The sequence of steps in the strategic planning process. Strategic planning

Process strategic planning


Introduction

1. Strategic planning process

1.1 Essence and functions of strategic planning

1.2 Mission and vision of the organization

1.3 Top management values ​​and goals

1.4 Assessment and analysis external environment

1.5 Management survey of internal strengths and weaknesses of the organization

1.6 Analysis of strategic alternatives

1.7 Choice of strategy

1.8 Implementation of the strategy

1.8.1 Managing the implementation of the strategic plan

1.9Evaluate the strategic plan

Conclusion

Bibliography


Introduction

The planning process in an organization begins with a clear understanding of what needs to be done for its effective development and functioning.

The success of any plan depends on:

o the quality of goal-setting in the main key issues of the development of the organization based on a review of its past, present and future development and the success of its response to changes in the environment;

o the quality of the preliminary analysis of the activities of the organization itself and its pricing policy, market, competitors, product distribution, etc.

o correct assessment of the competitiveness of the organization;

o selection and implementation of the development strategy , which will increase the competitiveness of the organization.

Main content of internal planning as a function of managing an organization consists in a reasonable determination of the main directions of activity and its further development, taking into account material sources and market demand.

Essence of planning manifests itself in the specification of the development goals of the entire organization and each of its divisions separately for a specified period of time, the determination of the financial resources necessary to solve the tasks set.

In this way, planning assignment consists in striving to take into account in advance, as far as possible, all internal and external factors providing favorable conditions for the normal functioning and development of the entire organization as a whole.

Organization planning provides for the development of a set of measures that determine the sequence of achieving specific goals, taking into account the possibilities for the most efficient use of the resources of each department and the entire organization as a whole.

The level and quality of activity planning are determined by the following critical conditions:

o competence of the management of the organization at all levels

o management;

o qualifications of personnel working in functional

o subdivisions;

o availability of reliable information base and provision of the necessary equipment.

Depending on the content of the goals and objectives and the duration of the planning period, the following forms of planning can be distinguished:

o strategic, or long-term, planning (forecasting);

o medium-term planning;

o current (often called tactical, budgetary, operational) planning.

Strategic planning consists mainly in determining the main goals of the organization's activities in the market and is focused on determining the intended final results, taking into account the means and methods for achieving the goals and providing the necessary resources.

Strategic planning aims to give a comprehensive scientific justification for the problems that the organization may face in the coming period, and on this basis to develop indicators of the organization's development for the planning period.


1. Strategic planning process

1.1 Essence and functions of strategic planning

Strategic planning is one of the functions of management, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions, the functions of organization, motivation and control are focused on the development of strategic plans.

Strategic planning is a set of actions and decisions taken by management that lead to the development of specific strategies. These strategies are designed to help organizations achieve their goals.

The strategic planning process is a tool to help provide a framework for managing an enterprise. Its task is to ensure sufficient innovation and change in the organization of the enterprise.

So, there are four main types of management activities in the framework of the strategic planning process:

1. distribution of resources, mostly limited, such as funds, managerial talent, technological expertise;

2. adaptation to the external environment (all actions of a strategic nature that improve the relationship of the company with its environment. Here it is necessary to identify possible options and ensure that the strategy is effectively adapted to the environment. Such activities can take place along the lines of improving production systems, interacting with the government and society in in general, etc.)

3. internal coordination (coordination strategic activities to display the strengths and weaknesses of the firm in order to achieve effective integration of internal operations);

4. awareness of organizational strategies (the implementation of a systematic development of the thinking of managers by forming an organization that can learn from past strategic mistakes, i.e. the ability to learn from experience).

The strategic planning process includes 8 stages and is a closed cycle.

Formulation of the mission of the enterprise > Setting goals > Assessment and analysis of the external environment > Enterprise management survey> Analysis of strategic alternatives> Choosing a strategy> Implementation of the strategy> Strategy evaluation.

Strategy is the main direction of activity, it should be reflected in a plan designed to ensure the implementation missions - the main goal of the organization - and the achievement of its other goals. The strategy is translated into a detailed comprehensive plan.

The practice of effective planning has the following features:

o a small planning and economic department of the enterprise and related departments in strategic business units are responsible for the implementation of the strategic planning function;

o the main elements of the strategic plan are formed at senior management meetings held annually or more frequently if necessary, for example, quarterly;

o the annual strategic plan is combined with the annual financial plan, their totality forms an intra-company plan, which is a tool for coordinating strategic and operational planning.


1.2 Mission and vision of the organization

Mission of the organization - this is the main overall goal of the organization, a clearly expressed Reason for its existence.

Mission Value , which is formally expressed and effectively presented to the employees of the organization is very large. The goals developed on its basis are the criteria for evaluating all management decisions. The mission details the organization's status and direction to define goals and strategies at various organizational levels. The mission statement should include: the organization's mission for products and services, major markets and core technologies; characteristics of the external environment, which determines the principles of the organization; characteristics of the culture of the organization that determines its working climate, the type of people who are attracted to such a climate.

Choosing the mission of a commercial organization should not be confused with the need to operate profitably. Profit is an internal problem of the enterprise. An organization is an open system; it can only survive by satisfying needs outside of itself. Management must find the overall purpose of the organization in the environment and find answers to two questions: who are our customers? What customer needs can be met?

Before starting to develop a strategy, the management of an enterprise must think over the future of this company, that is, formulate strategic vision - determines the future image of the company; this is the ideal representation of managers about the organization and business, it is a kind of route for the company to move into the future, which determines technologies, target audiences, geographic product markets, promising opportunities and the image of the company as it should become in the future.


1.3 Top management values ​​and goals

The classics of strategic planning distinguish 6 value orientations that leave their mark on the formulation of the mission and goals of the organization.

Theoretical- the leader prefers setting goals focused on long-term research and development, as a result of which new knowledge is formed, rational thinking is formed.

Economic- preferred goals: profit growth, increase in production efficiency, that is, aimed at the practical usefulness of the results of activities.

Political- preferred goals: increase in total capital, total sales and number of employees, the result of which is power, recognition, respect, etc.

Social- preferred goals: social responsibility in relation to profit indicators, favorable atmosphere in the organization, the result of which is the absence of conflicts in the organization, good human relations.

aesthetic- preferred goals: improving the quality, design and attractiveness of the product, even at the expense of profit, the achievement of which is the harmonious development of the individual, the formation of the right culture and ethics.

The strategic planning process is carried out in several stages:

1 - definition of the mission of the organization;

2 - determination of the goals of the organization;

3 - management research and assessment of the strengths and weaknesses of the organization's activities;

4 - assessment and analysis of the external environment;

5 - formation and analysis of strategic alternatives;

6 - choice of strategy;

7 - implementation of the strategy;

8 - evaluation of the strategy for compliance with the established criteria.

Consider the content of these stages.

Stages I - II: definition of the mission and goals of the organization.

These are the first and most important decisions a manager makes. The mission and corporate goals of the organization serve as a guideline for all other stages of planning. The contents of these stages were discussed in the previous lecture. Once again, we note that the goals must satisfy the following basic requirements: achievability, specificity, orientation in time.

Stage III: assessment of the strengths and weaknesses (positions) of the organization. At this stage of the planning process, the pros and cons of the organization's activities are determined.

Stage IV: assessment and analysis of the external environment consists in identifying trends, threats and chances, as well as possible "exceptional" situations that can qualitatively change past trends.

Stage V - formation and analysis of strategic alternatives (formation of strategy options).

A strategy is a comprehensive, comprehensive plan designed to realize a mission and achieve goals. In other words, the strategy is a detailed comprehensive comprehensive plan that is developed for the future and should contribute to the achievement of the organization's mission and goals, it is specified by stage VI - the choice of strategy is the most important stage of strategic planning. It is supposed to compare the prospects of the firm in the activities in which it is engaged. This is necessary to prioritize development and allocate resources between different activities. At this stage, the analysis can be completed and the management of the organization can move on to the preparation of long-term programs, plans and budgets. But often existing species activities do not give grounds for confidence in achieving long-term goals, since they do not provide sufficient growth rates or are strategically vulnerable (high probability of a change in the structure of needs), etc. Given this, it is necessary to analyze the ways of diversification (from lat. - Remote - spreading activities to new areas).

Stage VII - implementation of the strategy.

Planning for the implementation of the strategy is carried out using administrative levers (tactics, procedures, rules, policies) and economic levers (by forming a budget, using a system of indicators).

All considered strategies are implemented using the following administrative levers:

1. Tactics are short-term plans that specify the strategy.

2. Policy is a general guide for action and decision-making that facilitates the achievement of goals, a provision that sets the parameters for making secondary decisions that are often repeated. The policy gives general guidelines for the implementation of activities, and in fact is the most typical and simple type of so-called "stable plans" (directives aimed at increasing overall overall efficiency based on the observance of the simplest principles of the organization), designed to manage the daily processes in the organization. In addition to policies, they include procedures and rules.

3. Procedures - actions that should be performed in a particular situation.

4. Rules - indicate what should be done in a specific one-time situation. They are designed for specific, limited issues and are often advisory in nature.

The use of tactics, policies, procedures and rules allows you to create a certain organizational and administrative mechanism aimed at ensuring the implementation of the strategy.

Stage VIII - evaluation of the strategy for compliance with the established criteria. The process of evaluating an organization's strategy is a "feedback" mechanism for adjusting the strategy.

Often in the implementation of the strategic plan there are obstacles due to either an imperfect assessment of the external environment by managers, or an overestimation of the company's capabilities. Therefore, the process of implementing the strategy must be constantly analyzed, ensured feedback to adjust the strategy and serve as a means of preventing errors in the development of a new one.

When evaluating the effectiveness of the strategy, the following aspects should be taken into account:

There is a strategy joint with the financial capabilities of the firm;

Sufficiently qualified management of the company for its implementation;

It fits into the level of risk acceptable to the management of the company;

It takes into account all the opportunities and threats of the external environment;

It is possible to implement this strategy within the existing organizational structure and if not, how difficult will it be to change it;

The existing organizational culture is suitable for the implementation of the strategy;

There is a strategy for the best way to use the firm's resources.

1. At the first stage of planning, an essential decision is the choice of the goals of the organization.

The main overall goal of the organization, i.e. a clearly expressed reason for its existence is designated as its mission (a responsible task, role, assignment). Goals are developed to carry out this mission.

The mission details the status of the organization and provides direction and direction for setting goals and strategies at various organizational levels.

The mission statement should include:

  • 1. the task of the organization in terms of its main services, its main customers, its main technologies - i.e. what activities the organization is engaged in;
  • 2. environmental factors in relation to the organization;
  • 3. culture of the organization - what type of working climate exists in the organization, what kind of people are attracted to this climate.

For example, the mission of the Department of Social Protection is to meet the social needs of the population. The mission of the Center for Social Assistance to Families and Children is to provide comprehensive assistance and support to families and children.

Some leaders do not attach importance to the choice of mission. This is especially true for business leaders. They believe that the mission is to make a profit.

The mission represents value to the organization, but the values ​​and goals of top-level leaders also affect the organization. Researchers note that strategic behavior is influenced by values ​​(Igor Ansof). Gut and Tigiri established 6 value orientations that influence managerial decision-making, and also that the chosen goals depend on them.

2. Second stage. The goals of social protection organizations are formed and set on the basis of the mission of the organization.

Goals must have certain characteristics:

  • 1. specific and measurable goals - for example, to support large families registered in the department (absolute number), for example, the goal of a non-state university is to provide training for specialists at lower costs;
  • 2. orientation in time - when the result should be achieved (long-term - 5 years, medium-term 1-5 years, short-term up to a year);
  • 3. achievable goals - in order to serve to increase the effectiveness of the organization, the goals must be achievable. Goals should be mutually supportive - i.e. actions and decisions necessary to achieve one goal should not interfere with the achievement of other goals of the organization. If this condition is not met, then a conflict between departments may arise in the organization.

For example, the goals of the center for social assistance to families and children are:

  • * realization of the right to protection of the family and children by the state;
  • * promoting the development and strengthening of the family, as social institution;
  • * improvement of socio-economic conditions of life and well-being of the family;
  • * humanization of family ties with society and the state;
  • * Establishment of harmonious intra-family relations;
  • * Prevention of juvenile delinquency and neglect.
  • 3. In the third step of the strategic planning process, after establishing the organization's mission and goals, the organization's external environment is examined.

The external environment is assessed according to three parameters:

  • 1. changes that affect different aspects of the current strategy;
  • 2. what factors pose a threat to the strategy;
  • 3. what factors provide more opportunities to achieve the goal by adjusting the plan.

They mainly pay attention to such factors as social, economic, political, technology development, market conditions. work force, investment.

Environmental analysis is the process by which strategic planners monitor factors external to the organization in order to identify opportunities and threats to the organization.

4. Fourth stage. Management survey of internal strengths and weaknesses of the organization - a methodological assessment of the functional areas of the organization, designed to identify its strategic strengths and weaknesses.

The survey affects the study of such internal factors: marketing, financial condition, production, staff condition, organization culture:

  • 1. marketing - market share and competitiveness; offered goods or services; demographic situation; the possibility of promoting new products or services on the market; customer service efficiency; advertising opportunities; for example, two aspects of marketing are important for a non-state university: marketing educational services and specialists.
  • 2. The current financial condition of the organization must be taken into account in any planning, since the lack of financial reserves can ruin any undertaking. When analyzing the financial condition, the main attention should be paid to the possibility of reducing the cost of production, the degree of dependence of the enterprise on suppliers, the degree of physical and obsolescence of equipment.
  • 3. Regarding organizations social sphere, then their financial condition is determined by their organizational and legal form. Funding source for public institutions(what social services are currently) are, first of all, budgetary funds. At the same time, the state establishes certain norms for budgetary financing of the corresponding costs. This means that financial management should be aimed at optimizing costs (choosing the best, optimal option). Therefore, many types of social services are paid. It is also possible to use additional sources of financial resources;
  • 4. production - purposeful activity to create something useful; whether the organization can produce goods or services at a lower price than competitors; whether there is access to new materials and technologies; whether the equipment is modern; production, i.e. the provision of social services is a purposeful activity of all social services;
  • 5. state of personnel - type of employees; competence of employees and top management; reward system; staff development; performance evaluation;
  • 6. culture - mores, customs, moral and psychological climate. It is the internal culture that forms the image of the organization both among suppliers and consumers, and in the labor market, thereby attracting the necessary employees.

Fifth stage. Analysis of strategic alternatives. Once the external environment has been assessed and the internal environment of the organization has been examined, management can determine the strategy that it will follow.

The organization faces 4 main strategic alternatives:

  • 1. limited growth - followed by most organizations. Goals are set from what has been achieved previously, taking into account inflation. The limited growth strategy is applied in mature industries with static technology, while the organization is satisfied with its position. This is the easiest, most convenient, and least risky course of action;
  • 2. growth - an annual increase in the level of short-term and long-term goals compared to the level of indicators of the previous year. This strategy is applied in dynamically developing industries with changing technologies. Growth can be internal or external. Internal growth is the expansion of goods or services. External growth - the acquisition of a supplier firm or one firm acquires another;
  • 3. downsizing - managers rarely choose this strategy. Goals are set below what has been achieved in the past.

There may be 3 options:

  • a) liquidation - complete sale of property;
  • b) cutting off the excess - separate some units;
  • c) reduction or reorientation - reduction of part of its activities;
  • 4. combination - the combination of any of the three strategies. This type is usually chosen by large firms.
  • 5. At the sixth stage, the strategy is chosen. A strategic alternative is chosen that will maximize the long-term effectiveness of the organization, that is, the result.

The choice is influenced by factors:

risk - what level of risk is considered acceptable. A high degree of risk can destroy an organization;

knowledge of past strategies - often management is influenced by past strategies;

reaction to owners (if Joint-Stock Company) - shareholders limit the flexibility of management when choosing an alternative (commercial structures);

time factor - a decision can contribute to the success or failure of the organization (implementation of a good idea at a bad moment can lead to the collapse of the organization).

7. The seventh stage is the implementation of the strategic plan. The plan must be realistic.

It is necessary to dwell on the main components of formal planning:

1. tactics - short-term strategies that are consistent with long-term plans;

Characteristics of tactical plans:

  • a) tactical plans are developed in the development of the strategy;
  • b) tactics are developed at the level of middle managers;
  • c) the results of tactical plans appear quickly and are correlated with specific actions (the results of the strategy may appear in a few years).

The tactical goal of social work at this stage is to meet the needs of the categories of the population most in need of social protection, taking into account the possibilities of the economy (since targeted social policy is currently being implemented).

policy - is a general guide for action and decision-making, which facilitates the achievement of goals. Policy is usually formulated by top-level managers for a long period of time. For example, the policy of providing equal employment opportunities for women; non-disclosure of trade secrets of the organization.

procedures - describes the actions to be taken in a particular situation. If the decision-making situation is repeated, then the management applies the time-tested course of action, and for this it develops standardized instructions. Essentially, a procedure is a programmed decision. For example, the procedure for assigning an old-age labor pension.

rules - are made when management restricts the actions of employees in order to ensure that specific actions are performed in specific ways. That is, the rule defines what should be done in a particular single situation. Rules differ from procedures in that they are designed to address a specific and limited issue. The procedure is designed for a situation in which a sequence of several interconnected actions takes place.

Sometimes there are conflicts caused by the unwillingness of employees to comply with rules and procedures. In order to avoid a conflict situation, the leader needs to inform subordinates about the goals of the rules, explain why it is necessary to do the work exactly as prescribed by the rules or procedures.

Implementation management is needed to execute the strategic plan. Consider the management tools that ensure consistency:

A budget is a method of allocating quantified resources to achieve quantified goals.

Management by objectives is a process consisting of 4 interdependent and interrelated stages:

  • a) development of clear, concise statements of goals;
  • b) development of realistic plans to achieve them;
  • c) systematic monitoring, measurement and evaluation of work and results;
  • d) corrective actions to achieve planned results.
  • 1. The first stage - the development of goals - repeats the scheme of the planning process.

Once long-term and short-term goals for the organization have been developed, managers formulate those goals for the next level of employees down the line. Managers should support employees in the following areas: information; clarification of the relationship between levels of authority and responsibility; support from staff; horizontal and vertical coordination; resources.

  • 2. At the second stage of management by goals, the main tasks and measures necessary to achieve the goals are determined; establishment of interrelationships between the main activities; clarification of roles, relationships, delegation of relevant powers; estimation of time spent for each main operation; determining the resources required for each operation; checking deadlines and correcting action plans.
  • 3. After a set period of time, the degree of achievement of goals, the identification of problems and obstacles, the determination of the causes of problems, the identification of personal needs and the reward for effective work are determined.
  • 4. If the objectives are not achieved, the management has determined the exact reason, it is necessary to decide what actions should be taken to correct the deviation.
  • 5. If the goals are achieved, then the process of managing by goals can start again - with the setting of goals for the coming period.
  • 8. The eighth stage. The evaluation of the strategic plan is carried out by comparing the results of work with the objectives. Evaluation should be carried out systematically and continuously.

The strategic and tactical goals of social work management, the main directions of its development can be set out in the concept of social work and the program-target model of social work management; Social worker can participate in program planning, social policy.

Introduction…………………………………………………………………………….3

1. The concept and essence of strategic planning ……………………...5

1.1 The history of strategic planning, basic concepts……………………………………………………………………………...5

1.2 Concepts and principles of strategic planning……………..... 8

1.3 The essence and function of strategic planning……………....11

1.4 Strategic planning documents: types and purposes ... ..16

1.5 Advantages and disadvantages of strategic planning………19

2. The main stages of strategic planning…………………………..23

2.1. Assessment of the external and internal environment of the organization………………...23

2.2. Establishing the mission and purpose of the organization……………………….…28

2.3. Selection and development of a strategy……………………………………….31

2.4. Implementation of the strategy………………………………………………....34

2.5. Evaluation and control of the strategy………………………………………...36

Conclusion ……………………………………………………………………..39

References ……………………………………………………………..42

Strategic planning is one of the functions of management, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions, the functions of organization, motivation and control are focused on the development of strategic plans. A dynamic strategic planning process is the umbrella under which all managerial functions are sheltered, without taking advantage of strategic planning, organizations as a whole and individuals will be deprived of a clear way to assess the purpose and direction of a corporate enterprise. The strategic planning process provides the framework for managing the members of an organization. Projecting everything written above on the realities of the situation in our country, it can be noted that strategic planning is becoming more and more relevant for Russian enterprises, which enter into fierce competition both among themselves and with foreign corporations.

The problem of strategic planning has been given much attention in Western literature, but, unfortunately, in our country, this problem has not been given due attention for a long time. The need for the appearance of teaching aids on planning was caused by the transformation of central planning into a system of state regulation, which required a radical revision of all elements of the intra-company planning system. The purpose of these manuals is to study the means, methods and technologies for substantiating planned decisions at an enterprise, acquiring skills in developing strategic, tactical and operational calendar plans.

The main purpose of this work is to show that strategic planning is the most important integral part enterprise management, and without it, the successful operation of an enterprise in a market economy is hardly possible. In today's rapidly changing economic situation, it is impossible to achieve positive results without planning your actions and without predicting the consequences.

In the first chapter of the work, the definition of such a concept as strategic planning is given. The content, functions and principles of strategic planning, as well as strategic planning documents are presented. The advantages and disadvantages of strategic planning are reflected.

In the second chapter, the stages of the process of strategic planning of a firm (enterprise) are described in detail.

CHAPTER 1. THE CONCEPT AND ESSENCE OF STRATEGIC PLANNING

1.1 The history of the emergence of strategic planning, basic concepts

The concept of "strategy" entered the number of management terms 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 not clear. Dictionaries didn't help because, following military usage, they still defined strategy as "the science and art of deploying troops for battle."

At that time, many managers, as well as some scientists, doubted the usefulness of the new concept. In their eyes, for half a century, American industry got along admirably without any strategy, and they asked why it was suddenly needed and what use it was for the company.

At its core, a strategy is a set of decision-making rules that guide an organization in its activities. There are four different groups.

1. The rules used in evaluating the performance of the company in the present and in the future. The qualitative side of the evaluation criteria is usually called a benchmark, and the quantitative content is a task.

2. The rules according to which the company's relations with its external environment are formed, determining: what types of products and technologies it will develop, where and to whom to sell its products, how to achieve superiority over competitors. This set of rules is called product - market strategy or business strategy.

3. The rules by which relations and procedures are established within the organization. They are often referred to as the organizational concept. .

4. The rules by which the firm conducts its daily activities, called basic operating procedures.

The strategies have several distinctive features.

1. The strategizing process does not end with any immediate action. It usually ends with the establishment of general directions, the promotion of which will ensure the growth and strengthening of the company's position.

2. The formulated strategy should be used to develop strategic projects using the search method. The role of strategy in search is, first, to help focus attention on certain areas and opportunities; second, to discard all other possibilities as incompatible with the strategy.

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

4. In formulating a strategy, it is not possible to foresee all the possibilities that will open up when drafting specific activities. Therefore, one has to use highly generalized, incomplete and inaccurate information about various alternatives.

5. As the search process uncovers specific alternatives, more accurate information emerges. However, it may call into question the validity of the original strategic choice. Therefore, the successful use of the strategy is impossible without feedback.

6. Since both strategies and benchmarks are used to select projects, it may seem that they are one and the same. But these are different things. The benchmark is the goal that the firm is trying to achieve, and the strategy is a means to achieve the goal. Landmarks are a higher level of decision making. A strategy that is justified under one set of benchmarks will not be justified if the organization's benchmarks change.

7. Finally, strategy and guidelines are interchangeable both at individual moments and at different levels of the organization. Some parameters of efficiency (for example, market share) at one moment will serve as guidelines for the company, and at another - will become its strategy. Further, since guidelines and strategies are developed within the organization, a typical hierarchy arises: what is at the top levels of management are elements of the strategy, at the lower turns into guidelines.

Simply put, strategy is an elusive and somewhat abstract concept. Its development usually does not bring any immediate benefit to the company. In addition, it is expensive both in terms of money and time of managers.

The term "strategic planning" was introduced into use at the turn of the 60-70s. in order to mark the difference between current management at the production level and management carried out at the highest level. The need to fix this difference was caused primarily by changes in business conditions. The development of strategic management ideas is reflected in the works of such authors as Frankenhofs and Granger (1971), Ansoff (1972), Schendel and Hatten (1972), Irwin (1974) and others. The leading idea, reflecting the essence of the transition from operational to strategic management, was the idea of ​​the need to shift the focus of top management to the environment in order to respond appropriately and in a timely manner to the changes taking place in it.

We can point to several constructive definitions that have been proposed by authoritative developers of the theory of strategic management. Schendel and Hatten viewed it as "the process of identifying and (establishing) a connection , organization with its environment, consisting in the implementation of the chosen goals and in attempts to achieve the desired state of relations with the environment through the allocation of resources that allows the organization and its units to operate effectively and efficiently. According to Higgens, "strategic planning is the process of managing with the aim of achieving the organization's mission by managing the interaction of the organization with its environment", Pierce and Robinson define strategic management "as a set of decisions and actions for formulating and executing strategies designed in order to achieve the organization's goal ". There are a number of definitions that focus on certain aspects and features of strategic management, or on its differences from “ordinary” management.

1.2 Concepts and principles of strategic planning

Planning is one of the main functions of management, which involves the selection and formulation of goals, determining the most effective ways to achieve them and resource requirements. Strategic planning is an essential component of strategic management, the main purpose of which is to develop and successfully implement a strategy.

Quite often we confuse the concepts of strategic management and planning, so I would like to immediately determine the difference between these terms. According to I. Ansoff, these differences are as follows: “Strategic planning is focused on making optimal strategic decisions, while strategic management is associated with achieving strategic results: new markets, new products, new technologies. Strategic planning is an analytical result, while strategic management is an organizational one. Strategic planning uses economic and technological variables. In strategic management, in addition, psychological, sociological and political factors are also taken into account.

Experts describe strategic planning in different ways, focusing on one or another of its aspects. D. Boddy and R. Payton in their book Fundamentals of Management define strategic planning as "the process of formulating the objectives and strategies of an organization."

Strategic planning is the development of long-term plans for the development of a company, which are compiled on the basis of the analysis of a large amount of data, substantiated by detailed calculation systems and, in general, become documents of varying degrees of detail,” Milner and Lees write in their textbook.

According to the point of view of Golubkov, the author of the article “Strategic planning and the role of marketing in an organization”, strategic planning “is understood as the process of developing and maintaining a strategic balance between the goals and capabilities of an organization in changing market conditions. The purpose of strategic planning is to determine the most promising areas of the organization's activities, ensuring its growth and prosperity.

Strategic planning determines the path of development of the organization as a whole in the long term, indicating the most important indicators that quantitatively describe the results and effectiveness of development. The role of strategic planning is to provide an integrated approach to the development of the organization, take into account possible changes in the environment, and determine the most important trends in its development.

When considering this topic, it is impossible not to talk about the principles of strategic planning, which should be taken into account by managers and leaders of the company:

· systemic character planning. Means that the main elements of the planning system and the relationship between them must ensure the integrity and complexity of the planning process.

· long-term planning based on strategic scenarios. IN modern economy no one can accurately predict the future, but it is possible to build various options for the state of the environment.

· unity, integrity and interconnection of long-term, medium-term and short-term types of planning. It means the consistent transformation of strategic plans into tactical ones, tactical ones into operational ones, and the last ones into work plans of executors. The plans of the company should form a single whole and not contradict each other.

Complexity and scientific character of planning methods, their compliance with the tasks to be solved.

The determining influence of the human factor on the quality of strategic planning and the implementation of strategic plans. Planning at all stages primarily depends on decision-making by people, on their interaction, qualifications, and ability to work in teams.

Unity of strategic planning and control, personal responsibility for the implementation of strategic plans and their sections.

These principles form the basis of an effective strategic planning system. They determine the need to develop systems for forecasting and planning, coordination and control, motivation and stimulation of managers and specialists involved in the strategic process. Ineffective strategic planning is characterized by broken links between elements, poor coordination in management, lack of control and low motivation of staff.

The principles of a strategic planning system are essential. Violation of any of them destroys the integrity and reduces the quality of the entire strategic planning system. As a result, the company loses competitiveness and becomes bankrupt.

Being a management function, strategic planning is the foundation on which the entire system of management functions is built, or the basis of the functional structure of the management system. Strategic planning is a tool with which the system of goals for the functioning of the enterprise is formed and the efforts of the entire team of the enterprise are combined to achieve it.

Strategic planning is a set of procedures and decisions by which an enterprise strategy is developed that ensures the achievement of the goals of the enterprise's functioning. The logic of this definition is as follows: the activities of the management apparatus and the decisions made on its basis form the strategy for the functioning of the enterprise, which allows the company to achieve its goals (Fig. 1.1).

Actions

(procedures)

Strategy

Rice. 1.1. Logic of strategic planning

The process of strategic planning is a tool by which managerial decisions in the field of economic activity are substantiated. Its main task is to provide innovation and organizational changes necessary for the life of the enterprise. As a process, strategic planning includes four types of activities (functions of strategic planning) (Fig. 1.2). These include: distribution of resources, adaptation to the external environment, internal coordination and regulation, organizational changes.

1 . Resource allocation. This process includes planning the distribution of resources, such as material, financial, labor, information resources, etc. The operation strategy of the enterprise is based not only on expanding the business, meeting market demand, but also on the efficient consumption of resources, the constant reduction of production costs. Therefore, the efficient distribution of resources between different areas of business, the search for combinations of their rational consumption is the most important function of strategic planning.




Rice. 1.2. Functional structure of strategic planning

2. Adaptation to the external environment. Adaptation should be interpreted in the broad sense of the word as the adaptation of an enterprise to changing market conditions of management. The market environment in relation to business entities always contains favorable and unfavorable conditions (advantages and threats). The task of this function is to adapt the economic mechanism of the enterprise to these conditions, i.e., to take advantage of competitive advantages and prevent various threats. Of course, these functions are also performed in current management enterprise. However, the effectiveness of operational management will be achieved only if competitive advantages and barriers are foreseen in advance, i.e. planned. In this regard, the task of strategic planning is to provide new favorable opportunities for the enterprise by creating an appropriate mechanism for adapting the enterprise to the external environment.

3. Coordination and regulation. This function involves coordinating the efforts of the structural divisions of the company (enterprises, industries, workshops) to achieve the goal provided for by the strategic plan. The enterprise strategy includes complex system interrelated goals and objectives. The decomposition of these goals and objectives provides for their division into smaller components and assignment to the relevant structural units and executors. This process does not occur spontaneously, but on a planned basis in a strategic plan. Therefore, all components of the strategic plan should be linked in terms of resources, structural units and performers, and functional processes. This linkage is ensured by the system for the formation of planning indicators, as well as the presence in the enterprise in the management apparatus of the corresponding unit or executor responsible for coordination. The objects of coordination and regulation are internal production operations.

4. Organizational changes. This activity provides for the formation of an organization that ensures the coordinated work of management personnel, the development of managers' thinking, and taking into account past experience in strategic planning. Ultimately, this function is manifested in the implementation of various organizational transformations at the enterprise: redistribution of management functions, powers and responsibilities of employees of the management apparatus; creating an incentive system that contributes to the achievement of the goal of the strategic plan, etc. It is important that these organizational changes are carried out not as a reaction of the enterprise to the current situation, which is typical for situational management, but be the result of organizational strategic foresight.

Strategic planning as a separate type of management activity imposes a number of requirements on the employees of the management apparatus, it assumes the presence of five elements:

The first element is the ability to model the situation. This process is based on a holistic view of the situation, which includes the ability to understand the patterns of interaction between the needs and consumer demand of buyers, competitors with the quality of their products and the needs of their own company, i.e. its ability to meet customer needs. Thus, the most important part of strategic planning is analysis. However, the complexity and inconsistency of the initial data give rise to the complexity and variability of the analytical work performed within the framework of strategic planning, making it difficult to model the situation. In this regard, the role of the analyst can hardly be overestimated: the greater his ability to abstract, the more clearly the connections between the components that gave rise to the situation are revealed. The ability to move from the concrete to the abstract and back again is an essential condition for competence in matters of strategy. Using this ability to develop a strategic plan, you can identify the need and possibility of changes in the company.

The second element is the ability to identify the need for change in the firm. The intensity of changes in enterprises and organizations in a market economy is much higher than in a planned one, which is explained by the greater dynamism of the external market environment. In conditions of monopoly, any changes are aimed at maintaining the expansion of the company. Now they are represented by a variety of variables that characterize the company: from the efficiency of production costs to the company's attitude to risk, including the nomenclature, product quality and after-sales service. Determining the need for change requires two kinds of abilities:

The willingness of the employees of the management apparatus to respond to trends arising from the action of known factors and the given industry;

Scientific and technical potential, intellect, intuition, creative abilities of managers, which allow, based on a combination of known and unknown factors, to bring the company into readiness for action in unforeseen circumstances, to find opportunities to increase its competitiveness.

The third element is the ability to develop a change strategy. The search for a rational strategy is an intellectual, creative process of finding an acceptable option for the functioning of an enterprise. It is based on the ability of managers and specialists to anticipate various situations, from separate disparate factors to recreate a “mosaic canvas” of future events. Developers of a strategic plan should be able to write various scenarios and be proficient in forecasting tools.

The fourth is the ability to use reliable methods in the course of change. The arsenal of means and methods of strategic planning is quite large. It includes: strategic models based on operations research methods; Boston Advisory Group (BCG) matrix

The fifth element is the ability to implement the strategy. There is a two-way connection between the strategy as a scientifically based plan and the practical activities of the employees of the enterprise. On the one hand, any action that is not supported by a plan usually turns out to be useless. On the other hand, the process of thinking, not accompanied by practical activity, is also fruitless. Therefore, employees of the enterprise engaged in the implementation of the strategy must know the technology.

1.4 Strategic planning documents: types and purposes

The main goal of strategic planning is the implementation of the vision of the management and owners of the company as accurately as possible the market position of the company in the future. What products and services will it produce, what needs to be done to maintain and increase competitive advantages, what development alternatives are possible, which of them should be chosen - all this should be not only in words, but also reflected in documents.

The main document of strategic planning is the plan.

A strategic plan is a comprehensive document that combines into a single whole a vision of the future, key values ​​of the company, realistic assessments of changes in the external and internal environment, clearly formulated strategies, sets of goals, tasks, deadlines for their implementation and financial support responsible for the implementation of strategies.

There are many types of strategic plans. There is no unity in their structure and form of representation. But when forming a strategic document, a number of requirements must be observed.

The strategic plan should contain:

· directions strategic development, key values ​​of the organization, sets of strategic goals

planned results and time schedules for achieving the main and intermediate goals, indicating the time when they will be achieved

Resources required to achieve the goals, their distribution according to the main strategic goals

information about the managers responsible for the implementation of the plan

description of projects and targeted programs, if any

· calculations of economic and social efficiency of strategies, projects and programs

information about the coordination of sections of plans with other sections

Changes in the external and internal environment

strategic scenarios and alternative strategic plans corresponding to them

description of the strategic control system and the management system for the implementation of the strategic plan

The strategic plan can be presented in the form of a lengthy document and in a short form. In management practice, one should strive to ensure that the volume of the main document does not exceed even for big company Appendices are used on pages 20-40 for additional information.

The strategic plan is complemented by the development of strategic targeted programs, projects and budgets.

difference target program from the plan is that the program is much less flexible than the plan. The target program is initially aimed at solving a complex of target tasks linked into a single schedule with fixed volumes of work and products. These tasks must be completed in a coordinated manner on time and in a given volume.

Depending on the scale and complexity, the program includes several subprograms, i.e. projects, which cover a set of works that ensure the implementation of intermediate goals and tasks within 2-3 years, and are carried out by both operational and functional units.

Short term plans are usually drawn up in a form. The budget is a strictly quantitative plan for the distribution of financial resources between departments, types and areas of its activities in accordance with the planned results. The budget links the target results of management and expenditure of financial resources. This is the most important document in the activities of a manager at any level of the hierarchy. The main annual is a work plan of the organization as a whole coordinated across all departments and functions. The annual budget consists of the operating and financial budgets.

Based on the operating and financial budgets, the final production program. It is developed for a period of several weeks to a year for enterprises and individual departments, taking into account their existing production capacities. The program determines the range, volume, timing of production, the amount of work in progress, equipment loading, including quarterly.

A specific form of plans today is a business plan. Usually it is left for 5 years or when the company is created. Or at the turning points of its existence. The purpose of the business plan is to orient the company's business activities in accordance with the needs of buyers and opportunities to obtain resources, determine its specific types, markets. Compared to other types of plans, a business plan has two features:

It should be attractive, clearly demonstrate to all interested parties the benefits that they can get by taking part in its implementation

business plan is drawn up in several versions

· Analysis of the current state of the organization (determination of key environmental factors, economic, commercial, scientific, technical and other trends in the development of the organization).

· determination of the main goals and objectives of the development of the organization in terms of efficient use of capital and ensuring return on investment.

· determination of the organization's resource mobilization strategy to achieve the main goals and objectives of its development.

Thus, all these documents are the main end results of strategic planning. And only their unity, integrity and interconnection can ensure the long-term success of the company and turn it into a leader.

The main advantage of strategic planning lies in the greater degree of validity of planned indicators, the greater likelihood of the implementation of the planned scenarios for the development of events.

The current pace of change in the economy is so fast that strategic planning seems to be the only way to formally predict future problems and opportunities. It provides the top management of the company with the means to create a plan for the long term, provides a basis for decision-making, helps reduce risk in decision-making, ensures the integration of the goals and objectives of all structural divisions and performers of the company.

In the domestic practice of enterprise management, strategic planning is rarely used. However, in the industry of developed countries, it is becoming the rule rather than the exception.

Features of strategic planning:

should be supplemented by the current one;

strategic plans are developed at meetings of the top management of the company annually;

the annual detailing of the strategic plan is carried out simultaneously with the development of the annual financial plan (budget);

majority Western companies believes that strategic planning mechanisms should be improved.

Along with obvious advantages, strategic planning has a number of disadvantages that limit its scope and deprive it of universality in solving any economic problems.

Disadvantages and limitations of strategic planning:

1. Strategic planning does not and cannot give due to its essence detailed description pictures of the future. What it can give is a qualitative description of the state to which the company should strive in the future, what position it can and should occupy in the market and in business in order to answer the main question - will the company survive or not in the competition.

2. Strategic planning does not have a clear algorithm for drawing up and implementing the plan. His descriptive theory boils down to a particular philosophy or ideology of doing business. Therefore, specific tools largely depend on the personal qualities of a particular manager, and in general, strategic planning is a symbiosis of intuition and art of top management, the manager's ability to lead the company to strategic goals. The goals of strategic planning are ensured by the following factors: high professionalism and creativity of employees; close connection of the organization with the external environment; product updates; improving the organization of production, labor and management; implementation of current plans; inclusion of all employees of the enterprise in the implementation of the goals and objectives of the enterprise.

3. The process of strategic planning for its implementation requires a significant investment of resources and time compared to traditional forward planning. This is due to more stringent requirements for the strategic plan. It must be flexible, respond to any changes both within the organization and in the external environment. The number of employees involved in strategic planning is higher than in long-term planning.

4. The negative consequences of strategic planning errors, as a rule, are much more serious than in traditional, long-term planning. Especially tragic are the consequences of an incorrect forecast for enterprises engaged in non-alternative economic activities. High risk in forward planning can be explained by those areas of production and economic activity in which decisions are made on products; directions of investments; new business opportunities, etc.

5. Strategic planning should be complemented by mechanisms for the implementation of the strategic plan, i.e. the effect can be produced not by planning, but by strategic management, the core of which is strategic planning. And this implies, first of all, the creation of an organizational culture at the enterprise that allows the implementation of a strategy, a system of labor motivation, a flexible organization of management, etc. Therefore, the creation of a strategic planning subsystem at a particular enterprise should begin with putting things in order in the management system, with improving the overall management culture, strengthening performance discipline, improving data processing, etc. In this regard, strategic planning is not a panacea for all managerial ills, but only one of the means.

CHAPTER 2. MAIN STAGES OF STRATEGIC PLANNING

2.1 Assessment of the external and internal environment of the organization

Strategic analysis of the external and internal environment is one of the most important stages of strategic planning. The firm must necessarily build its strategies taking into account the specific configuration of factors in the external and internal environment.

The external environment of an organization is its external environment, which includes various systems with which the organization interacts, and which it cannot influence as a whole, with the exception of affecting only individual elements.

The classical approach to describing environmental factors includes the division into four groups in the form of a model called PEST (political, economic, social and technological):

Political factors: legislation, influence of the state on the sphere in which the company operates, political stability, relations between the state and business, the level of bureaucracy and corruption, the legal system.

Economic factors: tax rates, the economic growth countries, inflation, competition, incomes of the population, investments, financial stability of the state and markets.

Social factors Keywords: quality of life, demographic structure, education of the population, level of development of labor resources.

Technological factors: innovation processes, development of scientific and technical potential, transport, infrastructure elements.

In some cases it is expedient for managers to expand the PEST model. Today, there are approaches that include eight or more groups of factors, in particular economic, political, social, technological, infrastructural, environmental, legal and demographic. However, when too in large numbers factor analysis can become inconsistent and strategy development will be difficult.

In the classical PEST model, not all environmental factors are taken into account, but only those factors of the distant environment that the organization cannot influence. But each firm also directly interacts with a number of environmental factors included in its immediate environment. Therefore, in the analysis of the environment, it is also necessary to take into account the factors of the firm's immediate environment.

The most significant factors include:

· competitors. It is necessary to take into account not only existing competitors, but also future ones.

clients. They are put in the first place, because it is for them that the company works. Everything related to the client: quality, price, service culture are strategic factors in planning.

suppliers. The company can change suppliers, but in general its influence on their market is limited. Careful selection of a supplier is one of the conditions for the successful development of a company.

· local authorities. Poor communication with local authorities leads to conflicts in business.

regional factors. This group of factors is related to regional specifics, for example, regional policy, climatic features, regional markets.

To analyze the factors of the external environment, it is necessary to determine the nature of this interaction, to formulate the goals and objectives of the organization. Each factor should be described by quantitative indicators and indicate the degree of its influence on the company.

The internal environment of a company is its internal elements, subsystems and processes that affect its potential, competitiveness, and ability to develop. The internal environment can be studied and described in various ways.

The internal environment has several sections, the state of which together determines the potential and the opportunities that the organization has:

· Personnel component: the relationship between managers and workers, hiring, training, stimulation and promotion of personnel.

· organizational component: communications, structure, norms, rules, procedures, subordination hierarchy, distribution of responsibilities.

· production component: product manufacturing, supply, technology park maintenance, research and development.

· marketing component: pricing, promotion and sales of the product.

· financial component: ensuring profitability and investment opportunities.

The internal environment can be described on the basis of special models.

The concept of linking strategy with other elements of the organization, the so-called model 7 S, suggested business consultants Peters, Waterman and consulting firm McKinsey. According to this model, the most important elements of an organization's management: strategy, system, qualifications, values, personnel, management style and structure can be represented as a heptagon, all elements of which are interconnected. This model in a compact form reflects the most important elements of the organization and the relationship of strategy with other elements.

In the Japanese management system, the elements of this model are divided into hard and soft components. The hard elements are relatively resistant to change - strategy, structure and system. The rest are more flexible, soft, changeable components. It follows from this model that all controls are closely related to each other.

In the analysis of the internal environment is also used value chain model, developed by M. Porter. The value chain model is based on the presentation of all company activities in the form of interrelated processes that affect the increase in the value of the created product (service). The value chain includes five main activities and four support activities. Main activities:

· Logistics

· Production

· Merchandising

· Sales and Marketing

· Service

Ancillary activities ensure the implementation of the main ones and serve the entire organization:

company infrastructure

· Human resource management

Technological development

Logistic support of the main activities

The value chain is a means for strategically evaluating the relationship between activities carried out inside and outside the firm, which is important for strategy development.

A comprehensive assessment of the state of the external and internal environment is carried out using a SWOT analysis.

Situational, or “SWOT (SWOT) analysis” (the first letters of English words: strengths - strengths, weaknesses - weaknesses, opportunities - opportunities and threats - dangers, threats), can be carried out both for the organization as a whole and for certain types business. Its results are further used in the development of strategic plans.

Analysis of strengths and weaknesses characterizes the study of the internal environment of the organization. The internal environment has several components, and each of them includes a set of key processes and elements of the organization, the state of which together determines the potential and the opportunities that the organization has.

In order to successfully survive in the long term, an organization must be able to predict what difficulties it may encounter in the future, and what new opportunities may open up for it. Therefore, strategic planning, having the object of study of the external environment, focuses on finding out what threats and what opportunities it contains.

After identifying strengths and weaknesses, as well as threats and opportunities, a chain of links between them is established, which can later be used to formulate organizational strategies. For the successful application of the SWOT methodology, it is important to be able not only to uncover threats and opportunities, but also to try to evaluate them in terms of how important it is for the organization to take into account each of the identified threats and opportunities in the strategy of its behavior.

Environmental analysis is a very important and very complex process for developing a company's strategy, requiring careful monitoring of the processes taking place in the environment, assessing factors and establishing a connection between the factors and the strengths and weaknesses of the organization, as well as the opportunities and threats that are contained in the external environment. . The firm studies the environment in order to ensure its successful progress towards its goals. Therefore, the next step in strategic planning is to establish the mission and purpose of the organization.

2.2 Establishing the mission and purpose of the organization

When it comes to the target beginning of the organization, they usually talk about two components: mission and goals. Establishing both, as well as developing a behavior strategy that ensures the mission is fulfilled and the organization achieves its goals, is one of the tasks of top management and is a very important part of strategic planning.

F. Kotler believes that the essence of the mission is expressed as "such a statement of the company's mission, which is based on an" impossible dream "that sets the direction of development for the next 10-20 years." Examples of successful company mission statements “In the future, we see ourselves as leaders in the market segment to which our products are intended…We will provide the consumer with a fabulous experience.”

In contrast, Thompson and Strickland include the mission as an element of a general strategic vision, consisting of three components: the company's mission, which determines the position of the business company at the moment, the long-term course developed on the basis of the mission and determining the company's strategic path, and a clear statement of the strategic vision.

It should be noted that the company's mission is not formed in "airless space". Its development is influenced by many factors, the most important of which are the history of the organization, special competitive advantages (patents, know-how), opportunities and threats identified during the strategic analysis stage.

In management practice, the mission is most often understood as the main aspirations of the company, which connect the present position of the company with its future in the form of a formulation of generalized super-tasks that the company sets for the long term.

Companies typically use two mission statements. One, abbreviated for customers, which is usually expressed in slogan form and is extremely brief. For example, "We do a first-class thing" or "Bring happiness to people." But for the personnel, a mission statement is needed that would contain the strategic guidelines and policies of the company in the long term. The mission should be figurative, not stereotyped, but at the same time it should allow defining specific strategic goals.

Thus, the mission defines the essence of the organization's activities, its basic goals and principles of activity, helps to unite efforts in one direction, contains the main guidelines that help distribute responsibility and resources, provides the basis and context for developing a strategy, serves as the basis for building and correcting the goals of the organization.

The next step is to formulate the goals of the organization. The concept of “goal” is based on the desired future result of the activity. Often the concept of purpose is confused with the concept of the direction of development or the actions of the company, for example, the goal of “strengthen the market position”.

But the goal is, first of all, the result. If the goal is formulated vaguely, vaguely, as an ambiguous concept or as a process with unclear characteristics, then its planning and control are initially impossible. For example, such a formulation of the goal as "growth in production" should be avoided. It is necessary to formulate in the form of clear and specific concepts. Undefined goals are a sign of poor management.

Most often, the goals of the company are defined as a set of the most important results for the company. For example: an increase in sales, an increase in the number of orders, a decrease in cost. But a single-level set of disparate goals does not allow managers to effectively manage the company.

The goals of the company should form a single complex in which the most important areas of development, priorities, and tasks are coordinated and connected.

There are different types of goals. The main ones include:

strategic goals that affect the organization as a whole;

long-term goals - this is part of the strategic goals that remain unchanged in the company for a long period of time (more than 3 years);

· tactical (medium-term) goals specifying strategic ones for periods from 1 to 3 years;

operational (short-term) goals that determine the work of the company for up to 1 year.

The goals pursued by an enterprise are individual in nature and also depend on such factors as industry affiliation, type of enterprise, market position, suppliers, sources of raw materials, etc. At the same time, a number of fundamental external macroeconomic factors can be distinguished, which allow us to speak of some generalizing principles for formulating goals. So, until recently, the most significant for the vast majority of enterprises were financial and marketing goals, due to the transition to a market economy. Today, when the world economy has entered a period of transformation from an industrial to an innovative way, enterprises face goals in the field of research and development.

Objectives will only be a meaningful part of the strategic management process if top management correctly articulates them, communicates them, and drives their implementation throughout the organization.

The formation of the mission and the establishment of the goals of the company lead to the fact that it becomes clear why the company operates and what it strives for.

2.3 Choosing and developing a strategy

The development and selection of a strategy is the main product of strategic planning. A firm can develop and apply different strategies to solve problems. The same goal can be achieved in different ways. In order to select and develop a strategy, it is necessary to determine: “What is it?”

P. Doyle emphasized the organization's resource management in defining the strategy: “Strategy is a set of decisions made by management to allocate enterprise resources and achieve long-term competitive advantages in target markets. Consequently, the strategy establishes the direction of the enterprise, to which specific goods and markets the company directs money and labor resources.

Strategy is also understood as the results of planning the future of the organization. For example, S. Lewicki: "Strategy is a set of documents and concepts that form a plan for the future of an organization."

M. Porter, one of the founders of the modern theory of competition, defines strategy as the art of creating differences from other competitors, the ability to achieve and maintain competitive advantages. There are many different strategies for the development of the company, consider the most common types of strategies.

According to the levels of the hierarchical structure of the company, all strategies are divided into four groups:

main, or corporate-wide, strategy. Development strategy of the company as a whole

· business unit strategies are developed when the company has independent types of businesses and autonomous business units.

· functional strategies, the purpose of these strategies is to ensure the implementation of the strategies of business units and the company as a whole.

· strategies of teams, working groups and employees, on which the company's strategic process depends.

The most common in world practice are the following four types of strategies:

Growth strategies are aimed at expanding market activities, increasing company assets, increasing investment volumes

limited growth strategies;

Strategies for curtailing activities (leaving the business);

Combinations of the above strategies.

M. Porter developed a classification of strategies into generic (species) types. All strategies, according to his concept, can be divided into three types:

1. Cost leadership strategy. Means that all the efforts of the company are focused on the production and marketing of cheaper products compared to competitors

2.Strategy of differentiation. It can be carried out both on a wide market, in many segments, and on a separate narrow segment. If a new quality or property is created for a standard product, then we are talking about a differentiation strategy.

3. Focus strategy. Means the focus of the company's efforts on a narrow segment.

Thus, we see that the strategies of the enterprise are unique in many respects, there are no universal solutions. strategic objectives suitable for all occasions. As a result, possible options for action are also not set, and since the formation of strategies is a creative process, entirely dependent on the level of knowledge and experience of managers, their values ​​and priorities, corporate culture, such options must be found independently.

In the case of a successful choice and the correct development of the company's strategy, it should influence the appearance of changes:

1. Growth of the company's competitiveness

2. Increasing the sustainability of development

3.Seize new market opportunities

4. Growth of the company's potential based on innovation in all areas of its activity

5.Product quality growth

6.Proactive response to changing customer needs and the emergence of new types of similar products and services

7. Formation of a system of key competencies and its development

8. Growth of social responsibility of business and creation of a strong reputation of the company

9. Staff development and training of managers to work in the context of the implementation of the strategy

10. The growth of the level of strategic planning

So, we can conclude that strategy is the basis for the survival of companies and successful development. Strategy building is a complex process, often revolving around a set of unrelated activities, or general descriptions desired results that are not provided with anything. Strategy development is a search for new ways to achieve strategic goals, implement the company's key values ​​in the most effective way. The strategy determines the future state of the company, and only a non-standard, creative strategy can achieve market leadership.

2.4 Implementation of the strategy

The implementation of strategies requires solving a complex set of tasks. Preparing for the implementation of new strategies requires profound changes in the firm, and the success of their implementation depends on many factors. In the process of implementing a new strategy, the opportunities and potential of the company should be fully used.

A.A. Strickland and A.J. Thompson propose to adopt as the main tasks of implementing the strategy:

creation of an organization with the necessary competencies, capabilities and resource base

allocation of resources to strategically significant links in the value chain

development of tactics and procedures in support of the strategy

Implementation of best practices and continuous improvement policy

creation of conditions for employees to effectively fulfill strategic tasks through the introduction of information, communication operational and electronic systems

development of a system of incentives and rewards for achieving goals and good implementation of the strategy

creation of a corporate culture and environment that stimulates the implementation of the strategy

Establishing an internal leadership system to improve implementation

These tasks are aimed at preparing the company for the implementation of the strategy, but they do not have an organizational core that provides execution steps. In my opinion, there are some disadvantages in the proposed tasks:

implementation information systems is not a critical factor for the successful implementation of the strategy;

Task No. 1 is not a prerequisite, but the result of the implementation of the strategy;

· among these tasks there is no formation of a team of managers managing the implementation of the strategy;

And here, D. Campbell, J. Stonehouse, B. Hughton consider the implementation of the strategy from the point of view of solving the problems of resource provision, changing the organizational culture and structure so that they correspond to this strategy.

After analyzing several literary sources on the issue of strategy implementation, we came to the conclusion that the entire process of implementing an organization's strategy can be divided into a number of stages:

1. The preparatory stage includes an analysis existing system management, selection of management personnel, formation of working groups and teams, training of personnel for the implementation of the strategy and development of a strategy implementation plan.

2. The implementation of the strategy consists in holding workshops, establishing direct communications between employees, financing the implementation of the strategy, developing strategic guidelines for implementation and analyzing the current results of the implementation of the strategy

3. The stage of completion of the implementation of the main stages of the strategy, this includes an assessment of the overall results, determining the causes of deviations and analyzing the prospects for the development of strategic processes.

Thus, the process of implementing the strategy should lead to the achievement of specific outcomes. In the context of the implementation of the strategy, it is necessary to determine the final results for each stage and ways to control their achievement.

2.5 Strategy evaluation and control

Evaluation and control of the implementation of the strategy is a logically final process carried out in strategic planning. This process provides a stable feedback between the progress of the planning process and the goals facing the organization.

The effectiveness of strategy implementation is highly dependent on management control, which should operate at all stages of the strategy implementation process and cover all parts of the organization. The following types of control apply:

1.Administrative control over the implementation of management decisions and regulations, compliance with legal norms and legislation, personnel placement, implementation of plans and tasks, interaction of the company with the environment.

2. Financial control - accounting and analysis of the expenditure of financial resources, ensuring the financial needs of the organization.

3. Budgetary control, including the development of the organization's budget system and their integration into the main budget of the company.

4. Monitoring the effectiveness of incentive and motivation systems assesses the degree of interest of employees and managers in solving the problems of the organization.

5.Marketing control provides guidance on changes in market demand, customer preferences, market response to the behavior of the organization.

6. Quality control includes an assessment of the quality level, compliance with quality standards and the reasons for deviations from them.

Usually in the literature there are such basic methods of control as preliminary, directed and final.

The main purpose of preliminary control is to establish the correctness of the formulation of goals and strategies.

According to the concept of strategic management, after the preliminary control stage, there comes the stage of transition to real-time operational management, which involves managing the implementation of the strategy, taking into account unexpected changes that occur too quickly to be taken into account when developing a strategic plan. Here the method of guiding control is used, which is applied from the beginning of the practical implementation of the solution to its final stage.

When the strategy is considered completed, the final control is carried out according to the results obtained. This type of control is aimed at evaluating and analyzing the effectiveness of achieving the set goals and objectives. Depending on the results of this analysis, the strategic management process either returns to the "setting tasks" stage to make adjustments to the strategy, or moves to the next level of development to develop new strategic behavior.

I. Ansoff in his book "Strategic Management" formulates the following principles of strategic control:

Due to the uncertainty and inaccuracy of calculations, a strategic project can easily turn into an empty undertaking. This should not be allowed, the costs should lead to the planned results. But unlike the usual practice of production control, the focus should be on cost recovery, not on budget control.

At each milestone, it is necessary to make an assessment of cost recovery during the life cycle of a new product. As long as the payback exceeds the control level, the project should continue. When it falls below this level, other possibilities should be considered, including terminating the project.

So, we came to the conclusion that strategic control is very important for the organization, moreover, improperly organized control work can create difficulties in the work of the company and even harm it. Existing Form control in the company largely determines the effectiveness of its functioning.

CONCLUSION

In this work, I have considered theoretical issues related to strategic planning. An assessment of the need to introduce strategic planning at the enterprise is carried out and the stages of the process of strategic planning of the company are considered in detail. And I came to the following conclusions:

Strategic planning is the development of long-term directions and goals for the development of an organization, its key values, strategic alternatives and the choice of a strategy based on a synthesis of an analysis of the external and internal environment of the company, determining the needs for resources and their distribution, substantiating the need, possibility and effectiveness of implementing the chosen strategy, developing management and control systems for its implementation.

The main end results of strategic planning are: strategic scenarios, strategic plans, targeted programs, projects, budgets and business plans.

An analysis of the literature on strategic planning shows that the authors' opinions on the process of developing and implementing a strategy are ambiguous. Different authors offer different approaches. In this case, we consider strategic planning as a process consisting of the following stages: assessment of the external and internal environment of the organization, establishment of the mission and goals of the organization, selection and development of a strategy, strategy implementation, strategy evaluation and control.

An organization's external environment is the set of forces and individuals outside the organization that it encounters in its day-to-day activities and that influence the development and maintenance of beneficial customer relationships. Methods for assessing the external environment of an organization include PEST analysis, which involves assessing and determining the degree of influence of political, economic, social and technological factors of the external environment on the organization. Also, when analyzing the external environment, it is necessary to take into account the factors of the near environment: competitors, suppliers, customers, regional factors and local authorities.

The internal environment of an organization is that part of the overall environment that is located within the organization. It has a permanent and direct impact on the functioning of the organization. The internal environment has several sections, the state of which together determines the potential and capabilities of the company: personnel, production, marketing and financial.

The methods of diagnosing the internal state of the company include both the value chain and the 7S concept. The value chain, in turn, involves the identification of those activities or links of individual processes where value is created for the consumer, i.e., those consumer qualities of the product for which the consumer will pay. The 7S concept describes a company with the help of the most important elements of management: strategy, systems, qualifications, values, personnel, management style, structure.

The methods of complex assessment of the macro- and microenvironment include the widely known SWOT analysis. The SWOT analysis algorithm is sufficiently developed and allows you to identify and link the strengths and weaknesses of the organization with the opportunities and threats from the external environment, as well as assess the degree of influence of the latter on the position of the company.

The formulation of the mission and goals of the organization is very important for the company's activities. In a broad sense, the mission is the philosophy and purpose, the meaning of the existence of the organization. In a narrow sense, a mission is a statement about why or why an organization exists, what distinguishes it from other organizations. Goals are a specific state of individual characteristics of the organization, the achievement of which is desirable for it and to which its activities are directed.

The strategy implementation process includes a number of stages: the preparatory stage, the implementation of the strategy and the stage of completion of the implementation of the main stages of the strategy.

Evaluation of the effectiveness of the current strategy involves constant monitoring of its implementation. Strategic control is a mandatory element of strategic planning, on the basis of which adjustments are made to the current strategy. There are several types of control: administrative, financial, budgetary, marketing, quality control and control of the incentive and motivation system.

Thus, the process of strategic planning requires significant costs, and many firms often, for this reason, resort only to determining the tactics of their actions, missing out on opportunities for further growth and development. On the other hand, the price of a mistake when making strategically important decisions can be very high. Therefore, managers who make these decisions must have high professionalism in various functional areas.

LIST OF USED LITERATURE

1.Adiev R.V. Strategic planning at the enterprise. Money and credit №7, 2001

2. Alekseeva M.M. "Planning the activities of the company", Moscow "Finance and Statistics", 2009.

3. Ansoff I. New corporate strategy. St. Petersburg: Peter, 2005.

4. Ansoff I. Strategic management. M., Economics, 2006.

5. Vorobyov A.D. Methodology of strategic management.//Management in Russia and abroad. - 2005. - No. 6. - p. 127-130.

6. Vesnin V.R. Management: textbook. - 2nd ed., revised. and additional - M .: TK Velby, Prospekt Publishing House, 2004.

7. Vinslav Y. Formation of the domestic corporate governance. Theory, practice, approaches to solving key problems.//Russian Economic Journal, 2008, No. 2,

8. Vikhansky O. S. Strategic management: textbook. - 2nd ed., revised. and additional - M.: Economist, 2006.

9. Golubkov E.P. Strategic planning and the role of marketing in an organization.// Marketing in Russia and abroad. - 2000. - No. 3.

10. Daft R. L. Management: textbook. - 2nd ed., revised. and additional - St. Petersburg: Peter, 2006.

11. Doyle P. Strategic management and marketing. St. Petersburg: Peter, 2008.

12. Tooth A.T. Strategic management. theory and practice. Textbook for universities. – M.: Aspect Press, 2008. – 247 p.

13. Idrisov A.B. Strategic planning in Russia is not a return, but a look into the future. http://www.gifa.ru

14. Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 pm P 1. Strategic planning. - Mn .: LLC "New Knowledge", 2000.

15. Kotler F. Marketing management: translation from English. - St. Petersburg: Peter, 2000.

16. Korobeinikov O.P., Kolosov V.Yu., Trifilova A.A. Strategic behavior: from development to implementation.//Management in Russia and abroad. - 2006. - No. 3. - p. 88-129.

17.Kliland U. Strategic planning in organizations. - M.2000.

18. Kuznetsov V. S. On the strategic alternative.// Management in Russia and abroad. - 2006. - No. 2. - p. 34-40.

19. Campbell D., Stonehouse J., Houston B. Strategic management: translation from English. - M.: Prospekt Publishing House LLC, 2003.

20. Lyubinova N.G. Management - the path to success. - M .: "Progress", 2007. - 129 p.

21. Malenkov Yu.A. Strategic management: textbook. - M .: TK Velby, Prospect Publishing House, 2008.

22. Matthews R., Ageev A., Bolshakov Z. New matrix or logic of strategic superiority. Moscow: Institute of Economic Strategies; Olma-Press, 2003.

23. Porter M. Competitive strategy: A methodology for analyzing industries and competitors. M.: Alpina Business - Books, 2005.

24. Rodionova V.N., Fedorkova N.V., Chekmenev A.N. Strategic management: textbook. Benefit. - M .: RIOR Publishing House, 2007.

25. Sterlin A.R. Strategic planning in industrial corporations: experience of development and new phenomena. - M.: Nauka, 2006. - 412 p.

26. Thompson A.A., Strickland A.J. Strategic management. Concepts and situations for analysis. M.: Williams, 2005.

27. Saloon V. Strategic planning - a goal or a means.//Marketing. - 2002. - No. 1. - p. 42-47.

28. Fedin M. Are you ready to plan strategically?. http://www.profes.biz.ru

29. Shuvalova I. Map of Russian consulting.//Expert. - 2001. - No. 4. - p.

30. http://www.mir-menegmenta.com

31. www.vopreco.ru.

32. http://mirslovarei.com/content_eco

33. Higher School of Economics - http://www.hse.ru


Vikhansky O. S. Strategic management: textbook. - 2nd ed., revised. and additional – M.: The Economist, 2006.-83 p.

Daft R. L. Management: textbook. - 2nd ed., revised. and additional - St. Petersburg: Peter, 2006.-52 p.

Thompson A.A., Strickland A.J. Strategic management. Concepts and situations for analysis. M.: Williams, 2005.-60 p.

Vorobyov A.D. Methodology of strategic management.//Management in Russia and abroad. - 2005. - No. 6. - p. 127-130.

Korobeinikov O.P., Kolosov V.Yu., Trifilova A.A. Strategic behavior: from development to implementation.//Management in Russia and abroad. - 2006. - No. 3. - p. 88-129.

Kuznetsov V.S. On strategic alternativeness.// Management in Russia and abroad. - 2006. - No. 2. - p. 34-40.

Thompson A.A., Strickland A.J. Strategic management. Concepts and situations for analysis. M.: Williams, 2005.-349 p.

Campbell D., Stonehouse J., Huston B. Strategic management: translation from English. - M.: Prospekt Publishing House LLC, 2003.159-162 p.

Malenkov Yu.A. Strategic management: textbook. - M .: TK Velby, Publishing House Prospekt, 2008.-182 p.

Korobeinikov O.P., Kolosov V.Yu., Trifilova A.A. Strategic behavior: from development to implementation.//Management in Russia and abroad. - 2006. - No. 3. - p. 88-129.

Ansoff I. Strategic management. M., Economics, 2006.-135 p.

INTRODUCTION


Strategic planning is one of the functions of management, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions, the functions of organization, motivation and control are focused on the development of strategic plans. A dynamic strategic planning process is the umbrella under which all managerial functions are sheltered, without taking advantage of strategic planning, organizations as a whole and individuals will be deprived of a clear way to assess the purpose and direction of a corporate enterprise. The strategic planning process provides the framework for managing the members of an organization. Projecting everything written above on the realities of the situation in our country, it can be noted that strategic planning is becoming more and more relevant for Russian enterprises that enter into fierce competition both among themselves and with foreign corporations.


STRATEGIC PLANNING AS A MEANS OF ACHIEVING THE GOAL.


Strategic planning is a set of actions and decisions taken by management that lead to the development of specific strategies designed to help the organization achieve its goals. The strategic planning process is a tool that helps in making managerial decisions. Its task is to provide innovations and changes in the organization to a sufficient extent. There are four main types of management activities within the strategic planning process:


Resource allocation

Adaptation to the external environment

Internal coordination

Organizational strategic foresight


Resource allocation.

This process involves the allocation of limited organizational resources such as funds, scarce managerial talent and technological expertise. For example, in 1994, the Moscow Cellular Communications company decided to reorganize its structure somewhat, namely, the fixed cellular communication service, which has grown from an additional into one of the main services, was taken over by the MCC department of the Farkop company. This decision made it possible to somewhat reduce the staff of the MCC, which, of course, reduced costs, and at the same time fully represent the fixed cellular service on the market, because the Farkop company was founded as a result of the distribution of organizational resources and fully met the necessary requirements (First of all, a qualified personnel and technological experience).


Adaptation to the external environment

Adaptation covers all actions of a strategic nature that improve the relationship of the enterprise with its environment. Businesses need to adapt to both external opportunities and hazards, identify appropriate options, and ensure that strategy is effectively adapted to the environment. As an example, consider the activities of the Russian computer equipment manufacturer Stins Comman. About three years ago, this company entered the computer market, namely the segment represented by powerful workstations. At the dawn of its activity, this company was unable to compete in this market segment with more experienced Russian and Western companies, therefore, not seeing any special prospects, the company's management decided to sharply develop a new market niche - a home computer (HomePC & Half Office), which is based was a low price, the presence of a variety of basic configurations, equipping with promising peripherals, additional technical and, above all, software services (namely, the fact that Amata computers were one of the few that were equipped with a whole package of training rather rare programs). That is, in this case, we see that the company has successfully adapted to the conditions of the external environment, namely, it moved in time from an unpromising segment to a more promising one.


Internal coordination

Includes the coordination of strategic activities to display the strengths and weaknesses of the enterprise in order to achieve effective integration of internal operations. Ensuring effective internal operations in the enterprise is an integral part of management activities.


Awareness of organizational strategies

This activity involves the implementation of a systematic development of the thinking of managers by forming an enterprise organization that can learn from past strategic decisions. The ability to learn from experience enables an enterprise to correctly adjust its strategic direction and increase professionalism in the field of strategic management. The role of the senior manager is more than simply initiating the strategic planning process, it is also involved in implementing, integrating and evaluating this process.

The model of the strategic planning process is shown in Figure 1.


ESSENCE OF STRATEGY


Word "strategy" derived from the Greek strategos,"the art of the general." The military origin of the term should come as no surprise. Exactly strategos allowed Alexander the Great to conquer the world.

The strategy is a detailed comprehensive plan designed to ensure the implementation of the organization's mission and achievement of its goals.

Several key messages related to strategy need to be understood and, more importantly, accepted by top management. First of all, the strategy is mostly formulated and developed by top management, but its implementation involves the participation of all levels of management. The strategic plan must be supported by extensive research and evidence. To compete effectively in today's business world, an enterprise must constantly collect and analyze vast amounts of information about the industry, competition and other factors.

The strategic plan gives the enterprise certainty, individuality, which allows it to attract certain types of workers, and, at the same time, not to attract other types of workers. This plan opens the door for an enterprise that directs its employees, attracts new employees, and helps sell products or services.

Finally, strategic plans must be designed not only to remain consistent over long periods of time, but also to be flexible enough to be modified and refocused as needed. The overall strategic plan should be seen as a program that guides the firm's activities over an extended period of time, recognizing that a conflicting and ever-changing business and social environment makes constant adjustments inevitable.


OBJECTIVES OF THE ORGANIZATION (ENTERPRISE)


The first and perhaps the most significant decision in planning will be the choice of enterprise goals. It must be emphasized here that those enterprises that, due to their size, have a need for multi-level systems, also need several broadly formulated goals, as well as more specific goals related to the overall goals of the organization.


Enterprise Mission

The main overall goal of the enterprise - a clearly expressed reason for its existence - is designated as its mission. Goals are developed to carry out this mission.

The mission details the status of the enterprise and provides direction and benchmarks for setting goals and strategies at various organizational levels. The company's mission statement should include the following:


1. The task of the enterprise in terms of its main services or products, its main markets and main technologies


2. External environment in relation to the firm, which determines the working principles of the enterprise


3. Culture of the organization. What type of working climate exists within the enterprise?


Mission selection

Some leaders never care about choosing and defining the mission of their organization. Often this mission seems obvious to them. If you ask the typical small business owner what their mission is, the answer is likely to be: "Of course, to make a profit." But if you think carefully about this issue, then, the inconsistency of choosing profit as a common mission becomes clear, although, undoubtedly, it is an essential goal.

Profit is a completely internal problem of the enterprise. Because an organization is an open system, it can only ultimately survive if it satisfies some need outside of itself. To earn the profit it needs to survive, a firm must pay attention to the environment in which it operates. Therefore, it is in the environment that management looks for the overall goal of the organization. The need for mission choice was recognized by prominent leaders long before the development of systems theory. Henry Ford, a leader with a deep understanding of profit, defined Ford's mission as providing people with cheap transportation.

The choice of such a narrow mission of the organization as profit limits the ability of management to explore acceptable alternatives when making a decision. As a result, key factors may not be considered and subsequent decisions could lead to a low level of organizational performance.

Target characteristics

General production goals are formulated and set on the basis of the overall mission of the enterprise and certain values ​​and goals that top management is guided by. To make a true contribution to the success of an enterprise, goals must have a number of characteristics:


Specific and measurable goals

Orientation of goals in time

Achievable Goals


ASSESSMENT AND ANALYSIS OF THE EXTERNAL ENVIRONMENT


After establishing its mission and goals, management should begin the diagnostic phase of the strategic planning process. The first step is to study the external environment. Managers evaluate the external environment according to three parameters:


1. Evaluate changes that affect different aspects of the current strategy


2. Determine what factors pose a threat to the current strategy of the firm.


3. Determine which factors provide more opportunities to achieve company-wide goals by adjusting the plan.


Environmental analysis is the process by which strategic planners control factors external to the enterprise in order to identify opportunities and threats for the firm. Analysis of the external environment helps to obtain important results. It gives the organization time to anticipate opportunities, time to plan for possible threats, and time to develop strategies that can turn past threats into any profitable opportunity.

In terms of assessing these threats and opportunities, the role of environmental analysis in the strategic planning process is essentially to answer three specific questions:


1. Where is the business located now?


2.Where, according to senior management, should the enterprise be located in the future?


3. What should management do to move the enterprise from the position it is in now to the position where management wants it to be?


Threats and opportunities faced by an enterprise can usually be divided into seven areas (Figure 2).


MANAGEMENT SURVEY OF INTERNAL STRENGTHS AND WEAKNESSES OF THE ENTERPRISE

The next problem that management faces will be to determine whether the enterprise has internal forces. The process by which a diagnosis of internal problems is made is called a management survey.

Management survey is a methodical assessment of the functional areas of the enterprise, designed to identify its strengths and weaknesses.


Marketing.

When examining the marketing function, there are seven general areas for analysis and research that deserve attention:


1. Market share and competitiveness


2. Variety and quality of product range


3. Market demographic statistics


4. Market research and development


5. Pre-sales and after-sales customer service


7. Profits


Finance / Accounting

An analysis of the financial condition can benefit the organization and help improve the effectiveness of the strategic planning process. A detailed analysis of the financial condition can reveal existing and potential internal weaknesses in the organization, as well as the relative position of the organization in comparison with its competitors. Examining financial performance can expose management to areas of internal strengths and weaknesses in the long term.


Operations

Critical to the long-term survival of an enterprise is continuous review of operations management. Here are some key questions that need to be answered in a survey of the strengths and weaknesses of the operations management function.


1. Can we produce our goods or services at a lower cost than our competitors? If not, why not?


2. What access do we have to new materials? Do we depend on a single supplier or a limited number of suppliers?


3. Is our equipment modern and well maintained?


4. Are purchases designed to reduce inventory and lead times? Are there adequate controls on inputs and outputs?


5. Are our products subject to seasonal fluctuations in demand, which forces us to resort to temporary dismissal of employees? If so, how can this situation be corrected?


6. Can we serve markets that our competitors cannot serve?


7. Do we have an effective and efficient quality control system?


8. How effectively did we plan and design the production process? Can it be improved?


Human resources

The root of most problems in organizations can ultimately be found in people. If an organization has qualified employees and leaders with well-motivated goals, it is able to follow various alternative strategies. Otherwise, improvements should be sought because the weakness is most likely to jeopardize the organization's future performance.


Culture and image of the enterprise

The culture and image of an enterprise is reinforced or weakened by the company's reputation. Does the firm have a good reputation for achieving its goals? Was she consistent in her activities? How does this enterprise compare to others in the industry?


EXPLORING STRATEGIC ALTERNATIVES


The enterprise has four strategic alternatives - limited growth, growth, reduction, and a combination of these options.


Limited growth.

The strategic alternative followed by most organizations is limited growth. A limited growth strategy is characterized by setting goals from what has been achieved, adjusted for inflation. The limited growth strategy is applied in mature industries with static technology, when the organization as a whole is satisfied with its position.


Growth

The growth strategy is implemented by annually significantly increasing the level of short-term and long-term goals above the level of the previous year's indicators. The growth strategy is applied in dynamically developing industries with rapidly changing technologies.


Reduction

The alternative least often chosen by executives and often referred to as the strategy of last resort is the reduction strategy. Within the reduction alternative, there may be several options:


1. Liquidation


2. Cutting off the excess


3. Reduction and reorientation


Combination

Strategies for combining all alternatives are likely to be pursued by large firms active in several industries. A combination strategy is a combination of any of the three strategies mentioned.


The strategic choices made by managers are influenced by a variety of factors. Here are some of them:



2. Knowledge of past strategies


3. Reaction to owners


4. Time factor


STRATEGIC PLANNING AND ENTERPRISE SUCCESS


Some organizations and businesses can achieve a certain level of success without much formal planning. Moreover, strategic planning alone does not ensure success. However, formal planning can create a number of important and often significant enabling factors for the organization.

The current pace of change and increase in knowledge is so great that strategic planning seems to be the only way to formally predict future problems and opportunities. It provides senior management with the means to create a long-term plan. Strategic planning also provides a basis for decision making. Knowing what an organization wants to achieve helps clarify the most appropriate course of action. Formal planning helps reduce risk in decision making. By making informed and systematic planning decisions, management reduces the risk of making the wrong decision due to erroneous or unreliable information about the capabilities of the enterprise or about the external situation. Planning, in so far as it serves to formulate established goals, helps to create a unity of common purpose within the organization. In industry today, strategic planning is becoming the rule rather than the exception.


Tutoring

Need help learning a topic?

Our experts will advise or provide tutoring services on topics of interest to you.
Submit an application indicating the topic right now to find out about the possibility of obtaining a consultation.