Issues of strategic planning introduction at domestic enterprises in volatile environment

Alla Cherep
Doctor of Economics, Professor, Dean of Economics Faculty, Zaporizhzhya National University, Ukraine, e-mail: cherep.av.znu@gmail.com, ORCID ID: https://orcid.org/0000-0001-5253-748

Alisa Ivanova
Postgraduate Student of Finance, Banking and Insurance Department, Zaporizhzhya National University, Ukraine, e-mail: alice.ivanova.09@gmail.com, ORCID ID: https://orcid.org/0000-0003-0045-1998

Cite this article:

Cherep, A., Ivanova, A. (2018). Issues of strategic planning introduction at domestic enterprises in volatile environment. Ed.: M. Zveryakov (ed.-in-ch.) and others [Problemy vprovadzennia stratehichnoho planuvannia na vitchyznianykh pidpryiemstvakh v umovakh nestabilnosti; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2 (66), рр. 55‒62.

Abstract

The essence of “strategy” definition is investigated in the article. The approaches of domestic and foreign scholars to the interpretation of this term are considered and it is determined that there is no strictly conceptual definition of the category “strategy” so far. It is shown that the necessity of strategy development is caused by the volatile environment of enterprises. It is justified that one of the most important factors, which influence the efficient functioning of an economic entity, is understanding of the necessity of strategic planning process implementation, as it enables enterprises to come to the progressive advance and increase their market share. Despite the outstanding achievements in strategic planning research, the issues, which hinder successful strategic planning introduction at domestic enterprises, have not been considered thoroughly enough. It is analyzed that our state has a great industrial potential which can be realized only if there will be understanding of the necessity of action planning not only for the current period, but also in the long term. Nowadays, almost half of domestic enterprises have strategic planning experience; however, there are certain obstacles, which make it impossible to implement planning system effectively further. Strategic planning in domestic enterprises is conducted insufficiently due to the external factors, such as unstable state of environment, and internal factors associated with specific aspects of organizational nature. In our opinion, they step forward at implementing strategic planning system at enterprises. Among them, lack of readiness for strategic planning, ineffective system of corporate governance; low quality of current control, lack of feedback, limited theoretical knowledge in the field of strategic planning, incorrect organization of this process, administrative dependence of the strategic planning department, etc. The issues of strategic planning introduction at enterprises are discussed and possible solutions are suggested in the article.

Keywords

strategy; strategic management; strategic planning.

JEL classification: G170; L620; M210; DOI: https://doi.org/10.33987/vsed.2(66).2018.55-62

UD classification: 658.5:005.521:005.21

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