Enterprises’ strategies transformation in the real sector of the economy in the context of the COVID-19 pandemic

Abstract

Abstract The article examines the impact of the COVID-19 pandemic on the content of key functional strategies of companies in the real sector of the economy. The purpose of the article is to assess the changes in the economic behaviour of companies in the context of the COVID-19 pandemic, to analyse business practices in adapting functional strategies to new risks, and to determine the directions for transforming functional strategies. An analysis of companies’ business practices showed that the pandemic had a significant impact on the economic behaviour of companies, transforming not only their tactics, but also their strategy. The functional strategies of the companies have undergone significant changes - marketing, production, personnel management strategies. The transformation of the marketing sphere is due to new trends in the sphere of consumption that have arisen as a result of the introduction of restrictive measures by states. The changed conditions of production activities necessitated accelerated digitalization and robotization of production, restructuring of supply chains and determined the need for the formation of innovative production strategies that meet the conditions of the Industry 4.0 era. The strategy and tactics of personnel management of companies are adapting to the conditions of the epidemic using a remote work format, digitalization of processes and tasks, and the use of new approaches in management. Based on the results of the study, the authors concluded that the pandemic has highlighted problems in the ability of companies to learn quickly in a rapidly changing environment. Today, the surviving companies are those that have been able to best adapt to unforeseen threats. For them, the coronavirus pandemic is not the cause of the crisis, but a turning point and a unique opportunity to develop in a highly competitive environment.