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Strategic management of hemp industry development

Author

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  • Mykhailov, Andrii
  • Korenivska, Liudmyla
  • Rachytska, Yevheniia

Abstract

The purpose of the article - substantiation of theoretical, methodical and practical aspects of formation of strategic management of development of the hemp industry in Ukraine in the conditions of strengthening of competition and maintenance of sustainable development of rural territories. Research methods. The methodological basis of the study were the provisions of economic theory and systems analysis. The stages of development of cannabis were considered using the historical method. The dynamics of sown areas was studied using the statistical and economic method. Using a logical method, the tools (methods) of strategic management in the field of cannabis were evaluated on the example of the Institute of Bast Cultures of NAAS of Ukraine and the main directions of strategic management development. The method of analysis and synthesis was used to identify opportunities to expand the tools of strategic management (agricultural cluster as a consequence of the use of an innovative European tool - smart specialization). Theoretical generalizations to substantiate the use of existing and innovative tools of strategic management and conclusions were formed using the abstract-logical method. Research results. The historical key moments that influenced the development of the cannabis industry over the last hundred years are highlighted. The inefficiency of the traditional top-down management strategy is proved and a new tool of strategic management of the European model is substantiated - smart specialization as a basis for regional development. The algorithm of creation and efficiency of agrotourism cluster "Slobozhanske hemp" in Sumy region is given. The main directions of development of strategic management in the field of hemp are outlined. A SWOT analysis matrix was used to study in detail the strengths, weaknesses, opportunities and threats of the cannabis industry. On the example of the Institute of Bast Crops of NAAS of Ukraine, the main tools of strategic planning were outlined and analyzed. Scientific novelty. The necessity of reorientation of the strategy of regional management from vertical (top-down) to innovative, local, multilevel (smart specialization) is substantiated. With the help of SWOT-analysis, it identified weaknesses and threats that prevent the defense management strategy to move to a defensive - offensive base strategy. The combination of strengths and opportunities in the long run will provide an opportunity to choose a strategy for sustainable development of the cannabis industry. The expediency of creating the Agro-tourist cluster "Slobozhanske hemp" in Sumy region as a powerful economic mechanism and a "green tourist magnet" is considered. The analysis of the main tools of strategic management of ILK NAAS of Ukraine provided an opportunity to formulate the main directions of development of strategic management in the field of hemp. Practical significance. The reorientation of the regional management strategy from vertical to horizontal provides an opportunity for businesses not only to expand their capabilities in the field of growing and processing hemp products from the introduction of modern scientific advances, due to lower state regulation, but also to revive age-old traditions. everyday life. In general, the solution of the tasks will contribute to the expansion of sown areas of technical hemp, the creation of facilities for processing hemp, the creation of jobs and, consequently, the added value obtained by deep processing of products, increase tax revenues to budgets of various levels. Tabl.: 3. Figs.: 3. Refs.: 15.

Suggested Citation

  • Mykhailov, Andrii & Korenivska, Liudmyla & Rachytska, Yevheniia, 2021. "Strategic management of hemp industry development," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 28(6).
  • Handle: RePEc:ags:sereko:411950
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