IMPROVEMENT OF THE FORMATION OF THE PRODUCTION STRATEGIES OF THE ENTERPRISE

Keywords: strategic management, production strategy, production activity, flexibility, industrial enterprise

Abstract

The article is substantiated the necessity to develop and implement industrial enterprise production strategies and proved that the development of a correct and clear business entity activity strategy is extremely relevant in modern conditions, since taking into account industry specificity, new production methods, use of innovative technologies would improve the production management system activities. Approaches to strategic management and stages of its implementation are investigated. The concept of industrial production management strategy has been improved, which should take into account the possibility of modification in accordance with the change of external and internal environment. In doing so, an entity may use several strategies in its operations that may be closely interrelated and rapidly adapt to any anticipated or unpredictable market changes. Particular attention is paid to flexibility is an important property which creates an opportunity to quickly adjust and change production facilities in order to expand the line of goods, at the sametime taking into consideration the impact of internal and external factors, each of which has a specific effect on the ability of an enterprise to adapt. It is stated that the formation of the strategy of production activity of the enterprise should take into account the flexibility of production activity and the likelihood of its further development. When developing a production strategy, the scope of activities, available resources, demand for their products, capacity and market segment, consumers, etc. should be taken into account. The implementation of the strategy should lead to the economic, social, environmental and social challenges of the industry. A set of basic production strategies is presented and characterized, in particular, such as: reorientation of production; stabilization of production; full specialization; uniqueness of production; diversification; limited specialization of the production process; modification of production; intensification; innovative transformations of production (production technologies). Conditional and specific types of strategies that can be selected by enterprises to develop and achieve their maximum level of profitability, optimization of production and resources are systematized.

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Published
2020-02-26
How to Cite
Volynets, I., & Skoruk, O. (2020). IMPROVEMENT OF THE FORMATION OF THE PRODUCTION STRATEGIES OF THE ENTERPRISE. Economic Scope, (154), 88-92. https://doi.org/10.32782/2224-6282/154-16
Section
ECONOMY AND ENTERPRISE MANAGEMENT