BUSINESS MODELLING IN THE STRATEGIC MANAGEMENT OF INTERNATIONAL HIGH-TECH COMPANIES Modelling in the Strategic Management of International

Companies The article is aimed at analyzing the conception of business model within the terms of enterprise strategic management and substantiating its influence on Ukrainian high-tech enterprises. Taking into account the fact that the conception of business model has long been explored by foreign scholars, it becomes necessary to determine how it is used in the strategic management of Ukrainian high-tech companies. Through the carried out content analysis of strategic management definitions provided by different authors, the main elements are allocated, which most scientists focus on, namely: process of strategy develop ment, goal setting, analysis of the internal and external environment, and creation of value. Creation of value is a particularly important parameter of the high technology market, since the life cycle of such goods is short. Based on these data, it was decided to analyze 50 innovative companies of Ukraine and their busi ness models according to the metrics of «Business Model Canvas», developed by the Swiss business theorist Alexander Osterwalder. The results of a frequency analysis helped to determine that Ukrainian companies have four weak structural elements of business models: clients, relationships with clients, key partners, and cost structure. It has been found that companies use their business models only as a marketing communications tool. But, unfortunately, without under standing the cost structure, clientele and partners for whom value is created, the strategic development of company is

I nternationalization of Ukrainian companies into the global economic system requires managers to obtain new professional knowledge, skills and abilities in the field of strategic management. Managers not only have to start thinking strategically, but also to consider new development prospects and set priorities.
Besides, they have to develop new competencies, which are necessary to diagnose the situation and identify problems, to develop scenarios, to form and manage the implementation of strategic projects as well as to create new ways for capturing and delivering value.
Modern research on strategic management testifies to qualitative changes in the conditions necessary for the companies to function. In the context of the «new economy», globalization and changing market boundaries, business processes go beyond companies, and companies themselves become elements of strategic networks with an increasing and rapidly changing membership from different industries. Effective strategic management, which is largely interdisciplinary and is rapidly developing, integrates concepts, models and tools of economics, finance, and management as well as marketing, sociology and psychology, thus becoming a critical condition for ensuring competitiveness.
In such a situation, the concept of a business model arises as one of the most important elements of strategic management.
In the past years, the concept of a business model has become a popular element of strategic management not only for researchers, but for business, too. H. Chesbrough and R. Rosenbloom searching the web in May 2000, found 107,000 references to the term. In June 2004, another search found 2,130,000 mentions on Google; and today the number of searches in Google is more than 109 million.
Today, the concept of a business model is consistent with many modern concepts of strategic management: value chain, resource-based view, competitive strategies, and value network theory.
A. Osterwalder and Y. Pigneur said that a business model describes the rationale of how an organization creates, delivers, and captures value [1].
Value chain makes it possible to determine the importance of different activities in creating value-added and identifying the cost structure. It allows identifying the driving forces in the formation of value for the consumer and the cost structure, to determine which activities are performed effectively and which are not. The value chain is a central element of strategic management, as well as the business model.
It is important to mention, that the concept of a business model is based on the use of resource approach and correlates with the resource-based view of strategic management. A business model is designed to reflect the unique set of internal resources and capabilities of an enterprise, as well as special ways of combining them, thus generating process innovations, which are a particularly important parameter of the high-tech services market, and helping to create competitive advantages. N owadays, internal resources and capabilities are becoming the foundation, on which a company can develop a long-term strategy. They help companies create value for the consumer and survive in a competitive environment. Long-term success in the business of many successful companies appears due to their ЕКОНОМІКА МЕНЕДЖМЕНТ І МАРКЕТИНГ БІЗНЕСІНФОРМ № 9 '2021 www.business-inform.net desire to use unique resources, willingness to improve their technology and develop organizational skills, all of which allows them to quickly adapt to changing environmental conditions. However, we observe that lately, business modelling has started to replace strategic management in individual companies and at the global level. An important fact is that the relationships/ties/connections between business modelling and strategic management are not clear today. Such problem statement in our research encourages us to outline several hypotheses (Fig. 1).
 H1.0: business modelling has not only been used for marketing communications of companies.  H1.1: business modelling has only been used for marketing communications of companies.  H2.0: business modeling is not part of the strategic management of a company.  H2.1: business modeling is part of the strategic management of a company.
decided to analyze the rating of Ukrainian innovative high-tech companies introduced by Delo.ua. During the research, we also analyzed, whether the company was international or local to understand the big picture. The rating itself is presented in Tbl. 2 [27]. According to the rating analysis, it was determined that out of the 50 companies, 20 were international, and 30 were local (Fig. 3).
In addition, we have found out an interesting fact, that 17 companies from the rating «often mention» their business model, both in their media resources and in reporting.
And it is especially interesting that 14 companies out of the 17 are international. These results are illustrated in Fig. 4.
Thus, we can summarize that the vast majority of international companies in this rating talk about their business model and mention it in their open sources of information.

Marketing Communications
Strategic Management

Fig. 1. Logical Framework of the Research
A ccording to the hypotheses of the research, it's obvious that we have to clearly understand the strategic management concept. So, it was decided to carry out content analysis of strategic management definitions by different authors and years of publication. The table with definitions is given below (Tbl. 1).
To consider the concepts in more detail it was decided to analyze the frequency of the use of keywords in the above-given definitions. This frequency is illustrated in a cloud in Fig. 2 below. Keywords mentioned most often are highlighted by larger font. Fig. 2 demonstrates that the majority of authors consider strategic management as the process of developing strategies, setting the objectives, analyzing the internal and external environment and value creation.
It is necessary to mention here that value creation is a particularly important parameter for the high-tech market, as the life cycle of such products is short and requires constant modification and search for new opportunities for improvement in order to attract more potential consumers. This trend may mean that the emergence of new technologies will increase the need for the additional development of new business models as an element of strategic management.
To understand the idea of the business model concept as a strategic management element and its importance, and to give an illustrative example, it has been Data on how companies describe their business model was measured using an expert assessment and ordinal rating scale, or a Likert scale, where score 1 means an element is not mentioned, and 5 means an element is fully described.
All elements have been taken from the «Business Model Canvas» (introduced by Alexander Osterwalder), which is one of the strategic management tools to describe the business models of new and existing companies. The model reviews all the company's business processes: customers, supply chain, resources, finance, and value creation [28].
According to Alexander Osterwalder, a business model has 9 components: 1. Value Propositions describe products and services that create value for a specific Customer Segment. The Value Proposition is the reason why customers prefer one company over another. It solves a customer's problem or satisfies a customer's need. 2. Customer Segments define groups of people or organizations an enterprise aims to reach and serve. Customers are the heart of any business model. 3. Channels describe how a company communicates with its Customer Segments and reaches them. Strategic management is a management process that is utilized specially to increase the performance of an organization's operations and administration. The application of strategic management practice in organizations can help the organizations to enhance their performance through improved effectiveness [2] 2 D. Schendel, C. Hofer 1979 Strategic management is a process that deals with the entrepreneurial work of the organisation, with organisational renewal and growth, and, more particularly, with developing and utilizing the strategy which is to guide the organisation's operations [3]  Strategic management deals with the formulation aspects (policy) and the implementation aspects (organization) of calculated behavior in new situations and is the basis for future administration when repetition of circumstances occur [6] 6 J,  Strategic management entails the analysis of internal and external environments of firms to maximize the utilization of resources in relation to objectives [7] 7 R. Rumpelt, D. Schendel, D.  Strategic management is about the direction of organizations, most often, business firms. It includes those subjects of primary concern to senior management, or to anyone seeking reasons for success and failure among organizations [ The strategic management field can be conceptualized as one centered on problems relating to the creation and sustainability of competitive advantage, or the pursuit of rents [10] 10 J.  Furthermore, one of the major functions of the Strategic Management is to help managers in their choosing process when they need to pick up between different options [11] 11 J. Higgins, J. Vincze 1996 Strategic management is the process of administration the pursuit of organizations mission while managing the relationship of the organization to its environment [12] 12

I. Wilson, B. Essien 2012
Strategic management is a process of formulating, implementing, and evaluating, strategies to achieve long-term goals and sustain competitive advantages [13] 13 T. Wheelen, J. Hunger 2012 Thus, in the current competitive and economic world, many companies use strategic management as a significant structure to make the business environment more manageable [14] 14 J.  In addition to that, the most important objective of the strategic management procedure is to help businesses to be successful by making themselves distinctive in a competitive way from other businesses and by giving them the chance to capitalize on their inner strengths and exterior chances while reducing their inner weaknesses and exterior threats [15] ЕКОНОМІКА МЕНЕДЖМЕНТ І МАРКЕТИНГ End of the The strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns; strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy [23] 23 D.  Strategic management can be defined as the formulation, implementation, and evaluation of managerial actions that enhance the value of a business enterprise [24] 24 V.  A collection of heterogeneous resources whose role in society, its organizational boundaries, and its actual performance is inherently associated with the creation of economic value for customers and its capture by the firm's resources and owners [25] 25   Fig. 3. The ratio of international and local companies in the ranking

All companies
Companies, that mention business model

Fig. 4. Number of International companies that mention their business model in their open sources of information
tain relationships with Customer Segments, and earn revenues. 8. Key Activities describes the most important things a company must do to make its business model work. Every model requires many Key Activities. These are the most important actions a company must take to operate successfully. 9. Partnerships describes the network of suppliers and partners that make a business model work.
Companies create partnerships for many reasons, and partnerships are becoming a cornerstone for many business models [28]. The assessment data is represented in Tbl. 3. I n addition, using the same principle we decided to analyze top international companies with foreign ownership in the same industries. With the help of this study, we have found out that Ukrainian companies have 4 main weak elements in their business models: customer segments, customer relationships, key partners, and cost structure. The opposite results have been obtained during the analysis of foreign companies. Those companies open the framework of their business models and place their business model under the sections of the strategy and strategic management in their public sources of information (Tbl. 4). The total score by each business model element of each foreign company equals 5 points. In addition, according to the content analysis and analysis of foreign companies, we can approve our hypothesis 2.1 that business modelling is part of strategic management.
To check the H1, we have analyzed the frequency of scoring each building block of the Business Model Canvas (Tbl. 5).
T he result of the frequency analysis of scoring each building block of the Business Model Canvas conducted with the help of the SPSS software is presented in Tbl. 5. Key Activities, Key Resources, Value Proposition (mode value is 5) are most frequemtly published in the official media resources of the high-tech companies from the sample. Partner Network, Customer Segments, Channels, Customer Relations, Cost Structure, Revenue Streams (mode value is 1) are less presented in the official media resources of the high-tech companies from the sample.
At the same time, the median value by this business model information, less frequently given in the official media, significantly differes from the mode only in two cases, namely: Channels and Revenue Streams. It means that on average companies are trying to pay attention to these building blocks in the description of their business models.
The visualization of this data by putting it into the Canvas and coloring is suggested in Fig. 5, which shows that even Customer Segments and Customer Relationships are black boxes for the high-tech companies from the sample.
To disclose more data about Customer Segments scores cross-tabulation analysis has been used (Tbl. 6).
The cross-tabulation analysis of Customer Segments and Mentions of business model in company`s media has shown a polar distribution: the highest (40% within Mentions in Site Chapters variable) and lowest (50% within Mentions in Site Chapters variable) scores for the Customers Segments are located in different parts of the web sites of the sample companies, but not in special sections or reports. Only two companies from БІЗНЕСІНФОРМ № 9 '2021 www.business-inform.net    Table 6 The Customer Segments the sample have used their annual report to disclose the Customers Segments information and thus received the highest scores (5 and 4). But 5 scores for the Customers Segments with the presenting it in the annual report have been received only by 20% of the sample companies, 80% have used multimedia approach and diffusion of information. Only one company uses the Business Model special chapter to disclose the information about its business model, but this company received the lowest scores by Customer Segments measurement. However, building a strategy is impossible without understanding the requirements of a company's customers. This data reject hypothesis H1.0 for the Ukrainian sample and proof hypothesis H1.1: business modelling has been used only for marketing communications of the companies. Unfortunately, here we see a marketing point of view, or using media to promote a company in the current situation. Unfortunately, this strategy helps to win in the short run but is self-defeating from the strategic viewpoint. Companies have started to use business models for reports and communications but not for developing the architecture for value creation and delivery. W e have also found out that performance of the companies has neither significant nor even middle correlation with the overall assessment of a business model (Tbl. 7). For that purpose, we have analyzed profit received in the 2019-2015 fiscal years and computed all the scores for the business model blocks measurement into one indicator -CanvaScoreOverall. The results give another evidence of the marketing reasons for the companies from the Ukrainian sample to use business modelling as a way of their media promotion.
This trend may mean that the emergence of new technologies will increase the need for additional development of new business models as an element of strategic management.
To understand the idea of the business model concept in strategic management, as well as its importance, and to give a demonstrative example, it has been decided to analyze the rating of 50 Ukrainian high-tech and innovative companies introduced by Delo.ua. During this research, in order to understand the big picture, we also analyzed, whether a company is international or local.
It is important to note that while analyzing the companies mentioned we found out that 17 companies from the list often mentioned their business models, both in their media resources and in reporting. Besides, In our previous research it was concluded that a business model is nothing without marketing, and suggested a slogan -brand it to compete [29]. But too much branding with less sense behind creates soap bubbles rather than resistance and resilience, but at the same time, business architecture and long term strategical approach in company management.

CONCLUSIONS
In the past years, the concept of a business model has become a popular element of strategic management not only for researchers but for business, too. H. Chesbrough and R. Rosenbloom searching the web in May 2000 found 107,000 references to the term. In June 2004, another search produced 2,130,000 mentions on Google; today, the number of searches in Google is more than 109 million.
To clearly understand the strategic management concept, it was decided to carry out content analysis of strategic management definitions by different authors and years of publication. We have found out that the majority of authors consider strategic management as the process of developing strategies, setting the objectives, analyzing the internal and external environment, and creating value.
It is necessary to mention that value creation is a particularly important parameter for the high-tech market, as the life cycle of such products is short and requires constant modification and search for new opportunities for improvement to attract more potential consumers.
14 companies out of the 17 are international. Thus, we can summarize that a vast majority of international companies in this rating talk about their business model and mention it in their open sources of information.
T o understand the way companies describe their business model, an expert assessment has been carried out using an ordinal rating scale, or Likert scale, where score 1 means an element is not mentioned, and 5 means an element is fully described. The elements have been taken from «Business Model Canvas» (introduced by Alexander Osterwalder), one of the strategic management tools to describe the business models of new and existing companies, which review all the company's business processes: customers, supply chain, resources, finance, and certainly, value creation.
Guided by the same principle, we decided to analyze top international companies with foreign ownership in the same industries.
The frequency analysis of the scores received by each building block of the Business Model Canvas of Ukrainian companies helped us determine the fact that Ukrainian companies have 4 main weak building blocks in their business models description, namely: customer segments, customer relationships, key partners and cost structure. The opposite results have been obtained during the analysis of foreign companies. Those companies open the framework of their business models and place their business models in their open sources, namely, in the sections dedicated to the strategy and strategic mana-ЕКОНОМІКА МЕНЕДЖМЕНТ І МАРКЕТИНГ БІЗНЕСІНФОРМ № 9 '2021 www.business-inform.net gement. Moreover, all foreign companies from different industries have an average evaluation of 5 points on each building block of their business models.
Due to cross-tabulation analysis, we have come to conclusion that Ukrainian companies use their business models only as a tool for marketing communications. Companies have started to use business model for reports and communications but not for developing the architecture for value creation and delivery. Foreign companies, unlike their Ukrainian counterparts, are open in their business model description. Such behavior of conservative Ukrainian companies could be explained by their fear to be more open and to show more global and transparent information about the company activity. However, the strategic development of a company is impossible without understanding the customers and partners for whom value is created, so we can say that such behavior is nothing but mimicry. Thus, a question arises on how to integrate a business model into the strategic management of Ukrainian companies.  LITERATURE