Strategy Definition and the Firm's Sectoral Environment

The article presents the importance of strategic management as a management function in modern conditions. The sectoral structure of the Georgian economy is presented according to the volume of manufactured products. The direction of economic development in the sectoral context is analyzed. The comparative analysis of relevant indicators substantiates the importance of studying the sectoral environment in the issue of strategy formation. Conclusions and recommendations are presented in accordance with the identified problem. Strategy is a set of decision-making rules by which an organization guides its activities. It affects the long-term goals and functioning of the organization. The formulation of the strategy and methodological tools are fundamental features of the effective management of the organization. Strategy is the direction of the organization's development, which is based on the analysis of the company's strengths and weaknesses, opportunities and threats. The development of the strategy is influenced by social, political, economic, legal and other factors. The interaction of these factors and their impact on the strategy depends on the created situation. Therefore, even within the same industry, the strategies of competing companies are quite different. Competition and the attractiveness of the industry play an important role in the development of the strategy. Keywords: strategy, management, sector, competitive strategy, management, sectoral environment.