Influence of External Environment Analysis on the Competitiveness of Business Operations of an Industrial Enterprise (Evidence from Mining and Metallurgical Industry)

Abstract

The aim of the study was to analyze the influence of environmental factors on the effective activities of an organization. The objectives of the paper was to study environmental factors and evaluate methods and approaches to analyze the state of the external environment of the organization. An integrated and holistic mechanism of understanding the problems associated with the analysis of enterprise external environment that can be used in the practical activities of companies in various industries has been formed. Design/methodology/approach: The methodological framework of the study was the provisions of economic theory, organization economics, a dialectical approach to the study of the stated problem, as well as management systems in business structures in a rapidly changing external environment. The methods that were used in this analysis can be combined into two main groups: methods for collecting data on the external environment and analysis methods. The latter include the following methods: PEST analysis, EFAS, industry analysis, SNW analysis, SWOT analysis. The information framework of the study included the scientific and methodological publications of domestic and foreign authors, statistical, informational, analytical, reference sources, materials from current publications and periodicals, reporting data of enterprises in industrial entrepreneurship, expert assessments of domestic and foreign analysts. Findings: In the course of study, methods and approaches were analyzed that allow analyzing the state of enterprise external environment and draw conclusions about the competitive position of the enterprise. Based on the results of the analysis, a calculation and economic justification for increasing competitiveness was presented using the example of the activities of PJSC MMC NORILSK NICKEL. The proposed activities will allow the company to monitor changes in the external environment, thereby responding faster to them. That will allow the company to occupy a leading position in the market. Research/practical implications: Theoretical and practical findings related to determining the impact of the analysis of enterprise external environment on the competitiveness of the enterprise’s business can be used by industrial enterprises in the process of managing competitiveness risks, in terms of assessing and developing the competitiveness of the enterprise structures, and developing organizational mechanisms to create favorable conditions for the business environment. Methodological and practical results of the study are of scientific interest to scientists, post-graduate students, students and practitioners in assessing the factors that determine the competitive advantages and the competitiveness of industrial enterprises, while developing measures to identify and mobilize reserves to improve their competitive positions. Individual recommendations provided in the study were used in practice by the enterprises of mining and metallurgical industry. Originality/value: The scientific novelty of the study lies in complementing and developing scientific provisions related to the analysis of the enterprise external environment on the competitiveness of the enterprise’s business. The most significant results associated with the scientific novelty include the following: key methods for diagnosing the enterprise external environment are examined, which allow analyzing the state of the environment of the enterprise and drawing conclusions about its competitive position. A mechanism for practical application of methods through the example of a particular enterprise and a portfolio of managerial decisions to minimize the risks that arise is proposed.