Models of Managing Industrial Enterprises under an Unstable Environment and Technological Re-equipment

Abstract. Under the ongoing process of economic globalization, Russian industrial enterprises are currently facing the need to compete in world markets characterized by an extreme degree of instability due to political, social, economic, and other factors. In such conditions, classical strategic management methods become ineffective, primarily due to no appropriate tools to consider and correct several factors increasingly affecting the performance of enterprises. For example, in view of the deteriorating environmental situation in the world (even interpreted as an environmental disaster), the governments of different countries and various public organizations are putting pressure on industrial enterprises to carry out technological re-equipment. This paper surveys the classical approaches to the strategic management of industrial enterprises and the assessment of their effectiveness using mathematical models. The disadvantages of these approaches are discussed. A strategic management model is proposed that considers a fluctuating demand for the products of industrial enterprises caused by periodic economic crises. In addition, a model is constructed for assessing the effectiveness of enterprises implementing technological transformations to minimize their environmental damage. The models can be used to improve strategic decision mechanisms for managing industrial enterprises.

Keywords: strategy, strategic management, enterprise management, industrial management, global instability, decision-making model, industry, cost management, technological re-equipment.