Conceptual principles of strategic management of dairy enterprises

Abstract

The article examines the strategy development framework of dairy enterprises, which provides a gradual and consistent change in production activity principles in the direction of growth. It is proved that the development strategy can be effective only through the introduction of an organizational and economic mechanism for the interaction of the structural centers creating income, which ensures a reproductive process within the business unit on an extended type. The feasibility of justifying the strategic development of dairy enterprises in conditions of uncertainty and strengthening crisis phenomena is highlighted for several reasons: the dairy industry is represented by a set of economic entities, the majority of which do not belong to large integrated structures; the sectoral specificity of milk production complicates the possibility of influencing the determination of business priority parameters. It is argued that in agriculture, the most acceptable strategy is that of differentiated growth at the individual economic entity level, which contributes to fuller utilization of production and resource potential, reduces the risk of commercial losses, and increases sustainability. It is proved that strategic management in dairy farms is a process of developing a promising model for the future condition of the organization, which allows for taking into account the impact of environmental factors and includes a set of adaptation and growth strategies to neutralize and flexibly adapt to their negative impact. It is shown that the model of strategic management in dairy farming should focus on an intensive type of development based on the introduction of innovative technologies and includes six consistent stages. It is highlighted that the dairy farming development strategy in agricultural enterprises should be focused on maximizing the “return” from the incentive characteristics of the industry based on flexible use of all strategy elements. It is argued that one measure to mitigate the negative impact of environmental factors on dairy farming development is to increase the internal potential for innovation in both production and marketing environments within agricultural enterprises.