Development of companies in the conditions of instability of the world economy: opportunities, challenges, prospects

Oleksii Zadorozhnyi, Hanna Zhaldak


As we know economic processes have a cyclical nature, which determines the periods of active economic growth and decline. Given the dynamic development of the world economy, the main task today for small, medium and large businesses is to adapt to volatile market conditions. Adaptation of companies to cyclical processes is the only way to increase the level of competitiveness of the firm, maximize profits, increase the efficiency of capital use, and so on. During the research such general scientific methods as: inductive, deductive, statistical, dynamic, etc. are used. The aim of the study was to determine the positive and negative effects of the instability of the world economy on the development of companies in various sectors of the economy.

Current trends in the development of companies in an unstable economic situation are studied. Examples of active development and bankruptcy of companies during economic crises, shocks, depressions are given. The impact of the COVID-19 pandemic on the formation and development of individual enterprises is analyzed. The statistical information on changes in gross profit of some companies of the secondary and tertiary sectors of the economy in the conditions of market instability is given. The main principles of increasing the efficiency of enterprises, taking into account the cyclical nature of the economy, in particular: minimizing costs and achieving a higher level of environmental friendliness; introduction of a high level of innovation and development of technological innovations; improving the quality of management, which will provide a high level of flexibility and adaptability of companies to unforeseen changes; development of a culture of experimentation. Examples of some tools and methods for analyzing the external and internal environment of the company, in particular, SWOT-analysis, the use of which provides the ability to make management decisions to improve the efficiency of capital use. It is concluded that under conditions when competition in the market is constant or increasing, the so-called "struggle for the consumer's dollar" is carried out, and therefore companies need to constantly analyze their competitors. This allows you to make appropriate decisions as quickly as possible when market conditions change.


crisis; economic instability; company; development; digitization; production

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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