The main components and stages of strategic management. Description of the process and the main stages of the strategic management of the organization The initial stage of the strategic management process

  • Administrative and legal guarantees of the rights of citizens in the field of public administration. Citizens' appeals. Administrative and judicial appeal procedures.
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  • English Revolution of the 17th century. (prerequisites, milestones and start)
  • Topic 3 Process strategic management organization

    Researchers identify such stages of strategic management as:

    formulation of mission and goals enterprises, i.e. setting landmarks, to
    which the enterprise will strive for in the process of carrying out its activities;

    identification of current objectives and strategies with
    the purpose of clearly demonstrating the differences between the actually used and
    desirable behaviors;

    analysis external environment from the angle of the actual possibility of achieving
    set goals;

    analysis internal environment enterprises, which, on the one hand, gives
    the ability to identify the available resources, and on the other -
    allows you to identify strengths and weaknesses of this enterprise... Identification
    of these factors and their comprehensive comparison with what they have
    competitors should help to find out the real chances of achieving the set goal
    based on those financial, material, human and informational
    resources that are at the disposal of the enterprise;

    identification of strategic opportunities and threats with the aim of
    consideration of the use of available resources, product needs
    enterprises using new technologies. Not using appearing on
    the market of favorable cases and the directive implementation of the previously adopted
    strategy can degenerate into a threat to the existence of the enterprise itself or
    cause them to lose their competitive advantages;

    establishing the scope and scale of the required strategy changes.
    Is performed to compare the intended results and what actually
    achieved in the process of implementing the strategy. Analysis of the obtained discrepancies serves
    a source for further work to improve the adopted strategy or
    is the basis for its modification;

    making strategic decisions. The process of choosing one
    among the many opportunities (or actions) that lead to change
    initially accepted assumptions;

    strategy implementation. It is a complex transfer of actions to
    specific activities and the development of operational plans and budgets
    for all areas of activity of a given enterprise;



    control over the implementation of the strategy . Consists in checking compliance with the established deadlines and in assessing the results achieved.

    Strategic management to a certain extent includes all previous management systems, namely: budgets for financial assessment and cost allocation for the implementation of individual strategic decisions; the use of extrapolation methods to predict stable factors; strategic planning, which is an integral part of strategic management.

    The strategic management process can be represented in the form of the following stages in the following way (Fig. 3.1.):



    Figure 3.1 - Process (stages) of strategic management

    The complexity of this process is determined by the content of each stage, which requires a large amount of research work.

    Stage 1. Formation of the mission and goals of the organization : this is the first and most responsible decision, they serve as guidelines for all subsequent stages and in their development.

    Stage 2 Analysis of the external environment: economic, political, technological, social, demographic, international and other environmental factors of indirect impact, competitors, consumers, suppliers and other environmental factors of direct impact are investigated in terms of opportunities provided and identified threats current strategy.



    Stage 3 Analysis of strengths and weaknesses organization(influence internal factors): carried out by the method of diagnosing internal problems (the so-called management survey). The process of diagnosing internal problems is called management survey. For strategic planning purposes, it is recommended that the survey includes five functional areas:

    1) marketing functions: market share and competitiveness; variety and quality of the product range; customers (consumers); market research and development; pre-sales and after-sales customer service; sales, advertising and promotion of goods; profit.

    2) financial condition: analysis financial activities, financial difficulties; the possibility of obtaining long- and short-term loans; the possibility of using alternative financial strategies; the size of the organization's capital, its structure in comparison with industry indicators and indicators of competitors; work with the owners of the organization, investors, shareholders; efficiency of cost control.

    3) production analysis: whether the organization can produce its goods and services at lower costs than competitors; whether she has access to new materials, is there a choice of suppliers; what is its equipment (outdated, new); whether there are mechanisms for incoming quality control; whether it can serve those markets that competitors cannot serve; is there an effective product quality control system; what are the technologies and organization of the production process.

    4) personnel analysis: what is the competence and training of the organization's top management? Is there a succession plan (reserve)? Is there an effective and competitive reward system? Is management training and professional development used effectively? Is the staff performance appraisal system operational and when was it last implemented?

    5) analysis of organizational culture ( behavior of people, norms, values, management style, susceptibility to change, etc.) and the image of the organization(both inside and outside the organization), which is determined by the experience that is created with the help of employees, customers, and public opinion in general.

    Stage 4 Analysis of alternatives and choice of strategy : consists of sub-stages of development, debugging and analysis (evaluation). In practice, it is difficult to separate them as they represent different levels of the same analysis process, but use different methods.

    On development stage strategies are created to achieve the set goals. Here it is important to develop as many alternative strategies as possible, to involve not only top-level managers, but also middle-level ones in this work.

    On sub-stage of fine-tuning strategies are refined to the level of adequacy to the goals of the organization and a general strategy is formed. The development of a strategy also presupposes fine-tuning the overall strategy to the level of its adequacy to the goals of the organization's development.

    Often, the refinement of the strategy is carried out using the concept of the product life cycle, which allows you to link the development strategy with the structure of the product life cycle (Fig. 2.1). The traditional curve includes distinct periods of introduction, growth, maturity, decline.

    For example, if a firm wants to choose a growth strategy, and its product is at the saturation stage of its life cycle, then it is obvious that the firm must be engaged in the development of a new product.

    On evaluation (analysis) sub-stage alternative strategies are analyzed and evaluated according to the degree of suitability for achieving the main goals within the framework of the general chosen strategy, and it is filled with specific content.

    The choice of strategy is central to strategic planning.

    The culmination of the choice of a development strategy is the analysis and assessment of alternative options.

    Phase 5 Managing Strategy Implementation. To control the process of implementing the strategy and be confident in achieving the set goals, the leaders of the organization must identify and implement the necessary strategic changes, develop plans, programs, projects, motivate the process, i.e. manage it. Without these changes, even the most informed strategy can be ineffective. Can be distinguished three levels of strategic change in the organization:

    1 - radical reorganization: the organization leaves one industry and moves to another, while changing the product range, sales markets, technologies, the composition of resources, and, consequently, the mission. The leader has the greatest difficulties with the implementation of the strategy.

    2 - radical changes: profound structural changes within the organization (merger or separation of departments, the emergence of new products, changes in organizational culture and etc.).

    3 - moderate changes: occur most often (in marketing, production organization, active search new distribution channels, promotional advertising, etc.).

    Stage 6 Strategy Assessment: its effectiveness, the need to make adjustments, etc.

    Strategic management process

    Strategic management can be viewed as a dynamic process of interrelated management tasks, each of which is also a process. The essence of strategic management is determined by the implementation of the following five tasks.

    • 1. Development of a strategic vision and definition of the mission of the organization.
    • 2. Setting strategic goals and objectives to achieve them.
    • 3. Planning a strategy.
    • 4. Implementation of the strategy.
    • 5. Evaluation of results, making changes to the strategic plan or methods of its implementation.

    These tasks logically follow from one another and to a certain extent reflect the sequence of steps in strategic management (Figure 1.7).

    Before moving on to a more detailed study of the above tasks performed in the framework of the strategic management process, we will give them a brief description.

    Well-founded strategic vision is a prerequisite for effective strategic leadership.

    Rice. 1.7.

    For the effective development of the company's strategy, first of all, a clear concept of its business is necessary - vision, which is the basis of goal setting. A manager must clearly understand the nature of his firm's activities today and in the future, as well as think over a long-term concept of the firm's development for 5-10 years. Exactly what the manager sees in relation to the place of his company in the market, as well as the long-term course of its development, is strategic vision.

    Strategic vision is based on mission of the organization. In a general sense, what the organization is going to do and what it wants to become is the mission (mission) of the firm.

    Mission is the main overall goal of the organization, which expresses the meaning of its existence (mission). Since any organization is open system, she can ultimately survive only if she satisfies some need that is outside of herself. Therefore, it is in environment to look for common goal organizations. Profit can never be declared the main goal of an organization, because it is a purely internal problem, albeit a very important one. A mission is a more specific reference point than a vision, so its implementation is associated with a specific period of time.

    Strategic vision and mission are always individual and distinguish one firm from another in terms of direction of activity and development path.

    To achieve good results, you need to set good goals. Goals, in contrast to the mission, they express the desired final state of individual characteristics of the organization associated with specific areas of its activities. A given goal encompasses a series of desired results, which require some effort and organizational action to achieve. Defining goals translates the strategic vision and overall mission statement into specific tasks for performance related to the performance of the organization.

    The role of goal setting cannot be overemphasized. The goals are the starting point of the activity planning process, they lie in the Basis for building organizational relations, the personnel motivation system is based on them. The goals are also the starting point in the process of monitoring and evaluating the performance of the organization as a whole and of individual employees.

    The mission and goals serve as guidelines for all subsequent stages of strategy development and at the same time impose certain restrictions on the analysis of development alternatives.

    The organization needs a strategy to see the way to achieve its goals and fulfill the mission. The third task of strategic management includes developing a strategy to achieve the goals set in each area of ​​the organization's activities at a specific management level. The result of this stage is strategic plan- a document containing the purpose of the organization, its direction of development, long-term and short-term objectives and strategy.

    The purpose of the strategic planning process is to clearly and systematically describe the strategic choices made by the organization in order to ensure its long-term development... This choice must be consistently translated into decisions and programs of action.

    The process of strategic planning itself (Fig. 1.8) is not much different from decision-making technology. Mission and goals can be considered an impulse for making decisions about the direction of the firm's development. In the process of choosing a strategy, it is necessary to constantly solve the problems associated with the choice of alternative actions, based on the establishment

    Rice. 1.8.

    the identified constraints and criteria identified as a result of the analysis of the organizational environment. The search for alternative solutions is largely due to the adaptive nature of strategic planning.

    The diagnostic phase of the strategy development process consists of analyzing the factors of the external and internal environment of the organization that can affect the organization's ability to achieve its goals.

    Analysis of the external environment is the process by which an organization does the following: evaluates changes that affect various aspects of its activities; identifies which changes pose a threat to the organization; determines what changes provide opportunities for the development of the organization. In other words, environmental analysis is a tool that strategists use to control factors external to the organization in order to anticipate potential threats and opportunities.

    Analysis of the internal environment is the process by which the functional areas of an organization are assessed to identify its strategic strengths and weaknesses. This determines whether the organization has the internal strength to take advantage of external opportunities, and identifies weaknesses that can complicate the challenges associated with external hazards... Comparing inner strengths and weaknesses with external threats and opportunities, the organization can begin to select an appropriate strategic alternative.

    The choice of strategy is the central point of the strategic planning process and is carried out when all possible alternative options for the direction of the organization's development are considered. The choice should be most consistent with the conditions of the external and internal environment, that is, those restrictions that are established as a result of the situational analysis of the organizational environment, as well as the chosen goals of the organization. The effectiveness of the choice of strategy largely depends on the correct assessment of each strategic alternative. The possible results of the implementation of each of the possible strategic alternatives should be determined in quantitative and qualitative terms. When comparing them, the advantages and disadvantages of each of them, the possible general consequences and the likelihood of their implementation should be determined.

    In general, the goal of this stage is to select a definite and unambiguous strategic alternative that will maximize the long-term effectiveness of the organization.

    Corporate strategy planning does not end with immediate action. It usually ends with the establishment of general directions, adherence to which ensures the survival and development of the organization.

    The developed strategy must be turned into concrete actions, and then into results. Once an underlying general strategy has been selected, it must be implemented by integrating with other organizational functions... Tactics, policies, procedures and rules are the main components of linking strategy to implementation actions.

    Tactics- as well as strategy, originally a military term meaning the maneuvering of forces to achieve specific goals. From an organizational management perspective, tactics are decisions about how resources should be allocated to achieve strategic goals. In other words, tactics are a way to achieve "victory." If the main strategy question is "what does the organization want to achieve?", Then tactics focus on "how to achieve it?" Accordingly, the main difference between strategy and tactics is the difference between ends and means. For example: “increasing market share” is a strategy, and “aggressive advertising aimed at promoting a product” is a tactic. Characteristic features of tactics:

    • tactics are developed in the development of the strategy;
    • tactics are developed mainly by middle-level managers;
    • tactics are designed for a shorter period of time than strategy;
    • tactical results, in contrast to strategy, as a rule, appear very quickly and are easily correlated with specific actions.

    Politics, formulated by top management, provides general guidance for action and decision making that facilitates the achievement of strategic objectives. It can be viewed as an in-house “Code of Laws” that determines in which direction decisions and actions can be taken.

    Procedures are essentially programmed solutions. They usually describe a sequence of actions to be taken in specific situation which has a tendency to repeat itself frequently. The management draws on good past experience in developing standardized guidelines, thereby saving time (no need to repeat the analysis) and avoiding mistakes.

    The rule differs from the procedure in that it addresses a specific and limited issue. The rule defines what should be done in a particular singular situation. Leaders use rules when achieving goals requires guaranteed execution of specific actions in specific ways.

    Task strategy implementation is the most difficult and time consuming part of strategic management. It applies to all levels of government and should be taken into account in most structural units organizations. While strategy development is related to entrepreneurial activity and is more of an analytical process, strategy implementation involves mainly managing business processes and people.

    Strategic management is strategic planning with feedback. The chosen strategy and the plan for its implementation are not able to foresee all the problems that may arise along the way. The main reason, as has already been noted many times, is the high level of environmental variability, which leads to the constant emergence of new and unforeseen circumstances. In the process of strategic management, nothing is final and all preliminary actions undergo changes depending on changes in the organizational environment, which can be both threats and opportunities. The course of external and internal events sooner or later forces us to reconsider the purpose of the company, the goals of the activity, the strategy itself and the process of its implementation.

    Performance assessment, analysis of changes, strategy adjustment become natural and necessary components of the strategic management process. This process is used as a mechanism feedback to adjust the strategic plan and / or methods of its implementation. To be effective, evaluation must be carried out systematically and continuously and cover all organizational levels.

    In the process of assessing the results of activities as one of the tasks of strategic management, three clearly distinguishable stages can be distinguished: determination of the system of performance indicators, according to which the strategy is assessed; measurement of achieved and comparison with the desired; taking necessary corrective actions.

    The first stage is directly related to the strategic goals and objectives of the organization, which are essentially quantitative and qualitative criteria used in the assessment process. The last stage - corrective action - is both the end and the beginning of the strategic management cycle as continuous process management.

    Adjustments usually affect particulars, but sometimes it becomes necessary to revise the main strategy under the influence of significant external changes or a sharp deterioration financial condition firms.

    Summarizing the above, we can say that the task of the assessment process under consideration is to find ways to improve the existing strategy and monitor how it is being implemented. The direct responsibilities of managers within the framework of the assessment stages are to determine in a timely manner when it is necessary to make appropriate changes to the strategy and how to implement it.

    Self-test questions

    • 1. Compare the concepts of "strategy", "strategy of the organization", "strategic management". How to evaluate the effectiveness of a strategy?
    • 2. What does it mean to “develop an organizational strategy” and why is it necessary?
    • 3. What elements should the strategy include?
    • 4. List the benefits of a strategic management approach.
    • 5. How are strategy and organizational success interconnected?
    • 6. What is the peculiarity of various systems and methods of managing an organization and the conditions for their effectiveness?
    • 7. What complementary subsystems does the strategic management system consist of?
    • 8. Why is the simultaneous use of two modes of management - strategic and operational - an urgent problem for most modern organizations?
    • 9. What is the strategic management process in terms of the main objectives of strategic management?
    • 10. Give a brief description of the main stages of strategy development.

    The strategic management process is a set of sequential actions aimed at achieving the goals set for the organization in a dynamic, changing and uncertain environment, which makes it possible to optimally use existing capabilities and remain responsive to external requirements.

    The main stages of strategic management:

    Analysis of the environment;

    Determination of the mission and goals of the organization;

    Formation and choice of strategy;

    Strategy implementation;

    Assessment and control of the strategy implementation.

    The model of the strategic management process is shown in the diagram (Fig. 1.1).

    Rice. 1.1. Strategic management process

    Analysis of the environment is the initial process in strategic management, as it creates the basis for defining the mission and goals of the organization, working out a strategy for its development.

    The internal environment of the organization is analyzed in the following areas: marketing, finance and accounting, production, personnel, management organization.

    When analyzing the external environment, economic, political, social, international factors as well as factors of competition. In this case, the external environment is divided into two components: direct (direct impact environment) and macroenvironment (indirect impact environment).

    The purpose of strategic analysis is to identify threats and opportunities in the external environment, as well as the strengths and weaknesses of the organization (this is the so-called SWOT analysis).

    The mission and goals definition process consists of three sub-processes:

    Formulation of the mission of the organization, which in a concrete form expresses the meaning of its existence;

    Determination of long-term goals;

    Definition of medium-term goals.

    The formulation and choice of a strategy involves the formation of alternative directions for the development of the organization, their assessment and selection of the best strategic alternative for implementation. In this case, special tools are used, including quantitative methods forecasting, development of scenarios for future development, portfolio analysis.

    The implementation of the strategy is a critical process, since it is he who, if successfully implemented, leads the company to achieve its goals. The implementation of the strategy is carried out through the development of programs, budgets and procedures, which can be considered as medium and short-term plans for the implementation of the strategy. Main components successful implementation strategies:

    The goals of the strategy and plans are communicated to employees in order to achieve on their part an understanding of what the organization is striving for, and to involve them in the process of implementing the strategy;

    The management ensures the receipt of all the resources necessary for the implementation of the strategy in a timely manner, forms a plan for the implementation of the strategy in the form of targets;

    In the process of implementing the strategy, each level of management solves its own tasks and carries out the functions assigned to it.

    The results of the implementation of the strategy are assessed, and with the help of a feedback system, the activities of the organization are monitored, during which the previous stages can be adjusted.

    As you can see from the diagram, the process of developing a strategy is iterative (cyclical). So, the definition and selection of a strategy can occur at the stage of analyzing the external environment, and the assessment of the strategy will require additional external analysis... In addition, a change in strategy leads to the need to monitor and annually adjust strategic decisions and plans.

    Also, the strategic management process includes five main components that form the following chain of long-term-target decisions.

    Vision ® Business Area ® Mission ® Strategies ® Programs and Plans

    Vision is an image of the possible and desired future state of the enterprise. It enables an entrepreneur to determine the type of activity and the position that he would like to occupy in the market.

    Business area - a type of activity associated with a specific business unit, program, etc. Defining a business involves assessing its prospects and understanding its specific place and opportunities in relation to competitors. Business identification issues in a competitive environment are reflected in the organization's mission statement.

    The mission, or socially significant role of the enterprise is a qualitatively expressed set of the main goals of the business.

    In other words, the mission is a set of target business areas. Within each of the directions, a system of goals can be distinguished, which are achieved through the implementation of the strategy.

    Strategy is an integrated model of actions designed to achieve the goals of the enterprise. The content of the strategy is a set of decision-making rules used to determine the main directions of activity. The instruments for the implementation of the strategy are programs and plans that are designed to solve the problem of allocating resources, authority and responsibility among the units (employees) involved in the implementation of the strategy; development of operational plans and programs.

    More on the topic Stages of the strategic management process:

    1. The vision of the organization and its role in strategic management
    2. Popova, IV. STRATEGIC MANAGEMENT. BASIC COURSE [Text]: tutorial / I.V. Popova; Vladivostok State University of Economics and Service. - Vladivostok: Publishing house of VSUES, 2015. - 184 p., 2015

    The strategic management process consists of several sequentially performed stages (Fig. 1)

    Rice. 1. The main stages of the strategic management process

    Analysis of the external and internal environment

    Mission statement

    Defining goals

    Strategy development

    Implementation of the strategy

    Correction (based on plan / actual analysis)

    The stages “Formulation of the mission”, “Determination of goals” and “Development of strategies” can be combined into one stage "Strategic planning" - key stage of strategic management.

    Strategic planning - a set of actions and decisions taken by management that lead to the development of specific strategies designed to help the organization achieve its objectives.

    Teacher comments:

    The material on the mission and goals of the organization is missing here, these are separate questions for the state exam.

    After the strategic goals of an enterprise or organization are formulated, the ways of achieving them are determined, that is, a strategy is developed.

    Strategy - a long-term, qualitatively defined direction of the organization's development, concerning the sphere, means and forms of its activity, the system of relationships within the organization, as well as the position of the organization in the environment.

    Strategy - the priority direction of the enterprise's activity, which is formed on the basis of the existing field of projects (ways of solving problems and assessing the existing potentials). ...

    Distinctive features of the strategy:

    1). The process of developing a strategy does not end with a specific action and the development of directions, the advancement along which ensures the growth and strengthening of the firm's position.

    2). The formulated strategy should be used to develop projects using the search method. The role of the strategy is to focus on certain areas or opportunities and discard all other possibilities as incompatible with the strategy.

    3). The need for this strategy disappears as soon as the course of events brings the organization to the desired development.

    Strategy is the link between a mission and a specific plan. It differs from a mission in that it is focused on achieving specific goals. The construction of the plan is carried out on the basis of the formulated strategies.

    Thus, the organization's strategy is developed based on the goals of the organization, taking into account the results of the analysis of the external and internal environment.

    Types of strategies

    1. Basic strategy- a fundamental decision for the development of the organization. That is, whether the organization will grow or reduce (curtail) its activities. Or it will fix the scale of activity at the existing level. The growth or curtailment of activities is usually measured in terms of the volume of sales of products in physical terms (and not in value).

    Basic strategies reflect four different approaches to the growth of a firm and are associated with a change in the state of one or more of the following elements: product, market, industry, position of the firm within the industry, technology.

    The first group of basic (reference) strategies make up the so-called strategies concentrated growth... This includes those strategies that are related to product and / or market changes and do not affect the other three elements.

      strategy to strengthen market position, in which the company does everything so that with this product on this market win the best positions. This strategy requires a lot of marketing effort;

      market development strategy, which consists in finding new markets for an already produced product;

      product development strategy, assuming the solution of the problem of growth through the production of a new product and its implementation in the market already mastered by the company.

    Second group basic strategies. These strategies are called strategies integrated growth. Typically, a firm can resort to implementing such strategies if it is in a strong business. The firm can pursue integrated growth, both through the acquisition of property and through expansion from within. Moreover, in both cases, there is a change in the position of the firm within the industry.

    There are two main types:

      reverse strategy vertical integration aimed at the growth of the company through the acquisition or strengthening of control over suppliers, as well as through the creation of subsidiaries that carry out the supply;

      a strategy of forward-going integration, which is expressed in the growth of the firm through the acquisition or already strengthening control over the structures located between the firm and the end user, that is, over the distribution and sale systems.

    The third group of basic strategies Are strategies diversified growth.

    These strategies are implemented in the event that firms can no longer develop in a given market with a given product within a given industry.

    Strategies of this type are as follows:

      a strategy of centralized diversification based on the search and use of prisoners in existing business additional opportunities for the production of new products (car - motorcycle);

      horizontal diversification strategy... With this strategy, the firm must focus on the production of such technologically unrelated products that would use the existing capabilities of the firm, for example, in the area of ​​supply. Since a new product should be focused on the consumer of the main product, then in terms of its qualities it should be concomitant with an already produced product (health club for subscribers);

      conglomerate diversification strategy, consisting in the fact that the company expands through the production of technologically unrelated to the already produced new products that are sold in new markets. This is one of the most difficult development strategies to implement (Coca-Cola - sports equipment).

    The fourth type of basic strategies business development strategies are reductions... These strategies are implemented when a firm needs to regroup its forces after a long period of growth or in connection with the need to improve efficiency, when there are recessions and dramatic changes in the economy.

    There are four types:

      elimination strategy, which is an extreme case of a reduction strategy and is carried out when the firm is unable to conduct further business;

      harvest strategy, which involves abandoning a long-term view of the business in favor of maximizing income in the short term. This strategy applies to promising business that cannot be sold profitably, but can generate income during the “harvest” period;

      reduction strategy, which consists in the fact that a firm closes or sells one of its divisions or businesses in order to carry out a long-term change in the boundaries of doing business. Often this strategy is implemented by diversified firms when one of the industries is poorly combined with others;

    2. Competitive strategy- a choice between focusing on the entire market or on a part of it, as well as between the main competitive advantage (low price of the product or its distinctive features). Competitive strategies:

      Cost Leadership- the products are similar, the company is trying to reduce the price.

      Differentiation strategy- some of the qualities of the product (packaging, dimensions, after-sales service, environmental friendliness, etc.) are given a distinction (of course, in better side) from competitors' products. As part of this competitive strategy, the product is targeted at all consumers.

      Concentration strategy- focus on isolated market segments (to meet a specific need). It is believed that it is necessary to specialize in quality (focus differentiation).

    3. Functional strategy- the choice of decision-making rules in each functional area. Thus, any organization has several functional strategies (for example, marketing strategy, financial strategy, etc.). It is desirable that they be formalized in writing in the form of policies.

    In particular, the functional strategies are as follows:

    Manufacturing strategy (“Produce or buy”) - defines what exactly the enterprise produces itself, and what it acquires from suppliers or partners, that is, how deeply the production chain is worked out.

    Financial strategy - choice of the main source of funds: development at the expense of its own funds (depreciation, profit, issue of shares, etc.), or at the expense of borrowed funds (bank loans, bonds, vendor loans, etc.).

    Organizational strategy decisions on the organization of work of employees (choice of the type of organizational structure, remuneration system, etc.).

    Other types of functional strategies can also be distinguished, for example, a research and development (R&D) strategy, an investment strategy, etc.

    In addition, each of the functional strategies can be divided into components. For example, an organizational strategy can be divided into three components:

      organization building strategy - the choice of the type of structure (divisional, functional, project, etc.);

      strategy for working with personnel - a method of training personnel (mainly management personnel 1), training employees (at the enterprise or in educational institutions), career planning for employees, etc .;

      remuneration strategy (more than broad sense- incentives and penalties) - in particular, the approach to the remuneration of top managers (salary, bonuses, profit sharing, etc.).

    Approaches to the process of developing and implementing a strategy

    Meaning strategic behavior allowing the firm to survive in competitive struggle in the long term, has increased dramatically in recent decades. Acceleration of changes in the environment, the emergence of new demands and changes in consumer position, increased competition for resources, internationalization and globalization of business, the emergence of new unexpected business opportunities opened by the achievements of science and technology, development information networks that make possible the lightning-fast dissemination and receipt of information, the wide availability of modern technologies, the changing role human resources, as well as a number of other reasons led to a sharp increase in the importance of strategic management.

    However, there is no single strategy for all companies, just as there is no single universal strategic management. Each firm is unique in its own way, therefore, the process of developing a 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, the cultural environment and many more factors. At the same time, there are some fundamental points that allow us to talk about some generalized principles for developing a command strategy and implementing strategic management. These include the strategic management process.

    An analysis of the literature on strategic management shows that the authors' opinions on the process of developing and implementing a strategy are ambiguous. Different authors suggest different approaches.

    I. Ansoff identifies the following group of key decisions when formulating a strategy: internal assessment of the company; assessment of external opportunities; formulation of goals and selection of tasks; portfolio strategy decision; competitive strategy; creation of alternative projects, their selection and implementation.

    According to M. Mescon, the strategic management process consists of nine steps. These are: the development of the mission and goals of the organization; assessment and analysis of the external environment; management survey of strengths and weaknesses; analysis and selection of strategic alternatives; implementation and evaluation of the strategy.

    S. Wooton and T. Horn consider the process of strategic planning in the context of three stages, decomposed, in turn, into nine steps. It:

    1) strategic analysis, consisting of: analyzes of the external and internal environment and their aggregate assessment;

    2) the choice of a strategic direction, including: forecasting; definition of mission and goals; and identifying strategic “gaps” between forecasts and targets;

    3) implementation of the strategy, which includes: consideration of alternative options for the strategy; analysis of each option for competitiveness, compatibility, feasibility, risk, etc. drawing up a plan for the implementation of the strategy.

    A. Thompson and D. Strickland consider strategic management from the point of view of solving five tasks: defining the scope of activities and formulating strategic guidelines; setting strategic goals and objectives for their implementation; formulation of a strategy to achieve the intended goals and results of production activities; implementation of the strategic plan; performance evaluation and changes to the plan and / or methods of its implementation.

    The model of the strategic process by V. Markova and S. Kuznetsova consists of four stages: determination of the goal; gap analysis, including an assessment of the external and internal environment; formulation of a strategy, taking into account the consideration of alternatives; implementation of the strategy based on the preparation of plans and budgets.

    O. Vikhansky considers the process of strategic management as a dynamic set of five interconnected management processes: analysis of the environment; definition of mission and goals; selection and implementation of a strategy, assessment and control of implementation.

    Comparing the approaches of these and other authors to the definition of the content side of strategic management, it can be stated that, in general, scientists adhere to the principles of I. Ansoff and G. Mintzberg. They view the strategic management methodology as consisting of two complementary subsystems:

    1) management of strategic capabilities, including the analysis and selection of a strategic position, or "planned strategy";

    2) operational management problems in real time, allowing firms to respond to unexpected changes or "executable strategy".

    The essence of the strategic management process

    Strategic management can be defined as a process that consists of the following:

    1. Strategic management in an enterprise should represent a number of successive interrelated stages, each of which uses the results of the previous one as a basis for decision-making.

    2. The first element of this process is the procedure for determining the mission of the company, the final one is obtaining the initial data for organizing the current management of the company. Without getting involved in conceptual disputes about the content of the mission, we only emphasize that all authors agree on the essence of the mission as the most general image of the company's business success. The current management uses specific (quantitative) signals, and the following proposition follows from this.

    3. The technology of strategic management assumes movement from abstract definitions to specific numerical criteria of development. Many refuse such a requirement, calling it excessive rationalization. However, omitting it, we will not be able to close strategic management to the technology of current management, and therefore, we will leave strategic management as a "thing in itself" that has nothing to do with pressing business problems, and will hardly solve the tasks formulated above.

    4. If we agree that a significant number of elements of strategic management deals with quantitative information, then it is possible to use special formal methods that make it possible to process not entirely structured and not always accurate, but rather vague information. It becomes possible to develop and introduce technological process strategic management of a number of formal techniques using a mathematical apparatus focused on working with information containing uncertainty (for example, the mathematical apparatus of the theory of fuzzy sets). Such formalization of individual procedures will increase the confidence in the solutions generated.

    5. The strategic decisions taken should reflect a systematic approach, i.e. be the result of analysis and synthesis of individual strategies of enterprises (both product-marketing and functional).

    6. Such activities should be carried out with a certain frequency associated with the characteristics of the markets and the capabilities of the company.

    The strategic management process includes setting goals, developing a strategy, identifying the necessary resources and maintaining relationships with the external environment that allow the organization to achieve its objectives.

    There are two main end products of strategic management.

    One of them is the capacity of the organization, which ensures the achievement of goals in the future.

    What in this context should be understood by the potential of the organization? Refer to Figure 3.1.

    Figure 3.1 - Schematic diagram of a commercial organization

    From the "input" side, this potential consists of raw materials, financial and human resources, information; from the “exit” side - from the products and services produced, from the set of rules of social behavior, the adherence to which helps the organization to achieve its goals. It is important to note that not all products and services of an organization can be included in its potential, but only those that have been tested in terms of potential profitability. This means that the organization's products are based on new promising technologies, has distinctive features and will be in demand in the market.

    Another end product of strategic management is the internal structure and organizational changes that make the organization sensitive to changes in the external environment. B business organization this presupposes the ability to timely detect and correctly interpret external changes, as well as to lead adequate responses, which presuppose the presence of strategic opportunities for the development, testing and implementation of new goods and services, technologies, and organizational changes. Organization potential and strategic opportunities are determined by its architectonics and the quality of personnel.

    The organization's architecture consists of:

    Technology, production equipment, facilities, their capacities and capabilities;

    Equipment, its capabilities and capacities for processing and "transmission of information;

    Production organization level;

    Power structure, distribution job functions and decision-making powers;

    Organizational tasks of individual groups and individuals;

    Internal communications and procedures;

    Organizational culture, norms and values ​​that underlie organizational behavior.

    The quality of personnel is determined by:

    Attitude towards change;

    Professional qualifications and skill in design, market analysis, etc .;

    Ability to solve problems related to strategic action;

    Ability to resolve issues related to organizational change;

    Motivation to participate in strategic activities and the ability to overcome resistance.

    Thus, strategic management activities are aimed at ensuring a strategic position, which should ensure the long-term viability of the organization in a changing environment. In a commercial organization, the strategic leader provides ongoing profitability potential. Its tasks are to identify the need and carry out strategic changes in the organization; create an organizational architectonics conducive to strategic change; to select and educate personnel capable of making strategic changes in life.

    In contrast to strategic operational management is concerned with the use of the existing strategic position of the organization in order to achieve its goals. In a commercial organization, the operational leader must turn the organization's potential into real profit. Its tasks include defining common operational tasks, motivating, coordinating and overseeing both managers and executives within the organization.

    Both strategic and operational management for normal functioning presuppose the creation and maintenance of a certain organizational architectonics, selection and training of personnel. However, these elements are different for the two types of controls. Strategic architectonics are change-driven, flexible, and non-rigid. Operational architectonics are resilient to change, focused on efficiency. If the manager in charge of strategic management strives for changes, is inclined to take risks, has the skills to manage the development of new directions, then the manager in charge of operational management opposes changes, is not inclined to take risks, is competent in the analysis, coordination and control of complex activities.

    Control system commercial organization includes two complementary types management activities- strategic management, associated with the development of the future potential of the organization, and operational management, realizing the existing potential in profit. Strategic management requires entrepreneurial organizational behavior, and operational management operates on the basis of incremental behavior. Recently, organizations have increasingly felt the need to simultaneously use both types of behavior, for which they need to create such a structure of their architectonics that would allow them to successfully develop both entrepreneurial and incremental styles of organizational behavior.

    Strategic management can be defined as such management of an organization, which relies on human potential as the basis of the organization, orients production activities in response to customer demands, implements flexible regulation and timely changes in the organization that meet the challenge from the environment and allow it to achieve competitive advantages, which together as a result allows the organization to survive and achieve its goal in the long term.

    Strategic management process

    Strategic management is a process that includes the following main elements and stages (Figure 3.2):

    Figure 3.2 - The main elements and stages of strategic management

    Strategic analysis;

    Strategy formation and strategic choice;

    Strategy implementation;

    Assessment and control of strategy implementation.

    Strategic analysis requires a clear understanding on the part of management of what stage of development the enterprise is at before deciding where to go next. This requires an effective information system that provides data for the analysis of past, present and future situations. A well-conducted business diagnosis of the strengths and weaknesses of an enterprise provides a real assessment of its resources and capabilities, and is also the starting point for developing a strategy. Knowledge of the competitive environment in which the firm operates is also important.

    A feature of strategic management is its orientation to the future, and therefore, it is necessary to determine what to strive for, what goals to set. Along with the analysis of the internal environment, the organization also needs to diagnose the external environment in order to know the opportunities and threats of development in the future.

    The analysis of the external environment is carried out in seven areas (spheres), which are economics, politics, market, technology, competition, international position and socio-cultural behavior. Thus, strategic analysis is the most important stage of management in developing an effective strategy, which is based, as a rule, on three components:

    O well-developed long-term goals;

    Deep understanding of the external competitive environment;

    About real assessment own resources and opportunities.

    Analysis of the environment is considered the starting point of the strategic management process as it provides the basis for defining the mission and objectives of the organization and formulating the strategy. External environment - a set of variables, threats and opportunities outside the enterprise and not amenable to short-term control by management. The internal environment is a set of variables (strengths and weaknesses) that are within the organization and can be controlled by management over the short term.

    Strategy formation - definition of the mission and goals (long-term and short-term). Strategy formation is the process of defining the mission and goals of an organization, as well as choosing a strategy to achieve these goals.

    Strategic choice includes the formation and assessment of alternative directions for the development of the enterprise. The most preferred option is accepted. There are special methods for forecasting and assessing future situations based on development scenarios and portfolio analysis. It is believed that the formation and assessment of alternative development options is of independent value for management and is implemented in the course of strategic planning. At the same time, the time frame, resources, sources and amounts of funding and those responsible for the implementation of the planned activities are determined.

    Allocate operational and long-term planning. The first is to ensure an efficient organization current activities enterprises, and the second is the organization's survival in the future.

    In the framework of long-term planning, usually distinguish between traditional long-term and strategic. The main factor in strategic planning is the state of the external environment. It (in contrast to the traditional long-term) does not use the idea that the future is better than the past and does not rely on the extrapolation method in determining the future. Strategic planning is based, firstly, on the analysis of the real state of the external environment or its individual segments from the point of view of the company's development prospects. Secondly, the selection of promising sectors of the external environment is carried out, the development of long-term guidelines and areas of activity.

    Strategy implementation - the process in which the strategy is translated into action based on the developed programs, budgets and procedures, and it is also the process of making strategic changes in the organization, translating it into a state in which the organization will be ready to implement the strategy.

    The implementation of the chosen strategy involves adjusting the two previous stages. The activities of the management are aimed at modernizing (if necessary) the management system, bringing the organizational structure of the company in line with the strategic goals, allocating the necessary resources, as well as training personnel. In other words, strategic management is formed in such a way as to help the organization's management anticipate business development trends and monitor external influences.

    Strategic decisions on this stage include: reconstruction of the enterprise, the introduction of new products and technologies, organizational changes legal form enterprises, production and management structures, wages, etc., entering new sales markets, as well as the acquisition (merger) of enterprises, etc.

    Assessment and control of strategy implementation - provides sustainable feedback between the implementation of the strategy and the goals of the organization. Strategic control is aimed at finding out to what extent the implementation of the strategy leads to the achievement of the goals of the firm.

    Strategic management also has its own algorithm: what needs to be done (conceptual aspect, the formation of a general goal); how to do it (technological aspect); by what means (resource aspect); in what time frame and in what sequence (time aspect); who will do (personnel aspect); what should be organizational structure management (organizational and managerial aspect).

    In recent years, the paradigm for developing a firm's strategy has changed significantly. If earlier it was believed that a strategy should be known only to a narrow circle of top leaders and should not be made public, nowadays an openly formulated one is preferred. Strategy should be the business of not only the management of the company, but also of all its ordinary employees.

    As you can see from the diagram, the process of developing a strategy is iterative (cyclical). So, the definition and selection of a strategy can occur at the stage of analyzing the external environment, and the assessment of the strategy will require additional external analysis. In addition, a change in strategy leads to the need to monitor and annually adjust strategic decisions and plans.

    Questions to review and reinforce

    1. What are the main approaches to the process of developing and implementing a strategy.
    2. What is the essence of the strategic management process?
    3. What are the elements that make up the architectonics of the organization?
    4. Define strategic management.
    5. What elements and stages does the strategic management process include?

    Tutorial output:

    Strategic management. Fundamentals of strategic management. Textbook. M.A. Chernyshev et al. Rostov-on-Don: Phoenix, 2009. - 506 p.

     

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