Pages:
729-734
Publisher address:
51 Alexander Malinov blvd, Sofia, 1712, Bulgaria
SGEM supporters:
Bulgarian Acad Sci; Acad Sci Czech Republ; Latvian Acad Sci; Polish Acad Sci; Russian Acad Sci; Serbian Acad Sci & Arts; Slovak Acad Sci; Natl Acad Sci Ukraine; Natl Acad Sci Armenia; Sci Council Japan; World Acad Sci; European Acad Sci, Arts & Letters; Ac
Period:
24 - 30 August 2017
ISBN:
978-619-7408-16-4
ISSN:
2367-5659
Conference:
4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017, 24 - 30 August 2017
DOI:
10.5593/sgemsocial2017/14/S04.094
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