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Factors strategy formation farms and their orientation

This research paper reviews the main factors that influence the formation of business strategy. Most researchers set up the following main factors: specific market opportunities and threats; social, political and regulatory standards; attractiveness of the industry and competitive conditions; company values and culture; company strengths and weaknesses, its competitive capabilities and personal ambition, business philosophy and managers ethical perceptions.

Agriculture as one of the leading sectors of the national economy has some specific features which greatly affect the performance of the enterprise, including:

1) farmers who work in conditions of risk and uncertainty due to the influence of climatic factors at the production outcomes;

2) the principal means of production for agriculture is the land, while other fields has a territorial basis ;

3) different soil and climatic conditions influence on production;

4) agricultural production is seasonal, which causes unequal use of labor, capital goods and proceeds from sales and seasonal price fluctuations;

5) implements are located in one place, and means of labor (tractors, machinery, harvesters, etc. ..) are constantly moving.

The global trend in prices and increase in demand for food is one of the important factors influencing the formation of strategy farms, except inflation, phenomenon is influenced by other causes. Firstly this is global warming; according to some researchers it reduces crop yields in the world at 5.7 %. Secondly this is using a large number of plant products for fattening cattle. Thirdly, this is world oil prices that accompanied the search for new alternative fuel sources. Because of all these causes, the sustainable amount of the feed grain is not used for human consumption or for the biofuels production.

The widespread use of biofuels is accompanied by increased demand for its raw materials. The canola crop is yearly increasing, while the amount of wheat and sunflowers acreage is decreasing. Over the past five years the sunflower crop area is decreased by 12.8%, grains and legumes - by 4.8%, while the rape sown area is increased by almost 2 times [13]. This is due to the high profitability of this crop. So the selling price of wheat in the summer and autumn in 2013 was estimated as $ 300-320 per ton, and the selling price of rape - $ 630-640 per 1 ton.

Ukraine requires substantial investment resources for sustainable economic growth among other factors. But Ukrainian investment security in recent years is not met generally accepted standards, especially in the agricultural sector. The demand in Ukrainian agricultural investment is estimated by $ 60 billion, which may lead to gross output increase by 3 times during 10-15 years.

The current financial support for farmers has a number of disadvantages that makes it impossible to meet the needs of agricultural production. The problem is the lack of credit for the development of agriculture, the high cost of bank loans and the complexity of the procedure for their preparation.

To achieve the potential yield, the key factors should be taken into account when choosing a strategy of functioning enterprises, for example the use of modern agricultural techniques and a sufficient amount of fertilizer.

Ukraine is using insufficient number of tractors and combines in compared with the average European indicators. A substantial portion of agricultural machines that are in operation have exceeded their useful life and obsolete.

Another important group of factors that affect the strategic choice agriculture businesses is climatic. Ukraine has significant opportunities for the development of the agricultural sector, particularly favorable soil and climatic conditions, fertile land, harvesting crops in sufficient quantities for domestic needs and export potential formation [4, p.61].

Thus, environmental management and protection to ensure the environmental safety of human life are the main conditions for sustainable development of Ukraine. The environmental situation in the country, unfortunately, remains tense.

Key words: strategy, specific factors characteristics, industry, strategic choice, investment processes, natural and economic conditions, budgetary resources, natural potential.

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