Tool PESTLE analysis is an extended version with two factors (Legal and Environmental) PEST analysis. Sometimes other formats are used, for example, SLEPT analysis(plus Legal factor) or STEEPLE analysis: Socio-demographic, technological, economic, environment (natural), political, legal and ethnic factors. Geographical factors may also be taken into account.

The main goal of analyzing trends in a company’s external environment is to assess the possible impact of external factors: macroenvironmental factors, market and consumer trends on the company’s future sales and profits.

By filling out the feedback form at the end of the article, you can receive a convenient Excel template for conducting PESTLE analysis.

definition

What is PESTLE analysis

All companies must identify external factors in their business environment that have, or may have, an impact on their operations. The company cannot influence the factors of the macroenvironment, cannot control them, but it must understand and take into account the consequences of the occurrence of these factors in developing its strategy.

The most common tool for identifying macro environmental factors that may affect your company is PESTLE analysis. It helps to identify and evaluate environmental factors in 6 categories: P (Political) Political, E (Economical) Economic, S (Social-Culture) Socio-cultural, T (Technological) Technological, L (Legal) Legal and E ( Environmental/Ecological) Environmental factors. Each category of factors corresponds to a letter in the abbreviation of the name of the method.

The main purpose of the PESTLE analysis tool is to identify factors that satisfy two criteria:

They are outside the company's management;

They have a certain level of impact on the company.

All factors must be carefully analyzed and their possible impact on the company must be assessed. Some factors become local in nature. For example, the situation on the labor market in the regions differs from the situation in Kyiv: the qualifications and motivation (level of ambition) of people are different. Perhaps there are cultural differences in different regions related to attitudes towards work. All these factors must be taken into account when developing a strategy.

To obtain the most complete picture of the influence of external factors on the company, experts from different functional divisions of the company should be included in the process of determining them.

application area

Application area

In what cases is it used? PESTLE analysis

PESTLE analysis used in developing and revising strategies for an existing market; when launching a new product or service; to explore a new line of business or to launch sales in a new country or region.

In all these cases, it is necessary to assess the potential impact of external factors on the company from two perspectives: how they affect the market, and how they affect the company's operations.

How PESTLE analysis can be used in combination with other strategy tools

PESTLE analysis a powerful tool for analyzing the external environment, but it represents only one component of a broad strategic analysis process. Therefore, this tool should be used in conjunction with other strategic tools: strategic analysis of the client base , competitive analysis, SWOT analysis etc.

Methodology PESTLE analysis is used to assess key industry market trends, and the results PESTLE analysis can be used at the next stages of strategic analysis for trends in changing consumer needs and behavior, to assess competition. Target PESTLE analysis– help the company identify important factors influencing its activities, and that nothing key has been missed.

Factors PESTLE analysis in combination with external microenvironmental factors (consumer needs and behavior, competitors, etc.) and internal drivers can be classified as opportunities and threats for SWOT analysis. In essence, carrying out SWOT analysis companies without prior PESTLE analysis, - meaningless, because otherwise the company's opportunities and threats SWOT analysis include factors whose impact on the company has not been previously assessed.

If PESTLE analysis identifies factors that require internal changes in the organization, then they should be examined in more detail using tools such as the Boston Matrix, etc.

PESTLE analysis is a long-term strategic management tool and is compiled for 3-5 years in advance, with annual data updates.

step by step guide

How to put it into practice PESTLE analysis

Process PESTLE analysis consists of the following steps (see Fig. 1):

Fig.1 Process PESTLE analysis

Step 1 Identifying factors that are beyond the company's control that may affect its sales and profits. Collection of information on the dynamics and nature of changes in each factor.

Step 2 Assessment of the degree of impact of each selected factor.

Step 3 Assessing the likelihood of factors changing in the future.

Step 4 Assessing the influence of factors taking into account the likelihood of their changes.

Step 5 Determining the possible consequences of the occurrence or change of each factor.

Result of the process PESTLE analysis will give you a clearer understanding of your surroundings. You will gain a "big picture" view, allowing you to assess the potential risks you may face in the future. PESTLE analysis can also be used to estimate the impact (or measure the impact) that pre-existing external factors will have.

The main task PESTLE analysis– audit of the company’s external environment, research of each factor in order to make strategic decisions at the next stages of the strategic process.

Step one: Determine the factors for analysis

The first step is to make a list of factors that can affect the company's sales and profits in the long term - 3-5 years. Company experts can work independently or in groups. Brainstorming can also be done to identify and list factors.

Information and understanding of the situation is the most important stage of any analysis. To get a realistic picture of changing market factors, interview people who look at the market from different points of view: independent market experts, sales managers, sellers (directly interacting with end customers), business owners, heads of various departments, company top management, marketers related industries. Study all open information on the market on the Internet and print media. Look at what development your industry has achieved in more developed countries, and what problems it has encountered in the markets of similar countries.

Having identified the factors, combine them into six groups: political, economic, socio-cultural, technological, legal, environmental.

primary goal PESTLE analysis- identify factors, the likelihood of their occurrence and the strength of influence on the company. Therefore, it is not so important to which category you classify this or that factor when using PESTLE analysis. What is important is the actual identification of factors and their assessment. For example, whether you define upcoming legislative changes as political or legal is not important. It is important to determine how much this will affect the company's business in the future.

Step two: determine the degree of influence of factors on the market and the company

After all the factors that can influence the company's sales and profits have been selected, it is necessary to evaluate the strength of each factor's influence. Assessing the strength of a factor's influence is a subjective expert assessment. The strength of the factor’s influence is assessed on a scale from 1 to 3 (see Figure 2), where:

– the influence of the factor is insignificant: any change in the factor has virtually no effect on the company’s activities;

– the influence of the factor is moderate: only a significant change in the factor affects the company’s sales and profits;

The influence of the factor is critical (high): any fluctuations cause significant changes in the company’s sales and profits;

An assessment of the degree of influence of each factor is made either on the basis of a group decision of the board of directors or the expert opinion of the corresponding functional director is accepted.

NOTE! Factors that do not affect the company's activities at all are simply not included in the table.

Step three: assess the likelihood of factors changing in the future

Assess the likelihood of a factor changing or occurring. The probability of change is assessed on a 5-point scale, where 1 means the minimum probability of a change in an environmental factor, and 5 means the maximum probability of a change (i.e., with almost 100% probability this will happen). The probabilities can be estimated as follows:

– probability from 0 to 20%;

– probability in the range from 20-40%;

– probability in the range from 40-60%;

– probability in the range from 60-80%;

– probability ranges from 80 to close to 100%.

It is better to conduct the assessment not individually, but among a circle of people who have certain experience in the industry and expertise in any area of ​​work. Each expert gives his own assessment. The average score for each factor is then derived, which depends on the experts' ratings (the probability values ​​they gave to each factor) and the number of experts (see Figure 3). Estimates of the probabilities of changes in factors are given in the group of columns numbered 3. The number of assessments within group No. 3 will be equal to the number of experts participating in the assessment.

After all grades have been entered in a separate column, the arithmetic average for all grades is calculated (last column - No. 4).

Step four: we assess the influence of factors taking into account the likelihood of their changes

The next step is to calculate the impact of the factor, taking into account the likelihood of its changes. This is the real significance of each factor for the future of the company among all the factors affecting the company. The real significance of the factor allows us to assess how much the company should pay attention to and control this factor of change in the external environment. It is calculated as the probability of a change in a factor, weighted by the strength of the influence of this factor on the company’s activities in the total amount of influence of the factors.

The higher the real significance of the factor (see Figure 4, column No. 5), the more attention and effort should be paid to reduce the negative impact of the factor on the business.

For clarity, systematize all factors into categories in descending order of their importance.

Step Five: Determining the possible consequences of the occurrence or change of each factor

In order to complete the analysis, it is necessary to draw conclusions: for each factor, write down the impact of the factor on the industry, on the company and plan the programs that need to be carried out in order to reduce the negative impact of the factor and make the most of the positive impact of the factor on the company’s activities. Factors are also transferred to the table in order of their importance.

It is also necessary to determine which of the company's specialists monitors changes in the factor, how often changes are monitored, or at what threshold values ​​​​of changes. For example, at what point should the company's board of directors meet to adjust the company's strategy.

For example, a decrease in real disposable income of the population will lead to a change in the basket of consumed products in the industry, the rejection of some products, and an increase in demand for cheaper goods. For a company, this could mean, for example, increased sales of cheaper goods. In order to minimize the impact of this factor, the product portfolio should be reviewed, the lines of expensive products should be reduced and new economical offers should be introduced. You should also stop raising prices for cheap assortments

Thus, the company not only identifies factors and assesses their possible future impact on the company, but appoints those responsible for monitoring changes in factors and already develops programs to respond to changes in advance. Despite the fact that the preparation of some programs may take quite a long time, changes in factors will no longer happen out of the blue for the company. The company will be prepared for many future events in advance. This means faster response time and greater flexibility than competitors - essentially increased competitiveness through the simple use of a strategic analysis tool.

Conducting PESTLE analysis, try to describe and evaluate not just the actual state of each factor, but to predict its changes for the next 3-5 years. It is the assessment of the influence of a factor in the long term on the company’s profit that allows the data obtained to be used to formulate a strategy. Because of this, it is very important that when carrying out PESTLE analysis industry experts or company personnel who have been interacting with the market for a long time took part.

Approach the drafting process PESTLE analysis thoroughly. Take your time and describe in detail the key trends for 3-5 years for each factor. Then, look at all the factors and keep only those that can affect the company's profit in the future. Once the significant factors that can affect the company's profit have been identified, the most difficult stage of the analysis begins: the development of strategic actions that can reduce the negative impact of the factor on the company's activities and maximize profits.

If a company sells its products in different geographic markets and operates in different industries, it is recommended to carry out PESTLE analysis for every industry, for every market.

How to avoid mistakes associated with using PESTLE analysis

Mistakes that companies make when using PESTLE analysis, are associated with an underestimation of the value of the tool, on the one hand, and its very simplified use, on the other hand.

restrictions

What are the advantages and disadvantages of PESTLE analysis

In order to get the maximum benefit from PESTLE analysis, it should be used within an organization on a regular basis to ensure that any trends can be identified. The impact of a certain external factor may have more severe consequences for a particular department or department of the company, and the PESTLE analysis technique can help explain why changes are needed in that department or department, as well as identify potential options for change.

Like all other methods, PESTLE analysis has its advantages and disadvantages of using it for the purpose of developing a company's strategy.

Advantages

Provides a simple and easy to use template for analysis;

Involves specialists from different functional departments of the company, as it requires cross-functional skills and expertise;

Helps reduce the impact and effect of potential threats to your company;

Provides a mechanism for a company to identify and explore new opportunities (that's where they should come from in a SWOT analysis!);

Allows you to evaluate the impact of entering new markets, both national and global.

Flaws

Specialists involved in the PESTLE analysis process are skeptical about it, often simplify the information, which is then used to make strategic decisions, which leads to strategic mistakes of the company;

The process must be carried out regularly to be effective. However, companies often do not do this, believing that it requires significant time (and therefore money);

Participants should not fall victim to “paralysis by analysis,” where they collect too much information and forget that the purpose of the tool is to identify factors so that they can then take strategic action;

Companies often limit the employees involved due to time and cost reasons. This limits the effectiveness of the tool as a key perspective for decision making may be lost;

Often used information is just guesswork and has no basis in confirmation. Decisions are then made subjectively based on these, and there is a danger of incorrect decision making.

For getting MS EXCEL PESTLE Analysis Template You must complete and submit the following form.

PEST can be considered a special method that allows you to evaluate the external environment of an enterprise, the factors that influence the production and sale of goods or the provision of services. Since there are many nuances when working with your enterprise, it is necessary to clearly analyze the macro environment. This is what pest analysis is for.

The external environment is divided into:

• Microenvironment - it includes shareholders, buyers, creditors, and so on;
• The macro environment is the economy, natural factors, government, and the like.

Let's consider each factor separately.

1. Political or political factors. Based on the name, this stage of analysis is aimed at studying all sorts of nuances related to the government. The success of an enterprise depends on factors such as:
   • Stability in the state;
   • Government influence on the industry in which the company operates;
   • Allocation of resources by the state;
   • Legislation, taxes, labor protection laws and much more.

No matter how much I would like to, the government has great influence on all sectors in the state and enterprises in particular.

2. Economic or economic aspects. Economic analysis takes into account the well-being of the population, whether people will be able to use the services of your enterprise and buy the goods you produce. The obtained data contributes to forecasting price levels and profitability. Objectives of economic analysis:

• Assess investment policies;
• Analyze energy prices;
• Study information about the budget deficit and the amount of taxes;
• Process data on citizens’ incomes;
• Consider unemployment and inflation rates.

3. Social or social factors. The main task is to study the needs of people, what goods they are willing to buy and what services to use. The goals include:

• Study of consumer preferences;
• Quality of people's lives;
• Life style.

4. Technological or technological aspects. The analysis is designed to examine technology trends at the moment. Without such information, there is a possibility of falling behind competitors who will produce a product that is technologically more advanced than yours. Goals:

• Familiarization with the field of scientific and technical progress;
• Studying developments that may affect your business;
• Improving the equipment used in production, improving the production process, using the latest technologies.

Example of pest analysis

As an example, consider a beauty salon. The success of the services provided depends on various factors that require detailed analysis. It is worth paying attention to the negative aspects, if any. Otherwise, there is a chance to lose a significant share of clients, which will entail a financial drain. The same goes for the positive aspects: if you managed to notice them in time and process the information, the company will receive a solid advantage.

What factors primarily influence your beauty salon? Internal environmental factors. This includes the initial capital with which your salon will begin its activities. External factors are, for example, the laws of your state.

Positive ones are also characterized as the strengths of your enterprise. For example, the best makeup artist in the whole city works in your salon and people will come to you to use his services. Negative factors are your weaknesses. For example, you don't work on Sunday. People will prefer competitors because they work on weekends.

All aspects given are intended to serve as examples only. Pest analysis should take more than one day or even a month to calculate everything down to the smallest detail.

Apple Pest Analysis

Pest analysis of Ikea company

Pest analysis of Lukoil company

As we can see, this type of analysis of the macro and microenvironment of an enterprise is very effective and is suitable for enterprises of various sizes and directions.

The name of this type of strategic analysis is an abbreviation:

When it comes to significant investment investments or making decisions about the company's future strategy, of course, it is necessary to understand that in the event of an unfavorable development of the situation, losses can be huge, up to the complete cessation of activity. Therefore, it is mandatory to analyze the changes that occur in the macroenvironment. The structure of PEST analysis is given below:

Since the operating environment of an enterprise is directly affected by political factors, then as a result of the analysis, the factors influencing the political situation on business activity, the investment climate, stability and development prospects are determined.

Economic factor is studied as the main one for determining investment prospects and prospects for the development of markets, purchasing power, etc. The distribution of economic resources on a state scale is also studied.

Social factor determines the dynamics of consumer preferences, the distribution and structure of social groups of the population, age and gender structure.

The last factor is technological component. The purpose of his research is considered to be to identify trends in technological development, which are often the causes of changes and losses in the market, as well as the emergence of new products.

The analysis is carried out according to the “factor - enterprise” scheme. The results of the analysis are presented in the form of a matrix, the subject of which is the factors of the macroenvironment, the predicate is the strength of their influence, assessed in points, ranks and other units of measurement. results PEST analysis allow us to assess the external economic situation developing in the sphere of production and commercial activity in the near future of several years.

It must be remembered that PEST analysis- This aerobatics strategic analysis. That's why pest analysis example, which is given below, rather demonstrates what not to do, since it lacks analysis as such. In order to draw conclusions about trends that will manifest themselves in the economy, social environment, technology, etc., it is necessary to analyze large volumes of statistical and analytical information. And based on the initial statistical and analytical data, conclusions need to be drawn.

Development of PEST analysis ideas

As various analysts began to ask questions about why only four environmental factors should be subject to detailed analysis, ideas arose to expand the scope of analysis and the list of factors. As a result, new abbreviations appeared:

SLEPT-analysis (a Legal factor is added to the analysis: L - L egal). This type of analysis is carried out by companies that operate under strict government regulation of their activities. For them, changes in conditions or operating procedures will lead to a significant increase or decrease in business profitability. Therefore, close attention is paid to the dynamics of the legal aspects of activity.

PESTLE-analysis is extended by two factors ( L egal and E nvironmental) version PEST-analysis. Analysis of the dynamics of changes in the environment will be important for organizations that extract or use natural resources. For example, for agriculture it is necessary to analyze the dynamics of climate change. And for mining companies, government regulation in the field of environmental protection and subsoil exploitation rules will be important.

STEEPLE-analysis: Socio-demographic, technological, economic, environment (natural), political, legal and ethnic factors. This analysis is carried out by transnational (international) companies. To conduct this type of strategic analysis of changes in the corporation's external environment, entire groups of experts and analysts are involved. Organizing and conducting such a volume of analytical work is available only to very powerful (financially) organizations.

PEST Analysis Example

Dear colleagues, the table I give below is just an example, and not a sample of how to carry out PEST analysis. This means that separate research and analysis work is carried out for each line. That is, the real amount of information on this is 40-50 pages, but not the table below, which can be considered as a kind of summary of the research conducted.

PEST analysis is a marketing tool for identifying various aspects of the environment that affect or may affect the business of an enterprise. Decoding of the abbreviation: Political - political, Economic - economic, Social - social, Technological - technological factors.

The essence and purpose of PEST analysis

PEST analysis is a method for studying the macroeconomic environment. The name encrypts the components being studied:

1. Policy. The political system and the stability of the situation in the country affect the business activity of the enterprise. Legal acts establish the norms of relationships in the business environment. The activities of any company must be carried out within the framework of the law.
2. Economy. Using this component of the analysis, inflation rates, interest rates, exchange rates, unemployment and wage levels, etc. are studied. Economic indicators determine the price level, profitability, and solvency of customers.
3. Social component(consumer preferences and capabilities). This includes the traditions and values ​​of society, ethical standards, tastes, lifestyle, etc.
4. Technological component. These factors are studied in order to search for new trends in technological development that will help modernize equipment, create a new product, and improve the production process.

The analysis is carried out according to the “factor – enterprise” scheme. The results are entered into a matrix, where the subject is the factors, and the predicate is the force of influence in points, ranks and similar units.

PEST analysis of environmental factors in Excel

The set of factors in each group will be individual. It depends on the field of activity of the enterprise, the characteristics of the region, and the goals of the analysis.

At the first stage, a list of factors is compiled that can affect the company's profit in the long term. The following examples can be found in the literature:

PEST analysis using the example of a retail enterprise:

1. Political factors. Some of the products in store “X” came from foreign suppliers. Due to the sanctions policy, restrictions have been introduced on a number of goods. Therefore, the director had to look for substitute products (analogues) on the domestic market and from manufacturers from the countries of the Customs Union. The sanctions policy has also led to an increase in the number of various inspections by regulatory authorities. As a result, administrative and corruption costs increased.
2. Economic forces. The high rate of inflation led to the depreciation of savings. Increasing tax rates – inflating costs – rising prices.
3. Social factors. The increase in population mobility has led to staff turnover. The solution is to improve the labor incentive system.
4. Technological. Scientific and technological progress in the social sphere has led to an increase in the level of needs of the population.

Having identified the factors, experts assess the strength of influence of each of them. Scale – from 1 to 3.

The arithmetic mean of the estimates was calculated using the AVERAGE function.

The higher the weight-adjusted score, the more attention should be paid to neutralizing this factor.

The next stage is bringing the calculations into matrix form. Factors should be arranged in descending order.

Based on this PEST analysis table, conclusions are drawn: the influence of their factors interferes with obtaining maximum profits, and how to reduce the negative impact.

INTRODUCTION

1. Theoretical foundations of strategic analysis in an organization’s management system

1.2. Methods of strategic analysis

1.3. Modeling in the strategic analysis system

2. Study of the strategic potential of Construction Management LLC

2.1. Financial and economic activities of the organization

2.2. Characteristics of the internal environment of the organization

2.3. Characteristics of the organization's external environment

3. Proposals for the introduction of strategic analysis TOOLS into the management system of Construction Management LLC

3.1. STEP analysis of the organization

3.2. SWOT analysis of the organization

conclusion

List of used literature and SOURCES

Applications

INTRODUCTION

New economic conditions generated by market transformations require an appropriate management paradigm. As a result of the rapid transformation of the Russian economy, all management functions that were previously performed by line ministries and departments, including the functions of strategic management, were automatically transferred to enterprise managers. Neither the managers themselves, whose task previously included only the implementation of operational functions of organizing the implementation of tasks issued from above, nor the internal organization of enterprises were ready for this.

The main difference between a market economy is that it does not operate on tasks imposed from above, but on consumer demand and in accordance with the influence of the external and internal environment on the activities of enterprises. The ideology of strategic management differs significantly from the ideology of planned production. Strategic management solves more complex problems of selecting promising types of businesses when the future market conditions and policies are unclear in terms of information in relation to those types of businesses that are successful today, but which may lose their priorities in the future due to changes in public needs and consumer priorities. These changes are accelerating, and in recent years many enterprises have been operating under conditions of strategic surprises, loss of control over the external environment, slowing growth rates and limited resources.

The identified problem does not find an adequate solution in the scientific literature. Many researchers rely on the work of Western specialists who are not adapted to the conditions of Russia, which is following its own path to a market economy. At the same time, in their works, strategic management is characterized either by a clear emphasis on operational and tactical management, or attempts are made to reveal individual functions of strategic management and form tools for its implementation.

However, it is possible to avoid unsystematic behavior in the control object only through a combination of operational, tactical and strategic management.

Current conditions in Russia require consideration of the problems of constructing a methodology for enterprise management, which would allow, on the one hand, to describe the functioning of organizations through strategic management processes; on the other hand, to show the internal nature of the mechanisms of strategic management and the factors that ensure the implementation of selected strategies, in the unity of strategic, tactical and operational management.

The peculiarity of strategic management is that there are very few routine procedures and a lot of creativity, i.e. The role of art is very great. Therefore, the theory of strategic management is formed on the basis of a generalization of the practice of successfully solving strategic problems of managing a company and on the basis of identifying individual management schemes and statements that indicate what can be used to achieve a successful result. In other words, strategic management theory suggests that what can be done in managing an organization can help it achieve success in the market. Strategic management theory does not say “do this and you will succeed.” She says that if you do things a certain way, you can succeed. At least in the past this led to the company's success. At the same time, the theory of strategic management rather describes what without which management will not be able to cope with its tasks, rather than what guarantees their solution.

Strategic management for many Russian enterprises is still a new, unusual, but growing phenomenon. The core of strategic management is a system of market strategies, which includes a number of interrelated organizational, economic, legal and labor measures aimed at ensuring market advantages of business entities over competitors.

The selection and implementation of a rational system of market strategies that ensure the achievement of the main goals of the enterprise is a key element of the activities of top management to ensure the economic sustainability and competitiveness of the enterprise.

The degree of development of the topic. The works of famous foreign scientists I. Ansoff, R. Akoff, P.F. are devoted to the problems of strategic management. Drucker, M. Mescon, G. Mintzberg, M. Porter, A.J. Strickland, A.A. Thomson, M. Eddowes and others, as well as Russian researchers L.I. Abalkina, A.I. Anchishkina, M.I. Kruglova, N.F. Permicheva, S.S. Shatalina and others.

Their works discuss the concepts of various strategies, functions of strategic management, and the choice of competitive strategies. However, such problems as the development and modeling of mechanisms for choosing strategies and their implementation are not addressed, and if they are addressed, it is indirectly in connection with the authors’ research into other aspects of strategic management.

Recently, the problems of long-term planning and enterprise management have been given much attention in the scientific developments of B.A. Anikina, M.I. Bukhalkova, V.A. Vinokurova, O.S. Vikhansky, I.B. Gurkova, G.B. Kleiner, E.S. Milner, M.M. Maksimtsova, E.A. Utkina.

However, in most of these works, the main emphasis when studying the enterprise management system is on operational and current management and the specifics of their use at the micro level.

The object of the study is the enterprise Construction Management LLC.

The subject of the study is the strategic analysis of an enterprise using the example of Construction Management LLC.

The purpose of the study is to consider the basic concepts and features of strategic management, as well as to conduct a strategic analysis of the enterprise using the example of Construction Management LLC.

Tasks solved during the work:

Determine the theoretical foundations of strategic management;

Analyze the stages of strategic management;

Reveal the essence of strategic planning;

Analyze strategic planning at the LLC Construction Management enterprise;

Suggest ways to improve strategic management using the example of Construction Management LLC.

Structure of the work: introduction, main part - three chapters, conclusion, list of references and applications.

To write the work, special literature on the organization and management of an enterprise, strategic planning and management, economics was used: textbooks, teaching aids, reference information.

Theoretical foundations of strategic analysis in an organization's management system

1.1 The essence of the basic concepts of strategic analysis

The concept of "strategy" became a management terminology in the 50s, when the problem of responding to unexpected changes in the external environment became of great importance. At first the meaning of this concept was unclear. Dictionaries did not help, because... following military usage, they still defined strategy as “the science and art of deploying troops for battle.”

Currently, there are many definitions of strategies. According to V.D. Markova and S.A. Kuznetsova, “strategy” is a general program of action that identifies the priorities of problems and resources to achieve the main goal. It formulates the main goals and the main ways to achieve them in such a way that the enterprise receives a single direction of movement.

There are several distinctive features of the strategies:

1. The strategy development process does not end with any immediate action.

2. The formulated strategy should be used to develop strategic projects using the search method.

3. The need for strategy disappears as soon as the real course of development leads the organization to the desired events.

4. When formulating a strategy, you cannot foresee all possibilities, so you have to use highly generalized, incomplete information about various alternatives.

5. As soon as specific alternatives are discovered during the search process, more accurate information appears.

In other words, strategy is an elusive and somewhat abstract concept. Thus, it is advisable to replace the concept of “strategy” with the systemic concept of “strategic management”.

Strategic management is the process of making and implementing strategic decisions, the central element of which is strategic choice based on comparing the enterprise’s own resource potential with the opportunities and threats of the external environment in which it operates.

The term "strategic management" was introduced into use at the turn of the 60s and 70s. in order to indicate the difference between current management at the production level and management at the highest level. The need to fix such a difference was caused primarily by changes in business conditions.

We can point to several constructive definitions that were proposed by authoritative developers of the theory of strategic management. Schendel and Hatten viewed it as “the process of defining and relating an organization to its environment, consisting of realizing selected goals and attempting to achieve a desired state of relationship with the environment through the allocation of resources to enable the organization and its subdivisions to operate effectively and efficiently.”