In order to make regional strategic management decisions of the agricultural sector it is necessary to use multifactor correlation and regression analysis, which will allow to make a thorough conclusion on the acceptability of a certain factor and help to identify the alternative factors that affect production activities in the strategic decision-making process. As a result of conducted economic and mathematical analysis and diagnosis of correlation and determination coefficients for factors influencing the profit formation processes and, as a consequence, attracting investment in the agricultural sector of Cherkasy region, we concluded that the average product prices and seasonal conditions are the main factors among the proposed ones, namely: sales of agricultural products, assortment structure, production costs, product prices, seasonal conditions, having the greatest impact on the possibility of economic profit and profitability increase and hence – the possibility of attracting additional investment in the agricultural sector. The seasonal index itself has a direct impact on the formation of both income and expenses, thereby influencing the formation of cost and, consequently, the product prices. Thus, we can conclude that the proposed methodology for regional strategic management decisions in the agricultural sector is necessary and will help to identify alternative factors that affect production activities in the strategic decision-making process.
Volume 12 | 07-Special Issue
Pages: 376-389
DOI: 10.5373/JARDCS/V12SP7/20202119