Strategy of foreign economic activity of flour milling industry enterprises: conceptual model

Inna Kuznetsova
Doctor of Economics, Professor, Head of Management Department, Odessa National Economics University, Ukraine, e-mail: inna.stream@ukr.net, ORCID ID: https://orcid.org/0000-0003-3017-6165

Yulia Karpenko
PhD in Economics, Associate Professor, Management Department, Odessa National Economics University, Ukraine, e-mail: uliauliavk@gmail.com, ORCID ID: https://orcid.org/0000-0002-1144-3910

Cite this article:

Kuznetsova, I., Karpenko, Yu. (2019). Strategy of foreign economic activity of flour milling industry enterprises: conceptual model. Ed.: M. Zvieriakov (ed.-in-ch.) and others [Stratehiia zovnishnioekonomichnoi diialnosti pidpryiemstv boroshnomelnoi haluzi: kontseptualna model; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’noekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1 (69), pp. 168–178.

Abstract

The commodity structure of Ukraine’s exports is analyzed in the article. It is proved that the agrarian sector has become a stable source of foreign exchange earnings and makes a significant contribution to the country’s foreign economic activity development and the maintenance of state’s foreign trade balance. An importance of grain processing products export is substantiated. An export’s development in the flour milling industry is analyzed and it is determined that she has become export-oriented in the past ten years. An expert evaluation of the «Flour export» activity direction attractiveness was carried out according to the I. Ansoff method, which takes into account a number of factors that characterize its prospects for profitability and growth, namely: the growth rate of relevant sector; consumer population growth; the dynamics of markets geographical expansion; the degree of product renewal; the degree of technology update; public acceptability of products; state regulation; price fluctuations; aggressiveness of leading competitors; resource market competition; market entry costs; prospects of profitability (favorable and unfavorable factors of profitability). According to the expert evaluation results, the attractiveness of the «Flour export» activity direction for the milling industry enterprises development was established. A critical analysis of scientific developments regarding the composition of main operations a foreign economic activity strategy processes’ forming was carried out. The importance of including in the foreign economic activity strategy formation process of operations risk evaluation of enterprise’s foreign economic activity and economic security potential evaluation is substantiated. A scientific result has been obtained, the novelty of which is in an improvement of the procedure for enterprise’s foreign economic activity strategy forming, which differs from an existing ones by accounting the extremely risky nature of this activity and enterprise’s ability to protect itself from threats.

Keywords

foreign economic activity; flour milling industry; flour exports; strategic management process; management process operation; assessment of activity direction’s attractiveness.

JEL classification: D210; L190; DOI: https://doi.org/10.33987/vsed.1(69).2019.168-178

UD classification: 005.642.1:339.564:664.761

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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