Strategic management lectures. Strategic management. Basic lecture notes. Reference Development Strategies
Shevchuk Denis Alexandrovich
Strategic Management: Lecture Notes
1.1. Essence of strategic management
This book is based on modern principles of accelerated qualitative study and memorization of any subjects. I recommend reading 2-3 times and you will easily master the subject.
The manual contains both theoretical material and practical recommendations.
Sincerely,
Shevchuk Deniswww.deniskredit.ru
Management consists in determining:
- "where are we?",
– the goals of our activity (“where are we going?”),
– possible ways to achieve it (“how to go?”),
– criteria for choosing the optimal path,
- the final result ("where did you come?"),
– the difference between goals and results for the use of this information in further management cycles.
Strategic management extends to the long-term goals and actions of the company. We can say that the formulation of a strategy (mode of action) and its clear tools are the core of management and the surest sign of good company management.
- defining the purpose and main goals of the company's business,
- analysis of the external environment of the company,
- analysis of its internal situation,
– selection and development of a strategy at the level of SZH, firm,
– portfolio analysis of a diversified firm,
– designing its organizational structure,
– choice of degree of integration and control systems,
– management of the “strategy – structure – control” complex,
– determination of the norms of behavior and policies of the company in certain areas of its activity,
– providing feedback on the company's results and strategy,
– improvement of strategy, structure, management.
The manager is a hired manager, the boss!
If you do not have a single subordinate, you are not a manager, but a maximum specialist!
Shevchuk Denis
All this is reflected in Fig. one.
In order to compete in today's complex and rapidly changing environment, a firm must identify who drives strategy development—strategy managers. Their task is to ensure the activities of the entire organization in a certain direction (often they are called complex managers). They are different from functional managers, who provide individual business functions (human resources, sourcing, manufacturing, sales, customer service, accounting) and occupy a unique position in the company, managing the entire organization in a strategic sense.
According to Denis Shevchuk (www.deniskredit.ru), the most successful strategic managers should have the following qualities:
- be well informed
- be able to manage your time and energy,
– be good politicians (consensus builders),
– they should not be, like experts, “fixated”,
– the ability to promote the program in private directions.
Good awareness provides for the possibility of making a wide range of management decisions at different levels of management. Managers must create a network of sources of information in various parts of the organization that will enable them to stay within operational realities.
They must be able to allocate their time and energy among various tasks, decisions or problems. They need to know when to delegate responsibility and when to get involved in a particular decision.
A good politician must have the art of reaching consensus on the basis of his ideas, and not press his authority to promote them. He must act as a member or leader of a coalition, not as a dictator.
The changing world requires a certain amount of flexibility from the strategic manager. He must be ready to maneuver and adapt to the evolving situation. This does not mean that the firm should act without certain goals, but one must be prepared to adjust them.
2. Structure and levels of the strategic management process
2.1. The main stages of strategic management
The main stages of strategic management are:
1. Defining the scope of the business and developing the purpose of the firm.
2. Transformation of the purpose of the company into private long-term and short-term goals of activity.
3. Defining a strategy for achieving the goals of the activity.
4. Development and implementation of the strategy.
5. Evaluation of activities, monitoring the situation and the introduction of corrective actions.
The relationship of these stages is shown in fig. 2.
Rice. 2. Strategic management process
2.2. Main organizational levels of strategy development
Strategy cannot be developed only at the top level of management. It is practically expedient to distinguish four levels of its development:
- corporate level
– level of SZH (branches),
– functional level,
- lower-level managers (field commanders).
The hierarchy of strategy development in the firm is illustrated in Table. 2.1.
Table 2.1 The main levels of development of the firm's strategy2.3. The main generalizing conclusions on the topics of chapters 1, 2
1. Strategic management procedures are applicable to a wide range of organizations, from large with many SBAs to small individual, from manufacturing to service enterprises and from profit-seeking to non-profit (eg budgetary).
2. Organizational strategy is the output of a rational planning process.
3. The main components of the strategic management process include determining the purpose, the main goals of the organization, analyzing the external and internal environment of the organization, choosing a strategy at the level of the SBA and the corporation in accordance with its strengths and weaknesses and external dangers and opportunities, adapting organizational management systems to the chosen organizing the strategy.
4. Strategic manager - a person who leaves an imprint on the entire activity of the organization, on its main independent divisions. His concern is to maintain the "health" of the entire organization while moving in a certain direction.
5. The strategic manager must be well informed, skilled in managing his own time and energy, and also be a good politician, a flexible expert, able to persevere in moving the program step by step in the direction taken.
6. Strategic management permeates the entire company. It can be divided into the following levels: corporation, SZH, functional services and the lowest level of management.
7. Strategic management includes communication between levels of management in order to ensure the reality and content of the strategy.
8. Strategic planning fails if the executors do not plan because of the uncertainty of tasks, and the higher planning bodies lose their sense of operational reality.
3. The purpose of the company, its goals and main tasks
3.1. Business Definition
Corporate goal setting is the first key indicator of how an organization sees the interests of its shareholders. Goal-setting determines the business of the firm, its main goals, characteristics and leading philosophy. Goal setting sets the organizational context for future strategic decisions.
Corporate target designation contains three main components:
- definition of the company's business,
- setting its main goals,
– definition of corporate philosophy.
Goal setting and strategy formulation are influenced by different external and internal groups (Fig. 3).
Rice. 3. Groups acting in goal-setting and shaping the firm's strategy
When defining a business, the following questions should be answered:
- What is our business?
– What will he be?
- What should it be?
For a single business company, the answer to the question “what is our business” involves answers to private questions:
– who will be satisfied (what consumer groups)?
– what will be satisfied (what are the needs of consumers)?
- how will the needs of consumers (art or distinctive advantages) be satisfied?
For a diversified company, the question "what is our business?" should be considered at two levels:
– consumer-oriented for SZH (as well as for a single business company),
– SBA portfolio-oriented at the corporate level.
The latter should include:
– objectives of the company's SZH portfolio,
– the necessary diversification (range) of the SZH portfolio,
is the required balance between SBAs in the portfolio.
04.10.04
Topic: "General characteristics of strategic management"
one). Essence of strategic management.
2). Strategic management system
Question 1. The essence of strategic management.
The process of developing a strategy for each company is unique, it depends on:
The position of the firm in the market
The dynamics of its development,
Her potential
The behavior of competitors
The characteristics of the product it produces
state of the economy,
cultural environment, etc.
The idea of transition to strategic management from operational management is the idea of the need to shift the focus of top management to the environment in order to respond appropriately and in a timely manner to the changes taking place in it, to respond in a timely manner to the challenge posed by the external environment.
Strategic management- such management of the organization, which relies on human potential as the basis of the organization, orients production activities to the needs of consumers, implements flexible regulation and timely changes in the organization that meet the challenge from the environment and allow achieving competitive advantages, which together allows the organization to survive and achieve their long-term goals.
The lack of strategic management manifests itself primarily in the following forms:
1. the organization plans its activities on the basis that the environment will either not change at all, or there will be no qualitative changes in it
2. The development of an action program begins with an analysis of the internal capabilities and resources of the organization, the management determines how much of the product the company can produce and what costs it can incur.
Disadvantages and limitations on the use of strategic management:
1. strategic management cannot give an accurate and detailed picture of the future, it only forms the future desired state of the organization.
2. strategic management does not have a descriptive theory, that is, a set of routine procedures and schemes
3. strategic management requires a lot of effort and a lot of time and resources, the strategic plan must be flexible. Services needed - marketing service, public relations, etc.
4. The negative consequences of strategic foresight errors are sharply increasing.
5. The most important component of strategic management is implementation strategic planning, this involves the creation of an organizational culture, the creation of systems of motivation and organization of work, the creation of a certain flexibility in the organization.
Question 2. Strategic management system
The strategic management structure consists of:
Analysis of the environment;
Choosing a strategy;
Definition of mission and goals;
Implementation of the strategy;
Evaluation and monitoring of implementation.
Environmental analysis is the initial process of strategic management. Environmental analysis involves the study of:
1) macroenvironments. Analysis of the macro environment includes the study of: The state of the economy; Legal regulation and management; Political processes; Natural environment and resources; Social and cultural component; Scientific, technical and technological development of society; Infrastructure.
2) immediate environment. Analysis of the immediate environment involves the study of: Suppliers; Buyers; Competitors; labor market.
3) internal environment. The analysis of the internal environment involves the study of: Personnel of the company: their potential, qualifications, interests, etc.; Management organizations; production; Firm finances; Marketing; organizational culture.
Choosing a strategy The organization determines how it will achieve its goals and realize its mission.
Definition of mission and goals:
Definition of the mission, which, in a concentrated form, expresses the meaning of the existence of the organization, its purpose;
Definition of long-term goals;
Definition of short-term goals.
Execution of the strategy. The main task is to involve the existing potential of the company for the implementation of the strategy.
Evaluation and control of the implementation of the strategy. Provides feedback between how the process of achieving goals is going and, in fact, the goals of the organization.
The main tasks of control:
- 1. Determination of what and by what indicators to check;
- 2. Assessment of the state of the controlled object in accordance with the reference indicators;
- 3. Finding out the reasons for deviations, if any;
- 4. Making adjustments.
Topic 2. "Analysis of the environment."
one). Analysis of the external environment.
2). Analysis of the internal environment.
Question 1. Analysis of the external environment
Analysis of the macro environment. The macro environment consists of:
1. Economic component: Inflation rate; GNP value; Unemployment rate; Interest rate; labor productivity; Taxation norms; Payment balance; The rate of accumulation; General level of economic development; Extracted natural resources; Climate; Type and level of development of competitive relations; Population structure; The level of education of the labor force; The amount of salary.
2. Legal component: Laws and legal acts; Acceptable methods of defending their interests; The effectiveness of the legal system; The established traditions in this area; procedural side; Party of practical implementation of legislation.
3. political component- is studied in order to have a clear idea of the intentions of public authorities in relation to the development of society and the means by which the state intends to implement its policies.
4. social component: People's attitude to work and quality of life; Existing customs and beliefs in society; Values shared by people; Demographic structure of society; Population growth; The level of education; Mobility; Readiness to relocate.
5. Technological component- its analysis allows us to see the opportunities that the development of science and technology opens up for the production of new products, the modernization of manufacturing and marketing of products.
Analysis of the immediate environment
1. Buyer Analysis: Which product will be most accepted by customers; How much sales can the organization expect; To what extent are buyers committed to the product of this organization; How can you expand the circle of potential buyers; How strong is the position of the buyer in relation to the organization in the bargaining process;
Buyer Trading Power Factors:
- The degree of dependence of the seller on the buyer (number of sellers and buyers in the market);
- The volume of purchases made by the buyer;
- Buyer awareness level;
- Availability of substitute products;
- The cost to the buyer of switching to another seller;
- Buyer sensitivity to price;
- The level of his income;
- Profit incentive system;
- Orientation of a certain buyer to a certain brand.
2. Analysis of suppliers:
- 1 Identification of those aspects in the activities of entities that supply the organization with various raw materials, semi-finished products, energy and information resources; finance, etc., on which depend: the efficiency of the organization, the cost and quality of the product produced by the organization.
3. Study (Analysis) of competitors: Identification of the strengths and weaknesses of competitors.
4. Analysis of the labor market: Availability of personnel, the necessary specialty and qualifications, the required level of education, age, gender; labor cost; Analysis of the policy of trade unions with influence in this market.
Question 2. Analysis of the internal environment
The internal environment is that part of the overall environment that is located within the organization:
1. Personnel profile of the internal environment - interaction between managers and workers: recruitment, training and promotion of personnel; Analysis of labor results and stimulation; Maintenance between workers.
2. Organizational cut: Communication processes; Organizational structures; Norms, rules, procedures; Distribution of rights and obligations; Hierarchy of subordination;
3. Production cut;
4. Marketing section - this is everything that is connected with the sale of products;
5. Financial cut - the effective use and movement of funds in the organization;
6. Organizational culture - a set of the most important assumptions accepted by the members of the organization and expressed in the declared organizational values that give people guidelines for their behavior and actions.
The internal environment is permeated with organizational culture, which should also be subjected to the most serious study.
Strategic management, studying the external environment, focuses on finding out what threats and what opportunities the external environment is fraught with.
A threat- something that can harm the company, deprive it of its existing advantages: unauthorized copying of the company's unique developments, the emergence of new competitors or substitute products, a decrease in the purchasing power of the consumer.
Opportunities- something that gives the company a chance to strengthen its position: the introduction of new technologies, release a new product, tax cuts, income growth.
Weaknesses and strengths of the internal environment as well as threats and opportunities determine the conditions for the successful existence of the organization.
SWOT - analysis (strength, weakness, opportunities, threats).
|
Opportunities: |
||
|
Strengths: |
Strength and opportunity (a strategy should be developed to use the strengths of the organization in order to get a return on the opportunities that have appeared in the external environment) |
Force and threat (use of force to eliminate threats) |
|
Weak sides: |
Weakness and opportunity (the strategy should be built in such a way that, due to the opportunities that have appeared, try to overcome the weaknesses in the organization) |
Weakness and threat (develop a strategy that allows you to get rid of the weakness and prevent the threat) |
StagesSWOTanalysis:
1. The strengths are studied: the solvency of goods, the price of the goods, advanced technologies, the qualifications of personnel, the price of resources, the geographical location of the company, the strength of competition at the input and output of the management system, infrastructure.
2. The study of the weaknesses of the company (it begins with an analysis of the competitiveness of manufactured goods in all markets).
3. The factors of the company's macro environment are studied: political, economic, market, in order to predict strategic (for the future) or tactical (here and now) threats to the company and timely prevent losses from them.
4. The strategic and tactical capabilities of the firm are studied, which are necessary to prevent threats, reduce weaknesses and increase strength.
5. Consistent forces with opportunities for the formation of the project of individual sections of the company's strategy.
Impact of opportunities on the organization:
Opportunities falling on the fields of BC, WU, SS are of great importance for the organization and they must be used without fail.
Opportunities falling on the fields of SM, NU, NM practically do not deserve the attention of the organization.
The remaining opportunities are used if the organization has enough resources.
The impact of threats on the organization.
|
Probability of Threats Implementation |
destruction |
Critical condition |
serious condition |
Light bruises |
The field BP, VC, SR pose a huge threat to the organization and require immediate and mandatory elimination.
The fields BT, SK, HP should be in the field of view of the management and be eliminated as a matter of priority.
Fields NK, ST, VL attentive and responsible approach to their elimination.
The remaining fields are carefully monitored for their development, although the task of their primary elimination is not set.
Environment profile.
Individual environmental factors are listed in the environment profile table. Each of the factors is given in an expert way:
1. assessment of its importance for the industry on a scale: 3 - strong value, 2 - moderate value, 1 - weak value.
2. assessment of the impact on the organization; 3 - strong influence, 2 - moderate influence, 1 - weak influence, 0 - no influence.
3. assessment of the direction of influence on a scale: (+1) - positive direction, (-1) - negative direction.
Topic 3: "Mission and goals of the organization"
one). The mission of the organization.
2). Organization goals.
3). Goal setting.
Question 1. The mission of the organization.
When broad understanding of the mission is considered as a statement of philosophy and purpose, the meaning of the existence of the organization.
In the event that there is narrow understanding of the mission, it is considered as a formulated statement regarding why and for what reason the organization exists, that is, the mission is understood as a statement that reveals the meaning of the existence of the organization, in which the difference between this organization and its similar ones is manifested.
Mission characteristics:
1. The tasks of the company formed in it must be measurable.
2. The mission statement of the company should demonstrate its difference from other firms, reflect individuality or even uniqueness.
3. The mission statement should define the types of activities that the company intends to engage in, and they do not have to coincide with the current business.
4. The mission statement must be relevant (pertinent) to all interested groups.
Groups of people whose interests should be taken into account when determining the purpose of the organization:
Organization owners
Organization employees
The organization's product buyer
Business partners of the organization
Local community interacting with the organization (social and environmental component)
Society as a whole.
The mission should be developed taking into account the following factors:
The history of the company, during which the philosophy of the company is developed, its profile and style of activity, its place in the market are formed.
The existing style of behavior and the way of action of the owners and management personnel.
The state of the organization's habitat
Resources she can bring to bear to achieve her goals
Distinguishing characteristics of an organization.
The transcript that accompanies the mission should reflect the following characteristics of the organization:
1. targets of the organization, reflecting what tasks the organization's activities are aimed at, and what the organization is striving for in its activities in the long term.
2. the scope of the organization, reflecting what product the organization offers to the buyer, and in which market the organization sells its product.
3. philosophy of the organization.
4. opportunities and ways of carrying out the activities of the organization, reflecting what is the strength of the organization, what are its distinctive opportunities for survival in the long term, in what way and with what technology the organization does its job.
What gives the mission for the activities of the organization:
1. it gives the subjects of the external environment a general idea of what the organization is.
2. the mission contributes to the formation of unity within the organization and the creation of a corporate spirit.
3. mission creates an opportunity for more effective management of the organization.
Question 2. The goals of the organization.
This is a specific state of individual characteristics of the organization, the achievement of which is desirable for it and the achievement of which its activities are aimed at.
Long-term goals are goals that are expected to be achieved by the end of the production cycle.
In practice, short-term goals are usually considered to be achieved within 1 year, long-term - in 2-3 years.
There are areas for which organizations set goals:
Organization income
Work with clients
Needs and welfare of employees
Social responsibility
The most common areas in which business organizations set goals are:
1. profitability, reflected in the following indicators: profitability, profit margin, earnings per share.
2. position in the market, reflected in the following indicators: market share, sales volume, relativity in relation to a competitor, market share, share of individual products in total sales.
3. productivity: costs per unit of output, material intensity, return per unit of production capacity, volume of products produced per unit of time.
4. financial resources: the structure of capital, the movement of money in the organization, the amount of working capital.
5. capacity of the organization: the size of the occupied area, the number of pieces of equipment, etc.
6. product development, product manufacturing and technology upgrade.
7. change in organization and management.
8 human resources: absenteeism, staff turnover, qualifications.
9. work with buyers: speed of service, number of complaints, etc.
10. assistance to society: the amount of charity, etc.
Growth Goals organizations reflect the ratio of the rate of change in sales and profits of the organization, the rate of change in sales and profits by industry as a whole:
1. fast growth goals - they assume that management understands the market well, knows how to choose the most suitable part of the market, concentrate its efforts on it, while the organization develops faster than the industry as a whole.
2. the goal of stable growth - when it is achieved, the organization develops at the same pace as the industry as a whole, it seeks to maintain its market share unchanged.
3. The purpose of the reduction is set by the organization when, for a variety of reasons, it is forced to develop at a slower pace than the industry as a whole, or in absolute terms to reduce its presence in the market.
Key requirements that properly formulated goals should satisfy:
Goals must be achievable
Goals must be flexible
Goals must be measurable
Goals should be specific, that is, clearly fix what needs to be obtained as a result of the activity, who and in what time frame should achieve it.
Goals should be compatible: long-term goals should be consistent with the mission, short-term goals should be long-term, should not contradict each other, related to profit and to establishing a competitive position, the goal of profitability and charity.
Goals should be acceptable to the main influencers that determine the activities of the organization, and first of all to those who will have to achieve them.
Question 3. Setting goals.
When centralized setting goals - all goals are subject to a single orientation, however, rejection of these goals and even resistance may occur at the lower levels of the organization.
When decentralization both upper and lower levels of the organization are involved in the process of setting goals. There are two schemes for decentralized goal setting:
1. the process of setting goals goes from top to bottom (decomposition of goals) - each of the lower levels determines its goals, based on what goals were set for a higher level.
2. the process of setting goals goes from the bottom up - the lower levels set goals for themselves, which serve as the basis for setting goals at a higher level.
The process of developing goals involves the passage of phases:
1. identification and analysis of trends observed in the environment.
2. setting goals for the organization as a whole: determine which of the wide range of possible characteristics of the organization's activities should be taken as a basis; Of particular importance is the system of criteria used in determining the purpose of the organization, they are derived from the mission, from the results of the analysis of the macro environment, industry, competitors and the position of the organization in the environment. The decision on goals depends on the resources that the organization has.
3. building a hierarchy of goals - involves the definition of such goals for all levels of the organization, the achievement of which by individual units will lead to the achievement of a corporate goal
4. setting individual goals - the hierarchy of goals within the organization must be communicated to each individual employee; in this case, each employee is included through their personal goals in the process of joint achievement of the ultimate goals of the organization. Employees of the organization imagine how the result of their work will affect the final results of the functioning of the organization.
The established goals should have the status of law for the organization, however, they should not be eternal and unchanging, they can change due to the dynamism of the environment.
25.10.04
Topic: Types of business strategies»
one). Areas of strategy development
2). Reference Development Strategies
3). Strategy definition steps.
Question 1. Areas of strategy development.
The firm's strategy faces three main questions related to the firm's position in the market:
1. what business to stop
2. what business to continue
3. what business to go to.
The strategy focuses on the following:
What the organization does and does not do
What is more important and what is less important in the activities carried out by the organization.
The main areas for developing a strategy for the company's behavior in the market:
1. associated with the leadership of minimizing production costs. A firm implementing such a TIM strategy must have a good organization of production and supply, a good technology and engineering base, as well as an effective system of product distribution.
2. associated with specialization in product manufacturing: in this case, the firm must carry out highly specialized production and marketing in order to become a leader in the production of its products.
3. The definition of strategy refers to fixing a certain market segment and concentrating the firm's efforts on the selected market segment. In this case, the company does not seek to work on the entire market, but works on its clearly defined segment, thoroughly clarifying the needs of the market for a certain type of product; the company should build its activities on an analysis of the needs of customers in a particular market segment.
Question 2. Reference development strategies.
These strategies reflect different approaches to the growth of the company and are associated with a change in the state of one or more elements: product, market, position of the company within the industry, technology, industry.
The first group of reference strategies - concentrated growth strategies: they are associated with a change in the product and / or market and do not affect other elements.
Specific types of strategies in this group are:
1. strategies for strengthening positions in the market. The company is doing everything to win the best positions in this market with this product.
2. market development strategy - the search for new markets for an already manufactured product.
3. the strategy of "product development" - solving the problem of growth through the production of a new product and its implementation in the market already mastered by the company.
The second group of reference strategies - integrated growth strategies (business strategies), which involve the expansion of the company by adding new structures.
There are types of strategies:
1. The strategy of "reverse 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.
2. The strategy of "forward vertical integration", is expressed in the growth of the company through the acquisition or strengthening of control over the structures located between the company and the end consumer, that is, over distribution and sales systems. This type of integration is beneficial in cases where the firm cannot find intermediaries with a quality level of work.
The third group - diversified growth strategies. Diversification is the process by which a firm expands into other industries. Used to prevent an organization from becoming too dependent on one strategic business unit.
Many companies see diversification as the most appropriate way to invest capital and reduce risk, especially if further expansion in core business areas is limited.
Diversification strategies are:
1. strategy of the centered diversification - search and use of the additional opportunities concluded in existing business for production of new products. At the same time, the existing production remains at the center of the business, and a new one arises based on the opportunities that are contained in the developed market, the technology used, or in other strengths of the firm's functioning.
2. horizontal diversification strategy - involves looking for growth opportunities in an existing market through new products that require a new technology that is different from the one used. With this strategy, the company focuses on the production of such technological unrelated products that would use the existing capabilities of the company (for example, in the field of supply). Since the new product should be focused on the consumer of the main product, it should be related to the already produced product in terms of its qualities.
3. strategy of conglomerate diversification - is that the company expands through the production of technologically unrelated to the already produced new products that are sold in new markets.
The fourth group - targeted reduction strategies. They are implemented when a firm needs to regroup forces after a long period of growth or due to the need to increase efficiency when there are recessions and dramatic changes in the economy.
Targeted reduction strategies:
1. liquidation strategy - an extreme case of a reduction strategy, carried out when the company cannot conduct further business.
2. strategy of "harvesting" - involves the rejection of a long-term view of the business in favor of maximizing income in the short term. This strategy is applied to an unpromising business that cannot be sold profitably, but can bring in profits during the "harvest"
3. downsizing strategy - the firm closes or sells one of its divisions or businesses in order to effect a long-term change in business boundaries.
4. cost reduction strategy - looking for opportunities to reduce costs and taking appropriate measures to reduce costs. This strategy is more focused on eliminating rather small sources of temporary or short-term measures.
Question 3. Steps to define a strategy.
1. Understanding the current strategy.
2. analysis of the product portfolio
3. choice of firm strategy
4. evaluation of the chosen strategy
In order to understand the strategy being implemented, it is necessary to evaluate 5 external and internal factors.
External factors:
1. the scope of the company and the degree of diversity of products, the diversification of the company.
2. The general character and nature of the firm's recent acquisitions and sales of some of its property.
3. the structure and direction of the company's activities for the last period.
4. Opportunities that the firm has been focusing on recently.
5. attitude towards external threats.
Internal factors:
1. goals of the firm
2. Criteria for the distribution of resources and the existing structure of investment in manufactured products.
3. attitude to financial risk, both on the part of management and in accordance with the actual practice carried out by the financial policy.
4. the level and degree of concentration of efforts in the field of R&D.
5. strategies of individual functional areas: marketing, production, personnel, finance, research and development.
Product portfolio analysis involves the following steps:
1. The choice of levels in the organization for conducting product portfolio analysis: it should start at the individual product level and end at the top level of the organization.
2. fixation of units of analysis, called strategic business units (SEBs), in order to use them when positioning on product portfolio analysis matrices. SEBs can cover one product, several products that meet similar needs, SEBs can be considered as product-market segments.
3. Determining the parameters of the product portfolio analysis matrices. It is carried out in order to have clarity regarding the collection of the necessary information, as well as to select the variables for which the analysis is carried out.
4. Variables used to measure business strength: market share, market share growth…
5. collection and analysis of data conducted in the areas of an attractive industry, the competitive position of the company, opportunities and threats, resources and qualifications of personnel.
6. Determination of the desired product portfolio in accordance with which of the options can best contribute to the achievement of the company's goals.
Topic: "Choice of strategy"
Key factors to consider when choosing a strategy:
1. industry strengths and firm strengths (concentrated growth diversification strategy)
2. weaknesses of the firm (all reduction strategies)
3. goals of the firm
4. interests and attitudes of top management
5. financial resources of the firm
6. qualification of workers
7. the firm's obligations under previous strategies. Fulfilling old commitments before starting new ones.
8. degree of dependence on the external environment. Dependence on suppliers and buyers; legislation, legal regulation of the company's behavior.
9. time factor.
Evaluation of the developed strategy.
It is carried out in the form of an analysis of the correctness and sufficiency of taking into account when choosing a strategy the main factors that determine the possibility of implementing the strategy. The procedure for evaluating the chosen strategy is subject to one thing: whether the chosen strategy will lead the company to achieve its goals.
If the strategy meets the goals of the company, then its further evaluation is carried out in the following areas:
1. compliance of the chosen strategy with the state and requirements of the environment
2. compliance of the chosen strategy with the potential and capabilities of the company.
3. acceptability of the risk included in the strategy:
The realism of the prerequisites underlying the choice of strategy
What are the negative consequences for the company if the strategy fails?
Does the possible positive result justify the risk of losses from failure in the implementation of the strategy
Topic: "Strategic business unit and enterprise portfolio."
Types of organizational structures:
First stage.
simple structure- an example of an entrepreneur who establishes a company to implement some idea, product, service. At this stage, the entrepreneur directly manages the activities of each employee, makes all decisions and is aware of all the affairs of the organization. The firm is characterized by an informal structure, planning is short-term and reactive. The strength lies in its flexibility and dynamism, the weak point is that the entrepreneur bears full responsibility for the choice of strategy and for the implementation of operational tasks. As a result, it develops leadership crisis- the entrepreneur does not cope with the whole complex of typical management functions.
Second stage.
Functional structure- the entrepreneur is replaced or supplemented by a group of managers with a functional specialization: R & D, production, marketing, finance, personnel. When switching to new types of products from other industries, the advantages of a functional structure may be lost. While concentration in one attractive industry can bring good results.
Crisis of autonomy occurs when people managing new production lines (new types of business) need more decision-making freedom than they have within the existing functional structure.
Third stage.
Branch (divisional)) structure - the enterprise focuses on the management of various production lines in several industries (different types of business). Such enterprises have a central headquarters and decentralized operational units, with each unit or business unit being a functionally organized company in the second stage of development.
Strategic business unit- an intra-firm organizational unit responsible for developing the firm's strategy in one or more segments of the target market.
Segment- a part of the market (in a certain way allocated), where the company's products can be sold.
Segmentation criteria:
Geographical position
Socio-demographic (gender, age)
Behavioral (Gardening Products)
To size
By form of ownership
By industry
Criteria for the allocation of strategic business units (SBU):
1. SEB has a certain range of clients and customers
2. the business unit independently plans and carries out production and marketing activities, logistics
3. The performance of business units is valued on the basis of profit accounting.
13.11.04
Topic: "Peculiarities of strategies of large and medium-sized firms"
Depending on the growth rate and the degree of diversification of production large companies can be divided into three groups:
1. Proud Lions are industry leaders. For example, the Sony company, which was the first to find the production of transistor radios, consumer video recorders, laser compact discs and high-definition televisions.
2. "Mighty elephants" are firms that follow the leader. For example, Siemens: benefits from many inventions in the field of electrical devices.
3. "Clumsy hippos." For example, Philips has 350 factories scattered around the world.
Medium firms, can function successfully if they can stick to a niche specialization.
market niche is a narrow area of competition within an industry. A niche can be defined in terms of geographic uniqueness, special requirements for the use of a product, or its specific characteristics that are important only to participants in the niche.
Strategies:
1. reduction strategy - is aimed at reducing the existing position of the enterprise, since there is neither the need to expand the company's activities (the growth rate of the niche is stable), nor the opportunity (its growth rate is not high). In this strategy, there is a danger of losing a niche due to a change in need.
2. search strategy for an "invader" - under these conditions, the average company feels an acute shortage of funds to maintain its position within the niche, under such conditions, the average company begins to look for a large company that could absorb it, while maintaining it as a relatively independent, autonomous production division. The use of financial resources by large firms will allow the medium firm to maintain its place in the niche.
3. Niche leadership strategy - perhaps in two cases:
The firm grows as fast as the niche, which allows it to become a leading monopoly company and keep competitors out of the niche.
The firm must have adequate financial resources to sustain accelerated growth
4. The strategy of going beyond the niche - effective only when the scope of the niche is too narrow for the firm.
The firm may attempt to become a large monopoly with the loss of a "niche" face. Having reached the boundaries of a niche, the firm will face direct competition from stronger and larger firms (the presence of a niche protected it from direct competition). To overcome the boundaries of a niche, a firm must accumulate within its framework a sufficient amount of financial and other resources.
Topic: "Strategies for the development of small businesses"
In competition with large firms, small businesses use their main advantages: flexibility, mobility, territorial maneuverability. There are four main strategies for small firms. Their goal is to minimize the severity of competition with large firms and make the best use of their advantages.
The first two strategies relate to the independent development of a small firm:
1. copy strategy. Within its framework, the company can go in one of two ways:
Produce under license a branded product of a large firm
To develop and release a "copy", the prototype of which is some original product.
2. optimal size strategy. It consists in the development of small-scale and specialized markets, those areas of activity in which large-scale production is not effective, and a small enterprise is optimal. In these areas, the activities of large firms are difficult due to insufficient profits, high wage costs, high risk, and lack of technology.
The following two strategies are associated with the possibility of embedding a small firm in the activities of a large one:
3. strategy of participation in the product of a large firm. Large firms often refuse small and low-tech industries, as it is more profitable for them to purchase individual parts, assemblies and components from small enterprises. In turn, the small firm gets the possibility of a guaranteed subcontracting order and the benefits associated with it. To avoid dangerous dependence on a large firm, small enterprises use the tactics of limiting the share of turnover attributable to one large client, that is, they strive to ensure that the share of supplies to each large client in total sales does not exceed, for example, 20%.
4. strategy of using the advantages of a large firm. Franchising- this is a system of contractual relations between a large and a small firm, according to which a large firm undertakes to supply a small firm with its own goods, advertising services. Processed technology business, provides a short-term loan on favorable terms, rents out its equipment. A small firm undertakes to have business contacts exclusively with this large firm, conduct business according to the “rules” of this large firm and transfer a share of the sales amount specified in the agreement in favor of the large firm. As a rule, a large firm requires from such a small enterprise an initial large remuneration for the right to operate in the market from its niche and under its brand name. Franchising is most often used in retail, fast food restaurants.
Franchising integrates elements of rent, sale, contract, representation, however, in general, it is an independent form of contractual relationship between independent economic entities. The parties to the agreement are the franchisor - a large enterprise and the operator (franchisee) - a small enterprise. The parties to the contract must have the status of a legal entity.
Issues related to the functioning of franchising are decided depending on its type and the creditworthiness of the participants. The operator can fully invest in the fixed assets purchased from the franchisor, however, in case of a shortage of funds, the fixed assets are leased out.
Small businesses are interested in franchising for a number of reasons:
1. the presence of the image of a company that has already won the loyalty of customers
2. less investment
3. the ability to manage your own business with very limited prior experience.
4. guarantee of constant assistance in management
For large enterprises, the benefits are as follows:
1. expanding the marketing of their products
2. attraction of additional capital (at the expense of small entrepreneurs)
3. A large enterprise can establish the quality of products and services produced and sold by the operator.
Disadvantages:
1. Realization of sales volume may be less
2. the operator cannot influence the policy of the franchisor
3. costs may be higher when franchising
4. difficulties with rent collection
20.11.04
Topic: "Execution of the strategy"
Question 1. Stages of implementation of the strategy.
Implementation of the strategy is aimed at solving the following tasks:
1. prioritization among administrative tasks so that their relative importance is consistent with the strategy that the organization will implement. This applies to such aspects as: the distribution of resources, the establishment of organizational relationships, the creation of auxiliary systems.
2. Establishing a correspondence between the chosen strategy and internal organizational processes in order to orient the activities of the organization towards the implementation of the chosen strategy. Compliance must be achieved in terms of such characteristics as: the structure of the organization, the system of motivation and incentives, the norms and rules of behavior, the sharing of values and beliefs, the qualifications of employees.
3. selection and alignment with the ongoing strategy of leadership style and approach to managing the organization.
All three tasks are carried out by means of change, which is the core of the execution of the strategy, it is called strategic change. Depending on the state of the main factors that determine the need and degree of change (the state of the industry, the state of the organization, the state of the product, the state of the market).
Can be distinguished four stable and characterized by a certain completeness type of change:
1. restructuring of the organization involves fundamental changes organization that affects its mission and culture. Such changes occur when an organization changes its industry and its product and market position change accordingly. In this case, the greatest difficulties arise with the implementation of the strategy, especially in the field of creating a new organizational culture, in the technological field in the labor market.
2. a radical transformation of the organization is carried out if the organization does not change the industry, but at the same time it undergoes changes caused by its merger with another organization or the emergence of new products. In this case, changes require intra-organizational changes regarding the organizational structure.
3. moderate transformation - is carried out when an organization enters the market with a new product and tries to attract customers to it. The changes relate to the production process, as well as marketing, especially in the part that is associated with drawing attention to a new product.
4. regular changes - associated with the implementation of transformations in the marketing sphere in order to maintain interest in the organization's product. These changes are not significant, and their implementation has little effect on the activities of the organization as a whole.
Remark: the unchanging functioning of the organization occurs when it consistently implements the same strategy, no changes are required, since the organization can get good results based on the accumulated experience.
Question 2. Areas for strategic change.
There are two environments of the organization that are the main ones when carrying out strategic changes:
1. organizational structure.
2. organizational culture.
Analysis of the organizational structure. From the perspective of the implementation process, the strategy aims to answer the following questions:
1. to what extent the organizational structure can contribute to or hinder the implementation of the chosen strategy
2. Which levels in the organizational structure should be entrusted with the decision of defining tasks in the process of implementing the strategy.
Factors influencing the choice of organizational structure:
The size of the organization the degree of diversity of its activities
Geographic location of the organization
Technology
Attitudes towards the organization of management and employees
Dynamism of the external environment
Strategy implemented by the organization
The organizational structure should correspond to the size of the organization and not be more complex than necessary for the existing size of the organization (usually the effect of the size of the organization on its structure manifests itself in the form of an increase in the number of levels of the organization's management hierarchy).
The impact of technology on the organizational structure is manifested in the following:
The organizational structure is tied to the technology used in the organization: the number of structural units and their relative position depend on it
The organizational structure should be built in such a way that it allows for technological renewal, it must facilitate the emergence and dissemination of ideas for technological development and the implementation of renewal processes.
If the external environment is stable, changes in it are insignificant, then the organization can apply mechanistic organizational structures that have little flexibility and require a lot of effort to change them.
The dynamism of the external environment largely determines what organizational structure the organization should choose.
If the external environment is dynamic, the organizational structure should be organic, flexible and able to respond quickly to external changes (such a structure should imply a high level of decentralization, the presence of greater rights for the unit structure in decision-making).
Organizational culture. Components of organizational culture:
1. philosophy that defines the meaning of the existence of the organization and its attitude towards employees and customers
2. prevailing values on which the organization is based and which relates to the goals of its existence, or to the means of achieving these goals.
3. norms behavior, separating the employees of the organization and status for individual members of the organization.
4. establishment of norms governing informal relations between persons of different sexes.
5. development of assessments regarding what is desirable in the behavior of employees and what is not.
The second group includes problems that the organization has to solve in the process of interaction with the external environment.
Question 3. development of the mission, goals and means to achieve them.
Primary factors that shape organizational culture:
Point of focus for senior management.
The response of management to critical situations that arise in the organization
Attitude towards work and style of behavior of managers
Criteria base for employee incentives
Criteria for selection, appointment, promotion and defining principles of relationships in the organization
- regulations, on which the “game” is played in the organization
The climate that exists in an organization and manifests itself in the way the atmosphere in the organization exists and how members of the organization interact with outsiders
Behavioral rituals, expressed in the organization of certain ceremonies, in the use of certain expressions, signs.
Organizational culture is formed as a response to the problems faced by the organization. One of these problems is the problem of integration of internal resources and efforts.
These include the following questions:
1. Creation of a common language and common terminology
2. establishing the boundaries of the group and the principles of inclusion and exclusion from the group.
3. creating a mechanism for empowerment and deprivation of rights, as well as fixing the definition of dismissal from the organization
Secondary factors:
1. organization structure
2. information transfer system and organizational procedures
3. external and internal design and decoration of the premises in which the organization is located
4. myths, stories about important events and people who played and still play a key role in the life of the organization.
5. formalized position on the philosophy and sense of existence of the organization.
27.11.04
Topic: "Problems of carrying out strategic changes and conflicts in the organization"
Difficulties in the task of making changes in the organization are due to the fact that any change meets resistance, sometimes so strong that it is not possible to overcome it by those who carry out the change.
To make a change, do the following:
1. uncover, analyze and predict what resistance a planned change may meet
2. reduce resistance (potential and real) to the minimum possible
3. set the status quo of the new state
Attitudes towards change can be viewed as a combination of the states of two factors:
1. acceptance or rejection of the change
2. open or covert demonstration of attitude towards change
Change-resistance matrix
Based on conversations, interviews, questionnaires and other forms of information gathering, management should find out what type of reaction to change will be observed in the organization.
Managers should remember that when implementing change, they should demonstrate a high level of confidence in its rightness and necessity and try to be as consistent as possible in implementing the change program. Of great importance in this case is complete information, constantly brought to the attention of the employees of the organization.
The style of change implementation has a big influence on resistance management.
The autocratic style is only useful in very specific situations that require the immediate elimination of resistance in making very important changes. In most cases, a more acceptable style is one in which leadership reduces resistance by bringing to its side those who initially resisted resistance.
Question 2. Conflicts in the organization.
Reasons for conflicts:
Limited resources
Task Interdependence
Differences in ideas and values, in goals, in the level of education, demeanor, as well as poor communication.
Methods of management in a conflict situation.
Conflict management methods are divided into interpersonal and structural.
Interpersonal:
1. evasion - a person tries to get away from the conflict, not to show in situations that provoke the emergence of contradictions, not to enter into a discussion of issues fraught with disagreement
2. smoothing - this style is characterized by behavior that is dictated by the belief that signs of conflict and bitterness should not be released. In this case, the parties appeal to the need for solidarity, unfortunately forgetting about the problem underlying the conflict. Sometimes the only way to resolve a conflict is to fixtures when you act in concert with the other party, but do not try to defend your own interests in order to smooth the atmosphere and restore a normal working environment
3. coercion - within the framework of this style, attempts to force people to accept their point of view at any cost prevail. A person using this style usually behaves aggressively, is not interested in the opinions of others, and uses power through coercion to influence non-employees.
4. compromise - this style is characterized by accepting the point of view of the other side, but only to some extent (through mutual concessions)
5. The style of cooperation is the most effective in resolving conflict situations, since in this case you find the most acceptable solution for both parties and become one of the partners' opponents. In this situation, all participants are involved in the process of conflict resolution, their desire to satisfy the needs of all prevails.
Structural conflict management methods:
1. clarification of job requirements - clarification of what results are expected from each employee and unit (level of results to be achieved, who provides and who receives different information, system of authority and responsibility, clear definition of policies, procedures and rules)
2. coordination and integration mechanisms - a chain of commands, the principle of unity of command, a managerial hierarchy, the creation of cross-functional and target groups.
3. Organization-wide comprehensive goals - the effective implementation of these goals requires the joint efforts of two or more employees, groups or departments. The goal is to direct the efforts of all participants to achieve a common goal.
4. structure of the reward system - rewards are used to influence people's behavior and avoid the dysfunctional consequences of conflict.
Topic: "Management analysis"
Question. Goals, principles and methods of management analysis.
Management analysis- the process of a comprehensive analysis of internal resources and capabilities of enterprises, aimed at assessing the current state of the business, its strengths and weaknesses, identifying strategic problems.
The ultimate goal of management analysis is to provide information to managers and other stakeholders for making strategic decisions, choosing a strategy that best suits the future of the enterprise.
In the process of such an analysis, the compliance of the internal resources and capabilities of the enterprise with the strategic tasks of ensuring and maintaining the competitive advantages of the enterprise, the tasks of meeting future market needs is revealed.
The need for management analysis is determined by the following factors:
1. It is necessary when developing an enterprise development strategy and in general for the implementation of effective management, since it is an important stage in the management cycle.
2. It is necessary to assess the attractiveness of the enterprise from the point of view of an external investor, which determines the position of the enterprise in national and other ratings.
3. Management analysis allows you to identify the reserves and capabilities of the enterprise, determine the direction of adaptation of the internal capabilities of the enterprise to changes in environmental conditions.
As a result of the internal analysis by the enterprise, a number of points are revealed:
1. overestimate or underestimate the company itself
2. it overestimates or underestimates its competitors
3. what demands of the market it betrays too much or too little value.
Groups of indicators for which an economic analysis is mandatory:
1. indicators characterizing the economic potential of the company.
2. indicators characterizing the economic activity of the company. These indicators include: the assets of the company, sales volume, indicators of gross or net profit, the number of employees, the scientific and technical potential of the enterprise.
Basic indicators:
1. profitability (balance sheet profit / ………..)
2. return on assets
3. rate of return on equity
4. rate of net return on equity
5. labor efficiency.
Question. Methodological principles of managerial analysis and the level of its implementation.
Principles:
1. system approach: an enterprise is considered as a complex system operating in an open systems environment and consisting in turn of a number of subsystems.
2. the principle of a comprehensive analysis of all constituent subsystems, elements of the enterprise.
3. dynamic principle and the principle of comparative analysis: analysis of all indicators in dynamics, as well as in comparison with similar indicators of competing firms.
4. the principle of taking into account the specifics of the enterprise (industry and regional).
There are three levels of managerial decision-making and, accordingly, three levels of analysis:
Corporate
Competitive (business or business level)
Functional.
The complexity of the analysis lies in the fact that the management decisions of these levels are closely related and at the same time have a hierarchical structure.
Isolation of the level of individual activities (business units) significantly complicates the task of managerial analysis, since this level of decision-making is the least developed and least formalized in Russian enterprises.
Question 1. Methods of management analysis:
1. situational analysis
2. portfolio analysis
3. Desk research: work with accounting documents, statistical and other internal company information.
4. observation and interviews of employees of the enterprise using special methods (diagnostic interview)
5. brainstorming, conferences and other teamwork methods
6. expert opinions
7. mathematical methods - trend analysis, factor analysis, calculation of averages, special coefficients.
The main methods for obtaining high-quality information are: a conversation with managers and specialists of the enterprise, experts, questionnaire surveys of employees, as well as various methods of group work, which allows you to develop an agreed view and position on the issues under discussion.
The inconsistency of information is determined by the position of a specialist in the enterprise management system (view from his own level) and the lack of skills to comprehend his own activities.
Question. Organization problems.
The problem is understood as the inconsistency of the managed object with the goals set by the managing subject (manager).
A problem is a contradiction in an organization that requires a managerial solution.
The involvement of consultants to identify and identify problems of the organization gives the following advantage: the novelty of information about the state of the organization, access to the main problem, the solution of which will remove other problems or reduce their severity.
The main problem of most Russian enterprises lies in the contradiction between the external market environment and the internal production organization.
Types of organization problems:
1. essential - they can't decide whether it is only possible to reduce their severity in specific situations and avoid their aggravation (for example, the contradiction between stability and development of an enterprise). The problem of departmentalization is one of the essential problems. Its essence lies in the hierarchy of building an enterprise in the need to divide the general goal of the enterprise into more specific goals, and those, in turn, into local goals and subgoals. Under these conditions, each division is inclined to exaggerate the significance of its goal, to interpret it in its own way, imposing personal and group interests on it.
2. socio-cultural problems - they do not always occur, their presence depends on a certain type of business and organizational culture.
3. situational problems - may appear due to the mistakes of specific managers, due to a special set of circumstances. Such problems are always specific: they exist in one enterprise, but not in another.
Topic: "Determination of the strategic resources of the enterprise and areas of activity"
Management analysis is always focused on profitability, despite the specifics of its implementation at a particular enterprise, a number of typical blocks can be distinguished in its structure:
1. goals of the enterprise.
2. order book, new products
3. resource potential of the enterprise
4. factorial analysis of costs (the cost of the enterprise)
5. availability of financial resources, possible sources of funds.
6. management system: structure, qualifications of managers, staff motivation, management culture and traditions….
The basis of management analysis is the analysis of current activities, and the main problem is the assessment of this activity in terms of ensuring future long-term profit (indicators: profitability, risk level, market share, asset value, share of new products).
The success of managerial analysis is associated with the definition of the area of freedom, which determines the process of strategic choice. In doing so, it is useful to analyze the following aspects:
1. past and current strategy
2. strategic issues
3. organizational opportunities and limitations
4. financial opportunities and limitations
5. organizational flexibility, strengths and weaknesses
11.12.04
The strategic problem involves awareness, identification and a clear constructive formulation of the problem, involving certain methods for solving it. In this case, the problem can be aimed both at overcoming the identification of weaknesses and at developing the capabilities of the enterprise.
The organization of enterprise capabilities, such as: structure, management system, established corporate culture and customs, labor motivation system, management team, in any situation can be a source of strengths and weaknesses of the enterprise. The most important part of management analysis is the analysis of the financial obligations of the enterprise in terms of paying taxes, as well as the structure of the debt.
Flexibility can be achieved in several ways:
1. a diversification strategy as a means of adapting to changes in the external environment.
2. investment in personnel training, formation and evaluation of managerial alternatives.
The determination of the strengths and weaknesses of an enterprise is based on its resources and strategically important areas of activity. These parties are always relative (relative to the main competitors or given standards).
Approaches to identify strengths and weaknesses can be as follows:
1. internal (opinion of enterprise specialists)
2. external (comparison with competitors)
3. normative (as it should be)
Question. Competitive advantages of the enterprise
These are unique tangible and intangible resources owned by the enterprise, as well as strategically important business areas for this enterprise, which allow you to run in the competition.
Competitive advantage can be defined as the high competence of the company in any area that gives the best opportunity to overcome the forces of competition, attract customers and maintain their commitment to the company's products.
Tangible (material) resources- physical and financial assets of the enterprise, which are reflected in the balance sheet (fixed assets, stocks, cash)
It is possible to increase the efficiency of the enterprise (improve the use of these resources) in the following ways: reducing inventories, work in progress, improving the use of fixed assets, saving resources.
Intangible (intangible) resources are the characteristics of the company:
1. intangible assets not related to people - brand, know-how, prestige, company image,
2. intangible human resources (human capital) - personnel qualification, experience, competence, popularity of the management team.
Other important sources of competitive advantage, the strengths or weaknesses of an enterprise can be individual strategic areas of its activity: production, sales, scientific development, marketing, finance, personnel management.
The weak side of almost all Russian enterprises is sales and financial management, while the strengths can be: a monopoly position (energy, railway transport), highly efficient production, availability of sources of raw materials (gas production).
For the consumer, brand awareness, advantageous location, opening hours, highly qualified personnel are of great importance.
Question. Goals and main stages of portfolio analysis.
Enterprise portfolio (corporate portfolio) is a set of relatively independent business units (strategic business units) owned by one owner.
Portfolio analysis - a tool by which the company's management identifies and evaluates its economic activity in order to invest in the most promising and profitable areas and reduce (terminate) investments in inefficient projects.
At the same time, the relative attractiveness of the markets and the competitiveness of the enterprise in each of these markets are assessed. The company's portfolio must be balanced, that is, it must be the right combination of units or products that need capital for growth, with business units that have some excess capital.
The purpose of the portfolio analysis method is to help the manager understand the business, create a clear picture of the formation of costs and profits in the diversification of the company.
Portfolio analysis helps to solve the following problems:
1. coordination of business strategies or strategies of business units of the enterprise
2. distribution of human and financial resources between departments
3. Portfolio balance analysis
4. setting performance targets
5. restructuring of the enterprise.
The main advantage of portfolio analysis is the possibility of logical structuring, a visual reflection of the strategic problems of the enterprise, the simplicity of the results presented, and the emphasis on the qualitative aspects of the analysis.
Portfolio analysis scheme:
1. all activities of the enterprise are divided into strategic business units:
The business unit must:
Serve the market, not other divisions
Have your customers and competitors
Business unit management must control the key factors that determine success in the marketplace.
2. The relative competitiveness of these business units and the prospects for the development of the respective markets are determined.
3. A strategy is developed for each business unit (business strategy) and business units with similar strategies are combined into homogeneous groups.
4. management evaluates the business strategies of all departments of the enterprise in terms of their compliance with corporate strategy, commensurate with the profit and resources required by each department.
The main disadvantage of portfolio analysis is to use data about the current state of the business, which cannot always be extrapolated into the future.
Description of the presentation Lectures on the course STRATEGIC MANAGEMENT A. I. Momot on slides
1. The concept of "strategy" and "strategic management" The word strategy is very ancient and it comes from the Greek strategia - the art or science of being a commander. The importance of generals in ancient Greece was obvious. History shows that the most talented and successful commanders attached great importance to the correct organization of the army's support, as well as decisions when to enter the battle and when to enter into negotiations with the people, politicians, diplomats. They were strategists. In ancient China, between 480 and 221 BC, a book called The Art of Strategy (Sun Tzu and Wu Tzu) was already written by Sun Tsu, wrote: “He who won hundreds of victories in hundreds conflicts, is unlikely to have high skill. He who is highly skilled in the use of strategy conquers others without coming into conflict with them.
1. Strategy is a means to an end result. At the same time, it unites all parts of the organization into a single whole and covers all the main aspects of the organization. 2. Strategy is a long-term comprehensive plan that ensures the implementation of the mission and achievement of the economic goals of the organization. The strategy defines the goals and the main ways to achieve them so that the organization receives a single direction of action. 3. Strategy is the result of analyzing the strengths and weaknesses of the organization, as well as identifying opportunities and obstacles for its development. It defines the boundaries of possible actions of the organization and management decisions. Thus, the Strategy is a set of rules that guide the organization in making managerial decisions. At the same time, the strategy can be seen as an overall comprehensive plan designed to ensure the implementation of the mission and achievement of the goals of the organization.
The term “strategic management” was introduced at the turn of the 60s and 70s in order to designate the difference between current management at the production level and management carried out at the highest level. The need to fix this kind of difference was caused primarily by changes in business conditions. The leading idea, reflecting the essence of the transition from operational to strategic, was the idea of the need to shift the top management's focus to the environment in order to respond appropriately and in a timely manner to the changes taking place in it.
Strategic management was born evolutionarily from strategic planning, which is its essential basis. It is of increasing interest to organizations that face difficulties in implementing fundamentally new strategies. The essence of strategic management lies in the fact that in the organization, on the one hand, there is a clearly organized integrated strategic planning, on the other hand, the organization's management structure is adequate to "formal" strategic planning and is designed in such a way as to ensure the development of a long-term strategy to achieve goals and create managerial mechanisms for implementing this strategy through a system of plans. In strategic management, the interests of all stakeholders with whom the interests of the enterprise intersect should be taken into account.
2. Experience of countries in the application of strategic management The most striking and successful example of the application of strategic management is the development practice of one of the countries of Southeast Asia - Japan. Before the start of World War II in 1939, Japan occupied a leading position in the global textile industry, engineering, metallurgy, and other industries, but after it ended, the country's economic power was greatly decimated. At the end of the 40s, the situation in the world began to change dramatically. The world market was quickly saturated and began to demand high quality products. A severe crisis deepened in Japan. The nation faced an alternative: either starvation, or the search for an effective way out of the situation. To revive the former economic stability, the Japanese authorities focused on setting strategic goals in priority areas, including: - in the field of science and technology - as well as on high-quality training of workers.
Country experience in applying strategic management 1. Establishing widespread control over exports and imports of products. Total control over export-import processes was undertaken, the import of foreign finished products that could drown out Japanese industry was prohibited, but the import of modern Western-made technologies was encouraged, which was ultimately aimed at developing the Japanese technology industry. 2. Full support for domestic manufacturers with the priority goal of producing high quality products. At the state level, producers of new products were supported, and dealers were in an enviable position, pressure in their direction made this type of activity unprofitable. As a result, the number of primary producers increased and thus the national wealth increased more rapidly. 3. In the field of banking and financial services, the suppression of speculative activities, since they only contributed to the enrichment of a narrow circle of people and did not contribute to economic progress. In the banking sector, only manufacturing enterprises received the most favorable conditions for obtaining capital (the interest rate for them was the lowest). 4. The introduction of a system of lifetime employment, which did not support competition for jobs in different firms (which led to large financial injections into the professional training of employees), but promoted competition between employees of one firm, as a result of which the power of the company grew due to the high efficiency of the workforce .
Achieving goals The meaning of a person's existence is determined by the achievement of his life goals. The same can be said about the existence of any organization, be it commercial, public, charitable or state. Any enterprise, association or individual entrepreneur pursues its own goals, which are the reasons for their existence and functioning. Consider different types of goals and build a tree of goals using the example of an organization.
Formation of goals according to the priorities of consumer products, according to the stages of the "life cycle" The goal is one of the elements of human behavior and conscious activity, characterized by the anticipation in thinking of the result of the activity and the way to implement it using certain means Mission is a very big goal that causes a state of aspiration in the members of the organization to something. The mission is the formulation of a long-term vision of the meaning of the organization and the expression of the essence of its activities. At the same time, goals give a more specific and detailed idea of the expected development of the organization in a particular area of its activity. Mission statement is nothing more than an answer to the question: why does an organization (or a person) do what she (or he) does? Mission - is the satisfaction of members of society, their needs for a particular product or service On the basis of the mission, long-term goals of the organization or qualitative results are formulated that will not be achieved outside the planned period, but which the organization is going to approach within this period.
Classification of strategic management goals Depending on the specifics of the industry, the characteristics of the state of the environment, the nature and content of the mission: Market goals (or external program goals): in the field of marketing, for example: - sales volume in kind and in value terms; - the number of clients; - market share. Production goals (internal) are a consequence of market ones. They include everything that is necessary to achieve market goals (with the exception of organizational resources), for example: - to ensure a certain volume of production (production volume \u003d sales volume - existing stocks + planned stocks); — build a workshop (the volume of capital construction); — to develop a new technology (conducting research and development work).
Organizational goals - everything related to the management, structure and personnel of the organization, for example: - recruit three marketers; — bring the average salary level of employees to the salary level of the leader in the market; - Implement a project management system. Financial goals - link all the goals in terms of value: - net sales (from "market goals"); - the amount of costs (from "production" and "organizational" goals); — gross and net profit; - profitability of sales, etc. You can set goals in a different order: from financial to market and production.
TREE OF GOALS The basis for building the top of the tree of goals is a set of strategic goals defined within the framework of the organization's strategy. Here, attention should be paid to the fact that not only those goals that determine the direction of strategic development, but also long-term goals related to maintaining the functioning of the management system and subsystems related to production and provision should be recognized as strategically significant. The achievement of strategic goals is ensured by the achievement of both operational (regular, permanently achieved) goals and project (unique in their content) goals. The goals within the model need to be carefully classified and structured appropriately within the diagrams so that they become presentable and as clear as possible to their reader. The selection, description and hierarchical ordering of each of the goals is carried out by performing a number of relevant analytical procedures and procedures for approval and approval. For each of the goals defined at the lower level of detail, as far as possible, the requirements of SMART (Specific - specific; Measurable - measurable; Achievable - achievable; Realistik - realistic; Timed - limited in time) apply.
Tab. 2. Goals and characteristics by stages of the organization's life cycle Stage of the life cycle of the organization Main goal Management Characteristics of the stages 1. "Birth" Survival One-man management Enter the market 2. "Childhood" and "youth" benefits 3. “Maturity” Profit growth Delegation of powers Division and cooperation of labor, bonuses 4. “Ageing” Preservation of achieved results Coordination of actions Free work of personnel, profit sharing 5. “Revival” or disappearance Ensuring revival of all functions One-man management Implementation of an innovative approach staff rejuvenation
Stages of the life cycle of an organization The birth of any organization is associated with the need to meet the interests of consumers, with the search for and occupation of a free market niche. The main goal of the organization at this stage is survival. It requires leadership qualities such as faith in success, willingness to take risks, efficiency. Characteristic of the birth stage is a small number of partners. Particular importance at this stage should be given to everything new and unusual. "Childhood" . The stage is associated with risks, since it is during this period that the growth of the organization is disproportionate compared to the change in managerial potential. At this stage, most newly formed firms fail due to the inexperience and incompetence of managers. The main task during this period is to strengthen its position in the market, competitiveness. The main goal of the organization at this stage is short-term success and rapid growth. "Youth". This is a period of transition from complex management, carried out by a small team of like-minded people, to differentiated management using simple forms of financing, planning and forecasting. The main goal of the organization during this period is to ensure accelerated growth and, as a rule, the complete capture of its part of the market. Intuitive assessment of risk by the management of the organization is no longer sufficient. It needs specialists with highly specialized knowledge.
Stages in the development of strategic management Business historians usually distinguish four stages in the development of strategic management: budgeting, long-term planning, strategic planning, and strategic management.
Budgeting until the 1950s. In the era of the formation of giant corporations before the Second World War, special planning services were not created in companies. Top executives of corporations regularly made plans for the development of their business, but formal planning was limited only to the preparation of annual financial estimates - budgets by item of expenditure for various purposes. However, due to changes in the external environment, the plans were not fulfilled. A feature of budgetary and financial methods is their short-term nature and internal orientation, i.e., the organization in this case is considered as a closed system.
Long-term planning - 50-60s. In the 1950s and early 1960s, the characteristic conditions for the operation of companies were the high growth rates of commodity markets and the relatively high predictability of trends in the development of the national economy. These factors created the conditions for the development of long-term planning. The method is based on forecasts of the company's work for several years ahead. Long-term planning was based on extrapolation of past trends in the development of the firm. The main task of managers was to identify financial problems that create an obstacle to the growth of the firm. Sales volumes, the availability of resources were not planned, as a result, products accumulated at enterprises, sales were difficult, firms did not work stably. This approach, better known to us as the method of "planning from what has been achieved", was widely used in the conditions of centralized management of the Soviet economy.
Strategic planning - 60-70s. In the late 1960s, as the crisis grew and international competition intensified, extrapolation forecasts began to diverge from the real figures. To overcome the emerging shortcomings, the concept of strategic planning began to develop. It is based on the analysis of both the internal capabilities of the organization and external competitive forces and the search for ways to use external opportunities, taking into account the specifics of the organization. Thus, the goal of strategic planning is to improve the company's response to market dynamics and the behavior of competitors.
Strategic management - after the 90s. By the 1990s, most corporations around the world had begun the transition from strategic planning to strategic management. Strategic management is defined as a set of not only strategic management decisions that determine the long-term development of an organization, but also specific actions that ensure a quick response of an enterprise to a change in the external environment, which may entail the need for a strategic maneuver, revision of goals and adjustment of the general direction of development.
Strategic management In contrast to strategic planning, strategic management includes: the processes of implementing the strategy, evaluation and control. Strategic management means that the management process must be proactive, not reactive, that is, it is necessary to influence events in the external environment, and not just react to them.
Strategic management is associated with setting the organization's goals and maintaining certain relationships with the environment that allow it to achieve its goals and correspond to its internal capabilities. The potential that ensures the achievement of the organization's goals in the future is one of the end products of strategic management. The organization's potential and strategic opportunities are determined by its architectonics and the quality of its personnel. The architectonics of an organization can be: technology, production equipment, facilities, their capacities and capabilities, equipment, its capabilities and capacities for processing and transmitting information, power structure, distribution of job functions and powers to make decisions, organizational tasks of individual groups and individuals , · internal systems and procedures, · organizational culture, norms and values that underlie organizational behavior.
Functions of strategic management Strategic management involves the implementation of the following functions: 1. Analysis of the external and internal environment of the company; 2. Definition of the mission of the company and its goals; 3. Dividing the overall goal into subgoals; 4. Determining the means to achieve these goals; 5. Choice of strategy; 6. Implementation of a strategy aimed at achieving goals; 7. Evaluation and control of the implementation of the strategy.
4. The essence and necessity of strategic planning for the development of socio-economic systems Among the objects of strategic management, there are three groups: 1. Organization, as an open complex socio-economic system, representing a set of structural divisions. 2. A structural subdivision is a direction of an organization's activity, an independent market-oriented business unit that can act as a full-fledged competitor in its market segment, has its own circle of suppliers, consumers and competitors. 3. The functional area of the organization is a field of activity represented by functional structural units that specialize in performing certain functions.
The essence and necessity of strategic planning for the development of socio-economic systems The main task of strategic planning is to predict the possible risks of doing business in order to reduce them or minimize the likelihood of their occurrence. First step. . Analysis of the current state of the organization with an objective assessment of its strengths and weaknesses, search for decisions that need to be taken to correct or eliminate factors that impede the organization's profitability in the future. The second stage of strategic planning is the analysis of potential crisis situations and an assessment of the likelihood of their occurrence. At the third stage, a portfolio of alternative action plans in crisis situations is formed. A portfolio of such plans is of great value in terms of increasing the speed of reaction to changes in the external environment, and which can be used to cover misses in the strategy. Thus, one of the advantages of strategic planning is that . that it gives the organization the opportunity to respond before it itself suffers from a crisis
Environmental analysis serves as a tool by which strategists monitor factors external to the organization in order to anticipate potential threats and newly emerging new opportunities. Threats and opportunities can manifest themselves in seven areas of the external environment, and the factors that are analyzed are grouped accordingly. There are the following groups of factors, the study of which allows you to get a complete picture of the emerging trends in the development of the external environment of the organization: 1. Economic (inflation (deflation), tax rate, international balance of payments, employment level, solvency of the enterprise), 2. Political, 3. Market, 4. Technological, 5. Competition factors, 6. Social 7. International factors.
Types of environment There are four main types of environment. 1. A changing environment that is characterized by rapid change. These can be technical innovations, economic changes (changes in inflation), changes in legislation, innovations in competitor policies, etc. Such an unstable environment, which creates great difficulties for management, is inherent in the Russian market. 2. Hostile environment created by fierce competition, the struggle for consumers and markets. Such an environment is inherent, for example, in the automotive industry in the United States, Western Europe and Japan.
3. A diverse environment is inherent in global business. A typical example of a global business is McDonald's, which operates in many countries (and therefore is associated with serving numerous customers who speak different languages), with diverse cultures and gastronomic tastes of consumers. This diverse environment affects the activities of the company, its policy of influencing consumers. 4. Technically difficult environment. In such an environment, electronics, computer technology, and telecommunications are developing, which require complex information and highly qualified service personnel. Strategic management of enterprises in a technically complex environment should be focused on innovation, as products in this case quickly become obsolete. To analyze and forecast the external environment of the organization, PEST -, SNW -, SWOT analysis is used.
PEST analysis is a tool designed to identify the political, economic, social and technological aspects of the external environment that can affect a company's strategy. Politics is studied because it regulates power, which in turn determines the company's environment and the acquisition of key resources for its activities. The main reason for studying the economy is to create a picture of the distribution of resources at the state level, which is the most important condition for the activity of an enterprise. No less important consumer preferences are determined using the social component of PEST - analysis. The last factor is the technological component. The purpose of her research is considered to be the identification of trends in technological development, which are often the causes of changes and market losses, as well as the emergence of new products. PEST analysis is not common to all organizations, as each of them has its own specific set of key factors. PEST (Policy, Economy, Society, Technology))
PEST - analysis
SNW analysis is an advanced strengths and weaknesses analysis. Strength (strong side), Neutral (neutral side), and Weakness (weak side). In contrast to the analysis of weaknesses and strengths of SNW, the analysis also offers an average market condition (N). The main reason for adding a neutral side is that "often, to win the competition, it may be sufficient to have a given organization with respect to all its competitors in all but one of its key positions in state N, and only one in state S" . To compile an SNW - analysis, you must fill out the following table: SWOT analysis is one of the first stages of strategic planning. The idea of SWOT analysis is as follows: a) making efforts to turn weaknesses into strengths and threats into opportunities; b) developing the strengths of the firm in accordance with its limited capabilities.
Methods of responding to changes in environmental factors In practice, various methods of responding to changes in environmental factors are used. The most common among them are the following approaches: “fighting fire”, or reactive management style. This post-change management approach is still common in many Russian enterprises; expansion of areas of activity, or diversification of production, capital as a means of possible reduction of commercial risk when environmental factors change; improvement of the organizational structure of management to increase its flexibility. In this case, the enterprise can create profit centers, strategic business units and other flexible structures focused on achieving final results; — strategic management. The analysis of the external environment serves as a tool, with the help of which the developers of the strategy control factors external to the organization in order to anticipate potential threats and outward interference. He pozvolyaet opganizatsii cvoevpemenno cppognozipovat poyavlenie ygpoz and vozmozhnoctey, pazpabotat cityatsionnye plany nA clychay vozniknoveniya neppedvidennyx obctoyatelctv, pazpabotat ctpategiyu, kotopaya pozvolit opganizatsii doctignyt tseley and ppevpatit potentsialnye ygpozy in vygodnye vozmozhnocti.
5. Strategic management Currently, scientists distinguish five main stages of strategic management: FIRST STAGE. Determining the scope of activities and developing the mission of the organization. SECOND PHASE. Development of long-term and short-term goals of the organization. THIRD STAGE. Development of a strategy for achieving the goals of the activity. FOURTH STAGE. Implementation of the organization's strategy. FIFTH STAGE. Evaluation of the effectiveness of the strategy based on the results of the organization's activities and the introduction of corrective actions. Since the conditions of modern business are extremely dynamic, this process is continuous and is a constantly renewed cycle with intense feedback. In addition, the boundaries between the phases of the cycle are rather conditional.
FIRST STEP. Determining the scope of activities and developing the mission of the organization. Determination of the scope of the organization involves: - determination of the needs to be satisfied; – identification of consumers; – determining how to meet the needs of specific consumers. That is, it is necessary to answer the question: “What, for whom and how do we produce? “For example, ZAO Metallprom defined its business as follows: “Those who want to win the client's trust are looking for a way, those who do not want to look for a reason” Company Mc. Donald's did it this way: "Providing hot, tasty food in a clean restaurant for a reasonable price."
Examples of missions The mission of an organization is a verbally expressed main socially significant functional purpose (role) of an organization in the long term (in addition to making a profit), reflecting the purpose of the business, its philosophy. This term literally means "responsible task, role". The mission helps to define what the company really does, while it focuses on the consumer, not on the product. Therefore, the definition of the mission implies an answer to the question: “What value can the firm bring to consumers, while achieving greater success in the market? » Examples of missions: “Two centuries of tradition – a guarantee of quality” (Foil Rolling Plant, St. Petersburg). “We save your time and money” (Inkombank). "Is not subject to the elements" (Oneximbank).
SECOND PHASE. Development of long-term and short-term goals of the organization's activities After formulating the mission, it is necessary to determine the long-term (3 - 5 years or more) and short-term (1 - 2 years) goals of the organization. There are eight key areas in which the company defines its goals. 1. Market position. Market goals may be gaining leadership in a certain market segment, increasing the company's market share to a certain size. 2. Innovation. Targets in this area are associated with the definition of new ways of doing business: organizing the production of new goods, developing new markets, using new technologies or methods of organizing production. 3. Performance. More efficient is the enterprise that spends less economic resources on the production of a certain amount of products. 4. Resources. The need for all types of resources is determined. 5. Profitability (profitability). These goals can be expressed quantitatively: to achieve a certain level of profit, profitability. 6. Management aspects. It is possible to ensure profit in the long term only through the organization of effective management. 7. Staff. Goals in relation to personnel may be related to the preservation of jobs, ensuring an acceptable level of remuneration, improving working conditions and motivation, etc. 8. Social responsibility. Currently, most Western economists recognize that firms should focus not only on increasing profits, but also on the development of generally recognized values.
The goals of the enterprise must meet the following characteristics: 1. The goals must be specific and measurable. 2. Goals should have a specific planning horizon, that is, determine when the results should be achieved. 3. The goal must be achievable. 4. The goals must be flexible and have room for their adjustment due to unforeseen changes in the external environment and internal capabilities of the enterprise. This ensures that the goals are attainable. 5. The multiple goals of the enterprise should be comparable and mutually supportive.
THIRD STAGE. Strategy formulation Strategy formulation is a management function that consists in formulating the mission of the organization, determining the goals of the activity and creating a strategy. The end product of a strategy formulation is a strategic plan. Strategic plan - a document containing the purpose of the organization, its development directions, long-term and short-term objectives and development strategy. The strategy is necessary both for the whole company as a whole and for its separate connecting links - scientific research, sales, marketing, finance, human resources, etc. FOURTH STAGE. Implementation of the organization's strategy. FIFTH STAGE. Evaluation of the effectiveness of the strategy based on the results of the organization's activities and the introduction of corrective actions. The last two stages are considered together, since they do not have clear distinctions. In the process of implementing the strategy, it is constantly evaluated and adjusted. Strategy implementation is not only a function of top management, but a job for the entire management team. All managers act as implementers of the strategy within their powers and responsibilities. The last stage is a bridge that returns the company to the original first points, but at a qualitatively new level.
FIFTH STAGE. Evaluation of the effectiveness of the strategy based on the results of the organization's activities and the introduction of corrective actions. The last stage is a bridge that returns the company to the original first points, but at a qualitatively new level. Thus, the process of strategic management can be represented as a continuous upward spiral.
Fundamental differences between strategic management and operational management. Strategic management Characteristics Operational management Organization's long-term survival through dynamic balance with the environment Mission, purpose. Production of goods and services in order to generate income from the sale A look outside the organization, the search for new opportunities in the competitive struggle. The object of concentration. Looking inside the organization, looking for ways to use resources more efficiently. Long-term orientation. Accounting for the time factor Orientation to the short and medium term People, information support systems, market. The basis for building a control system. Functions and organized structures, procedures, technique and technology. A look at employees as the basis of the organization, its main value and source of well-being Approach to personnel management. A look at employees as resources of the organization, as performers of individual works and functions. The timeliness and accuracy of the organization's response to environmental changes. Management efficiency criteria. Profitability and rationality of the use of production potential.
Theoretical foundations of strategic management Management levels Characteristics of management levels Competences of managers at various levels Strategic Top managers - a clear definition of the mission; the reaction of managers to all changes within and around the enterprise; development and evaluation of alternatives; creation of infrastructure to improve the work of the company Tactical Middle managers - the formation of tasks for structural divisions; study of deviations from goals; assessment of the validity of decisions; use of information, both external and internal; development of measures to protect enterprises from negative consequences. Operational Managers of the middle and lower levels - providing solutions to specific problems of the functioning of the company.
1. 3. Basic principles of strategic management Strategic management has its own laws that should be taken into account when developing a company's development strategy. The following basic principles stand out: 1. Reasonable and conscious choice of goals and strategy for the development of the organization. Goals must be achievable and consistent. 2. Constant search for new forms and activities aimed at strengthening existing advantages, identifying and strengthening new ones. 3. Ensuring correlation between the organization and the external environment that controls and manages the subsystems of the organization and its elements. 4. Individualization of strategies. Each strategy is unique in the sense that it has features due to the existing composition of personnel, economic potential, culture and other features. 5. Each strategy consists of two parts: planned and random, which appeared under the influence of the external environment. 6. Clear organizational separation of strategic management tasks and operational management tasks
Topic 3. STRATEGIC MANAGEMENT AS A PROCESS OF ACCEPTANCE AND IMPLEMENTATION OF STRATEGIC DECISIONS. . Structure and content of management decisions. Classification of solutions and requirements for them. Strategic management is the process of making and implementing strategic decisions, the central link of which is a strategic choice based on a comparison of the enterprise's own resource potential with the opportunities and threats of the external environment in which it operates. Strategic decisions are at the heart of strategic management. Strategic decisions are management decisions that: are future-oriented and lay the foundation for making operational management decisions; are associated with significant uncertainty, since they take into account uncontrollable external factors affecting the enterprise; are associated with the attraction of significant resources and can have extremely serious, long-term consequences for the enterprise. Strategic decisions include: reconstruction of the enterprise; introduction of innovations; organizational changes; entering new markets; acquisition, mergers of enterprises, etc. A managerial decision is a volitional, creative action of a management subject. It consists in choosing the best alternative from a set of reasonable options for achieving a specific goal of managing an object.
Strategy of innovative enterprises. Growing industries in the world are microelectronics, communications and communications, biotechnology, computer science and services. Success in growing industries is achieved through innovation (novelties) and offensive strategy. Growing innovative enterprises face two main challenges: How to make innovation cost-effective and recoup its costs? How to protect yourself from followers who, without spending a lot of money on the development of new products, simply copy products after they appear on the market? Leading firms have a common main goal - to maintain a leading position, and they try to achieve it in two possible ways. The first way is an offensive strategy, which is aimed at finding new consumers of the product, expanding the scope or frequency of use of the product. The second way is a defensive strategy aimed at protecting your market, countering the most dangerous competitors, as well as protecting imitators from competitors. This strategy consists of acquiring patents, know-how, innovation, using additional resources and confronting competitors in a price fight.
Building a strategic pyramid In a large, differentiated company, strategies are developed at four different organizational levels: 1. Corporate strategy (strategy for the company and its areas of activity as a whole). 2. Business strategy (for each separate type of company activity). 3. Functional strategy (for each functional area of a certain area of activity). Each area of activity has a production strategy, strategies for marketing, finance, etc. 4. Operational strategy (a narrower strategy for the main structural units: factories, sales regional representatives and departments (within functional areas).
1 . Introduction to strategic managementwellcop
1.1 Prerequisites for the emergence and etapas developstrategic management
Strategic management is a rapidly developing area of science and management practice that has emerged in response to the increasing dynamism of the external business environment. The theory of strategic planning and management was developed by American business researchers and consulting firms, then this apparatus entered the arsenal of intra-company planning methods in all developed countries.
Currently, there are many definitions of strategy, but all of them are united by the concept of strategy as a conscious and thoughtful set of norms and rules that underlie the development and adoption of strategic decisions that affect the future state of the enterprise, as a means of communication between the enterprise and the external environment. "Strategy - thisabout the general program of eventsTvii, identifying the priorities of problems and resources to achieve the main goal. It formulates the main goals and the main ways to achieve them in such a way that the enterprise receives a single direction of movement.
"Strategic management - it is the process of making and implementing strategic decisions, the central link of which is the strategistAndlogical choice based on comparison of one's own resource potnof the enterprise with the opportunities and threats of the external environment in which it operates. Strategy can be seen as the main link between what an organization wants to achieve: its goals and the course of action chosen to achieve those goals. .
The term "strategic management" was introduced at the turn of the 1960s-70s. in order to distinguish between current management at the production level and management carried out at the highest level. The need for such a distinction was caused by the transition to a new model of managing the development of an organization in a changing environment.
There are four factors-conditions that determine the relevance of strategic management:
1. In the second half of the twentieth century. the number of tasks caused by internal and external changes has steadily increased. Many of them were fundamentally new and could not be solved based on the experience gained in the first half of the 20th century.
2. The multiplicity of tasks, along with the expansion of the geographical scope of the activities of national economies, led to a further complication of management problems.
3. The role of the highest level of management increased, while the totality of managerial skills developed in the first half of the century was less and less consistent with the conditions for solving the problems that arose.
4. The instability of the external environment increased, which increased the likelihood of strategic sudden changes, their unpredictability.
The use of flexible management has become extremely important, which would ensure the adaptation of the enterprise to a rapidly changing environment. Timely response to emerging changes was achieved through strategic management of the enterprise development.
Fast environmental changes domestic enterprises also stimulate the emergence of new methods, systems and approaches to management. If the external environment is practically stable, then there is no particular need to engage in strategic management.
However, at present, most Russian enterprises operate in a rapidly changing and difficult to predict environment, therefore, they need strategic management methods.
integrationsmi processes. In Russian business, industrial groups are emerging that unite technologically related enterprises, there is an active process of formation of financial and industrial groups (FIGs), commercial companies almost simultaneously with the creation of the main business began to organize financial and commercial groups
business globalization, which affected our country. Global firms view the world as a single whole, in which national differences and preferences are erased, and consumption is standardized. Products of global firms - Mars, Siemens, Sony, Procter & Gamble, L0 real and many others are sold in all countries of the world and are an important competitive factor in national markets. It is possible to resist the onslaught of the goods of global firms only by acting by similar methods, i.e. developing a strategy for working in a competitive environment.
Stages of development of strategic management through a corporate planAnding
The emergence of strategic management techniques and their implementation in the practice of firms is easiest to understand in a historical context. Business historians usually distinguish four stages in the development of corporate planning: budgeting, long-term planning, strategic planning, and finally strategic management.
1. Budgeting. In the era of the formation of giant corporations before the second world war special planning services, especially long-term ones, were not created in companies. The top managers of corporations regularly discussed and outlined plans for the development of their business, however, formal planning related to the calculation of relevant indicators, maintaining financial reporting forms, etc., was limited only to the preparation of annual financial estimates - budgets by item of expenditure for various purposes.
Budgets were drawn up, firstly, for each of the major production and economic functions (R & D, marketing, capital construction, production). Secondly, for individual structural units within the corporation: departments, factories, etc. Similar budgets in the modern economy also serve as the main tool for distributing intra-corporate resources and monitoring current activities. A feature of budgetary and financial methods is their short-term nature and internal orientation, i.e. the organization in this case is considered as a closed system. When using only budgetary and financial methods, the main concern of managers is the current profit and cost structure. The choice of such priorities naturally poses a threat to the long-term development of the organization.
2. Long term planning. IN 1950 - X- early 1960 - X years, the characteristic conditions for the management of American companies were the high growth rates of commodity markets, the relatively high predictability of trends in the development of the national economy. These factors necessitated the expansion of the planning horizon and created the conditions for the development of long-term planning.
The core idea of the method is to make a sales forecast for the company for several years ahead. At the same time, due to the slow increase in the characteristics of the variability of the external environment, long-term planning was based on the extrapolation of past trends in the development of the company. The main indicator - sales forecast - was based on extrapolation sales in previous years. Further, on the basis of the control figures specified in the sales forecast, all functional plans for production, marketing, and supply were determined. Finally, all plans were aggregated into a single corporate financial plan. The main task of managers was to identify financial problems that were limiting the growth of the firm. In other words, are the firm's internal resources sufficient, or is it necessary to resort to borrowed funds?
This approach, better known to us as planning-to-achievement methodGchick, was widely used in the conditions of centralized management of the Soviet economy. The main guidelines for enterprises were production volumes set from above, and not sales volumes, as in a market economy, the achievement of which, as a rule, was limited by limited resources. With this approach, the calculations of the payback of capital investments, the comparison (discounting) of costs over time were widely used.
3. Strategic planning. In the end 1960 - X years, the economic situation in many industrialized countries has changed significantly. As the crisis escalated and international competition intensified, extrapolation projections began to diverge more and more from the real figures, with the most typical phenomenon being setting optimistic goals that did not match the real results. The top management of the company usually proceeded from the fact that future performance will improve, but often the company did not reach the planned performance results. Thus, it turned out that long-term planning does not work in a dynamically changing external environment and fierce competition.
The crystallization of the fundamental elements of the concept of strategic planning is largely associated with the search for ways to overcome the limitations of the long-term planning system, clearly manifested in the uncertainty of the parameters of general economic development. In the system of strategic planning aboutTthere is no assumption that the future must necessarily be better than the past, and the premise of the possibility of studying the future of met is rejected.abouthouse of extrapolation. Actually, the different understanding of the role of external factors by managers is the main difference between long-term extrapolative planning and strategic planning. At the forefront of strategic planning an analysis was made of both the internal capabilities of the organization and external competitive forces and the search foratthose of using external opportunities, taking into account the specifics of the organization. Thus, it can be said that the purpose of strategic planning is to improve the company's response to market dynamics and the behavior of competitors.
4. Strategic management. TO 1990 - m Over the years, most corporations around the world have begun the transition from strategic planning to strategic management. Strategic management is defined as a set of not only strategic management decisions that determine the long-term development of the organization, but also specific actions that ensure the rapid response of the enterprise to changes in the external environment, which may entail the need for strategic maneuver, revision of goals and adjustment of the general direction of development.
Strategic management is often called market strategic managemente(strategic market management). The inclusion of the word “market” in the definition means that strategic decisions should take into account the development of the market and the external environment to a greater extent than internal factors. strategic managementenie also means that the management process should be proactive, not reactive. At In a proactive strategy, managers try to influence events in the external environment, and not just react to them. The need for such actions is determined by two reasons:
* for a quick response to changes in the external environment, it is important to participate in their creation;
* changes can be so significant that it is important, if possible, to influence them.
These factors explain the desire of big business to influence the adoption of political, economic, legislative and other changes at the macro and micro levels.
The evolution of corporate governance systems is shown in Table 1.1.
It can be seen from the table that successive governance systems have been oriented towards a growing level of instability and an increasingly less predictable future. From this point of view, the following classification of control systems is given.
1. Management based execution control(after the fact).
2. Management based extrapolation, when the pace of change is accelerating, but the future can still be predicted by extrapolating past trends.
3. Management based anticipation of change. The pace of change has accelerated, but it is possible to anticipate the chances and dangers of the external environment and take them into account when developing a strategic plan.
4. Management based flexible emergency solutions, when many important tasks arise so rapidly that they cannot be foreseen in time.
1.2 The essence of strategic managementnthat
The essence of strategic management is the answer to three critical questions:
* What is the current state of the company?
* In what position would it like to be in three, five, ten years?
* How to reach the desired position?
For an answer to first question managers must have a good understanding of the current situation in which the enterprise is located before deciding where to go next. And this requires an information base that provides the process of making strategic decisions with relevant data for the analysis of past, present and future situations.
Second question reflects such an important feature of strategic management as its orientation to the future. To answer it, it is necessary to clearly define what to strive for, what goals to set.
Third question strategic management is associated with the implementation of the chosen strategy, during which the two previous stages can be adjusted. The most important components or limitations of this stage are the available or available resources, the management system, the organizational structure and the personnel who will implement the chosen strategy.
I. Ansoff (Ansoff) recommends considering strategic management as consisting of two complementary subsystems: analysis and selection of a strategic position and operational management in real time. Thus, strategic management, in contrast to strategic planning, is an action-oriented system that includes consideration Tstrategy implementation process, as well as evaluation and control. Moreover, the implementation of the strategy is a key part of strategic management, since in the absence of implementation mechanisms the strategic plan remains only a fantasy.
Differences strategic management from strategic plannersbutnia in addition to being related to the strategy implementation process, they are determined by several other important factors:
* content- in strategic management, the measure of the uncertainty of the external environment increases while the signals of changes are weakened and, consequently, the information content of the management system is reduced. This leads to the development of more sensitive information monitoring systems for the external environment;
* the emergence of strategic surprises such as the sequestration of the Russian budget, which are forced to take strategic decisions outside of planning cycles, those. strategic management is characterized by a quick response to changes in the external environment within the planned periods. To capture such surprises, systems are being created for collecting, analyzing information and making strategic decisions in real time (on-line system);
* the reaction of strategic management to external changes is dual: long-term and operational at the same time. A long-term response is laid down in strategic plans, an operational one is implemented outside the planned cycle in real time;
* in strategic management, the external environment is not considered as something given and unchanging, to which the company must adapt. Rather, the ways and strategies of changing the external environment are considered;
* strategic management includes elements of all precedingYucontrol systems, those. involves budgeting, the use of extrapolation to estimate relatively stable factors, the application of elements of strategic planning, and the improvements necessary to adapt real-time strategic decisions.
Other definition strategic management - is an activity to ensure the implementation of the organization's goals in a dynamic, changing And volatile and uncertain environment, allowing optimal use of existing potential and remaining susceptible to external changes e opinions.
1.3 Problems and prospects for the development of strategic management in Russiandacceptances
In the economic practice of Russia, the mechanism strategic management is in its infancy. At the same time, domestic and international analysts believe that the Russian market has entered the stage when the lack of a developed strategy hinders enterprises at every step. What is the role of strategic management for an enterprise in a market economy?
In a command economy, when developing its plans, an enterprise received from above information about the range of products, suppliers and consumers, prices for its products, and many other indicators and standards that were automatically laid down as the basis for developing plans. The planned work itself was reduced to finding effective ways to complete tasks in a fairly predictable external environment. This task remains in the transitional economy, but in market conditions this is only part of the planned work.
The company must now self-determine and predict the parameters of the external environment, the range of products and services, prices, suppliers, markets, and most importantly - their long-term goals and strategies for achieving them. This part of the planned work is covered by the development of a strategic plan. The momentary strategic decisions that brought success to some companies immediately after 1991 no longer work, many new companies have disappeared or, having reached a certain level, stopped growing.
Therefore, both the leaders of new companies and the directors of many former state-owned enterprises are coming to understand the need to develop a development strategy. This is facilitated by the identification of the enterprise as an integral isolated system, the formation of new targets and interests of the enterprise and its employees.
The need for the formation of a strategic management system in domestic practice is also determined by the ongoing integration processesfromthemselves. In Russian business, commercial firms, along with groups, many of which are backed by commercial banks, began to acquire industrial enterprises, participating in privatization, investment competitions, and actively buying up shares of attractive enterprises.
The names of such firms and groups are well known to everyone, these are LogoVaz, industrial groups of banks Menatep, Russian Credit, etc. Apparently, the central task now will be to move from the current state of integration to the sustainable and effective development of integration processes, which is impossible without solving the problems of strategic management.
The next important prerequisite for the development of strategic management is the process business globalization, which affected our country.
There is a growing awareness among directors of former state-owned enterprises and leaders of new companies of the importance of setting long-term goals and planning for development in the long term. The matter is complicated by the fact that many Russian enterprises found themselves in a kind of information vacuum.
On the one side, an abundance of disordered external information, with another- lack of systematized guidelines for choosing directions for development. In addition, the tools for developing and implementing one's own strategy differ significantly from the previously adopted planning system, and so far relatively little is known about them, since in practice they have not become generally accepted methods of planned work. Most domestic manufacturers are only coming to an understanding of what is called strategic management.
2 . General concept of strategic management
2.1 The concept and essence of strategic managementinleniya
Strategic management - the process of developing, making and implementing strategic decisions, the central link of which is the strategistAndlogical choice based on a comparison of one's own resource potentialdacceptance with the opportunities and threats of the external environment.
The core of strategic management is a system of strategies that includes a number of interrelated specific business, organizational and labor strategies. A strategy is a pre-planned response of an organization to a change in the external environment, a line of its behavior chosen to achieve the desired result.
The key characteristics of the strategic aspect of organization management in comparison with the operational (current) management practiced in business over 20 years ago are shown in Fig. 2.1.
Rice. 2.1. Characteristics of operational and strategic management
Taking into account the noted features strategic management- is the management of the organization, which relies on human potential as the basis of the organization. It focuses production activities on the needs of consumers, implements flexible regulation and timely changes in the organization that are adequate to the impact of the environment and allow achieving competitive advantages. , which, ultimately,aboutenables an organization to survive in the long term while achieving its goalselei.
Depending on the priority of the approaches used and the reaction to external changes in the development of corporate governance, the following stages are distinguished (similar to the stages of development of strategic management):
* budgetary and financial control (budgeting);
* management based on extrapolation (long-term planning);
* anticipation of change (strategic planning);
* management based on flexible emergency solutions (strategic management).
The successive control systems are oriented towards the growing level of instability in the environment and the ever-less predictability of the future. Thus, the emergence and practical use of strategic management techniques can be viewed as a reaction to the complication of management tasks (see Table 1.1).
The initial concept of strategic management
Styles of organizational behavior. One of the first concepts of management was based on the notion that different types of organizational behavior require significantly different organizational structures and management. The whole variety of behavioral styles is derived from two typical opposite styles - incremental and entrepreneurial.
Incremental style of behavior differs in the statement “from what has been achieved”, is aimed at minimizing deviations from traditional behavior both within the organization and in its relationship with the environment. Organizations that adopt this style of behavior tend to avoid change, limit it, and minimize it.
Entrepreneurial style of behavior characterized by a desire for change, for anticipation of future dangers and new opportunities. A wide search for managerial decisions is being carried out, numerous alternatives are being developed and the optimal one is selected from them.
The relationship between behavior styles and views managedand I
Strategic management requires entrepreneurial behavior.
There is a close relationship between styles of organizational behavior and types of management. Strategic management requires entrepreneurial behavior. The end result of strategic management is the systemic capacity to achieve the goals of the organization and its internal structure, providing sensitivity to changes in the external environment.
The tasks of the strategic manager are to:
* identify the need for and implement strategic changes;
* build capacity to drive strategic change;
* select and educate personnel capable of carrying out strategic changes.
Operational management, in contrast to strategic management, deals with the use of the existing position of the enterprise and is based on an incremental style of behavior. The operational leader must turn the organization's potential into real value. Among its main tasks:
* definition of common operational tasks;
* motivation, coordination and control in the process of performing current tasks.
In the first half of the 20th century, strategic and operational management, as well as the corresponding styles of behavior, acted as alternative for the organization. Today, organizations are increasingly in need of both types of behavior and the effective combination of two types of management. The difference between strategic management and operational management is essentially determined by the differences between the considered types of organizational behavior.
¦ Functions of strategic management. Strategic management in the enterprise is expressed in the following five functions:
1. Strategy planning.
2. Organization of the implementation of strategic plans.
3. Coordination of actions for the implementation of strategic tasks.
4. Motivation to achieve strategic results.
5. Control over the process of implementing the strategy.
Strategy planning involves the performance of such sub-functions as forecasting, strategy development and budgeting. Forecasting precedes the actual drawing up of strategic plans. It is based on the analysis of a wide range of internal and external factors, the conditions for the functioning of the enterprise in order to anticipate the possibility of development and risk assessment. A systematic forecast allows you to develop a reasonable approach to the strategy of the enterprise. Three dimensions are traditionally used in forecasting: time (how far ahead are we trying to look?), direction (what are the future trends?), magnitude (how big will the change be?). Taking into account the results of the analysis, the management of the enterprise formulates a mission (business area, global goal), determines the prospects for the development of the organization and develops a strategy. Linking the strategic goals of the enterprise with the results of the activities of individual units is carried out through the development of the necessary action program and budgeting. Budgeting includes program costing and resource allocation.
Organization of the implementation of strategic plans involves the formation of the future potential of the enterprise, the coordination of the structure and management system with the chosen development strategy, the creation of a corporate culture that supports the strategy.
Action coordination managers in the formation and implementation of the general strategy consists in coordinating strategic decisions at various levels and consistently consolidating the goals and strategies of structural units at higher levels of management.
Motivation how the function of strategic management is associated with the development of a system of incentives that encourage the achievement of the set strategic results.
Control consists in continuous monitoring of the process of implementation of strategic plans. It is designed to identify impending dangers in advance, identify errors and deviations from the adopted strategies and policies of the enterprise.
¦ Definition of the essence of strategic management. The main goal of strategic management is to develop the potential and maintain the strategic ability of an enterprise to survive and function effectively in an unstable environment. The totality of the considered functions and goals determines the essence of strategic management.
Thus, the essence of strategic management is the formation and implementation of an organization's development strategy based on continuous monitoring and evaluation of ongoing changes in its activities in order to maintain the ability to survive and function effectively in an unstable environment.
¦ Features of strategic decisions. The implementation of strategic management functions is carried out through the development and adoption of strategic decisions. These include all decisions affecting the main aspects of the enterprise, oriented to the future and taken in conditions of uncertainty.
Strategic decisions have a number of distinctive features. The main ones are:
* innovative character;
* focus on long-term goals and opportunities;
* the complexity of formation, provided that the set of strategic alternatives is indefinite;
* subjectivity of the assessment;
* irreversibility and high risk. Strategic decisions are decisions on the reconstruction of an enterprise, the introduction of new products and technologies, entering new sales markets, the acquisition and merger of enterprises, as well as organizational changes (transition to new forms of interaction with suppliers and consumers, transformation of the organizational structure, etc. ).
2.2 Main components and stages in the development of a strategic management
Components of strategic management. Strategic enterprise management includes five main components that form the following chain of prospective-target decisions (Fig. 2.2).
1. Vision is an image of the possible and desired future state of the enterprise.
2. Business area- type of activity associated with a particular economic unit, program, etc. Defining a business involves assessing its prospects and understanding its specific place and opportunities in it.
Rice. 2.2. The chain of perspective-target decisions in the management of enterprise development
3. Mission, or socially significant role, enterprise is a qualitatively expressed set of the main goals of the business.
4. Strategy- an integrated model of actions designed to achieve the goals of the enterprise. The content of the strategy is a set of decision rules used to determine the main directions of activity.
5. Programs and plans- this is a system of measures for the implementation of the strategy adopted by the enterprise, designed to solve the problems of distributing resources, powers and responsibilities among the departments (employees) involved in the implementation of the strategy; development of operational plans and programs.
Stages of strategic management. The main stages of strategic management:
environment analysis;
defining the mission and goals of the organization;
formation and choice of strategy;
strategy implementation;
evaluation and control of the implementation of the strategy.
Environmental Analysis is the initial process in strategic management, as it creates the basis for defining the mission and goals of the organization, developing 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 competition factors are examined. In this case, the external environment is divided into two components: the immediate environment (direct impact environment) and the macro environment (indirect impact environment). The purpose of strategic analysis is to identify the threats and opportunities of the external environment, as well as the strengths and weaknesses of the organization.
The process of defining the mission and goals consists of three sub-processes:
* formulating the mission of the organization, which in a concrete form expresses the meaning of its existence;
* definition of long-term goals;
* definition of medium-term goals.
Formulating and choosing a strategy involve the formation of alternative directions for the development of the organization, their evaluation and selection of the best strategic alternative for implementation. In this case, special tools are used, including quantitative forecasting methods, development of scenarios for future development, and portfolio analysis.
Implementation of the strategy is a critical process, since it is he who, in case of successful implementation, leads the enterprise 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-term and short-term plans for the implementation of the strategy. The main components of the successful implementation of the strategy:
* 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 involve them in the process of implementing the strategy;
* the management in a timely manner ensures the receipt of all the resources necessary for the implementation of the strategy, 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 tasks and performs the functions assigned to it.
results implementation of the strategy are evaluated and with the feedback system is used to control activities of the organization, during which adjustment of the previous stages can occur.
The sequence of interrelated work on strategic analysis, selection and implementation of the strategy is the process of strategic management (Fig. 2.3
Rice. 2.3. Strategic management process model
As can be seen from the diagram, the strategy development process is iterative (cyclic). Thus, the definition and selection of a strategy can take place at the stage of analysis of the external environment, and the evaluation 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.
2.3 Objects of strategic managementinleniya
Characteristics of objects of strategic management. There are three groups of objects of strategic management, corresponding to the three structure-forming levels of the enterprise:
1 . Enterprise as a whole(group of enterprises, concern, independent plant or factory).
2. Strategic field of management (business), those. a set of product and market segments and activities of the enterprise, allocated for independent production, technical, commercial and regional policy. The strategic business field of large multi-product enterprises, as a rule, is divided into strategic business units. A strategic business unit is an intra-firm organizational unit responsible for developing a firm's strategy in one or more target market segments.
Concept of strategic business units had a significant impact on the formation of management systems in large firms around the world and is therefore considered as an important element of strategic management.
The concept of market segmentation underlies the allocation of strategic business units. Segment - this is a certain way allocated part of the market, where the company's products can be sold. The objects included in the segment must have common features.
The identification of strategic business units is largely a matter of subjective choice. The following criteria for identifying business units can be proposed:
* a strategic business unit has a certain range of clients and customers;
* the business unit independently plans and carries out production and marketing activities, logistics;
* the activity of business units is evaluated on the basis of profit and loss accounting.
The main task of a strategic business unit is to achieve its strategic goals (entering a new market, reducing costs, increasing market share, developing new products, etc.).
3. Functional area of activity, or subdivision,- structural divisions of the enterprise, focused on the performance of certain functions and ensuring the successful operation of strategic business units and the enterprise as a whole (R & D, production, marketing, finance, etc.).
Vensil's strategic management concept / Lagrange . The authors of this concept, based on the differentiation of the levels of strategies, were able to present the process, carriers and levels of strategic planning in a single form.
The process of strategic planning, according to the authors, includes four stages:
* Structuring goals and determining the discrepancy between the intended goals and real opportunities (gap analysis);
* identification of the necessary resources and development of options for overcoming the identified gaps;
* allocation of resources (planning and budgeting);
* monitoring and control over the implementation of the planned plans and programs.
Thus, the formation of an organization's development strategy is an iterative process and is carried out at all levels of the hierarchy.
Rice. 2.4. Strategic management process model
1. Clarification of corporate goals and structuring.
2. Forecasting future activities based on the current strategy and determining the discrepancy (gap) between forecasts and goals.
3. Establishing the difference between the indicators of the strategic plan and the capabilities of the enterprise.
4. Adjustment of strategic goals based on the results of the analysis of gaps and internal opportunities.
5.6. Development of strategy options at the functional level and business levels.
7. Consolidation of strategic plans of business units and functional units.
8. Allocation of resources necessary for the implementation of the goals. 9.10. Allocation of resources at the appropriate levels of the strategy.
11, 12. Supervision and control over the use of resources.
2.4 Types of strategic managementenia
Management based on the solution of strategic tasks. Management by ranking strategic tasks focuses on tactical survival, which is based on maintaining the position of the enterprise in the basic areas.
No perfect strategy can take into account all situations that arise as a result of changes in the external environment, as well as the development of the organization itself. In response to their appearance, the enterprise forms and solves strategic tasks, with the help of which the necessary adjustment of its activities (policies, plans) is carried out. An example of such tasks is achieving high growth rates, improving the internal climate in the team, attracting new partners and clients, etc.
Management based on the solution of strategic objectives is used when the events that may occur are fully or partially predictable, but it is impossible or inappropriate to change the general line of behavior of the enterprise in order to respond to them. Solving strategic tasks, the organization has the opportunity to prevent the occurrence of an unfavorable situation in a timely manner, to a large extent mitigate its negative consequences, or to use the opportunities that open up to the maximum benefit.
The algorithm for identifying strategic tasks is shown in fig. 2.5.
As can be seen from the diagram, there are two sources that generate the emergence of strategic tasks:
* tendencies of changes in the external environment of the organization;
* internal trends characterizing the development of the organization.
External trends reflect the political (military actions), economic (market conditions), technological (the emergence and spread of new types of technology) and social (strengthening requirements to maintain employment levels) aspects of the business environment.
Rice. 2.5. Management by ranking strategic objectives
Internal trends are similar in nature to external ones. They can be natural (an increase in the incidence of personnel, disrupting the normal course of work), technological (obsolescence of equipment, technology), economic (diversification of production, increased capital intensity and financial instability), social (development of a mechanism for motivating labor activity).
The management process by solving newly emerging strategic tasks provides for:
* Constant monitoring of all trends.
* Analysis and detection of dangers and new opportunities.
* An assessment of the importance and urgency of solving newly emerging problems based on their classification:
a) the most urgent and important tasks that require immediate action; b) important tasks of medium urgency that can be solved within the next planning cycle;
c) important, but non-urgent tasks that require constant monitoring; d) tasks that are false alarms and do not deserve attention.
* Preparation of decisions (it is carried out by specially created operational groups).
* Decision making taking into account possible strategic and tactical consequences (executes leadership).
Updating the list of issues and their priority.
Weak signal control. Obvious and specific problems identified as a result of observation are called strong signals. Other problems known from early and inaccurate indications are commonly referred to as slbutold signals. The stronger the signal, the less time the company has for a response.
On a strong signal, an enterprise can act decisively, for example, stop further increasing its capacity and reorient to use it for another purpose. The response to a weak signal can be extended over time and intensify as the signal grows.
The order of actions of the enterprise at weak signals about occurrence of problems is shown in fig. 2.6. The nature of measures to increase the effectiveness of the signal.
Rice. 2.6. Enterprise response to weak signals of problems
It can be seen from the diagram that in the presence of inaccurate signs of danger (level 1) it is necessary to constantly monitor the external environment and determine the relative strength of the signal. When sources of danger or opportunity become clear (level 2) , measures are taken to reduce external strategic vulnerability and increase the internal flexibility of the enterprise (for example, in the event of a threat of a decrease in demand due to the creation of a substitute product, preliminary measures are developed to enter another market, expand the range, etc.). Further signal amplification (level 3) allows you to assess the magnitude of the danger (for example, the demand for products in the short term will decrease rapidly) or the level of new opportunities. Such a signal indicates the need to start developing preparatory signals, a feasibility study of projects or programs, the implementation of which will reduce the time for the implementation of practical measures.
Finally, when the essence of the problem is revealed and the ways to solve it are established (level 4) , action plans are being developed and implementation is under way.
Management in conditions of strategic surprises. The system of emergency measures for strategic surprises is used in emergency situations that arose suddenly; when new tasks are set that do not correspond to past experience, and the lack of solutions (for example) leads to major damage. This system involves the following actions:
* use of a switching network of communications for emergencies;
* redistribution of responsibilities of top management: control and preservation of the moral climate; regular work with a minimum level of disruption; taking emergency measures;
* creation of groups of flexible ranging from the most experienced specialists, endowed with the necessary powers; their duties include constant monitoring, analysis and assessment of the situation, development of the necessary operational decisions, taking into account their possible consequences; such groups have a special status and operate contrary to the hierarchy existing in the organization.
The considered systems (types) of strategic management do not replace each other. Each of them is used in certain conditions, depending on the degree of instability of the external environment.
The readiness of an enterprise to use an adequate system of strategic management is determined primarily by the personnel potential and resources of the organizational management structure.
The effectiveness of management in the face of strategic surprises depends on understanding the essence ongoing events, correct assessment of the situation ability patto recognize the clues in time impending danger.
2.5 Principles of strategic management
Strategic management is based on a number of principles that must be taken into account in the process of its implementation. The main ones are:
1. Science combined with elements of art. The manager in his activity uses the data and conclusions of many sciences, but at the same time he must constantly improvise, look for individual approaches to the situation. The implementation of this task presupposes, in addition to knowledge, mastery of the art of conducting competition, the ability to find a way out of the most difficult situation, focus on key problems, highlight the main advantages of ...........
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Topic 1. General characteristics of strategic management.
- Technocratic and entrepreneurial management styles;
Concepts and essence of SM;
Principles, advantages, problems of SM;
Basic elements of SM;
Stages of SM development;
Types of SM;
Abilities necessary for a manager to implement SM;
Approaches to the development of the strategy of organizations.
All organizations demonstrate a wide variety of behavior styles, but all these behavior styles are derived from 2 main ones: technocratic and entrepreneurial. Historically, the technocratic one appeared first, and then the entrepreneurial one was added.
The main features of the technocratic style (mechanical style, rationalistic, incremental style): 1. The organization is seen as a "closed" system. It is believed that the success of an organization depends mainly on its internal rationality, on the identification of internal reserves; 2. minimization of deviations from the traditional behavior of the organization; 3. the organization is based on the formal division of labor and the implementation of formalized rules; 4. the organization is dominated by vertical flows of information; 5. the most important information is concentrated at the upper levels of management; 6. performance of all work in the organization does not depend on the personal qualities of the employee, employees are considered a fungible resource; 7.Change in the organization is not welcome, and are carried out when urgently needed.
The main features of the entrepreneurial style (organic style): 1. the organization is seen as an "open" system, its success is determined by relationships with the external environment; 2. the organization is dominated by horizontal flows of information and informal connections; 3. there is no strict distribution of tasks and areas of responsibility, they are adjusted and redistributed. A bet is made on the initiative of the employee; 4. stake is placed on the development of personal qualities of employees, their potential; 5. The organization itself strives for change.
Table. Comparison of major management styles
| Management style
Characteristic
|
Technocratic style | Entrepreneurial style |
| The main goal | Profit | Profit Potential |
| Way to achieve the goal | Using Past Approaches | Using new approaches |
| Restrictions | External environment and internal capabilities of the organization | The ability to change the external environment and internal capabilities of the organization |
| Motivation | Reward for stability and past performance | Encouragement for creativity and initiative |
| Problems | recurring, familiar | non-recurring, new |
| Organizational structure | stable | Flexible |
| Ways to solve problems | Reaction in response to a problem with a delay in relation to it
Orientation to past experience Minor deviations from the existing situation Considering the only alternative Risk minimization |
Anticipating problems and actively seeking new opportunities
Creative search for solutions to problems Large deviations from the status quo Numerous alternatives are being considered Creative Risk |
In any organization there are elements of both technocratic and entrepreneurial styles, only their proportions differ.
SM is associated with the predominant use of an entrepreneurial management style.
1.2. Concepts and essence of SM.
The main problem of any organization is the problem of survival and ensuring the continuity of development. The solution to this problem is based on the creation and development of competitive advantages.
The essence of the SM concept
. How to manage an organization in a dynamic, changing and uncertain environment. A management system is needed that would ensure constant correspondence between an organization and its external environment. The mismatch between an organization and its external environment is for both current and strategic reasons.
Current reasons - tactical calculations are easily eliminated. For example, insufficient sales of products due to bad advertising.
Strategic reasons - serious miscalculations in the activities of the organization that affect the achievement of the goal and require significant resources to eliminate. For example, insufficient sales of products due to the fact that the characteristics of the product do not meet market requirements.
Current causes of non-compliance are eliminated by operational management, and strategic causes are eliminated by strategic management.
Table. Comparison of operational and strategic management.
| hallmark | operational management | Strategic management |
| The main goal | Production of goods and services | Long term survival |
| Way to achieve goals | Efficient use of internal resources | Search for opportunities in competition, adaptation to changes in the external environment |
| time factor | Focus on the short and medium term | Orientation to the long term |
| The role of staff | An employee is one of the organization's resources, a performer of work | The employee is the basis of the organization, the source of its well-being |
| Performance criteria | Profit and rational use of production potential | Flexibility, willingness to change. |
There are several definitions of SM:
CM- managerial activity, which consists in achieving promising organization goals through the implementation of intra-organizational changes.
CM The process by which there is ongoing interaction between an organization and its external environment.
CM- a field of scientific knowledge that studies the methods and techniques of making strategic decisions in business, and their implementation in practice.
Expanded definition of strategic management: CM- management activities that rely on human potential as the basis of the organization; orient activities to the needs of consumers; implements timely changes in the organization that meet the state of the external environment and allow achieving competitive advantages; which allows the organization to survive and achieve its goals in the long term.
Signs of strategic decisions A: 1. are innovative; 2.directed to the future, not to the present; 3. subjective, not amenable to objective assessment; 4.irreversible, have long-term effects.
Concept of strategy . Strategy is a key component of SM. There are two different understandings of the term strategy in business: 1. traditional (classical) understanding. A strategy is a specific long-term plan to achieve a specific long-term goal. With rapid changes in the external environment, such strategies often have to be reviewed. 2. modern understanding. A strategy is a long-term, qualitatively defined direction for the development of an organization, relating to the scope of its activities, the system of internal relations, as well as the position of the organization in the external environment. With this understanding, the strategy can be characterized as the chosen direction of activity, within which the organization must move towards achieving its goals. There are also 5 interrelated aspects of the concept of strategy: 1. strategy is a plan; 2.strategy-clever technique; 3.strategy-principle of behavior; 4.strategy-position; 5.strategy-perspective.
1.3.Principles, advantages, problems of SM.
SM principles
: 1
.
the principle of science combined with elements of art (on the one hand, the strategy involves scientific and analytical foresight and research activities, on the other hand, the manager must improvise and look for individual approaches to the situation); 2.
the principle of taking into account and coordinating external and internal factors of the organization's development; 3.
the principle of matching the strategy and tactics of the organization (tactics - a set of short-term management decisions necessary for the implementation of strategies in practice);
4.
the principle of flexibility of strategic management (assumes the possibility of making adjustments to previously made strategic decisions); 5.
the principle of organizing strategic control and creating the necessary conditions for the implementation of strategies (the SM process must necessarily include the creation of conditions for the implementation of strategies in practice, especially attention is paid to strategic control; SC is not about assessing how the processes are going, but about how these processes contribute to the achievement of the organization's goal).
Benefits of SM
: 1.
The SM ensures the focus of the organization's activities on understanding the key aspect: “What is the organization trying to do?”, “What is the organization achieving?”; 2.
SM forces managers to respond more clearly to changes in the external environment;
3.
SM creates an opportunity to evaluate alternative investment options and choose the best ones; 4.
SM creates an opportunity to combine the efforts of managers at the native level in developing a strategy;
5.
SM involves not only adaptation to the external environment, but also an active influence on those environmental factors that pose a threat to the organization.
Problems and limitations of SM: 1.
does not give a detailed and accurate picture of the future, because it is based on assumptions and the future; 2.
cannot be reduced to a set of specific and clear procedures, i.e. it does not have unambiguous algorithms;
3.
it is quite an expensive undertaking;
4.
with SM, the negative consequences of errors are intensified in comparison with operational management;
5.
in SM, the focus is often on the development of a strategy, to the detriment of the process of implementing it in practice.
1.4. Basic elements of SM.
SM is a set of 5 interrelated management processes:
1.
strategic analysis of the external and internal environment of the organization - is usually considered the initial process of SM. External environment analyzed following. directions: a) the microenvironment is the immediate external environment that has a direct and immediate impact on the organization (suppliers, customers, competitors, creditors, shareholders, contact audiences, etc.); b) the macro environment is the environment of indirect impact on the organization (PEST: political factors, economic factors, social, technological); c) mega-environment is an environment of remote influence associated with changes in world politics and the world economy. Analysis of the internal environment is carried out on the trail. main directions: a) marketing activities; b) the financial condition of the organization; c) technology used; d) the staff of the organization; e) the organization's management system. 2.
defining the mission of the organization and setting specific business goals based on it. Mission is the purpose of an organization's existence. Its purpose, the main goal, a clearly expressed reason is the existence in the market. Based on the mission, specific business goals are formed in terms of market share, sales volume, innovation, profit, etc. 3.
identification of possible strategic alternatives and selection of a specific strategy for the development of the organization. This stage is a kind of “core” of the SM, because it is on it that a specific path to achieve the goal is determined. 4. Implementation of strategies, a set of measures necessary to implement strategies in practice is carried out (necessary changes are made to the structure of the organization, tactics are determined, personnel are motivated to change, resistance to change is overcome, etc.). 5.assessment and control of the implementation of strategies. SC is fundamentally different from operational control. The SC is not interested in the correctness of the implementation of individual works, functions and activities, it is interested in what contribution they make to the achievement of the long-term goals of the organization.
Rice. Strategic management system.
1.5. Stages of SM development.
There are 4 stages of SM development: 1.budget planning
(1900-1955)
. This planning consists in drawing up annual financial estimates (budget) by item of expenditure for various purposes. During this period, it was the only type of plan, on the basis of which other types of plans, including the strategic plan, began to develop in the future. Distinctive features of BP: 1. The objects of planning were the budgets of the enterprise for raw materials, equipment, labor, etc.; 2. this planning was short-term, not more than one year; 3. This planning had an internal orientation, i.e. information about the external environment was not taken into account. 2.long term planning (1955-1975)
. At this stage, the planning horizon expands to 3-5 years, and the main target indicators of the business have become the objects of planning: profit, sales volume, market share. This planning is based on trend extrapolation, i.e. transferring the trends of the past to the future. Conditions for the emergence and use of long-term planning: 1.high pace of the economy market and its predictable development; 2.relatively stable external environment of the company; 3. narrow industry specialization of leading firms and low competition between them. The disadvantage of this type of planning is that with an increase in crisis phenomena in the economy and increased competition, such plans may differ significantly from reality. 3.strategic planning (1965-1985).
At this stage, planning has turned from a mathematical calculation process into an experimental process, i.e. plans for the future began to be based on the expected state of the external environment. Conditions for the development of strategic planning: 1. The external environment of many companies has become unstable and the intensity of competition has increased; 2.active development received marketing; 3.Many leading companies in these years flocks of diversification. At that time, strategic plans were developed only at the highest level of the company's management without the involvement of middle and lower managers. Also, plans often turned out to be divorced from reality. 4.strategic management (1975-present)
. The SM differs from the strategic rule that preceded it. The main points are: a) under SM, strategic decision-making is decentralized, which was manifested in the involvement of middle and lower managers in strategic decisions, as well as in the transfer of a number of strategic decisions to lower levels of management; b) under the CM, they began to pay much more attention to the implementation of the strategy in practice. Conditions for the emergence of SM: 1. the emergence of science intensity and an increase in the number of innovations; 2. sharply intensified competition and acquired a global character; 3.increased requirements for the quality and range of goods.
Tab. Comparative characteristics of the development of SM.
| Parameters | budget planning | Long term planning | Strategic planning | Strategic management |
| Period | 1900-1955 | 1955-1975 | 1965-1985 | 1975-now |
| Assumption | The past repeats itself | Trends continue - extrapolation | Trends are predictable | Partial predictability of trends |
| Change type | Slower firm response | Comparable to firm response | Faster company response | |
| Process | Cyclical | continuous | ||
| Basis of management | Control and accuracy of execution | Anticipating Growth and Opportunity | Changing Strategic Opportunities | Accounting for the development of the market and the external environment |
| Management Emphasis | stability | foresight | Study | creation |
1.6. Views CM.
There are 4 kinds of SM, which are not interchangeable, complementary. Good strategies contain elements of all 4 types of SM: 1.management by choosing strategic positions . It is impossible to tie new strategies to the already accumulated potential, as it may turn out to be insufficient. Let's show this with diagrams.
Picture. Management by choosing strategic positions
As long as the level of external instability remains at the level E 1, the successful implementation of the SF 1 strategy requires the possibility of CF 1 and CM 1 . if the instability changes to E 2 then the organization will not only have to move to the SF 2 strategy, but also have the capabilities of CF 2 and CM 2. Capability by function (CF) refers to the organization's capabilities in marketing, finance, taxes, and personnel. Potential opportunities for general management (CM) include the qualifications of managers, the moral and psychological climate within the organization, organizational structure, working methods, etc. Thus, this type of management assumes that in the SM the planning of a new strategy should always be accompanied increase planning the internal potential of the organization.
2.management by ranking strategic objectives . This type of management involves the implementation of the following. actions: a) constant monitoring of all trends in the external environment; b) the division of all tasks that put the external environment on the trail. categories: 1) the most urgent and important tasks requiring immediate solutions; 2) important tasks of medium urgency that can be solved in the next. planning period; 3) important but not urgent; 4) tasks representing a false alarm and not deserving further consideration. The list of tasks and their priority are constantly refined and updated.
3.control by "weak signals" - "strong signals" - obvious and specific problems, while the nature of the problems is obvious and you need to act immediately. “Weak signals” (implicit problems)- information about the problem in advance and leaving time to respond to it, while the nature of the problem is not entirely obvious. This type of management assumes that the manager must determine the level of signal strength about the problem at which he begins to act. This is more of a “weak” rather than a “strong” signal.
4.upravlenie in conditions of strategic surprises. Conditions for the emergence of strategic surprises: a) the problem arises suddenly and against all expectations; b) the problem poses new challenges that are inconsistent with the past experience of the organization; c) Response measures must be taken very urgently, but the usual course of action does not allow this. This type of control assumes that it is necessary to pre-create a scenario of behavior in hypothetically possible problem situations, about which there are no signals at all at the moment.
1.7. Abilities necessary for a manager to implement SM.
The presence of a manager of strategic thinking is a very important factor in the ability of a leader. In addition to the general abilities of strategic management, it imposes a number of additional requirements on managers:
1)
the ability to model the situation, that is, to establish patterns between market demand, the activities of competitors and the ability of specific organizations to meet customer needs: a manager must have analytical skills in order to navigate well in a large amount of information about the external and internal environment of the organization, that is, part of strategic thinking is ability to analyze; 2)
the ability to identify the need for change - this ability is realized in 2 directions: a) the manager's readiness to respond to trends emerging in the industry; b) the intelligence and creativity of the manager;
3)
the ability to develop a competitive strategy for change in the organization;
4)
the ability to use reliable models and methods in the course of strategic transformation. Managers must know and be able to use the theory of strategic management in particular a variety of strategic models: 1.matrix of the Boston Consulting Group (BCG); 2.matrix modified by BCG; 3. General Electric/Mc matrix. Kinsey; 4.shell matrix; 5.Business comprehensive analysis of PIMS; 6.model ADL/LC; 7. Hofer-Schelder model; 8. Abel's three-dimensional scheme. 5)
ability to implement the strategy.
1.8. Approaches to the development of the strategy of organizations.
There are 5 main approaches (styles) to the development of organizational strategies. A well-designed strategy should simultaneously take into account all these 5 approaches: 1. strategy as a system of comprehensive control
. This approach is characteristic of machine organizations (army). With this approach, considerable attention is paid to the selection and tracking of the maximum possible number of parameters that are subject to control. Disadvantages: a large number of controlled parameters often exceeds the ability to comprehend them; this type is typical for the technocratic style of management; this type does not take into account changes in the external environment. 2.strategy as an enabling environment for innovation
. This approach involves creating an atmosphere of internal entrepreneurship in the organization. This approach ensures the awakening of the initiative at the local level and helps the organization to become its own source of ideas for development. It does not define specific actions, it simply creates the conditions for creativity and innovation. 3. strategy as management of intra-company changes.
It involves the formation and development of the internal potential of the organization is necessary for the successful implementation of the strategy. 4. strategy as a political process. It involves paying special attention to the interests of the organization in the external environment: the creation of lobbying structures, the struggle for spheres of influence, contacts with the press and authorities. 5.strategy as a study of the future by analyzing development scenarios
. Scenario- a qualitative description of situations in the organization, industry, region, at a certain point in the future.
Tab. Comparative characteristics of approaches to strategy development
| Parameters | Comprehensive control | Innovation | Intraorganizational changes | Political process | Exploring the future |
| Purpose of the approach | Placement and control of resources | New business development | Organizational change management | Strengthening the influence of the organization in the external environment | Getting information about the future |
| Main idea | Rational decision making and control | Commercialization of innovations | Improving Organizational Culture | Pursuing the interests of the organization in the external environment | Awareness of the Uncertainty of the Future |
| Elements of the approach | A balanced portfolio of investments. budget, control | Substantial focus on innovation | Development of the organization's potential, with organizational structure and management | Accounting for social and political trends | Considering alternative “future scenarios”. Identify key decisions for the future |
| Approach technology | Gap analysis. Long-term planning (extrapolation). Business Portfolio Analysis | Programs of diversification, acquisitions and mergers, development of new products, penetration into new markets | SWOT analysis | Public affairs, public relations | Scenario method.
Computer modelling |
Topic 2. The main provisions of the strategic analysis of the organization.
2.1. Subject, principles, types of strategic analysis and its place in the system of economic sciences;
2.2. The concept of purpose and principles of strategic analysis of the external environment;
2.3. The concept of purpose and principles of strategic analysis of the internal environment;
2.4. Critical points of the organizational environment;
2.5. Formation of a database of internal and external organization and the information basis of strategic analysis;
2.1. Subject, principles, types of analysis and its place in the system of economic sciences.
Analysis is a capacious concept underlying all scientific and practical human activity. Analysis- highlighting the essence of a process or phenomenon by identifying and then studying all its aspects and elements. Economic analysis of the enterprise's activities is the basis for making all decisions at the microscopic level. Economic analysis arose simultaneously with accounting in ancient Egypt around 4000 BC, but economic analysis emerged as an independent science in the 60s of the 20th century.
Basic principles of economic analysis
: 1
.
before performing the analysis, it is necessary to have its clear program, including the analysis algorithm, analysis indicators and sources of information for analysis;
2
.when analyzing the performance of the organization always compared to something: with the previous period, with the plan, with industry average indicators, with the indicators of the main competitors. Any deviations, including positive ones, should be carefully analyzed.
3.
the analysis should ensure the validity of the criteria used, both quantitative and qualitative.
4.
during analysis there is no need to obtain the maximum accuracy of estimates. The greatest value in the analysis is the identification of trends and patterns.
Types of analyzes: 1.
by the width and accessibility of the information involved: external analysis and internal analysis. 2.
on the analyzed subsystem of the enterprise: production analysis and financial analysis. 3.
according to the time aspect of the analysis: a) retrospective analysis (directed to the past and deals with factors and results that have already taken place). For strategy development, the value of such analysis is quite limited; b) prospective analysis (directed to the future, serves to study options for the development of the organization, is probabilistic in nature); 4.
according to the content of the analysis: complex analysis and thematic analysis; 5.
on the horizon of analysis: operational analysis (analysis of current activities); tactical analysis (analysis of prospects up to the 1st year); strategic analysis (analysis of prospects for more than one year); 6.
by objects of analysis: investment analysis; project analysis; marketing analysis; risk analysis, etc..
2.2. Concept of purpose and principles of strategic analysis of the external environment.
Strategy development logically begins with an analysis of the external environment. Strategic analysis of the external environment- identification and understanding of factors that are outside the sphere of constant control of the organization; capable of creating threats and opportunities for it, as well as influencing its strategies.
Functions of external strategic analysis: 1.it allows you to take into account the most important factors affecting the organization and its future; 2. it helps the organization create a better impression of itself; 3.it provides information to the internal functions of organizations.
Opportunities are positive trends and phenomena in the external environment that can lead to increased production and profits. Threats are negative trends and phenomena of the external environment, which, if not responded to, can lead to a decrease in production and profits. The purpose of the external strategic analysis is to get answers to the following questions: 1. what impact do macrosphere factors have on the organization; 2.what key indicators characterize the industry in which the organization operates; 3. what competitive forces operate in the industry and what is their impact on the organization; 4.what can cause changes in the structure of the competitive forces of the industry; 5. which companies in the industry have the strongest and weakest competitive positions; 6. what are the next most likely strategic moves by competitors; 7.what key success factors (KSF) determine success or failure in a given industry; 8. how attractive the industry is in terms of above-average profit prospects.
To summarize the results of the strategic analysis of the external environment, a special form (summary analysis of external strategic factors) can be used. Stages of filling out this form: 1. identify 5-10 external opportunities, 5-10 external threats; 2. For each identified factor, the significance is estimated from 0 to 1. Depending on the impact of this factor on the organization:?
= 1; 3. each factor is evaluated on a 5-point scale depending on the organization's response to this factor; 4. A weighted score is determined for each factor and a total weighted score is calculated. The total score indicates the degree of the organization's response to significant environmental factors.
Tab. Summary of external strategic factors.
| External strategic factors | Significance | Grade | Weighted score |
| Opportunities | |||
| 1.favorable demographic situation | 0,2 | 4 | 0,8 |
| 2.income growth | 0,1 | 5 | 0,5 |
| 3.economic stabilization | 0,05 | 1 | 0,05 |
| 4. Emergence of new markets | 0,05 | 2 | 0,1 |
| 5.development of retail networks | 0,1 | 2 | 0,2 |
| Threats | |||
| 1.Strengthening government regulation | 0,1 | 4 | 0,4 |
| 2.strong competition | 0,1 | 4 | 0,4 |
| 3.The advent of new technologies | 0,15 | 3 | 0,45 |
| 4.Strong global position as world leader | 0,05 | 1 | 0,05 |
| 5.Estimated industry downturn | 0,1 | 2 | 0,2 |
| Total score | 1 | 3,15 |
In the example, a score of 3.15 means that the organization's response to environmental factors is at an average level, since the maximum possible score is 5.
2.3. Concept of purpose and principles of strategic analysis of the internal environment.
Strategic analysis of the internal environment (management analysis, management survey, management diagnostics) is a process of comprehensive analysis of the organization's internal resources aimed at assessing its strengths and weaknesses, as well as identifying strategic problems. In internal analysis, there is a certain problem, on the one hand, each structural unit accumulates information about some element of the internal environment, on the other hand, there is often no comprehensive view of the internal environment of the organization.
The need to analyze the internal environment is determined by the following factors: 1. analysis of the internal environment is necessary to develop an organization's strategy; 2. necessary to assess the attractiveness of an organization from the point of view of external investors, as well as to determine the positions of organizations in national and other ratings; 3. allows you to identify the reserves of the organization's development.
As a result of internal analysis, it is possible to identify: 1. the organization overestimates or underestimates itself; 2.overestimates or underestimates the organization of its competitors; 3.what market requirements the organization attaches too much or too little importance.
One of the most difficult problems of internal analysis is determining the range of analyzed indicators, since most often people analyze what is easiest to analyze and ignore everything else.
A standard set of internal analysis areas: marketing, finance, technology, personnel. Management activity. The purpose of the internal analysis (to get answers to the following questions): “How effective is the current strategy of the organization?”, “What are the strengths and weaknesses of the organization?”, “Are the prices and costs of the organization competitive?”, “How strong is the competitive environment of the organization? ”, “What are the strategic challenges facing the organization?”.
2.4. Critical points of the organizational environment.
When analyzing the external and internal environment, it is necessary to highlight those elements that are most important for analysis, that is, it is necessary to determine environment analysis limits. These limits are determined by the number and nature critical points. The number of critical points depends on the following dimensions of the main factors: the size of the organization being analyzed; the specifics of the analyzed organization; the time frame of the analysis; selected goals of the organization. 1. The influence of the size of the organization on the number of critical points is shown in the table.
Tab. The value of the analysis of the elements of the organizational environment for organizations of various sizes.
| Organization Size | High importance of analysis | Mean Analysis Significance | Low significance analysis |
| Very large (TNK) | ______ | ______ | |
| Large (national market leader) | Internal environment. Workspace. General environment. | ______ | ______ |
| Middle | General environment | ______ | |
| Little | Internal environment. Workspace. | ______ | General environment |
| Very small | Internal environment. Workspace. | ______ | General environment |
2. The influence of the specifics of the analyzed organization on critical points is shown in the example.
Tab. The value of environmental factors for organizations of various profiles.
| Environmental factors | The value of the factor for a large manufacturer of telephone equipment | Importance of factors for a large oil company |
| GNP level | The average | high |
| The amount of state capital investments | very high | high |
| Technological changes | very high | Below the average |
| social change | high | high |
| Environmental pollution | Low | high |
| Political risks | Low | high |
3. The time frame of the analysis affects the critical points in the following way: in the short time period, the number of critical points considered is less than in the long-term period.
4. The goals of the organization affect the number of critical points as follows: if the organization strives for development, then the number of critical points increases, and if it strives for survival, then the number of critical points decreases.
2.5. Formation of a database of internal and external organization and the information basis of strategic analysis.
When analyzing the external and internal environment, the following database formation techniques can be used:
1.scanning the environment, searching for already formed information that exists in retrospect; 2.monitoring of the environment, tracking the current newly emerging information; 3. predicting the environment, this attempt to create information about the future state of the environment.
Information tracking is carried out within the framework of 3 types of information acquisition systems: 1. regular, used in studies of special situations, for example, in crisis conditions, as a rule, studies focus on the past in order to find events similar to the present in it; 2. regular (periodic) systems; they are characterized by a periodic, most often annual review of events. In these systems, the retrospective aspect also predominates; 3.system of continuous review, they constantly examine the significant elements of the external and internal environment of the organization. These systems are largely future-oriented.
Sources of information about the organization's environment. There are external (business newspapers and magazines; professional meetings; business reports and market reviews; books; colleagues and experts; employees of the company; statistical collections; advertising materials; Internet; information about studies already conducted) and internal (internal reporting; statistics of production and sales ; memoranda; managers and key personnel of the organization; external participants in the organization (consultants); experience gained in the organization; production meeting) sources of information.
2.6. Balanced Scorecard.
The BSC is used to analyze the implementation of the strategy. Often the real problems are not a bad strategy, but a bad implementation. Only 50% of external managers, 20% of middle managers and 10% of ordinary employees in their daily work are guided by the implementation of the strategy. When implementing the strategy, it is important to bring to each employee information about certain indicators corresponding to his levels. The BSC concept was developed in 1992. The authors of the concept are Coplan, Nortan. The main idea of the BSC concept is to provide managers with the necessary information to control the implementation of the strategy in the form of a system of indicators. Managers need a system financial and non-financial indicators. The development of the BSC was caused, among other things, by the “transfer” towards the use of financial indicators, which do not provide sufficient information for making a management decision. The BSC uses the following groups of indicators: finance, customers, internal processes in the organization, innovation and staff development.
For the development of the BSC are used strategic maps- a diagram or drawing showing strategy as a set of cause-and-effect relationships between the organization's strategic goals, key success factors for achieving the goal, and a set of indicators for assessing the effectiveness of achieving the goal.
Rice. Example of a strategy map
An important point in the SSP is their number. The authors of the BSC consider the optimal total number of 20-25 indicators, which are distributed in 4 areas, as follows: finance - 5 indicators, customers - 5 indicators, internal processes in the organization - 8-10 indicators, personnel development - 5 indicators. For operational express diagnostics of the implementation of the strategy for BSC systems, it is necessary. So that the total number of indicators is no more than 10. There are examples when a company within the BSC manages with only 3 indicators (customer satisfaction, employee satisfaction, income growth) and even two indicators (customer satisfaction, development of new products). An example of the decomposition of a strategic goal on the example of a specific goal: increasing customer loyalty.
Rice. The relationship of goals, success factors, processes and performance indicators.
Topic 3. Methods of strategic analysis.
3.1. SWOT analysis, a method of positioning threats and opportunities;
3.2. Factor analysis;
3.3. GAP analysis;
3.4. Diagram "Ishikawa";
3.1. SWOT-analysis, a method of positioning threats and opportunities.
SWOT analysis appeared in 1963 in order to logically link the results of external and internal analysis. The method got its name from the English words: Strength (strength), weaknesses (weakness), opportunities (opportunities), threats (threat). During the SWOT analysis, 4 lists are compiled: by internal environment, these are lists of strengths and weaknesses; according to the external environment, lists of threats and opportunities. The simplest form of SWOT analysis is carried out by constructing a classic SWOT analysis matrix.
Table. Classic matrix SWOT analysis.
|
In 1982, a modified form of the SWOT analysis matrix was proposed, while it was assumed that it was necessary to compare the internal strengths and weaknesses of your company with the threats and opportunities of the external environment.
Table. SWOT matrix.
| External
Wednesday
Internal Wednesday |
Opportunities | Threats |
| 1. | 1. | |
| 2. | 2. | |
| 3. | 3. | |
| Strengths | Field “C&V” | Field “S&U” |
| 1. | ||
| 2. | ||
| 3. | ||
| Weak sides | Field “SlV” | “Slu” field |
| 1. | ||
| 2. | ||
| 3. |
The field "SiV" - involves the development of a strategy for using the strengths of the organization to benefit from the capabilities of the external environment. The field "SlV" - involves the development of a strategy to overcome existing weaknesses that prevent the use of opportunities. The “S&C” field involves the development of a strategy for using strengths to eliminate threats. The field “SL” involves the development of a strategy to prevent weaknesses and neutralize threats.
To further deepen the SWOT analysis, the method of positioning threats and opportunities is used, which consists in determining their priorities. For positioning, 2 matrices are built: opportunities and threats.
Table. Opportunity Matrix.
The fields BC, VU, SS contain opportunities that are of great importance for the organization and they must be used. The fields NS, SU, VM can be used with a sufficient amount of resources. Fields NU, SM, NM possibilities that practically do not deserve attention.
Table. Threat Matrix.
The threats of BP, VC, SR pose a very great danger to the organization and require mandatory and immediate elimination. Threats of HP, UK, BT, which should be eliminated in the first order. Threats to NK, ST. VL requiring careful and responsible consideration. Threats of NT, NT, SL for which current monitoring is carried out. But the task of their obligatory elimination is not set.
Compiling an environment profile. This method is used as a continuation of the SWOT analysis. This method allows you to assess the relative importance for the organization of individual environmental factors.
Table. Environment profile table template.
Environment profiling algorithm: 1.
assessment of the importance of the environmental factor for the industry, according to the following scale: 3-great importance, 2-moderate, 1-weak;
2.
assessment of the influence of the environmental factor on organizations on a scale: 3-strong, 2-moderate. 1-weak, 0-no influence; 3.
assessment of the direction of influence on a scale: +1-positive; -1-negative;
4.
all three expert assessments are re….. and an integral assessment is obtained, showing the degree of importance of the factor for the organization.
3.2. Factor analysis.
Factor analysis is a complex and systematic study and measuring the impact of various factors on the value of performance indicators. Can be used to evaluate the performance of a particular business; for example, to determine its specific ability. Kinds factor analysis: 1.
deterministic and stochastic factor analysis. Deterministic factor analysis is a study of the influence of factors whose relationship with the performance indicator is functional, that is, there is a direct causal relationship. Stochastic analysis studies factors, the relationship with which with the performance indicator is incomplete, probabilistic, correlational. 2.
forward and reverse factor analysis. In direct factor analysis, research is conducted in a deductive way (from general to honest). In the opposite case, it is a method of induction (from the particular to the general).
3.
statistical and dynamic factor analysis. Statistical analysis is applied in determining the influence at a certain point in time, while dynamic analysis considers the causal relationship in dynamics. 4.retrospective (historical) and prospective (forecast) factor analysis. Retrospective factor analysis studies changes in indicators over the past period, and prospective examines the probabilistic dynamics of factors in the future. An example of a comparative factorial analysis of competitiveness (competitive strength).
Table. Comparative factor analysis of competitiveness.
| Comparison criterion (key factors in the industry) | Weight | Analyzed organization | Competitors | |
| 1 | 2 | |||
| Relative costs | 0,20 | 5 (1,00) | 7 (1,40) | 6 (1,20) |
| Order execution time | 0,15 | 8 (1,20) | 8 (1,20) | 6 (0,90) |
| Order execution quality | 0,15 | 7 (1,05) | 8 (1,20) | 8 (1,20) |
| Personnel qualification | 0,15 | 8 (1,20) | 9 (1,35) | 7 (0,70) |
| Financial position | 0,10 | 6 (0,60) | 8 (0,80) | 7 (0,35) |
| reputation/image | 0,05 | 8 (0,40) | 8 (0,40) | 6 (0,30) |
| Production Capabilities | 0,05 | 5 (0,25) | 7 (0,35) | 6 (0,30) |
| Mastering new technologies | 0,05 | 8 (0,40) | 8 (0,40) | 6 (0,30) |
| Scientific research level | 0,05 | 9 (0,45) | 8 (0,40) | 6 (0,30) |
| Development of international relations | 0,05 | 7 (0,35) | 6 (0,30) | 5 (0,25) |
| Weighted overall score | 1,00 | 6,90 | 7,80 | 6,55 |
For a comparative factorial analysis of competitiveness, the following algorithm is used: 1. a list of 6-10 comparison criteria (key success factors in the industry) is compiled; 2. Each factor is assigned a specific weight (significance), so that? was equal to 1; 3. the analyzed organizations and their main competitors are assessed on a 10-point scale; 4. weighted scores are calculated by multiplying the score by its significance; 5. General assessments of the organization's competitiveness are determined as the sum of weighted assessments.
3.3. GAP analysis.
GAP analysis or gap analysis is one of the effective methods of strategic analysis. Purpose: To determine if there is a “gap” between the firm's goals and its ability to achieve those goals. And if a “gap” exists, determine how to fill it.
Analysis of "gaps" includes the following steps: 1.determination of the main target interest of the organization (increase in sales, market share, profits, etc.); 2. finding out the real possibilities of the organization in terms of the current and future state of the external environment, that is, it is determined what level of the target indicator the organization can achieve in the future if nothing changes in its potential, and leaves everything as it is; 3.determination of specific indicators of the strategic plan that correspond to the target interest of the company, that is, at this stage, the desired state of the organization in the future is determined; 4. establishing the difference between the indicators of the strategic plan (desired state) and existing opportunities (actual state), that is, at this stage, the presence of a “gap” is diagnosed; 5. development of special programs and methods of action necessary to fill the identified “gaps”.
Rice. Gap analysis
3.4. Ishikawa diagram.
When analyzing, it is necessary not only to identify the problem, but also to be able to find out their true causes. If problems are not so difficult to identify, their causes are much more difficult. The Ishikawa diagram, which is used in group work, especially when brainstorming, can help with this. With a diagram that in appearance resembles a fish skeleton, they work as follows: 1. write down the problem to be solved on the right; 2. on the ends of the branch "bones" indicate a group of causes that are analyzed; 3. To the left of each branch, specific reasons are indicated that are included in one or another group of reasons.
Rice. Ishikawa Diagram Example
It is useful to use the "Ishikawa" diagram in combination with this "Why?" analysis technique. Principle of analysis "Why?" is that you need to ask the question “Why?” every time. For example, “why does this cause lead to a particular problem?”. This question can be asked several times in relation to each cause until the internal connection of these causes is clarified.
3.5. ABC analysis and XYZ analysis.
The ABC analysis method is based on the Pareto principle (20% -80%), according to which 20% of the total number of objects involved in any business gives 80% of the result of this business. For example, in trade: 20% of product names give 80% of revenue. But unlike the Pareto principle, in ABC analysis, objects are divided into 3 groups. Group A objects are few, but very important. Group B objects occupy an intermediate position and require less attention. Group C objects, as a rule, are the most numerous and are of secondary importance. Distribution objects by ABC groups are not entirely unambiguous and the options are presented in the distribution table.
Tab. Approximate distribution of objects in groups A, B, C (from the best objects to the worst)
Tab. Approximate distribution of objects in groups A, B, C (from the worst objects to the best)
Stages of ABC analysis: 1.
definition of objects of analysis (customers, suppliers, goods, etc.); 2.determination of the parameter by which the object will be analyzed (sales volume in rubles; number of sales units per unit, number of orders per unit, etc.); 3. determination of the share of objects in the performance indicator (share of goods sold in total sales);
Tab. Sorting objects according to the share of goods in the total sales of products
| Name of product | ||
| Item 1 | 2100 | 4,83 |
| Product 2 | 800 | 1,83 |
| …….. | ….. | ….. |
| Product 50 | 60 | 0,1 |
| Total | 43500 | 1,00 |
4. sorting of objects of analysis in descending order of parameter values (in the example of decreasing shares of goods in total sales).
Tab. Sorting objects in descending order of shares of goods in total sales.
| Name of product | Annual volume of sales of goods, thousand rubles. | Share of goods in total sales, % | The share of goods in the total number of goods on an accrual basis,% | The share of goods in the total sales of products on an accrual basis,% | |
| 1. | Item 34 | 8700 | 20 | 2 | 20 |
| 2. | Item 18 | 4350 | 10 | 4 | 30 |
| ….. | ….. | ….. | ….. | ||
| 50. | Item 41 | 100 | 100 | ||
| Total | - | 43500 | 100 | - | - |
5. division of objects into groups A, B, C and entering the results into a table.
Dividing objects into groups A, B, and C.
XYZ analysis. The main idea is to group objects according to the degree of homogeneity and stability (i.e., according to the coefficient of variation). The more stable and homogeneous the objects of analysis, the easier their forecasting and planning. The sign on the basis of which a particular object of analysis is assigned to the group X, Y and Z is the coefficient of variation: n. Group X: 0 ?n <10%, однородные и стабильные объекты. Группа Y: объекты средней однородности и стабильности в интервале 10 ?n <20%. Группа Z: объекты низкой однородности и стабильности в интервале 25% ?n? . The formula for calculating the coefficient of variation:
x i - the value of the parameters for the assessed object for the i-th period; - the average value of the parameters for the evaluated object of analysis; n is the number of periods.
Stages of XYZ-analysis: 1. definition of objects of analysis (customers, suppliers, goods, etc.); 2.determination of the parameter by which the object will be analyzed (sales volume in rubles, number of units); 3.determining the boundaries of the period and the number of the period for which the analysis will be carried out (week, decade, month, quarter, half year, year). This method of analysis makes sense if the number of periods analyzed is more than 3. The more periods analyzed, the more indicative the result. 4.determination of the coefficient of variation for each object of analysis.
Tab. Example of determining the coefficient of variation
| Name of product | Sales, thousand rubles | Dispersion (radical expression in the numerator) | Standard deviation (root of variance) | The coefficient of variation | |||||
| per year | average per quarter | for the quarter | |||||||
| 1 | 2 | 3 | 4 | ||||||
| Item 1 | 2100 | 525 | 450 | 500 | 550 | 600 | 3125 | 55,9 | 10,6 |
| Product 2 | 800 | 200 | 180 | 220 | 170 | 230 | 650 | 25,5 | 12,8 |
| ….. | ….. | ||||||||
| Product 50 | 60 | 15 | 10 | 20 | 13 | 17 | 14,5 | 3,8 | 25,4 |
5. sorting of objects of analysis in ascending order of the value of the coefficient of variation and the definition of groups X, Y, Z.
Tab. Sorting of objects of analysis in ascending order of the value of the coefficient of variation and the definition of groups X, Y, Z.
| Ordered List Row Number | Name of product | The coefficient of variation | Product groups |
| 1. | Product 19 | 2,4 | X |
| 2. | Item 48 | 2,8 | X |
| ….. | |||
| 50. | Product 7 | 28,2 | Z |
Combining the results of ABC analysis and XYZ analysis (matrix ABC-XYZ).
| AX | AY | AZ |
| BX | BY | BZ |
| CX | CY | cz |
Topic 4. Strategic analysis of the external environment
4.1. The main types of the external environment and methods of responding to changes in the external environment;
4.2. Analysis of the organization's macro environment using STEP analysis;
4.3. Directions of strategic industry analysis;
4.4. Drivers of change in the industry;
4.5. Model 5 forces of competition;
4.6. Analysis of the competitive environment from the position of buyers and using a map of strategic groups;
4.7. Consumer analysis;
4.8. The concept and stages of scenario analysis.
4.1. The main types of the external environment and methods of responding to changes in the external environment.
The following main types of external environment are distinguished: 1) a changing external environment - a sign of such an environment is constantly occurring, rapid and diverse changes; 2) hostile environment - a sign of such an environment is fierce competition, the struggle for consumers and markets; 3) a diverse environment - such an environment is characteristic of global business, which operates simultaneously in many countries with diverse cultures and consumer tastes; 4) technically complex environment - in such an environment, the most important factor is the emergence of innovation, for example, electronics, telecommunications, etc. develop in such an environment.
The main methods of responding to changes in the external environment: 1.reactive management style - this method is the implementation of management measures after any external changes have been made; 2. expansion of the scope of activities (diversification) expansion of the scope of activities allows you to reduce commercial risk when changing environmental factors; 3. improvement of the organizational structure of management to increase its flexibility; 4. integrated strategic management - it includes all the methods mentioned above.
4.2. Analysis of the organization's macro environment using STEP analysis.
Analysis of the macro environment includes: 1. detection of signs of future possible changes; 2. forecasting future applications of the macro environment. Tracking specific tendencies and structures of macroenvironments.
When analyzing the macro environment, some caution must be exercised, as its results quickly become outdated. To cope with this problem it is necessary to: a) conduct macrospheres on a continuous basis; b) constantly update the sources of information and improve the technique of analysis.
It is customary to analyze the macrosphere in 4 main areas, the analysis of which is usually called STEP (PEST) - analysis: political and legal factors; economic forces; socio-cultural factors; technological factors.
Political and legal factors
- factors that are under the direct control and influence of the state. The state is involved in the following areas: a) legislative and regulatory regulation; b) economic policy (the state regulates issues of taxation and public spending); c) state economic activity (the state can act as the owner or manage national industries); d) international politics (state participation in international trade, influence on exchange rates, etc.)
All governments tend to exercise the following types of control: 1. control of inflationary processes; 2.ensuring economic growth; 3. control of the unemployment rate; 4.monopoly control; 5.provision of socially necessary services; 6.Pollution control; 7.protection of consumer rights; 8.regulation of working conditions, etc.
Economic forces
- factors that are associated with changes in the macroeconomics and their impact on the organization. The impact of economic factors is related to the fixed policy and monetary policy.
Fixed Policy
is the regulation of the national economy by managing the revenues and expenditures of the state.
Monetary policy
- regulation of the national economy by changing the main economic indicators: economic growth rates; the level of income in the economy; performance level; wage level; inflation rate; unemployment rate; exchange rate etc. .
Socio-cultural factors
– they include social culture and demographics.
social culture
- values, attitudes that determine the actions and behavior of people. Social culture influences consumer behavior, population priorities, business social responsibility, etc.
Demography
A social science that studies the size and composition of a country's demographics. The most important demographic characteristics are: age; education; income; place of residence, etc.
Technological approaches. Factors that reflect changes in goods and services, technology, information and communications, transport and marketing. With regard to new technologies, the following can be noted: commercial - the use of old technologies can continue for a long time; it is difficult to predict the results of new technologies, as it does not so much rely on the existing market as it creates new markets.
Table. An example of a STEP analysis.
| Politics | Economy |
| Elections of the President of the Russian Federation
Elections of the State Duma of the Russian Federation Changes in the legislation of the Russian Federation State influence in the industry |
General characteristics of the economic situation Inflation Refinancing rate National currency rate Export-import policy for the products of the analyzed organization |
| society | Technology |
| Changes in core values
Lifestyle changes Demographic changes Change in income structure Attitude towards work and leisure |
State innovation policy New patents Significant trends in R&D New products |
4.3. Directions of strategic industry analysis.
Sometimes the term industry is used interchangeably, but this is not true. Industries produce goods and services, that is, they are the sphere of supply. And markets consume goods and services. An industry is a set of enterprises that produce and sell goods and services that replace each other. Industry A group of enterprises that produces input goods, uses an identical identification, has similar production processes and similar distribution channels.
The objectives of the strategic industry analysis: 1.assessment of the attractiveness of the industry; 2. study of the dynamics of the industry development; 3. search for opportunities, threats and strategic uncertainties in the industry; 4.identification of key success factors in the industry; 5. positioning of a specific organization in the industry.
The main directions of strategic industry analysis:
1) the real size of the industry, that is, the total volume of production by all enterprises in value terms for 1 year;
2) industry growth rates and stages of its life cycle. Growth rates involve an analysis of the dynamics of changes in the real size of the industry over the past few years, it is also useful to know at what stage of the life cycle the industry as a whole is: the beginning of the rise; fast growth; beginning of maturity and saturation; stagnation; decline.
3) the structure and extent of competition in the industry, this analysis uses a model of 5 forces of competition, which will be discussed further;
4) the structure of industry costs, in this analysis it is necessary to find out the cost structure characteristic of a typical enterprise in the industry, that is, it is necessary to find some average cost structure characteristic of this industry.
Also, within the framework of this line of analysis, it is necessary to find out whether the “experience curve” operates in the industry. The experience curve is one of the strategic models developed in 1926 by the American military. This model assumes that every time the volume of production doubles, the cost of creating a unit of output decreases by 20%. The experience curve is applicable in the realm of material production.
Picture. Experience Curve
Cost reduction with an increase in production occurs under the influence of the following factors: a) the effect of economies of scale, due to the distribution of fixed costs over a large number of units of production; b) learning by experience, an effective way of organizing production.
5) existing branches of the marketing system. It analyzes which distribution channels dominate the industry and whether there are alternative marketing opportunities for the product.
6) analysis of the main trends in the development of the industry in the future. Analysis of existing forecasts for the development of the industry in the future.
7) identification of key (critical) success factors in the industry (KSF). KFU - these are controllable variables common to all enterprises in the industry, the implementation of which creates an opportunity to improve competitive organizations.
Usually 3-4 KFU are the main ones for the industry.
Table. Examples of KFU for some industries.
CFU is of 2 types: 1. strategic needs. They do not in themselves provide any advantages, but their absence weakens the position of the organization. 2.strategic forces, success factors that allow you to stand out from the general range of competitors. CSFs include: factors based on technology and production; factors based on marketing; factors related to professional management skills.
8) assessment of the overall attractiveness of the industry. The attractiveness of an industry is relative, not absolute. An organization that is well positioned in an unattractive industry can earn high profits.
4.4. Drivers of change in the industry.
Driving forces provide an answer to the question: "What can cause changes in the current industry situation." The analysis of moving forces includes 2 stages: determination of the moving forces themselves; determining the degree of their influence on the industry.
The main driving forces of changes in the industry: 1.Early trends in the economic development of the industry. This force is associated with an increase or decrease in demand for the industry's products; 2.changes in the composition of consumers and in the ways of using the product; 3.appearance of new products in the industry; 4.technological changes in the industry; 5. change in marketing activities; 6.entrance or exit of large firms; 7. distribution of know-how (I know how, but I will not say anything) in the industry; 8. changing cost structures in the industry; 9.change in the political and social factors of the macro environment; 10. reduce uncertainties and risk in the industry.
etc.................
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