Basic conditions for successful implementation of the strategy. Strategic planning

The experience of strategic management accumulated by many domestic and foreign corporations indicates that the success of any strategy ultimately depends on the organization of work to implement the entire system of plans.

There is even an opinion that with a very good organization in implementing an average strategy, you can achieve greater success compared to those achieved by a poorly organized strategy with brilliant ideas.

The developments of the famous consulting firm McKinsey have shown that the successful implementation of a new strategy is hampered by the fact that it is based on old structures, values, systems, skills, personnel and management style that do not correspond to new tasks and methods of solving them. Based on her research, a model was developed called Seven S after the initial letters of the words denoting the conditions for successful implementation of the strategy. In Fig. 5.7 we have kept the writing of these conditions in English; below is an explanation of the conditions in Russian. Its main idea is not only that the implementation of the strategy is carried out through changes in these areas, but also that in each specific case it is necessary to search for them best combination ensuring the effectiveness of the actions taken.

Rice. 5.7. Model for successful strategy implementation

Strategy - a strategic plan or course of action that predetermines the long-term allocation of resources to achieve goals.

Structure - structure or ways of connecting people, tasks and individual activities, as well as the relationships between them.

Shared Values ​​- values ​​shared by people and concepts for the development of an organization.

Systems - formal procedures or systems for control, performance measurement, planning and budgeting.

Skills - organizational competencies, including the abilities of individual workers, managers and other specialists of the organization.

Style - leadership style of management and general operating style of the organization.

Staff - organization of recruitment, selection, development, socialization and promotion of the organization's personnel.

Tools for implementing strategic plans

Implementation of strategy is a daily labor-intensive work focused on performing specific actions to carry out organizational changes, often affecting the interests of all employees of the organization. It is at this stage that managers at all levels of management must act as a single team, in which knowledge and understanding of strategic management processes is equally important for managers at all levels.

Plans for the strategic development of the organization as a whole, its structural divisions (business units) and functional subsystems are implemented through a system of programs, tactical and operational plans. Programs specify the activities included in the strategic plan; tactical plans detail tasks for more short periods and mainly at the middle level of management, operational plans link the daily activities of the organization with the targets and priorities of the strategy, primarily at the first level of management.

The basis of the organization's strategic development programs is the operating principles that are part of the philosophy of their development.

Let us give an example from domestic practice. The action program for implementing the strategy of the Fazotron-NIIR corporation has laid a number of fundamental principles that reflect the vision and system of its values: independence, mandatory fulfillment of government orders, profitability, continuity, consistency, search for new solutions in the economy and organization of enterprise management. In accordance with them, programs were developed:

carrying out privatization (corporatization) of an enterprise by its staff;

creation of a corporation (the corporation includes 24 subsidiaries and branches);

development of the latest high-quality competitive products;

transforming the main product into an independent product, entering the foreign market with it and conquering its niche;

preservation of scientific potential, scientific school and traditions of the enterprise;

ensuring work at all stages life cycle goods;

formation and support of the corporation’s image;

improving the management structure;

quality assurance systems based on ISO-9001 (Kanashchenkov A., Osokin A.

Operation strategy of an enterprise creating high-tech products in new conditions // Aerospace Courier, 2000, No. 6, p. 22-23).

In foreign practice, the transition from strategy to programs is carried out through the development of company policy as a system of measures for its implementation in such areas as:

marketing position;

productivity and added value;

profitability and the relationship between costs and income;

Social responsibility;

income, working conditions, prestige, status and powers of the organization’s management and production personnel.

Let's give an example. The goals of Lincoln Electric's strategy, focused on product consumers, are formulated in such parameters as: quality, price, supply, service, delivery. The company's policy in achieving each of these goals consists of a whole system of measures.

For example, the goal of “quality” is achieved by: controlling product quality, maintaining standards, paying only for quality work, using experienced workers with low labor turnover, consistency between design and manufacturing methods.

The “price” target is based on the following measures (which partially overlap measures to achieve High Quality): compliance with consumer product standards, integration of production processes, ensuring consistency between design and production methods, use of an experienced and flexible workforce, division of labor, premium wages, process improvement, cost control, price reduction when cost savings are achieved, etc. .

The goals of the strategy, focused on the organization's personnel, include high wages, job security, control and respect for the dignity of everyone.

The high wage policy is based on the following measures: consumer product standards, process integration, experienced work force, division of work into parts, premium wages, process improvement, cost and overhead control, high standard of equipment used.

The goal of achieving safe operations is linked to policies based on: using quality equipment, improving processes, controlling costs and overheads, reducing prices when cost savings are achieved, maintaining inventory to ensure process continuity, avoiding peak loads, etc.

The dignity of workers in the organization is ensured by the policy of promoting people in the organization, giving workers shares of the company, the absence of special privileges, and assistance from managers in changing the status of workers (based on Aguilar F. J., Managing Corporate Ethics, p. 48, 54).

The main directions and methods used in programs and plans are interconnected. Thus, if a decision is made to change the organizational form, this inevitably leads to changes in the structure, processes and management methods. Innovations in technology necessarily lead to new organization labor and production, necessitate appropriate measures for human resource management, etc.

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

1. Organization strategy………………………………………………………...4

1.1. The essence of the organization's strategy………………………………………………………...4

1.2. Classification of strategies………………………………………………………7

2. Formation and implementation of strategy……………………………………...10

2.1. Formation of strategy……………………………………………………...10

2.2. Implementation of the strategy……………………………………………………….13

Conclusion………………………………………………………………………………….17

List of references………………………………………………………...18

Appendix 1. Advantages and disadvantages of the strategy…………………………19

Appendix 2. Basic approaches to strategy development…………………….20

Introduction

Currently, the general attention of businesses to strategy is rapidly increasing. The choice of strategy and its implementation constitute the main content of strategic management.

In the very general view strategy can be defined as an effective business concept, complemented by a set of tangible actions that can lead that business concept to achieve a real competitive advantage that can be sustained long time. Strategy development should be based on a deep understanding of the market, assessment of the enterprise’s position in the market, and awareness of its competitive advantages.

In an increasingly competitive environment, the development of an enterprise depends on three groups of factors: internal environment, external environment, dynamic abilities.

There is no single strategy for all businesses. Each enterprise, even in one industry, is unique, so the definition of its strategy is individual, which depends on its potential, as well as on many external factors.

Ultimately, the formation of an enterprise strategy should provide answers to three questions: What directions economic activity needs to be developed? What are the capital investment and cash resource requirements? What are the possible returns in the chosen areas?

All of the above determined the relevance of this topic.

The goal is to identify the features of the formation and development of the organization’s strategy.

In accordance with the goal, the following tasks are put forward:

1) determine the essence of the organization’s strategy;

2) consider the classification of strategies;

3) determine the stages of formation and implementation of the organization’s strategy.

1. Organizational strategy

1.1. The essence of the organization's strategy

An organization's strategy is a type of long-term development plan for a commercial or industrial organization. The organization's strategy is built taking into account the prospects for the organization's interaction with the external environment in the future. According to accepted ideas, an organization's strategy is an important characteristic of the organization's internal environment, determining the methods of its functioning and the organizational structure and type of social organization.

One can also cite another, very successful definition of strategy given by O.N. Zhukevich: strategy is a qualitatively defined direction of development of an enterprise (firm) based on the coordination and distribution of resources, taking into account and adequately responding to changes in environmental factors in order to achieve competitive advantages in the long term.

According to G. Mintzberg’s definition, the concept of “strategy” includes five components:

1) a plan is a conscious and pre-developed sequence of actions of an organization to various directions for a certain period of time, which is constantly monitored (deliberate strategy);

2) behavioral model - not all plans are implemented, but only well-thought-out ones, and instead, under the influence of external and internal factors, a new strategy appears and develops as a result of consistent human behavior (spontaneous strategy), i.e. strategy may be the result of a person's actions rather than his intentions;

3) the position of the organization relative to the external environment, i.e. in relation to competitors or in relation to customers (positional strategy);

4) a perspective (a course aimed at changing the structure of the organization) shared by members of the organization in their intentions or actions; changing perspective is a very difficult process even while maintaining a position;

5) a technique and tactical move, the goal of which is to outwit a competitor (short-term strategy).

There are two opposing views on understanding strategy. The first understanding of strategy is based on the following process. The final state is determined quite accurately, which must be achieved after a long period of time. Next, it is recorded what needs to be done in order to achieve this final state. After this, an action plan is drawn up, broken down by time intervals (five-year plans, years and quarters), the implementation of which should lead to the achievement of a final, clearly defined goal. Basically, this understanding of strategy existed in systems with centrally planned economies. With this understanding, strategy is a specific long-term plan to achieve a specific long-term goal, and strategy development is finding a goal and drawing up a long-term plan.

This approach is undoubtedly based on the fact that all changes are predictable, that all processes occurring in the environment are deterministic and can be fully controlled and managed. However, this premise is not true even for a planned economy. Moreover, it is completely incorrect in a market economy. Moreover, the development of market economic systems in recent decades suggests that the speed of environmental change processes, as well as the magnitude additional features, which are contained in these changes, are constantly increasing. Therefore, the strategy of an organization’s behavior in a market economy should, first of all, contain the possibility of obtaining benefits from changes.

With the second understanding of strategy, which is used in strategic management, strategy is a long-term, qualitatively defined direction of development of an organization, relating to the scope, means and form of its activities, the system of relationships within the organization, as well as the position of the organization in the environment, leading the organization to its goals.

This understanding of strategy excludes determinism in the behavior of the organization, since the strategy, determining the direction towards the final state, leaves freedom of choice taking into account the changing situation. IN in this case Strategy in general can be characterized as a chosen direction, a path of further behavior in the environment, functioning within the framework of which should lead the organization to achieve its goals.

An example of a strategy of the first type is a long-term plan for the production of certain products, which fixes how much and what to produce in each specific time period and how much and what will be produced in the final period.

Examples of strategies of the second type, i.e. those that strategic management deals with can serve as the following strategies:

1) increase the share of sales volume on the market to a certain percentage, without lowering prices;

2) begin production of a certain product while simultaneously reducing production of another product;

3) penetrate distribution networks controlled by a competitor;

4) make the transition to a group form of labor organization.

Thus, based on the above, the authors propose the following formulation: strategy is a set of actions necessary to achieve set goals by rational use resources of the economic system. The goal of the strategy is to achieve long-term competitive advantage that will ensure high profitability and viability of the production system.

1.2. Classification of strategies

Modern management theory distinguishes several types of strategies.

Corporate strategy (basic) is a general plan for managing a diversified company, describing actions to achieve certain positions in various industries and approaches to managing individual activities. Strategic decisions at this level are the most complex, as they concern the enterprise as a whole. It is at this level that the product strategy of the enterprise is determined and agreed upon. The development of corporate strategy is carried out in four areas:

1) diversification (penetration into other industries). In this direction, management must determine the scope of activity, i.e. in which industries the company operates and how (by opening a new company or acquiring an existing one);

2) improving overall performance indicators in those industries in which the company already operates;

3) achieving synergy among related structural units and turning it into a competitive advantage. Synergy is the strategic advantage that arises when two or more more enterprises in one hand. The effect of joint action is greater than the simple sum of individual efforts. This effect is created by related diversification, which occurs between companies that have related production and have a strategic fit.

4) selection of priority ways to place investments. Since the various areas of activity of a diversified company differ from each other in terms of additional funds, the company’s management needs to determine the most promising directions their use.

In addition to core strategy, which defines the combinations of the organization's various strategic areas, competitive strategies define the approaches by which the organization should operate in each such area. In the literature, competitive strategy is sometimes called business strategy or business strategy.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Similar documents

    Theoretical foundations of a company's development strategy, approaches to the process of its formation. Strategy development methods. Market research cellular communication in Russia. Characteristics of the cellular communications market in Yekaterinburg. Development of a competitive strategy for MTS OJSC.

    course work, added 01/28/2015

    The concept of strategy, types of its classification. Methods of factor deterministic analysis. Rationale for the relationship between strategy and operating profit. Method of expert assessments. Application of strategic analysis of operating profit for the company Freedom LLC.

    thesis, added 02/11/2017

    Strategic management of a commercial organization. Development and implementation of company strategy. The effect of external development conditions. Formation of a business development strategy. The purpose of development, main tasks and calendar plan for program implementation.

    thesis, added 11/09/2014

    The concept of personnel policy and strategy of the organization. Forms of personnel strategy, their development and implementation at JSC "YATK AMO ZIL". Optimization of the number and structure of personnel. Implementation effective system development and reproduction of human resources.

    course work, added 08/05/2015

    The essence of the concept of "company strategy". Successful strategy and implementation are sure signs of quality management. The process of developing and implementing strategy. Actions and principles that define a company's strategy. Implementation and implementation of strategy.

    report, added 01/12/2010

    Analysis of the development of the telecommunications industry, organizational and economic characteristics of the enterprise, dynamics of key performance indicators. Analysis of the external and internal environment, justification and development of specific measures for the implementation of the development strategy.

    course work, added 05/29/2010

    a brief description of LLC TD "KZhK-Kazan", study of factors of the organization's macroenvironment. Analysis of factors contributing to the successful implementation of the strategy at the enterprise LLC TD "KZhK-Kazan". Assessment of the environment and competitive environment according to the resource approach.

    course work, added 08/02/2014

    The concept and meaning of innovation strategy, stages of its development. Development of the organization's mission, formulation and specification of its goals. Types of innovation strategies. Selecting a strategy from alternatives. Implementation of innovation strategy and its adjustment.

    course work, added 04/10/2017

Topic 11: STRATEGY IMPLEMENTATION PROCESS

Main questions:

1. Components of the strategy implementation process

2. Management functions and factors for implementing strategy

3. Necessary conditions for implementing the strategy

4. Planning for strategy implementation

5. Motivating staff to implement the strategy

Components of the strategy implementation process

The strategy implementation process is a unity of two components:

1) strategic changes in all internal variables of the organization (this is the essence of the practical implementation of the strategy);

2) managing these changes.

Management of any object can be represented as management of operation and management of development.

Operational management means managing the current state of the system. This is ordinary work, the life of the organization, the performance of functions required for continued existence, this is the performance of standard operations in relatively unchanged conditions.

Development Management means managing the potential quality of the system. This is a change characterized by movement forward, the formation of new features, new structural characteristics object. Development means its improvement, improvement, progress, as well as growth and expansion, in contrast to changes that may be in the nature of reduction or regression. In relation to an organization, development means sustainable changes in the direction of activity, functions performed, structure of the organization, level of efficiency and quality of the organization’s activities, i.e. strategic changes.

Functioning and development are two sides of the same process. The development of a commercial organization, for example, is expressed in the fact that the enterprise:

· masters the production of new products;

· uses new technologies and production methods, in particular modern Information Systems;

· applies modern methods management;

· develops new markets;

· patents basic inventions and know-how for the purpose of further licensing;

· forms its own branches;

· enters into strategic alliances with other similar firms in order to obtain a monopoly position and use price differentiation.

Strategic change is not an end in itself. In real business practice, there are enough examples of relatively long and successful functioning of various businesses in accordance with the same strategy, i.e. without any significant changes. Such business situations are characterized by two main points:

1) business stability means the right choice of strategy;

2) such situations, of course, represent an object of strategic management, but at the same time they are not the subject of strategic development, conditioned by corresponding changes in the external environment of the organization.


The relevance of changes as one of the key objects and subjects of strategic management is due to objective modern trends, which characterize the immediate strategic development prospects of both any Russian and almost any other market. Consequently, strategic changes are the main constructive content of any strategy. It is strategic changes that are the main carriers of new quality during the development of the organization, and it is strategic changes that represent the key object of management in the process of implementing both each specialized strategy and overall strategy generally.

Any change means transferring the change object from one state to another. Strategic changes transfer their object, commercial organization, from one strategic state to another. And at the same time, the actual strategic development of the organization consists in changing the quality of its activities as a result of a chain of such successive transitions.

Effective strategic development of an organization is characterized by the fact that in a constant process of transition from one state to another, there is a steady increase in its positive strategic quality.

The following main stages of the strategy implementation process as a set of strategic changes are distinguished:

1) launching a strategy;

2) major strategic changes;

3) completion of the strategy.

If we consider the process of managing the implementation of the strategy from an operational perspective, we can highlight the following elements:

1) development of a strategic program;

2) strategic control.

The process of strategic management, according to some authors, includes three stages: strategic planning, strategy implementation, strategic control (Fig. 1).

is a set of actions, decisions taken by management that lead to the development of specific strategies designed to achieve goals.

Strategic planning can be presented as a set of management functions, namely:

  • resource allocation (in the form of company reorganization);
  • adaptation to the external environment (using the example of Ford Motors);
  • internal coordination;
  • awareness of organizational strategy (thus, management needs to constantly learn from past experience and predict the future).

Strategy is a comprehensive, integrated plan designed to ensure that its objectives are implemented and achieved.

Key points of strategic planning:

  • the strategy is developed by senior management;
  • the strategic plan must be supported by research and evidence;
  • strategic plans must be flexible to allow for change;
  • planning should be beneficial and contribute to the success of the company. At the same time, the costs of implementing activities should be lower than the benefits from their implementation.

Strategic Planning Process

The following stages of strategic planning are distinguished:

- the overall primary purpose of the organization, the clearly expressed reason for its existence. Burger King fast food restaurant chain provides people with inexpensive food instant cooking. This is implemented in the company. For example, hamburgers should be sold not for 10, but for 1.5 dollars.

The mission statement can be based on the following questions:

  • Which entrepreneurial activity does the company do?
  • What is the firm's external environment that determines its operating principles?
  • What type of working climate within the company, what is the culture of the organization?

The mission helps create customers and satisfy their needs. The mission must be found in the environment. Reducing the mission of an enterprise to “making a profit” narrows the scope of its activities and limits the ability of management to explore alternatives for decision making. Profit is a necessary condition of existence, an internal need of the company.

Often, a mission statement answers two basic questions: Who are our customers and what needs of our customers can we satisfy?

The character of the leader leaves an imprint on the mission of the organization.

Goals- are developed on the basis of the mission and serve as criteria for the subsequent management decision-making process.

Target characteristics:

  • must be specific and measurable;
  • oriented in time (deadlines);
  • must be achievable.

Assessment and analysis of the external environment. It is necessary to assess the impact of changes on the organization, threats and competition, opportunities. There are factors at play here: economic, market, political, etc.

Management survey of the internal strengths and weaknesses of the organization. It is useful to focus on five functions for the survey: marketing, finance, operations (production), human resources, culture, and corporate image.

Exploring Strategic Alternatives. It should be emphasized that the company’s strategic planning scheme is closed. The mission and procedures of other stages should be constantly modified in accordance with the changing external and internal environment.

Basic strategies of the organization

Limited growth. Used in mature industries, when satisfied with the current state of the company, low risk.

Height. Consists of an annual significant increase in the indicators of the previous period. It is achieved through the introduction of new technologies, diversification (expanding the range) of goods, capturing new related industries and markets, and merging corporations.

Reduction. According to this strategy, a level is set below what was achieved in the past. Implementation options: liquidation (sale of assets and inventories), cutting off excess (sale of divisions), reduction and reorientation (reduce part of the activity).

Combination of the above strategies.

Choosing a Strategy

There are various methods for choosing strategies.

The BCG Matrix is ​​widely used (developed by Boston Consulting Group, 1973). With its help, you can determine the position of the company and its products, taking into account the capabilities of the industry (Fig. 6.1).

Rice. 6.1. BCG Matrix

How to use the model?

The BCG matrix, developed by the consulting company of the same name, was already widely used in practice by 1970.

Focus on this method given cash flow, directed (consumed) in a separate business area of ​​the company. Moreover, it is assumed that at the stage of development and growth, any company absorbs cash (investments), and at the stage of maturity and the final stage, it brings (generates) positive cash flow. For success money supply, received from a mature business, must be invested in a growing business in order to continue to make a profit.

The matrix is ​​based on the empirical assumption that the more profitable company is the one that has larger size. The effect of lower unit costs as firm size increases is confirmed by many American companies. Analysis is carried out using the matrix portfolio(set) of manufactured products in order to develop a strategy for the future fate of the products.

BCG matrix structure. The x-axis shows the ratio of the sales volume (sometimes the value of assets) of the company in the corresponding business area to the total sales volume in this area of ​​its largest competitor (the leader in this business). If the company itself is a leader, then go to the first competitor that follows it. In the original, the scale is logarithmic from 0.1 to 10. Accordingly, weak (less than 1) and strong competitive positions company product.

On the y-axis, the assessment is made for the last 2-3 years; you can take the weighted average value of production volumes per year. You also need to take inflation into account. Next, based on the strategy options, the direction for investing funds is selected.

"Stars". They bring high profits, but require large investments. Strategy: maintain or increase market share.

"Cash Cows". They bring stable income, but cash flow may suddenly end due to the “death” of the product. Does not require large investments. Strategy: maintain or increase market share.

"Question Marks". It is necessary to move them towards the “stars” if the amount of investment required for this is acceptable for the company. Strategy: maintaining or increasing or reducing market share.

"Dogs". They can be significant in the case of occupying a highly specialized niche in the market, otherwise they require investment to increase market share. It may be necessary to stop producing this product altogether. Strategy: be content with the situation or reduce or eliminate market share.

Conclusion: the BCG matrix allows you to position each type of product and adopt a specific strategy for them.

SWOT analysis

This method allows you to establish a connection between the strengths and weaknesses of the company and external threats and opportunities, that is, the connection between the internal and external environment of the company.

Strengths: competence, adequate financial resources, reputation, technology. Weaknesses: outdated equipment, low profitability, insufficient understanding of the market. Opportunities: entering new markets, expanding production, vertical integration, growing market. Threats: new competitors, substitute products, slowing market growth, changing consumer tastes.

Opportunities can turn into threats (if a competitor uses your capabilities). A threat becomes an opportunity if competitors were unable to overcome the threat.

How to apply the method?

1. Let's make a list of the organization's strengths and weaknesses.

2. Let's establish connections between them. SWOT Matrix.

At the intersection of four blocks, four fields are formed. All possible pairing combinations should be considered and those that should be taken into account when developing a strategy should be selected. Thus, for couples in the SIV field, a strategy should be developed to use the company's strengths to capitalize on the opportunities that have arisen in the external environment. For SLV - due to the opportunities to overcome weaknesses. For the SIS, it is to use forces to eliminate the threat. For a couple in the field, SLU is to get rid of a weakness while preventing a threat.

3. We build a matrix of opportunities to assess the degree of their importance and impact on the organization’s strategy.

We position each specific opportunity on the matrix. Horizontally we plot the degree of influence of the opportunity on the organization’s activities, and vertically we plot the likelihood that the company will take advantage of this opportunity. Opportunities that fall into the fields of BC, VU, SS have great importance, they need to be used. Diagonally - only if additional resources are available.

4. We build a threat matrix (similar to step 3).

Threats included in the VR, VC, SR fields - great danger, immediate elimination. Threats in the VT, SK, and HP fields are also eliminated immediately. NK, ST, VL - a careful approach to eliminating them. The remaining fields do not require immediate elimination.

Sometimes, instead of steps 3 and 4, an environmental profile is compiled (i.e., factors are ranked). Factors are threats and opportunities.

Importance for the industry: 3 - high, 2 - moderate, 1 - weak. Impact: 3 - strong, 2 - moderate, 1 - weak, 0 - absent. Direction of influence: +1 - positive, -1 - negative. Degree of importance - multiply the previous three indicators. Thus, we can conclude which factors have more important for the organization.

Implementation of the strategic plan

Strategic planning is only meaningful when it is implemented. Any strategy has certain goals. But they need to be implemented somehow. For this there are certain methods. To the question: “how to achieve the company’s goals?” This is exactly what strategy answers. At its core, it is a method of achieving a goal.

Concepts of tactics, policies, procedures, rules

Tactics- this is a specific move. For example, an advertisement for Fotomat film, which is consistent with the company's strategy to promote 35mm film to the market.

There are problems with the implementation of rules and procedures. Conflict may arise over the methods of providing employees with information about new company policies. It is necessary not to force, but to convince the employee that the new rule will allow him to perform this work most effectively.

Methods for implementing the strategy: budgets and management by objectives.

Budgeting. Budget— plan for resource allocation for future periods. This method answers the questions of what tools are available and how to use them. The first step is to quantify the goals and the amount of resources. A. Meskon identifies 4 stages of budgeting: determining sales volumes, operational estimates for departments and divisions, checking and adjusting operational estimates based on proposals from top management, drawing up a final budget for the items of receipt and use of resources.

Management by Objectives— MBO (Management by Objectives). This method was first used by Peter Drucker. McGregor spoke about the need to develop a system of benchmarks in order to then compare the performance of managers at all levels with these benchmarks.

Four stages of MBO:

  • Developing clear, concisely formulated goals.
  • Developing realistic plans to achieve them.
  • Systematic control, measurement and evaluation of work and results.
  • Corrective actions to achieve planned results.

The 4th stage is closed on the 1st.

Stage 1. Development of goals. The goals of a lower level in the company's structure are developed on the basis of a higher level, based on strategy. Everyone participates in setting goals. A two-way exchange of information is required.

Stage 2. Action planning. How to achieve your goals?

Stage 3. Testing and evaluation. After the period of time established in the plan, the following are determined: the degree of achievement of goals (deviations from control indicators), problems, obstacles in their implementation, reward for effective work (motivation).

Stage 4. Adjustment. We will determine which goals were not achieved and determine the reason for this. It is then decided what measures should be taken to correct the deviations. There are two ways: adjusting methods for achieving goals, adjusting goals.

The validity and effectiveness of MBO is demonstrated by the higher performance of people who have specific goals and information about their performance. The disadvantages of implementing MBO include a great emphasis on formulating goals.

Evaluating the Strategic Plan

Beautiful matrices and curves are not a guarantee of victory. Avoid focusing on immediate implementation of the strategy. Don't trust standard models too much!

Formal assessment is performed based on deviations from specified evaluation criteria. Quantitative (profitability, sales growth, earnings per share) and qualitative assessments (personnel qualifications). It is possible to answer a number of questions when evaluating a strategy. For example, is this strategy the best way to achieve a goal and use the company's resources?

The success of Japanese management lies in its commitment to long-term plans. USA - pressure on shareholders, demands for immediate results, which often leads to collapse.

Accuracy of measurements. Accounting methods for inflating income and profits. Enron Company. Standards need to be developed. It’s easier to face the truth.

Checking the consistency of the strategy structure. Strategy determines structure. You cannot impose a new strategy on the existing structure of the organization.

Strategic Market Planning

In solving the strategic problems of an organization, strategic planning plays a significant role, which means the process of developing and maintaining a strategic balance between an organization's goals and capabilities in changing market conditions. The purpose of strategic planning is to determine the most promising areas of the organization’s activities that ensure its growth and prosperity.

Interest in strategic management was due to the following reasons:

  1. Understanding that any organization is open system and that the main sources of an organization's success are in the external environment.
  2. In conditions of intensified competition, the strategic orientation of an organization’s activities is one of the decisive factors for survival and prosperity.
  3. Strategic planning allows you to adequately respond to the uncertainty and risk factors inherent in the external environment.
  4. Since the future is almost impossible to predict and extrapolation used in long-term planning does not work, it is necessary to use scenario, situational approaches that fit well into the ideology of strategic management.
  5. In order for the organization the best way reacted to the influence of the external environment, its management system should be built on principles different from those previously used.

Strategic planning aims to adapt the organization's activities to constantly changing environmental conditions and to capitalize on new opportunities.

In general, strategic planning is a symbiosis of intuition and the art of the organization’s top management in setting and achieving strategic goals, based on mastery of specific methods of pre-plan analysis and development of strategic plans.

Since strategic planning is primarily associated with production organizations, it is necessary to highlight different levels of management of such organizations: the organization as a whole (corporate level), the level of areas of production and economic activity (divisional, departmental level), the level of specific areas of production and economic activity (the level of individual types of business), the level of individual products. The management of the corporation is responsible for developing a strategic plan for the corporation as a whole, for investing in those areas of activity that have a future. It also decides to open new businesses. Each division (department) develops a divisional plan in which resources are distributed between the individual types of business of this department. A strategic plan is also developed for each business unit. Finally, at the product level, within each business unit, a plan is formed to achieve the goals of producing and marketing individual products in specific markets.

For competent implementation of strategic planning, organizations must clearly identify their areas of production and economic activity, in other terminology - strategic economic units (SHE), strategic business units (SBU).

It is believed that the allocation of CXE must satisfy the following three criteria:

1. SHE must serve a market external to the organization, and not satisfy the needs of other divisions of the organization.

2. It must have its own, distinct from others, consumers and competitors.

3. SHE management must control all the key factors that determine success in the market. Thus, CHEs can represent a single company, a division of a company, a product line, or even a single product.

Several analytical approaches have been developed in strategic planning and marketing that make it possible to solve assessment problems current state business and prospects for its development. The most important of them are the following:

  1. Analysis of business and product portfolios.
  2. Situational analysis.
  3. Analysis of the impact of the chosen strategy on the level of profitability and the ability to generate cash (PIMS - the Profit of Market Strategy).

Assessing the degree of attractiveness of an organization's various identified CXEs is usually carried out along two dimensions: the attractiveness of the market or industry to which the CXE belongs, and the strength of the position of the given CXE in that market or industry. The first, most widely used method of CXE analysis is based on the use of the “market growth rate - market share” matrix (Boston Consulting Group matrix - BCG); the second - on the SHE planning grid (corporation matrix General Electric, or Mag-Kinzy). The "market growth rate - market share" matrix is ​​designed to classify a CXE organization using two parameters: relative market share, which characterizes the strength of CXE's position in the market, and market growth rate, which characterizes its attractiveness.

A larger market share makes it possible to earn greater profits and have a stronger position in the competition. However, here it should immediately be noted that such a strict correlation between market share and profit does not always exist; sometimes this correlation is much softer.

The role of marketing in strategic planning

There are many points of intersection between strategies for the organization as a whole and marketing strategies. Marketing studies the needs of consumers and the organization's ability to satisfy them. These same factors determine the mission and strategic goals of the organization. When developing a strategic plan, they operate with marketing concepts: “market share”, “market development” and
etc. Therefore, it is very difficult to separate strategic planning from marketing. In a number of foreign companies, strategic planning is called strategic marketing planning.

The role of marketing is manifested at all three levels of management: corporate, CXE and at the market level of a particular product. At the corporate level, managers coordinate the activities of the organization as a whole to achieve its goals in the interests of pressure groups. At this level, two main sets of problems are solved. The first is what activities should be undertaken to satisfy the needs of important customer groups. The second is how to rationally distribute the organization's resources among these activities to achieve the organization's goals. The role of marketing at the corporate level is to determine those important factors external environment (unmet needs, changes in the competitive environment, etc.), which should be taken into account when making strategic decisions.

At the individual CHE level, management is more focused on making decisions for the specific industry in which the business competes. At this level, marketing provides a detailed understanding of market demands and the selection of the means by which these requests can best be satisfied in a specific competitive environment. A search is carried out for both external and internal sources achieving competitive advantages.

Management of activity in the market for a specific product focuses on adoption rational decisions according to the marketing mix.

Choosing a Strategy

After analyzing the strategic state of the organization and the necessary adjustments to its mission, you can move on to analyzing strategic alternatives and choosing a strategy.

Typically, an organization chooses a strategy from several possible options.

There are four basic strategies:

  • limited growth;
  • height;
  • reduction;
  • combination.

Limited growth(several percent per year). This strategy is the least risky and can be effective in industries with stable technology. It involves defining goals based on the level achieved.

Height(measured in tens of percent per year) - a strategy typical for dynamically developing industries, with rapidly changing technologies, as well as for new organizations that, regardless of their field of activity, strive to short time take a leading position. It is characterized by the establishment of an annual significant excess of the level of development over the level of the previous year.

This is the most risky strategy, i.e. As a result of its implementation, you may suffer material and other losses. However, this strategy can also be identified with perceived luck, a favorable outcome.

Reduction. It assumes the establishment of a level below that achieved in the previous (base) period. This strategy can be used in conditions when the company's performance indicators acquire a steady tendency to deteriorate.

Combination(combined strategy). Involves a combination of the alternatives discussed above. This strategy is typical for large firms operating in several industries.

Classification and types of strategies:

Global:

  • minimizing costs;
  • differentiation;
  • focusing;
  • innovation;
  • prompt response;

Corporate

  • related diversification strategy;
  • unrelated diversification strategy;
  • capital pumping and liquidation strategy;
  • change course and restructuring strategy;
  • international diversification strategy;

Functional

  • offensive and defensive;
  • vertical integration;
  • strategies of organizations occupying various industry positions;
  • competitive strategies at various stages of the life cycle.

Cost minimization strategy consists in establishing the optimal value of production volume (use), promotion and sales (use of marketing economies of scale).

Differentiation strategy based on the production of a wide range of goods of one functional purpose and allows the organization to serve a large number of consumers with different needs.

By producing goods of various modifications, the company increases the circle of potential consumers, i.e. increases sales volume. In this case, horizontal and vertical differentiation are distinguished.

Horizontal differentiation implies that price various types products and average level consumer income remains the same.

Vertical implies different prices and income levels of consumers, which provides the company with access to different market segments.

The use of this strategy leads to an increase in production costs, so it is most effective when demand is price inelastic.

Focus strategy involves serving a relatively narrow segment of consumers who have special needs.

It is effective primarily for firms that have relatively few resources, which does not allow them to serve large groups of consumers with relatively standard needs.

Innovation strategy provides for the acquisition of competitive advantages through the creation of fundamentally new products or technologies. In this case, it becomes possible to significantly increase sales profitability or create a new consumer segment.

Rapid response strategy involves achieving success through rapid response to changes in the external environment. This makes it possible to gain additional profit due to the temporary absence of competitors for the new product.

Among corporate strategies, strategies of related and unrelated diversification stand out.

Related diversification strategy assumes that there are significant strategic fits between business areas.

Strategic fits presuppose the emergence of so-called synergistic effects.

Strategic correspondences are distinguished: production (unified production capacity); marketing (similar brands, common sales channels, etc.); managerial (unified personnel training system, etc.).

Unrelated Diversification Strategy assumes that the business areas in their portfolio have weak strategic fits.

However, firms that adhere to this strategy can acquire special stability due to the fact that downturns in some industries can be compensated by upturns in others.

Among functional strategies distinguished primarily offensive and defensive.

Offensive strategies include a set of measures to retain and acquire competitive advantages of a proactive nature: attacking strong or weak sides competitor; multi-pronged offensive, etc.

Defensive strategies include measures that are reactionary in nature.

Views