Competitiveness of Agricultural Enterprises in Market Conditions and Ways of Its Increase

Abstract

The purpose of the article is to study the modern trends in the development of agricultural enterprises and the factors influencing the increase of competitiveness of their activities in modern economic conditions. Methodology. One of the main elements of the methodology of conducting researches on competitiveness of business entities are evaluation methods. The work also used such research methods as: comparison, balance, graphic, economic-mathematical and other methods of economic reasoning, as well as systematization and generalization (to develop recommendations and proposals for the formation of an organizational and economic mechanism in the conditions of a turbulent environment), economic-statistical, structural-logical and analytical (to develop methods and indicators for ensuring the competitiveness of enterprises), graphic (to present the dynamics of indicators and also for the best perception of information on sustainable development). The results of the work show that the paradigm of competitiveness management of enterprises is currently being formed around the issue of competition for the future, the impact of globalization trends and ensuring successful functioning in the strategic perspective in accordance with the established goals, which requires the formation of new strategic thinking in the management system at the macro and micro levels. Practical implications. Development of any strategy requires justification of goals and objectives, application of acquired knowledge, skills and abilities in making strategic management decisions. Therefore, the formation of a strategy for the development of an agricultural enterprise should begin with an analysis of the external and internal environment. Determining the strategic prospects for the development of an agricultural enterprise should be based on an analysis of changes occurring in the external environment, an assessment of the strategic positions of the enterprise, its strengths and weaknesses. Value / originality. Based on the specifics of their operating environment, it is advisable for agricultural enterprises to focus on achieving competitive advantages associated with lower costs. Such a competitive strategy includes cost optimization at the level necessary to fully meet production needs and continuous cost control. In addition, production cooperation plays an important role in managing the competitiveness of agricultural enterprises.

Agricultural Enterprise Development Strategy and Its Efficiency in the Modern Economic Conditions

“…2, 2024 of the most vulnerable countries in terms of internal and external challenges. Therefore, strengthening sectoral diversification can play an important role in reducing the country's vulnerability to internal and external threats, strengthening its "economic immunity" and returning to the trajectory of dynamic and sustainable growth (Kutsenko, 2014;Tomashuk, 2023). That is, sectoral diversification creates opportunities Source: (Dutta, Lanvin, León, Wunsch-Vincent, 2023) Table 4 The impact of diversification on the strategic development of an agricultural enterprise № Influence vector Essential characteristics Positive impact of diversification 1 Risk reduction • Diversification can help reduce the impact of market price fluctuations or changes in weather conditions on certain products.…”

<p>Assessing the Effect of Monetary Policy on the Competitiveness of Agricultural Enterprises</p>

“…The rationale behind using revenues as a benchmark is based on the economic principle that effective responses to monetary policies, reflected in revenue outcomes, signify a higher competitive edge. This includes the ability to adapt to changes in interest rates, manage costs during inflationary periods, and capitalize on favorable exchange rates to maximize profitability [2] .…”

“…Conversely, lower interest rates can support investment and economic development, enhancing competitiveness in agriculture. Researches have underscored the relationship that tight monetary policies typically increase rural unemployment and reduce agricultural production [2] . Furthermore, fluctuations in exchange rates can have a significant impact on the prices of agricultural products in the world market.…”