Development Trends And Economic Assessment Of The Integration Processes On The Metals Market

Olga A. Romanova, Eduard V. Makarov

Abstract


The article examines the integration process from the perspective of three dimensions, which characterize the increase in quantity and appearance of new relationships; strength, character and stability of emerging communications; dynamics and the proper form of the process. The authors identify the development trends of the integration processes in the metals market and provide justification for the breaking of the period of Russian metal trading for 1991–2016 into five stages of development. We propose a step by step approach to the implementation of the integration process, and we developed a methodical approach to the economic feasibility assessment of integration processes between metal manufacturing companies and metal traders, including three consecutive stages of its implementation, which are based, respectively, on the principles of reflexive control, entropy approach, and the traditional assessment of mergers and acquisitions. An algorithm for the realization of the author’s approach is suggested, which allows to identify the optimal route for the integration process seen as a series of horizontal and vertical integration steps.


Keywords


The metals market; the integration process; step of the integration process; metal producers; metal traders; economic evaluation; reflective analysis; entropy

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DOI: https://doi.org/10.15826/recon.2015.1.015

Copyright (c) 2018 Olga A. Romanova, Eduard V. Makarov