Methodical approach to building up development strategy for a mechanical engineering company

Abstract

The operation principles of industrial enterprises in cross-sectoral relations are analyzed It is proved, that the leading role in the development of mechanical engineering companies supplying machinery for manufacturing industries belongs to the adjacency equivalent and the operating margin of these companies. A methodical approach to the development strategy is proposed, based on estimates of adjacency equivalent and operating margin of mechanical engineering companies in a sector compared to average operating margin in the sector.

The proposed methodical approach can serve as an effective tool in building up the development strategy of a company, as the level of operating margin lays the background for company's strategy. Accordingly, the adjacency equivalent shows the attitude of market towards mechanical engineering products, acting as an indicator of demand for these products.