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Economics and Finances
ArticleName Forming the management strategy for production capacities of the Russian iron and steel works
DOI 10.17580/cisisr.2022.02.17
ArticleAuthor N. M. Zvyagin, E. S. Zambrzhitskaya

Magnitogorsk Iron and Steel Works (Magnitogorsk, Russia):

N. M. Zvyagin, Head of the Dept. of Prospective Development, e-mail:


Nosov Magnitogorsk State Technical University (Magnitogorsk, Russia):

E. S. Zambrzhitskaya, Cand. Econ., Associate Prof., Dept. of Economics, e-mail:


The state and development of ferrous metallurgy largely determines the level of industrial development, which makes this industry strategically important for the country's economy in a whole. In order to improve the efficiency of the functioning of iron and steel works, it is necessary to work out the issue of managing their production capacities both at the state level and at the level of an individual enterprise. In 2014, the Government of the Russian Federation developed a strategy for the development of the Russian metallurgical complex and approved it with the help of a relevant regulatory document Order No. 839 of the Ministry of Industry and Trade of the Russian Federation. At the same time, implementation of this strategy at the level of iron and steel works has a number of unresolved issues that require scientific research and development. This article proposes an algorithm for developing a strategy for managing the production capacities of iron and steel works. The specified algorithm consists of several stages aimed on analyzing the factors of the external and internal environment, assessing the competitive position, coordinating with the overall strategy and linking with strategies in other functional areas of management, followed by a clear formulation and development of strategic alternatives. The final step in development of the strategy is to determine the mechanisms for its implementation and control over execution. The methods of analysis and synthesis, the principles of consistency and complexity make the theoretical and methodological basis of the study. The theoretical and practical significance of the study lies in the fact that a scientifically substantiated approach to development of the strategy for managing production capacities will allow Russian metallurgical enterprises to respond adequately to changes in the situation on the metal products market with simultaneous strengthening of their competitive positions.

keywords Iron and steel works, strategy, development, production capacities, algorithm, requirements, external environment, internal environment, competitive position, functional areas of management, strategic alternatives

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