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Forming Strategic Alliances On The Sugar Mills Base: Institutional Framework And Methodological Support

Author

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  • Lesya Steshenko

    (National University of Food Technologies, Kyiv)

Abstract

Strategic alliances are an effective form of integration for businesses, as they provide only the centralization of individual aspects of the economic activities and enterprises retain autonomy regarding the choice of suppliers and consumers of finished products. The most favourable conditions for the spread of strategic alliances formed in sugar beet sub complex of Volyn region, because in this region, unlike other areas in the crisis years all of firms processing beet raw material have survived. The strategic alliance will allow sugar factories to join efforts to enter the markets of other countries (Poland, Belarus, and Baltic countries) to distribute the risk of losses due to ignorance of the specifics of the new market, excessive pressure from local companies and the presence of obstacles in the form of protectionist measures by regional economic associations and individual countries. Merging of sugar enterprises in strategic alliance will create additional barriers to their uptake by corporate entities with diversified businesses and make them innovative core of the association, which will act as the starting point for the development of related industries.

Suggested Citation

  • Lesya Steshenko, 2013. "Forming Strategic Alliances On The Sugar Mills Base: Institutional Framework And Methodological Support," Ukrainian Journal Ekonomist, Yuriy Kovalenko, issue 12, pages 43-45, December.
    • Handle: RePEc:uje:journl:y:2013:i:12:p:43-45
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