In the context of development market economy Of particular importance for the successful functioning of an enterprise are the issues of forming a competitor of a new potential, identifying, developing and creating prerequisites for the sustainability of competitive advantages, choosing the right form competitive behavior. The very notion of competitive advantage is now of particular relevance, as the growth of companies around the world has slowed down, and the behavior of competitors is becoming more and more aggressive.

The main thing was not just to achieve and identify a competitive advantage, but to make it sustainable. Competitive advantage - these are the characteristics, properties of the product that create for the enterprise a certain superiority over its competitors, and for the consumer - the optimal combination of consumer characteristics of the product. Superiority is evaluated in comparison, therefore it is a relative characteristic and is determined by various factors.

For successful activity, an enterprise needs to develop the right competition strategy based on its competitive advantages, which actualizes the study of forms of competition in modern conditions.

The importance of strategic behavior, which allows the firm to survive in the competition in the long term, has increased dramatically in recent decades. All companies in a highly competitive, rapidly changing situation should not only focus on the internal state of affairs in the company, but also develop a long-term survival strategy that would allow them to keep up with the changes taking place in their environment. Now, although the task of rational use of potential in current activities is not removed, it becomes extremely important to implement such management that provides competitive advantages in a rapidly changing environment.

Business practice has shown that there is no competitive strategy that is the same for all companies, just as there is no single universal strategic management. Each firm is unique in its own way, and the process of developing a competitive strategy for each firm is unique, since it depends on the position of the firm in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of the goods it produces or the services it provides, the state of the economy, cultural environment and much more.

In this way, relevance the study and application of methods of competition in the management of the firm is increasingly increasing. This is what determined the choice of the topic of the course work.

CJSC "Perm spring-spring plant" was chosen as the object of research.

Target course work is to analyze the competitive properties of CJSC "PPRZ" and develop a competition strategy for it. This goal determined the formulation of the following research tasks:

1. Consider the theoretical foundations for developing an enterprise competition strategy; characterize the main types of competition strategies and justify the choice of competition strategy;

2. Analyze the competitive position and competition strategies of CJSC “PPRZ”;

3. Suggest directions for improving the competition strategy of CJSC "PPRZ";

The structure of the work corresponds to the tasks.

Chapter 1. Theoretical foundations for developing an enterprise competition strategy

1.1. Essence and types of competition strategies

Competition - (from lat. Concurrere - collide) - the struggle of independent economic entities for limited economic resources. This is an economic process of interaction, interconnection and struggle between enterprises operating in the market in order to provide the best opportunities for marketing their products, satisfying the diverse needs of buyers.

In the marketing system, a firm operating on the market is considered not by itself, but taking into account the totality of relations and information flows that connect it with other market entities. The environment in which the firm operates is commonly referred to as the firm's marketing environment. Kotler F. defined the company's marketing environment as follows: The company's marketing environment is a set of active subjects and forces operating outside the company and affecting the ability to manage the marketing service to establish and maintain successful cooperation relationships with target customers.

A strategy is a long-term action aimed at achieving the set objectives. Implementation of the strategy - a set of actions that contribute to increasing business activity in the organizational and financial spheres, the development of the company's policy, the creation of a corporate culture and staff motivation, the leadership of everything that is aimed at achieving the intended results.

A competitive strategy is a set of specific steps and approaches that a firm takes or intends to take in order to compete successfully in a given industry.

For the first time, a business faced a problem strategic planning in conditions economic crisis. It is under such conditions that all the weaknesses of some enterprises and the strengths of others become clearly visible. And it is precisely in such periods that it becomes more obvious than ever where huge resources were wasted, which will never give the expected effect. Then the competitive struggle escalates to the limit, the winner of which is the one who manages to achieve great competitive advantages - advantages not over competitors, but advantages in relation to the consumer.

Competitive advantage - the assets and other advantages of the company that give it an advantage over competitors. Competitive advantages must ensure the uniqueness of the brand and meet the specific needs of the client. Strategic success factors are based not on objective, but on subjective benefits perceived by the consumer. The task of management is to identify and develop the potential for success and transform it into appropriate factors.

Winning and maintaining competitive advantages are, as you know, a key function of strategic enterprise management. It is especially important to achieve advantages in saturated markets where demand is met by many suppliers.

According to the researcher of competition F. Kotler, a company in the competition can play one of four roles. The marketing strategy is determined by the position of the company in the market, whether it is a leader, challenger, follower or occupies a certain niche:

1. The leader (a market share of about 40%) feels confident.

2. Applicant for leadership (market share of about 30%). Such a company aggressively attacks the leader and other competitors. As part of special strategies, the applicant can use the following attack options:

· "frontal attack" - conducted in many areas (new products and prices, advertising and sales - competitive advantages), this attack requires significant resources.

· "environment" - an attempt to attack all or a significant market area of ​​the market.

· "bypass" - the transition to the production of fundamentally new goods, the development of new markets.

· "Attack of the gorilla" - small impetuous attacks by not quite correct methods.

3. Follower - (20% share) a company that strives to maintain its market share and get around all the shallows. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of imitator or double.

4. Digged into a niche market - (10% share) serves a small segment of the market that large firms do not care about. Several niches are preferable to one. Such firms have no special competitive advantages, except for the fact that large firms do not see competitors in them and do not "pressure".

The task of competitive strategy, according to M. Porter, is to bring the company to a state in which it can fully use its advantages. It follows from this that the in-depth analysis of competition is an important part of the formulation of the strategy.

M. Porter identified five forces of competition that determine the level of profit in the industry. This:

Penetration of new competitors;

The threat of the appearance on the market of substitute goods produced using a different technology;

Buyer opportunities;

Supplier capabilities;

Competition between companies already established in the market.

Competitive strategies (business strategies) come from understanding the rules of competition that operate in an industry and determine its attractiveness. The goal of competitive strategy is to change these rules in favor of your company. The rules of competition can be represented as the five forces of competition shown in the figure.

Rivalry, according to Porter, occurs when one or more competitors experience difficulties or see opportunities to improve their position. The intensity of the competition can vary from polite gentlemanly forms to the most brutal "throat-cutting" techniques.

Porter notes a number of the following factors that determine the intensity of competition:

1. a large number of competitors or the approximate equality of their forces;

2. slow growth of the industry;

3. high level of fixed costs in the form of overhead or inventory costs;

4. lack of differentiation (no conversion costs);

5. quantitative leap in capacities;

6. various kinds of competitors;

7. high strategic importance;

8. high exit barriers.

By general strategies, Porter means strategies that have universal applicability or are derived from certain basic postulates. In his book “Strategy of Competition”, M. Porter presents three types of general strategies aimed at increasing the competitive advantages of a company. A company that wants to create a competitive advantage for itself must make strategic choices in order not to lose face.

There are three basic strategies for this:

Leading the way in cost reduction

· differentiation;

focusing (special attention).

To satisfy the first condition, a company must keep costs lower than those of its competitors.

To ensure differentiation, it must be able to offer something unique in its own way.

Cost leadership is perhaps the most characteristic of the three general strategies. It means that the company aims to become a low cost producer. The company's deliveries are very diverse and serve many segments of the industry. This scalability is often a key factor in cost leadership. The nature of these benefits depends on the structure of the industry, whether it be a matter of economies of scale, advanced technology, or access to sources of raw materials.

Porter points out that a company that has won leadership in cost reduction cannot afford to ignore the principles of differentiation. If consumers do not find the product to be comparable or acceptable, the leader will have to make price cuts to weaken his competitors and lose his lead in the process. Porter concludes that a leader in cost reduction in product differentiation must be on par with, or at least close to, its competitors.

Differentiation, according to Porter, means that the company strives for uniqueness in some aspect that is considered important by a large number of customers. She selects one or more of these aspects and behaves in such a way as to satisfy the needs of consumers. The price of such behavior is higher production costs.

The third type of strategy is to focus on some aspect of the activity. It is radically different from the previous two and is based on the choice of a narrow area of ​​competition within the industry.

The point of focusing is to select a segment of the industry market and serve it with your strategy better and more efficiently than your competitors. By optimizing its strategy for the selected target group, the company that has chosen this course is trying to achieve competitive advantages in relation to the selected group.

Consider also the types of strategies for the behavior of firms according to A.A. Thompson and A.J. Strickland. Famous authors of the book "Strategic Management" A.A. Thompson and A.J. Strickland describes the strategies of firms in sufficient detail and reasonably. They distinguish the following strategies: offensive, defensive and vertical integration strategies.

1. Offensive strategies to maintain competitive advantage. Competitive advantage is usually achieved through the use of a creative offensive strategy that is not easy for competitors to counter. There are six main types of offensive strategy:

Actions designed to counter or surpass a competitor's strengths;

Actions aimed at exploiting the weaknesses of a competitor;

Simultaneous offensive on several fronts;

Capturing unoccupied spaces;

Guerrilla warfare;

Preemptive strikes.

2. Defensive strategies to protect competitive advantage aim to maintain one's market position, reduce the risk of being attacked, bear the attack of a competitor with less loss, pressure challengers to reorient them to fight other competitors.

A good defensive strategy involves the ability to quickly adapt to a changing situation in the industry and, if possible, pre-emptively block or prevent competitors from attacking blocking actions.

The second approach to defensive strategy is to communicate to competitors that their actions will not go unanswered and the firm is ready to attack. The purpose of such signals is to prevent the start of attacking actions (since the expected results of challenging competitors may be significantly lower than the costs incurred) or to redirect them to less protected targets.

Another way to counter the offensive actions of competitors is to try to reduce the profit that attracts them and pushes them into offensive actions. When the profitability of a firm or industry is very high, it serves as a bait for a large number of firms and creates a desire to go on the offensive, even if the barriers to entry are high and the defenses are strong. In this situation, the firm can defend itself against competitors, especially newcomers, by forgoing short-term profits and using accounting mechanisms to show relatively low returns.

3. Strategy of vertical integration. The essence of this strategy is that firms can expand their activities towards suppliers (back) or towards the consumer (forward). A firm that builds a new facility to manufacture input components previously purchased from suppliers is undoubtedly still in the same industry as before.

1.2. Rationale for the choice of competition strategy

The individual competition strategy of an enterprise is a set of methods, techniques and measures aimed at strengthening the competitive position of the organization, the specific content of which depends on the characteristics of the competitive environment of the enterprise and its competitive strategic potential.

The need to choose a competition strategy lies in the fact that the modern market economy is competitive. The opportunity and freedom to strive to satisfy private interests for each economic entity and the economic isolation of commodity producers create the prerequisites for the existence of competition. In the process of marketing research, calculations to assess the competitiveness of services or goods are aimed at identifying competitive advantages and vulnerable positions.

The most profitable strategies for PPRZ CJSC are market expansion and diversification strategies according to M. Porter. An individual (private) competitive strategy reflects both specific ways of implementing the chosen typical competitive strategy, depending on the capabilities of the organization, and decisions about behavior in relation to the main competitors.

The challenge is to maintain and develop our competitive advantage.

To do this, a business (competitive) strategy should be formed for each strategic business unit. To solve this problem, M. Porter's competitive strategy model can be used.

To search for and implement strategic positioning, this model provides a combination of the following three criteria:

Mainly in terms of costs

Commodity differentiation;

Market concentration.

As a result, five basic positions and their corresponding competitive strategies are fundamentally possible.

Consider the features of these strategies:

The transportation cost leadership strategy involves reducing the total costs of producing transport services, which attracts a large number of consumers;

The strategy of broad differentiation is aimed at giving services or products specific characteristics that distinguish them from the services of competing organizations, which attracts a large number of consumers (clients);

The optimal transport strategy is focused on providing consumers with more value for the same money through a combination of low costs and wide differentiation of services or goods, which is a difficult task and therefore an unsustainable and transitional strategy;

A focused low cost strategy is based on low costs and focuses on a narrow market segment where the organization is ahead of its competitors due to lower production costs;

A focused differentiation strategy is based on the differentiation of services or products that most fully meets the requirements of a narrow market segment.

These strategies create their competitive advantages, while each strategy requires the necessary economic resources, certain skills and the right managerial actions of managers.

In accordance with the starting positions, one of the following competitive strategies can be used: reducing the cost of transport services, differentiation, segmenting the market and choosing a market niche, introducing innovations, focusing on market needs.

When developing a competitive strategy, it must be taken into account that all types of competitive advantages are divided into two groups: low-order advantages and high-order advantages.

Low-order advantages are associated with the possibility of using cheap labor and material resources. The low order of these competitive advantages is due to the fact that they are very unstable and can be easily lost either due to rising prices and wages, or because these cheap production resources can also be used by competitors. In other words, low-order advantages are advantages with little persistence, unable to provide an advantage over competitors for a long time.

The advantages of a high order are: unique transport services, unique technology for the transportation of goods, optimal marketing structure, organization of the production of transport services, good reputation of the ATO. If a competitive advantage is achieved through the provision of unique transportation services using new rolling stock or additional equipment based on their own design developments, then to destroy this advantage, competitors will either have to develop similar equipment, acquire new rolling stock, or come up with something better. All these options are not cheap and require considerable time for their implementation.

The most valuable competitive advantage is the good reputation of the organization, which is achieved with great difficulty, slowly and at a high cost to maintain it.

The type of strategy chosen depends on the position that the organization occupies in the market and on the nature of its actions.

Along with the strategy for ensuring competitiveness, it is necessary to develop tactics and methods of conducting competition that will be used, as well as outline measures aimed at improving its competitive position.

The development of a competitive strategy requires the appropriate formation of the entire marketing mix, since there is a certain, although not rigid, connection between the competitive strategy model and the instrumental strategies of the marketing mix.

An essential point influencing the choice of strategy is the definition of performance indicators and their justification. The parameters of the strategic plan are important criteria for evaluating the effectiveness of the chosen strategy.

As a rule, the choice of a strategic efficiency criterion is not limited to any one indicator, since it depends on the characteristics of the current situation, the prevailing (dominant) goals, as well as the availability of reliable and reliable information about the state of the external and internal environment.

It should be said that the implementation of the developed competitive strategy and the corresponding measures that make up the marketing mix will improve the following basic elements of the competitiveness of transport services: the list of transport services offered, the quality of transport services produced, the availability of services provided.

An effective quality strategy creates a stable competitive advantage, increases the intensity of the organization's activities. Ultimately, it is this factor that is decisive in a dynamic and unpredictable environment.

Summing up the chapter, we note that at the present stage economic development the goals and methods of competition are changing, there are changes in the behavior of business entities associated with adaptations to changing conditions of the competitive environment, all this determines the importance of having a competitive strategy for ZAO PPRZ as the main success factor in the competition.

Chapter 2

2.1. Brief description of CJSC "PPRZ"

Brand Name Enterprise: full - Closed Joint-Stock Company"Perm spring-spring plant"

abbreviated - CJSC "PPRZ"

Legal address: 614014, g . Perm, street 1905, 35

Date of state registration - 20.07.2000

CJSC PPRZ is one of the largest manufacturers of spring products for various industries in Russia and the CIS countries.

The Enterprise is a legal entity, has a company name containing an indication of the organizational and legal form, the owner of its property and the nature of the activities of the Enterprise, enshrined in the right of economic management. The enterprise has a separate property, an independent balance sheet, a bank account, a round seal with its name, a stamp, forms, a trademark (service mark). An enterprise may, on its own behalf, acquire and exercise property and personal rights, bear obligations, be a plaintiff and a defendant in court, arbitration and arbitration courts.

The enterprise carries out its activities in accordance with the legislation in force on the territory of the Russian Federation, acts of the local government, as well as the Charter.

The enterprise is liable for its obligations with all its property. The founder is not liable for the obligations of the enterprise, except as provided for by current legislation, and the Company is not liable for the obligations of the founder.

The enterprise was founded in 1994 on the basis of a specialized workshop No. 38 of OAO Motovilikhinskiye Zavody. Currently, CJSC "PPRZ" includes - shop 38 and 35 shop.

The main specialization of shop 38 is the serial production of spring products for cars and light trucks.

Shop 35 specializes in small-scale production of helical, leaf and disc springs, retaining rings and spring parts for various industries.

Production and technological capabilities of the enterprise.

Workshop No. 38 was put into operation in 1969 to provide the assembly line of the Izhevsk Automobile Plant with spring products.

The workshop has 3 conveyor lines for mass production of springs and springs for cars, including:

Automatic line for coiling springs by the American-Italian company Gogan-Holcroft, launched in 1980;

The spring winding line produced by the Azov Plant of Forging and Pressing Machines (Azov) was put into operation in 2002.

Line for the production of springs for cars.

Currently, only two lines - 1 for the production of springs and 1 - for the production of springs, are operating, the Azov Line is mothballed. Now the Azov Line is being modernized for the production of springs for railway rolling stock.

Workshop 38 produces springs and springs for the Volga, Zhiguli, IZH (Moskvich), UAZ vehicles, as well as for special equipment - electric forklifts and PAUS mine carts.

The production capacity of workshop 38 for the production of springs for automobiles is 500 thousand pieces. per year, the capacity for the production of springs - 250 thousand pieces / year. The actual loading of production capacities in terms of spring production is 25%, in terms of spring production - 40-50%. Low production load is associated with a decrease in demand for products from Russian automakers and with increased competition in the market. But, perhaps soon this problem will be solved, because. At the moment, negotiations are underway on the supply of spring products with such large concerns as HYUNDAI, RENAULT and UZ-DAEWOO.

Product quality:

The manufactured spring products for automobiles are certified in GOST R systems and have a ROSS certificate of conformity. YAP. MT25. B 06138 No. 6218520 (certificate valid from 07/27/2004 to 07/27/2010).

The main constraining factors for further increase in production volumes in shop 35 are;

Outdated equipment (70-80s of production) and a high percentage of its wear and tear (70-80%);

Small series of ordered parts

Lack of a certificate for the production of springs for railway transport.

Insufficient number of specialists in the repair and maintenance of machine tools (locksmiths and toolmakers), which leads to equipment downtime.

The main objectives of the establishment of the Enterprise are: satisfaction of public needs in the results of its activities and profit.

The company has the right:

· on its own behalf to participate in economic turnover, to enter into contractual and other obligations with legal entities and individuals;

plan and carry out their financial and economic activities;

sell their products, perform work and provide services at prices and tariffs established independently or on a contractual basis;

Acquire, lease, accept for free use or on other terms any property for own needs;

The company is obliged:

ensure safe working conditions for all employees;

- to carry out the production program developed in accordance with the established procedure;

carry out only those activities that are established by its Charter;

· ensure the safety and proper use of the municipal property assigned to the Enterprise.

Organizational structure of management

Organizational structure of management of marketing and sales of products of CJSC "PPRZ".

Marketing and sales activities in CJSC "PPRZ" are carried out by the marketing and sales department under the leadership of Deputy. director of sales, marketing and logistics (see Fig. 2).

Rice. 2. Structural diagram of marketing and sales management

The marketing and sales department consists of 4 people. The marketing and sales department performs the following functions:

Pre-contractual work with customers, conclusion of contracts;

Sales planning;

Placement of orders at the enterprise and control over their implementation;

Tracking the payment of invoices by consumers of products;

Analysis of the shipment of products by customers (nomenclature, quantity, price);

Department of marketing and sales, reporting directly to the deputy. Director of Sales, Marketing and MTO closely cooperates with the planning and dispatching department (PDO), financial and economic department and accounting department.

Volumes of production and sales of products in CJSC "PPRZ"

According to the results of 2008 and 3 months of 2009, the plan for production and sales of products in PPRZ CJSC is being fulfilled. In 2008, the volume of production at CJSC PPRZ amounted to 91.4 million rubles, the sales volume was 90.6 million rubles. The main income is generated by sales of products to third parties (96.1%). At the same time, its main part (64.5%) is due to the sale of automobile springs and springs, which bring approximately the same income.

In 2009, it is planned to receive 120.0 million rubles from sales. The company operates without loss, but the profitability of sales is very low - only 0.7%.

Data on production and sales volumes for 2008 and for 3 months of 2009 are shown in Table 2.1.

Table 2.1 - Volumes of production and sales in CJSC "PPRZ"

Table 2.1 shows that in 2009 production volumes in monetary terms increased by 15.7%, sales volumes increased by 26.6% compared to the same period in 2008.

It should be noted that in connection with the reduction in 2009 of the volume of production of domestic passenger cars, there is a tendency to reduce the purchase of springs and leaf springs by automakers in Russia.

The demand for springs is falling especially strongly, which leads to a significant decrease in their production at CJSC PPRZ. This is due to a reduction in the production of Moskvich cars at the Izh-Avto automobile plant, the main consumer of springs and leaf springs of CJSC PPRZ.

Negative dynamics in the production of springs at the enterprise has been observed since 2008. Compared to 2008, the drop in production of springs in 2009 was 60%. In 2009, production volumes of springs at CJSC PPRZ decreased by another 26%.

For springs, production volumes are increasing, in 2009 the growth was - 22%, in 2008 - 28% (for the same period).

A similar situation is observed in sales of CJSC PPRZ products - a drop in sales of automobile springs and an increase in sales of springs.

In the structure of sales of products of the 38th shop, the largest share is occupied by springs for the Zhiguli car (62-64%) and the Moskvich car (33-35%), the predominant part of the springs (79-80%) goes to cars "Moskvich".

In 2009, the volume of orders for shop 35 increased from 2 to 4 million rubles per month. Demand for the products of shop 35 and the number of customers are growing, and production volumes are correspondingly increasing.

The main income (about 50%) the company receives from the site of large springs supplied for metallurgical plants and repair of railway rolling stock of Russian Railways (700-800 springs / month).

For a more complete picture of the company's activities and its position in the market of spring products, it is necessary to conduct a SWOT analysis (see Table 2.2). This analysis involves an analysis of the internal environment of the company, as well as identifying opportunities and dangers for the company from the market. Based on this analysis, strategies for further behavior can be developed to overcome the dangers and strengthen the strengths of the company.

Table 2.2 - SWOT -analysis CJSC "PPRZ"

2.2. Analysis of the competitive position and competition strategies of PPRZ CJSC

The most famous marketing model for describing competition in the market, used in domestic and foreign literature, is Porter's five forces model of competition.

Let's consider the direction of activity of CJSC "PPRZ" using the five-factor model of competition analysis by M. Porter (Fig. 3).

Rice. 3. Five driving forces competition according to M. Porter

Figure 3 shows all 5 driving forces of M. Porter: competition among existing firms, substitute products, the threat of new companies entering the market, suppliers and buyers. Based on this, it is possible to distribute the forces listed above according to the degree of dominance.

The most important and influential force industry competition for CJSC "PPRZ" is - the market power of consumers (60% of influence). Next in importance is competition among existing firms (30% of influence). The remaining three forces, although they have an impact on competition in the industry under consideration, are not significant compared to the two listed above (approximately 10%).

Competition analysis. Of the five main competitive advantages proposed by M. Porter, CJSC PPRZ can include the strategy .

Let's consider each of them in turn.

Strategy differentiation becomes attractive when consumer demands and preferences become diversified and can no longer be satisfied with standard spring products. In order for the differentiation strategy to be successful, PPRZ CJSC periodically studies the needs and behavior of market consumers in order to know what products buyers prefer, what they think about product quality and what they are willing to pay for. In this regard, in the range of products of CJSC "PPRZ" there are springs and springs that differ in special qualities and content from the products of competitors. It is due to this that PPRZ CJSC achieves a competitive advantage. For more and more buyers are becoming interested in the differentiated characteristics of the products offered by ZAO PPRZ.

It's usually a good idea to add features that don't cost a lot but are designed to better satisfy the customer's needs. For example, PPRZ CJSC should pack springs and leaf springs to prevent damage and loss consumer properties goods or the implementation of free loading of products sold. When pursuing a differentiation strategy, care must be taken to ensure that the cost per unit of product does not significantly exceed the level of competitors, as this can lead to the fact that ZAO PPRZ prices increase so much that buyers are not willing to pay.

Due to the strategy for the inhabitants of niches, CJSC "PPRZ" maintains its position in the market by taking competitive moves aimed either at attacking competitors or in order to protect itself from the threat posed by competitors.

In this industry, there are generally recognized leaders in the regional Kama market that have a large market share and usually outperform other companies in price changes, new product launches, product distribution coverage and sales promotion costs.

CJSC PPRZ is looking for opportunities and means to increase aggregate demand; seeks to further increase market share, even if the market size remains unchanged; continuous cost reduction should remain a strong point; defending your current market share through defensive and offensive actions.

The strategic goal (development of new parts or segmentation of production) is selected depending on which of the competitors will be chosen by the company as a rival.

CJSC "PPRZ" also adopts the experience of the leader, copies new technological moves and improves products and marketing programs, investing significantly less money and can achieve a fairly significant level of profits.

CJSC PPRZ, focusing on servicing market niches, tries to find one or several such niches that would be reliable and profitable. The ideal market niche should be large enough to be profitable and have the potential to grow, otherwise there is a risk of not finding a buyer.

Through strategy segment concentration CJSC PPRZ directs its actions to a certain market segment. At the same time, the enterprise may strive for leadership by saving on costs, or to differentiate the product, or to combine one or the other.

Competitor CJSC "PPRZ" Chusovoy plant is constantly improving the quality of its products. To date, more than 100 types of springs have been certified at CMP OJSC in the GOST R certification system. ChMZ springs installed on Russian KamAZ trucks have never failed drivers during the Paris-Dakar transcontinental race. In the "Mosstroycertification" system, the certification body "NIIZhB-certification" certified reinforcing steel of class A500C with a diameter of 10-25 mm and 28-32 mm.

In response, PPRZ CJSC concentrated on the production of other types of springs, but best quality, which allowed us to take a leading position in the regional market for the sale of this product.

In the event that demand falls due to the appearance of a higher quality product, PPRZ CJSC uses a strategy of immediately responding to market needs.

Unlike such enterprises, PPRZ CJSC, which implements strategy for immediate response to market needs, aimed at the fastest possible satisfaction of emerging needs in various business areas.

In October 1997, the management of ZAO PPRZ decided to create a quality system that meets the requirements of the ISO 9000 series.

have been revised organizational structure, regulations on structural divisions and job descriptions; new documents have been developed relating to all levels of production and management. The Quality Policy of PPRZ CJSC was adopted, the main task of which is the maximum satisfaction of consumer requirements for product quality. Accordingly, this immediate response to market needs has allowed as soon as possible to reorganize and improve the quality of goods. Sales have grown.

Personnel trained at the plant CEO to the worker in order to ensure an understanding of the place and role of everyone in this system.

In 2000, the quality system was successfully certified by the German company TUV CERT for compliance with the requirements of ISO 9002:1994, and in November 2003, the auditors of the same company confirmed the compliance of the quality management system (QMS) with the requirements of ISO 9001:2000.

When switching to new version standards, the QMS documentation was revised, adjustments were made in accordance with the requirements of ISO 9001:2000, a methodology for assessing customer satisfaction was developed in order to prompt response on consumer preferences, developed QMS processes, the criteria for their effectiveness are defined, the procedures for their monitoring are worked out, the inputs and outputs of the interacting processes are coordinated. This allows you to streamline the interaction of all departments of the plant.

In the future, ZAO PPRZ is developing and implementing a methodology for accounting for quality costs, which would make it possible to identify the costs of preventing and correcting nonconformities and take timely measures to reduce them.

In modern conditions, the main component of the competitiveness of any enterprise is the ability to meet ever-increasing requirements consumer market and specific customers.

Consider the results of using competition strategies.

The position of the main participants in the Permian market (the companies PPRZ, ChMZ, KTIAM, LLC NPO ROSTAR) is shown in fig. 2.3. Four leading companies in production form one strategic group of competitors.

Based open information and methods comparative analysis calculations were carried out modified by the author analytical assessments market dynamics and competitive positions of the main players in the market in value and physical terms, used to build a market map (Fig. 4) and assess the competitive positions of manufacturing companies (Table 3).

0,25

Rice. 5. Market map: competitive positions of companies.

Table 2.3 - The role of the company in the market and changes in the competitive position of the Perm market participants

The analysis shows that all companies are violent, adhere to the strategy of product differentiation. Companies use a strategy of individual trademarks with a similar range, the products of all companies are presented in each of the price segments of the market.

In general, it can be concluded that the companies under consideration have similar functional strategies. The process of competition is carried out through corporate strategies and business-level strategies.

The proposed methodological approach makes it possible to identify the competitive strategies of market participants, to give a reasonable assessment of their comparative competitive position.

The complex nature of the competition strategy necessitates further improvement methodical approach to the formation of a competitive strategy of CJSC PPRZ in the industry market as market relations develop in the country.

Thus, a differentiation strategy is needed. It will allow CJSC PPRZ to:

set a higher price for the offered products;

increase sales (because a large number of buyers are attracted due to the distinctive characteristics of springs and springs);

· win customer loyalty to your brand (because some customers become very attached to the additional characteristics of the product, primarily related to its quality).

In the next chapter, we will consider the directions for improving the competition strategy of CJSC PPRZ.

Chapter 3. Improving the competition strategy of PPRZ CJSC

To improve the economic efficiency of the enterprise and increase the market share, it is necessary:

1. Develop a strategic plan to reduce production costs in order to increase the competitiveness of manufactured products and achieve price superiority over competitors. Due to this, enter new market segments and attract those consumers who are currently purchasing from competitors.

2. Establish strict control over direct and overhead costs in order to reduce the cost of manufactured products.

3. Ensure high and stable quality of springs and leaf springs produced.

4. In order to increase profits and improve the financial and economic condition of the enterprise, the modernization of worn-out equipment requires an annual increase in sales by at least 25-30%.

5. Ways to achieve such growth include:

Localization of the project "supply of springs to the assembly line" Kia;

Start delivery to OAO AvtoVAZ. In order to increase the production of Chevy-Niva and Lada Kalina cars, the spring production capacities are starting to decline, so AvtoVAZ will soon switch to external purchases of springs;

Due to the increase in turnover Money and the share of exported products, I consider it necessary to introduce a highly qualified tax planner into the staff

Analysis of deliveries to the assembly line of various brands of vehicles produced in Russia and neighboring countries, for example, the production of Daewoo Nexia in Uzbekistan

The main strategies of CJSC "PPRZ", which existed at the moment, are to attribute the strategies differentiation, niche, segment concentration, immediate response to market needs .

When performing the process of managing the competitiveness of CJSC “PPRZ”, the following resources are required:

Qualified and competent staff (CEO, Executive Director, Deputy General Director for Strategic Management and first-level business process owners);

Equipment (computer facilities);

Information about the state and trends in the development of the external and internal environment.

The main result of the process of managing the competitiveness of CJSC "PPRZ" is a structured system of goals and indicators aimed at maintaining the current and achieving better results in the competition.

Based on an assessment of the potential competitive advantages of the enterprise and its competitiveness, as well as a comparison of indicators characterizing business processes with similar indicators of the main competitors or standards, a competitive strategy of the enterprise is developed. Thus, the outputs of the process of managing the competitiveness of CJSC "PPRZ" are: corrective actions; preventive actions; suggestions for improvement. The consumers of the competitiveness management process are managers at all levels and structural divisions enterprises.

The study revealed that the most important functions of the process of managing the competitiveness of an enterprise are the determination of potential competitive advantages, the assessment of the competitiveness of an enterprise, as well as the development and implementation of its competitive strategy.

The stages of development and implementation of the competitive strategy of the enterprise are presented in Figure 3.1.

Rice. 5. Stages of development and implementation of the competitive strategy of the enterprise

When developing a competitive strategy, the main financial goals of the enterprise in the competition are to increase its productivity, reduce costs and increase sales. To achieve financial goals, the market goals of the enterprise are determined: increasing the market share and ensuring better conditions supplies. Internal goals are: reduction of production costs; improving the quality of production based on the growth of the efficiency and quality of procurement, increasing the motivation of employees, the introduction of advanced technologies and innovations; improving planning and financial management; improving the quality of customer service.

Thus, we can conclude that, in our opinion, the basic competitive strategy of PPRZ CJSC, as for many enterprises, should be the strategy of increasing productivity and product quality.

The proposed strategy is based primarily on reducing the cost of production. However, on the other hand, it focuses on the uniqueness of products, comprehensive service a specific market segment, encourages the enterprise to look for untapped markets where there are no competitors, through the introduction of innovations, and also helps to stay ahead of competitors by building a more mobile management system, since everything listed species competitive advantages directly affect sales volume.

A SWOT analysis was carried out to systematize strengths, weaknesses, opportunities and threats after the introduction of new strategies. The data are shown in Table 3.

So, the main condition for the development, preservation and strengthening of the CJSC "PPRZ" brand is the optimal quality of the product provided to it, the use of growth and differentiation strategies.

Chapter 4 Economic efficiency proposed activities

Calculate the economic efficiency of the proposed measures.

The projected profit from the implementation of the differentiation and growth strategy is determined taking into account the average annual growth, which is determined by the formula:

, (1)

where P p is the coefficient of average annual growth;

n is the number of years of periods;

P and - profit from sales in the initial year, thousand rubles;

P s - the average profit for the previous 5 years, thousand rubles.

where Y forecast is the forecasted profit, thousand rubles;

1,2,3… - the period for which the profit is forecast (one year, two years, etc.).

Table 4.1 - Dynamics of profit for 5 years (thousand rubles)

Y forecast = 5769 + (1.024 - 1) * 5252 * 2.3, etc.

Table 4.2 - Projected profit for 2011-2014

The strategy implementation period is 4 years.

According to this calculation, the annual profit growth will be 2.4%, and the total increase by 2014 will be 11%, which characterizes the economic efficiency of the proposed measures.

The implementation of the proposed strategies will allow PPRZ CJSC to reduce risks.

As a result of the study of the main trends and features of the development of CJSC "PPRZ", a set of specific features that distinguish the company from other companies in this regional market, including:

a) variety of offers, etc.;

b) elasticity with respect to price, income, and time;

c) significant territorial disunity and mobility;

d) high degree of substitution.

Based on the SWOT analysis method, the development matrix of PPRZ CJSC in modern conditions has been built, which makes it possible to trace and evaluate the real socio-economic problems and dangers faced by the company, as well as identify the strengths of CJSC PPRZ and promising opportunities, effective implementation which can become a tool for overcoming potential threats and the basis for successful positioning of PPRZ CJSC in the market, taking into account the prospects that have opened up.

At the present stage of market development, new trends are emerging that allow us to talk about improving the quality of the product in the competitive struggle.

Changes in the business environment, combined with the search for ways to survive in the market, dictate the need for a new vision of the efficiency of enterprises.

Successful business requires not only the ability to provide quality services, but also to know for which categories of customers they are intended. The quality of services largely depends on the style of doing business; forming, in turn, the image of CJSC "PPRZ".

Depending on the stages life cycle, on which various products are located, is built product strategy firms.

Implementation and use of these strategies in CJSC "PPRZ" will allow:

Create single system accounting and control over the formation and movement of the product;

Reduce the time parameters for the promotion of material, financial and information flows;

Automate the processes of accounting and control of material, financial and information flows; reduce time and improve customer service of the product;

Reduce the number of maintenance personnel, reduce the volume of circulating documentation, significantly reduce the number of errors in accounting and reporting documentation, etc.

Summing up, it should be noted that at present, the following processes are taking place in the practice of CJSC "PPRZ":

1. gradual increase in turnover,

Experience shows that on this market cannot act in isolation.

4. detailed development of the marketing and logistics mix in order to influence product purchase decisions potential clients CJSC "PPRZ";

5. reduction of time and improvement of the level of customer service of the product;

6. carrying out strategic planning of activities to determine the products to be sold on the market;

8. attracting specialists to enter new segments of the national and international markets services, product positioning, marketing analysis, logistics support.

It should be emphasized that for CJSC "PPRZ", as a company striving for development, it is especially important to use the experience of foreign companies in the development of marketing and management policies.

Conclusion

Let us summarize the results of the study by drawing the following conclusions:

Competition is the struggle of independent economic entities for limited economic resources. It is an economic process of interaction, interconnection and struggle between enterprises operating in the market in order to provide the best opportunities for marketing their products, satisfying the diverse needs of buyers.

The main strategies of PPRZ CJSC that existed at the moment are the strategies of differentiation, niche, concentration on the segment, immediate response to market needs.

As a result of the analysis of the competitive position and competition strategy of CJSC "PPRZ", it was determined that the most important and influencing force of industry competition for CJSC "PPRZ" is the market power of consumers (60% of influence). Next in importance is competition among existing firms (30% of influence). The remaining three forces, although they have an impact on competition in the industry under consideration, are not significant compared to the two listed above (approximately 10%).

Therefore, the main marketing strategy is the struggle for the consumer.

A segmentation strategy is also needed - deepening the degree of saturation with the offered goods and services of all consumer groups, choosing the maximum depth market demand, including its smallest shades.

Currently, the following processes are taking place in the practice of CJSC "PPRZ":

1. gradual increase in turnover,

2. the growth of competition and the strengthening of the role of other firms.

Experience shows that it is impossible to act separately in this market. To interact with competitors, it is recommended to create a strategic alliance, which provides for taking into account their economic interests, refusing to use direct pressure measures in competition.

1. creation of a unified system of accounting and control over the formation and movement of the product;

2. market differentiation in order to identify target consumers;

3. organization of product positioning in order to fix in the minds of consumers a certain image, distinctive features of the product;

4. carrying out strategic planning of activities to determine the products to be sold on the market;

The following directions for improving the competition strategy of ZAO PPRZ are proposed.

Localization of the project "supply of springs to the assembly line" Kia;

Deliveries to OAO AvtoVAZ. In order to increase the production of Chevy-Niva and Lada Kalina cars, the spring production capacities begin to decline, so AvtoVAZ will soon switch to external purchases of springs;

Search for large wholesale dealers in each of the regions of the country;

Carrying out an aggressive marketing policy, improving the quality and effectiveness of advertising.

Analysis of deliveries to the assembly line of various brands of vehicles produced in Russia and neighboring countries, for example, the production of Daewoo Nexia in Uzbekistan.

Subject to CJSC "PPRZ" following the above recommendations, the enterprise will be able to increase work efficiency, reduce costs and enter new sales markets.

Bibliography

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2. Balabanov I.T. Analysis and planning of the finances of an economic entity. M.: Finance and statistics, 2008.

3. Belousova S.N., Belousov A.G. Marketing. Second edition - Rostov n / D .: Phoenix, 2006.

4. Vesnin V.R. Management for everyone. M.: Lawyer, 2006.

5. Vikhansky O.S. Strategic management: a textbook for undergraduate and graduate students in the specialty "Management". M.: MGU, 2005.

6. Drucker P.F. Market: how to become a leader. Practice and principles. Per. from English. M. St. Petersburg: Book Chamber INTERNATIONAL, 2008.

7. Kovalev A.M., Voilenko V.V. Marketing Analysis. Moscow: Center for Economics and Marketing, 2006.

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9. Murakhtanova N.M. Marketing. Textbook - M .: Publishing Center "Academy", 2005.

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Introduction 3

Chapter 1. Theoretical foundations for developing an enterprise competition strategy 5

1.1. Essence and types of competition strategies 5

1.2. Rationale for the choice of competition strategy 11

Chapter 2

2.1. a brief description of ZAO PPRZ 15

2.2. Analysis of the competitive position and competition strategies of PPRZ CJSC 21

Chapter 3. Improving the competition strategy of PPRZ CJSC 28

Chapter 4. Cost-Effectiveness of Proposed Measures 32

Conclusion 36

References 38

Introduction

In the conditions of the development of a market economy, the formation of a competitor of a new potential, the definition, development and creation of prerequisites for the sustainability of competitive advantages, the choice of the correct form of competitive behavior are of particular importance for the successful functioning of an enterprise. The very notion of competitive advantage is now of particular relevance, as the growth of companies around the world has slowed down, and the behavior of competitors is becoming more and more aggressive.

The main thing was not just to achieve and identify a competitive advantage, but to make it sustainable. Competitive advantage - these are the characteristics, properties of the product that create for the enterprise a certain superiority over its competitors, and for the consumer - the optimal combination of consumer characteristics of the product. Superiority is evaluated in comparison, therefore it is a relative characteristic and is determined by various factors.

For successful activity, an enterprise needs to develop the right competition strategy based on its competitive advantages, which actualizes the study of forms of competition in modern conditions.

The importance of strategic behavior, which allows the firm to survive in the competition in the long term, has increased dramatically in recent decades. All companies in a highly competitive, rapidly changing situation should not only focus on the internal state of affairs in the company, but also develop a long-term survival strategy that would allow them to keep up with the changes taking place in their environment. Now, although the task of rational use of potential in current activities is not removed, it becomes extremely important to implement such management that provides competitive advantages in a rapidly changing environment.

Business practice has shown that there is no competitive strategy that is the same for all companies, just as there is no single universal strategic management. Each firm is unique in its own way, and the process of developing a competitive strategy for each firm is unique, since it depends on the position of the firm in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of the goods it produces or the services it provides, the state of the economy, cultural environment and much more.

In this way, relevance the study and application of methods of competition in the management of the firm is increasingly increasing. This is what determined the choice of the topic of the course work.

CJSC "Perm spring-spring plant" was chosen as the object of research.

Target course work is to analyze the competitive properties of CJSC "PPRZ" and develop a competition strategy for it. This goal determined the formulation of the following research tasks:

1. Consider the theoretical foundations for developing an enterprise competition strategy; characterize the main types of competition strategies and justify the choice of competition strategy;

2. Analyze the competitive position and competition strategies of CJSC “PPRZ”;

3. Suggest directions for improving the competition strategy of CJSC "PPRZ";

The structure of the work corresponds to the tasks.

Chapter 1. Theoretical foundations for developing an enterprise competition strategy

1.1. Essence and types of competition strategies

Competition - (from lat. Concurrere - collide) - the struggle of independent economic entities for limited economic resources. This is an economic process of interaction, interconnection and struggle between enterprises operating in the market in order to provide the best opportunities for marketing their products, satisfying the diverse needs of buyers.

In the marketing system, a firm operating on the market is considered not by itself, but taking into account the totality of relations and information flows that connect it with other market entities. The environment in which the firm operates is commonly referred to as the firm's marketing environment. Kotler F. defined the company's marketing environment as follows: The company's marketing environment is a set of active subjects and forces operating outside the company and affecting the ability to manage the marketing service to establish and maintain successful cooperation relationships with target customers.

A strategy is a long-term action aimed at achieving the set objectives. The implementation of the strategy is a set of actions that contribute to increasing business activity in the organizational and financial spheres, developing the company's policy, creating a corporate culture and motivating staff, and managing everything that is aimed at achieving the intended results.

A competitive strategy is a set of specific steps and approaches that a firm takes or intends to take in order to compete successfully in a given industry.

For the first time, business faced the problem of strategic planning in the context of the economic crisis. It is under such conditions that all the weaknesses of some enterprises and the strengths of others become clearly visible. And it is precisely in such periods that it becomes more obvious than ever where huge resources were wasted, which will never give the expected effect. Then the competitive struggle escalates to the limit, the winner of which is the one who manages to achieve great competitive advantages - advantages not over competitors, but advantages in relation to the consumer.

Competitive advantage - the assets and other advantages of the company that give it an advantage over competitors. Competitive advantages must ensure the uniqueness of the brand and meet the specific needs of the client. Strategic success factors are based not on objective, but on subjective benefits perceived by the consumer. The task of management is to identify and develop the potential for success and transform it into appropriate factors.

Winning and maintaining competitive advantages are, as you know, a key function of strategic enterprise management. It is especially important to achieve advantages in saturated markets where demand is met by many suppliers.

According to the researcher of competition F. Kotler, a company in the competition can play one of four roles. The marketing strategy is determined by the position of the company in the market, whether it is a leader, challenger, follower or occupies a certain niche:

1. The leader (a market share of about 40%) feels confident.

2. Applicant for leadership (market share of about 30%). Such a company aggressively attacks the leader and other competitors. As part of special strategies, the applicant can use the following attack options:

· "frontal attack" - conducted in many areas (new products and prices, advertising and sales - competitive advantages), this attack requires significant resources.

· "environment" - an attempt to attack all or a significant market area of ​​the market.

· "bypass" - the transition to the production of fundamentally new goods, the development of new markets.

· "Attack of the gorilla" - small impetuous attacks by not quite correct methods.

3. Follower - (20% share) a company that strives to maintain its market share and get around all the shallows. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of imitator or double.

4. Digged into a niche market - (10% share) serves a small segment of the market that large firms do not care about. Several niches are preferable to one. Such firms have no special competitive advantages, except for the fact that large firms do not see competitors in them and do not "pressure".

The task of competitive strategy, according to M. Porter, is to bring the company to a state in which it can fully use its advantages. It follows from this that the in-depth analysis of competition is an important part of the formulation of the strategy.

M. Porter identified five forces of competition that determine the level of profit in the industry. This:

Penetration of new competitors;

The threat of the appearance on the market of substitute goods produced using a different technology;

Buyer opportunities;

Supplier capabilities;

Competition between companies already established in the market.

Competitive strategies (business strategies) come from understanding the rules of competition that operate in an industry and determine its attractiveness. The goal of competitive strategy is to change these rules in favor of your company. The rules of competition can be represented as the five forces of competition shown in the figure.

Rivalry, according to Porter, occurs when one or more competitors experience difficulties or see opportunities to improve their position. The intensity of the competition can vary from polite gentlemanly forms to the most brutal "throat-cutting" techniques.

Porter notes a number of the following factors that determine the intensity of competition:

a large number of competitors or approximate equality of their forces;

slow growth of the industry;

a high level of fixed costs in the form of overheads or inventory costs;

lack of differentiation (no conversion costs);

quantitative jump in capacities;

various kinds of competitors;

high strategic importance;

high exit barriers.

By general strategies, Porter means strategies that have universal applicability or are derived from certain basic postulates. In his book “Strategy of Competition”, M. Porter presents three types of general strategies aimed at increasing the competitive advantages of a company. A company that wants to create a competitive advantage for itself must make strategic choices in order not to lose face.

There are three basic strategies for this:

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Development of a competitive strategy

The development of a competitive strategy implies a set of directions in which the development of the enterprise will be carried out. The development of the strategy was preceded by an analysis of the internal and external environment companies. An analysis of the internal environment showed that the company has certain opportunities for development, the potential to increase production and sales. An analysis of the external environment showed that the market is not saturated while it is in the growth stage, but the growth rate is already declining, and sales are approaching a peak value.

The optimization of strategic management is of decisive importance for the formation of a competitive strategy of an enterprise. One of the ways to improve the strategic management of IKEA DOM LLC is the integration of a balanced scorecard with strategic planning and the budgeting process. Most businesses use the budget as their primary management system for setting goals, allocating resources, controlling and debriefing. However, most companies claim that budgeting and performance analysis happen in isolation from the strategic planning process. In organizations where the main control is the budget, the attention of managers is still switched to short-term financial goals.

Budgeting is more suited to solving operational tactical issues, and is not intended for strategic management. The enterprise development strategy cannot be controlled in short term. At the same time, the process of budgeting in the organization is not interconnected with strategic goals. The result is a gap between strategic and operational management which impedes the implementation of the company's strategic goals and hinders its long-term development. There is a need to create a link between strategic planning and budgeting and to combine these two concepts into a single system. The most developed concept of the balanced scorecard should be used as this link.

Today, when strategy is the most important key to the success of a company, the balanced scorecard has become an innovative strategy management system. However, it must be tied to the old one, the budget, in order to drive tactics. This is necessary precisely because strategic planning and operations budgeting are so different.

The number and variety of goals and objectives of management are so great that without program approach no organization can manage to determine their composition, regardless of its size, specialization, type, form of ownership. These tasks include the following:

1. Improvement of the company's activities. To accomplish this task, the following activities must be carried out:

An increase in sales volumes, which will lead to an increase in the efficiency of the company's activities and an increase in financial performance;

Organization of promotion on the market to increase demand and increase sales volumes;

Construction of new production units, which will lead to an increase in the share of the occupied sales market and an increase in profits.

Increasing cash in the organization to accelerate

asset turnover;

Rationing the level of raw materials in accordance with the turnover, which will lead to the financial stability of the organization;

Turnover increase working capital, which will lead to an increase in turnover, thereby ensuring an increase in profits;

Optimization of administrative expenses.

2. Increasing sales of products and its promotion on the market.

To accomplish this task, the following activities must be carried out:

Formation of a marketing department at the enterprise to conduct market research on the market and monitor its development trends;

Demand study, construction of new production units according to demand;

Search for the most profitable suppliers of products to reduce distribution costs and ensure uninterrupted supply.

When analyzing the management system of IKEA DOM LLC, the optimal strategy for the further development of the company's work was determined. It consists in conquering a larger market share by optimizing and expanding the range. This strategy is a strategy concentrated growth companies. The main goal for the company in achieving this strategy is to create conditions for competitiveness and management in the long term.

The main advantages of the modernized strategy management system will be:

1) the ability to implement strategic initiatives while saving enterprise resources;

2) the presence of interconnected plans at all levels of management, both for departments and for the company as a whole;

3) the possibility of transforming strategic goals into specific action plans with budgetary and non-financial indicators specified in quantitative terms;

4) distribution of resources in accordance with the developed strategic directions of development;

5) expanding the range of indicators used (financial and non-financial) to assess performance and the degree of achievement of goals.

It is worth starting with the fact that in the process of developing a balanced scorecard, organizations often see their own planning process as follows:

Strategy --> Initiatives --> Indicators

In following this process, businesses often forget that initiatives are a means, not an end. The whole planning process should be turned into reverse side. Strategy is not a means of managing initiatives. Strategic planning based on a balanced scorecard should be carried out in the following order:

Strategy --> Objectives --> Indicators --> Objectives --> Initiatives

The final stage of this process will be the budgeting process, which involves cascading the strategy and the parameters of its initiatives to the level of the enterprise budget. In its general scope, this strategic planning scheme is clearly an innovative model for consolidating strategy and budget, where the balanced scorecard acts as a link.

The implementation of the above scheme must, first of all, begin with the process of formalizing the strategy, which will allow you to define a set of goals within the five perspectives of the balanced scorecard. In this case, the author singles out an additional, separate block of the balanced scorecard - the "innovation" block. To determine the goals, it is necessary to answer a number of questions that each of the prospects contains:

1) Finance: what goals should be set based on the financial expectations of investors and shareholders?

2) Clients: what goals will improve customer satisfaction and ensure that financial goals are met?

3) Business processes: what goals need to be set in order to improve the internal business process of the enterprise and ensure the achievement of goals in the client and financial perspectives of the BSC?

4) Innovation: what goals should be set to increase customer value, outperform competitors, or even create a "blue ocean" - ideas and markets that avoid competition, creating a market within a market, innovation strategy?

5) Learning and development: what goals will contribute to the creation of infrastructure and increase the level of education in the organization in accordance with the chosen strategy?

The allocation of strategic goals based on 5 perspectives of the balanced scorecard is not enough. Following such a selection, a huge list of goals can be drawn up on which to concentrate. However, as practice shows, no more than 5-7 strategic goals should be defined within each perspective.

When developing strategic goals, it is best to adhere to the following selection criteria:

1) based on the basic strategic orientation of the company, developed during the creation of the strategy, possible areas of the company's activity are determined in 5 perspectives;

2) for each area of ​​activity, options for actions are established that will contribute to the implementation of the strategy;

3) ordering and structuring of options for action, their differentiation into direct goals and possible strategic measures, and further division into operational and strategic goals.

Ideally, each strategic goal should be described by only one indicator. If this cannot be achieved, then in order to reduce the complexity of the system being developed and focus on key aspects, it is recommended to limit yourself to a maximum of three indicators for each strategic goal.

This step should result in documentation target values indicators of individual periods. This is necessary to connect the balanced scorecard with budgeting and management accounting systems.

After determining the indicators, the next step is to determine the tasks and activities that ensure the achievement of the specified values ​​of the indicators. These tasks must fully comply with the chosen strategy, must be clearly formulated and feasible. The criterion of "feasibility" of the set task plays an important role, since setting complex or completely impossible tasks in advance will lead to useless expenditure of financial and human resources.

Tasks should be set that are not interconnected with each other, otherwise the implementation of one task will affect the other, which will lead to a distortion of the real results achieved.

After setting goals, the question arises of defining strategic initiatives, which are a set of specific programs, plans, projects that must be implemented to achieve the set strategic goals. At the beginning of the process of identifying strategic initiatives, current projects implemented in the company are analyzed for their impact on the strategic goals of the balanced scorecard. However, to implement the strategy, it is not always enough current projects carried out at the enterprise. Additional work is needed to develop proposals for additional activities needed to achieve the company's strategic goals.

Further clarification of the main parameters of strategic programs follows: forecast costs for the implementation of strategic programs; implementation stages, work plans; project team; deadlines; as well as highlighting among them those projects that require priority implementation.

Once initiatives have been identified and approved, project teams and budgets need to be created. An organization may fail to implement strategy precisely because the necessary human and financial resources not only are they not reflected in the budget, but the formation of the budget itself takes place in isolation from the planning process. As a result, the implementation of these initiatives wastes the time of the enterprise’s personnel engaged in completely different tasks, and resources are spent from operating budget, which is not designed for this at all. If an organization is strategically oriented, it should separately plan and budget for human and financial resources dedicated to strategic initiatives and manage them as a separate area.

Returning to strategic initiatives, the issue of assessing their significance and expediency remains acute. When assessing the importance of initiatives for the strategic development of an enterprise, the balanced scorecard will act as a "filtering" link: it is necessary to select and promote those initiatives that will significantly improve the performance of this system. This approach will allow to discard unnecessary initiatives and, thus, free up human and financial resources.

The Balanced Scorecard as a means of selecting initiatives has the following advantages:

It provides an opportunity to prioritize and identify those initiatives that contribute to the achievement of strategic goals, taking into account changes in the market;

Correctly allocates and saves human and financial resources to achieve the set goals;

Among other things, projects whose goal is defined as the improvement of existing processes and capabilities, according to the author, should be rejected. It is necessary to consider only those that contribute to the achievement of the company's goals and the creation of new opportunities, i.e. have a strategic focus.

As a result, the definition of balanced key performance indicators, an action plan with planned values target indicators allows you to proceed to the creation of enterprise budgets and link the budget management system to the balanced scorecard and directly to the strategy. It is necessary to reflect the set of developed and approved strategic measures in the system of functional and investment budgets, as well as project budgets. In this way, financial model budgeting should ensure the transformation of strategic activities that are planned to be carried out as part of business processes into the necessary financial parameters: costs, payments, assets and liabilities. Part of the financial parameters can be set through a system of indicators, on the basis of which strategic measures have been developed.

You can project a balanced scorecard to the level of budgets as follows:

· financial indicators are directly projected from the BSC to the budgets;

· indicators that measure the characteristics of the functioning of business processes are transferred to the budget contour, as they reveal factors influencing the formation of budgets (leading indicators);

· indicators reflecting the implementation of strategic initiatives are transferred to the budgets, as they form the corresponding budget items.

After integrating the balanced scorecard, new system budgeting should become the main tool for quantitative planning and modeling in the company's strategic initiatives. This system will allow not only to analyze strategic activities with highlighting the main financial characteristics, but also to determine the periods when these financial parameters will arise: assets, costs, payments. With this approach to budget planning, it will be easier to conduct scenario analysis, and the process of budget coordination will be more reasonable.

In order to expand the consumer audience, use new distribution channels and reduce the cost of selling furniture, it is advisable for IKEA DOM LLC to use e-commerce tools, the main of which is an online store.

Depending on the functions performed, electronic stores subdivided:

Electronic showcase. It is a specialized site that hosts an electronic catalog of goods. Communication between the buyer and the seller can be carried out through Email, telephone conversations. The features of this type of stores include non-specificity of automatic checkout and acceptance mechanisms electronic payments. The advantages of an electronic storefront include:

1. The structure of trade does not change;

2. Low cost discoveries;

3. New customers.

The disadvantages include:

1. Inconvenience for buyers (requires additional actions);

2. The possibility of no positive effect on the organization's activities.

Automated store. Contains an electronic catalog, a basket of customer orders, additional attributes.

The online trading system is directly connected to the internal automated system commercial organization. It is the most effective of the above, due to deep integration into all parameters of the organization (warehouse, finance, reporting, goods flow). One example is the Enter online store, which combines elements of both online and offline sales, including furniture. The peculiarities of creating a furniture online store include, firstly, the desire of the consumer to “feel” the furniture, to see it. An important problem is the replacement of defective goods.

The creation of an online store is associated with the costs of the enterprise, which can be divided into pre-launch, start-up and operating costs. Upfront costs include:

Business plan costs. These are the costs of researching the target market, its segmentation, determining the consumer and his needs. On the large enterprise, which has marketing databases in offline retail, as a result, the cost of compiling a business plan can be reduced.

Start-up costs include:

The cost of opening an online store.

This cost item is formed by the requests of the customer organization. Development can be done at the expense of your own resources and by a specialist, using templates and installations of Joomla, Magento, WordPress - from $ 10 for installing a store and templates. Registration of the website address (domain) from 8…15 $. Purchase of a package of services for maintaining the site (hosting package) for a year from $49. For a furniture company, one must not forget that an online store reflects not only the image of the company. The site should become a new sales channel, so a special role in the development should be given to design and provide branded services in the most understandable form. Based on the above costs, the budget for creating an online store can vary from $1,000 to $50,000. Operating costs include:

Employee wages.

Other costs.

When talking about efficiency, online stores use the concept of conversion. Conversion rate in Internet marketing is the ratio of the number of site visitors who performed any targeted actions on it (hidden or direct instructions from advertisers, sellers, content creators - purchase, registration, subscription, visiting a specific page of the site, clicking on an advertising link), to the total number of website visitors, expressed as a percentage.

The creation of an online store is advisable only with a stable coverage of pre-launch, start-up and operating costs with income from the sale of goods. In this regard, it is advisable to calculate not only the ways of obtaining income, but also the required volumes, identifying the factors that determine the latter. It has been established that the most significant factors that determine the effectiveness of online stores are:

The fame of an online store, which is determined through the number of visits to the website (conversion).

Average check (average price per order).

Channel profitability.

Knowing these factors, it is possible to determine the comparability of the Internet sales channel with the traditional sales channel.

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