THE FRAGILITY AS A STRATEGIC PROBLEM OF GLOBAL EXPONENTIAL ORGANIZATIONS

  • A. Nyameshchuk Vadim Hetman Kyiv National Economic University
Keywords: digital technologies, exponential technologies, exponential organizations, global technology companies, the fragility of the organization

Abstract

The author's method of identifying the organization as exponential and defining problems that are of strategic importance for its activity has been presented in the article. In general, exponential organizations can be defined as having business experience or resulting from reorganization processes, characterized by a high degree of updating of strategic guidelines (organizational methods and structure, management strategies, employees, scientific ideas, production technologies, products), has "big numbers" (sales, revenue, R&D, market capitalization, market share, R&D employees, patent activity) and has a significant impact on the socio-economic level of human life. It has been revealed that the priority branches of operations of exponential organizations are relatively young industries (in particular "Digital equipment and microelectronics", "Software and computer services", "Pharmaceuticals and biotechnologies", "Chemistry and cosmetics"), for which high patent activity level and significant investments in exponential technologies. The example of Microsoft Corporation, Intel Corporation, and Apple Inc. is shown and it has been stated that the strategy of exponential organizations should be focused on timely recognition of key business events (exponential depreciation of products and development of ideas, elimination of a strategic competitor, ensuring long-term competitive advantage, fragility of platform companies, variety of tactics of competitive struggle) and (predict; know when you can take significant risks; transform yourself into a platform company; create an industry ecosystem, Curb competitors). It is hypothesized that the strategic problem of exponential organizations is fragility - balancing on the brink of high profits and high risks as a result of the vulnerability to ultra-fast devaluation of ideas, products, information and activities of extremely vigilant competitors, which are also developing along an exponential trajectory. Fragility counteracts, above all, the leader of a company that, recognizing key events, effectively builds business strategy and tactics, pursues a "scaling" philosophy to ensure "big numbers" and tangible impact of the company on the global community as a sign of its success.

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Published
2019-12-24
How to Cite
Nyameshchuk, A. (2019). THE FRAGILITY AS A STRATEGIC PROBLEM OF GLOBAL EXPONENTIAL ORGANIZATIONS. Economic Scope, (152), 29-42. https://doi.org/10.32782/2224-6282/152-3
Section
INTERNATIONAL ECONOMY AND CHANGES OF GEO-ECONOMIC SPACE