Problems of Strategic Management Formation in Russian Agrarian Sector

Abstract

The rapid changes in Russian agriculture during the last fifteen years require development of particular strategies for efficient farm management. The West-European approaches of strategic management and planning decisions are not directly applicable in the Russian agricultural economy; Russian large and medium-sized agricultural enterprises act on different organisational principles, due to the specific peculiarities of their business mentality. The objective of the research is to adopt modern strategic management concepts to the peculiarities of Russian agriculture and to work out proposals on formation of strategic planning system in agricultural production. To this end it is necessary to define the strategic planning features which take into account the nature of modern stage of the development of Russian economy and the specific character of agricultural production; to indicate the preconditions which promote the wide implementation of strategic planning into economic practice; to establish the features of the concept of strategic planning for agricultural enterprises and to elaborate a methodical set of instructions providing formalized character to strategic planning. Applying the methodologies of monographic research and expert interviews, we conducted the analysis of peculiarities and problems of Russian agricultural production, revealed and systematized the features of development of strategy for agricultural enterprises. Based on the results of our investigation we developed strategic development models for the agricultural enterprises of Stavropol region applying the approach of Strength /Neutral / Weakness (SNW) analysis of the methodology of comparative advantage. The usefulness and empirical value of the developed models have been approved on the example of “LUCH” agricultural enterprise, which is the first in the region according to effectiveness indicators and the fourth according to its relative size.Farm Management,