FORMATION OF MODEL OF COMPANY’S STRATEGIC DEVELOPMENT DIRECTION CHOICE WITH SITUATIONAL HARMONY ASSESSMENT
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Abstract
The purpose of this paper is to develop methodological approaches to the strategised company development through the model construction for selecting an optimal development trajectory, incorporating an assessment of situational harmony based on the principles of system entropy. Methodology. The model formation process entails the specification search within the strategic period, utilising five key indicators (namely, the sustainable development success potential, the strategic capabilities norm, the reliability margin, the strategic business areas competitiveness, and the company competitiveness level) across three primary directions (namely, the formation and evaluation of strategic business areas effectiveness (SBAs), the determination of successful activity potential, and the assessment of company competitiveness). Results. A model for selecting a successful development direction for an industrial enterprise has been developed. Incorporating situational harmony assessments in line with proposed market positioning strategies, it provides a mathematical framework for evaluating and selecting the most effective management decisions for specific situations when applied in corporate governance practice. The application of the multivariate selection model in the process of corporate governance enabled the studied companies to formulate an effective direction for successful development in line with an adequate situational scenario of events in the economic environment during the strategic period. Practical implications. The results of applying the model for multivariate selection of the successful strategized development direction of the company with an assessment of situational harmony led to the selection of Strategy C under the studied companies regressive scenario. This indicates the necessity to consolidate existing competitive positions in the market of measuring equipment, production and control apparatus, as well as components and parts for motor vehicles. Value/Originality. The Applied Analytic Hierarchy Process (AHP) is a method that is employed to select the most successful direction for company development. In the context of corporate governance, it forms a toolkit of economic and mathematical techniques to support managerial decision-making amid changing market conditions.
How to Cite
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successful development, strategic company, situational harmony, systemic entropy, multivariate choice
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