Method of determining the strategic focus of changes in the context of acceleration of company’s development

Economic Annals-XXI: Volume 137, Issue 1-2(1), Pages: 102-105

Citation information:
Guseva, O. (2014). Method of determining the strategic focus of changes in the context of acceleration of company’s development. Economic Annals-XXI, 1-2(1), 102-105. https://ea21journal.world/index.php/ea-v137-26/

Olha Guseva
PhD (Economics),
Assistant Professor,
Donetsk State University of Economic and Trade named after M. Tugan-Baranovsky
31 Schors St., Donetsk, 83055, Ukraine
gusevao@ukr.net

Method of determining the focus of strategic changes in the context of acceleration of companies development

Abstract. Introduction. Primary objective of managing the strategic changes is foundation of a focus, which will summarize the current problems and prospects of a company at a certain stage of life cycle. Therefore, methodical approaches concerning identification the focus of changes are very important part of a change management methodology and it requires constant improvement. Purpose. To elaborate the methodical approach in order to determine focus of changes with the aim of solving the problems of enterprises using taxonomic methods of comparative multivariate analysis. Methods. Analysis, generalization, structuring, taxonomic methods of comparative multivariate analysis. Results. The research has shown that the focus of strategic changes is not limited to providing sustainable (including innovation) or anti-crisis development of the enterprise. This focus is much wider. In a general sense, the focus of strategic change refers to general purpose transformations that reveals the current level of development of the enterprise and creates guidelines for its further ontogeny. To determine the focus of strategy changes, we proposed to use taxonomic methods of comparative multivariate analysis. To achieve this aim, we formulated the task of formalization the general guideline of changes, using the set of indicators of the financial, technological, customer, business and social subsystems of companies. These five blocks of a balanced scorecard are the strategic sustainability components of the modern enterprise. The analysis showed that almost all enterprises are able to keep and develop their core competencies, and thus key staff, in the dynamic business environment. Determination of correct focus of strategic change is the basis of development and implementation of effective change management mechanism for the modern enterprise.

Keywords: Strategy; Focus of Strategic Change; Change Management; Life Cycle; Enterprise

JEL Classification: B41; L20; M20

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Received 07.11.2013