DonNTU |Master's portal of DonNTU
RUS | UKR

Deminskaya Julia

Deminskaya Julia

Faculty of Economy

Department of Economics and Management

Speciality: Economy of enterprise (marketing)

Scientific Supervisor: Nadtoka Tatyana


About author

Summary of research and developments

Strategy development engineering enterprise


INTRODUCTION (Motivation)

   One of the biggest challenges is to effectively manage the strategic development of organization and control of its activities with a view to improving the welfare of owners in the long term.

    In a market economy in Ukraine, the autonomy of enterprises in making business decisions, as well as responsibility for the results of its activities, there is a need for ongoing strategic business development and implementation of strategic management that help to identify effective ways to implement financial and economic activities of the enterprise, the orientation the financial possibilities and opportunities arising in the current economic system. The solution of these issues provides a strategy for the company.

   Modern enterprise - an organized system, task-oriented production of goods and services, which is part of the economic system, public and private elements which have their own economic goals. Consequently, the desired level of development of the enterprise depends on the nature of the impact that certain basic elements and the entire state as a whole system [5].

   In recent years, become very relevant analytical problem-looking, whose solution is impossible without fundamental scientific research. Their basis is the totality of economic science, a special place in which occupies such an important branch of knowledge as an economic analysis.

    Experience of advanced enterprises shows that success is seeking someone who can implement in their production set of technological and managerial breakthrough that is carried out simultaneously with the entire control system and the formation of a holistic approach, focusing on strategic development for mandatory adaptation to changing conditions of external and internal environment of [4].

Subject of research: "Khartsyzsk Machine Plant".

Subject of research: development strategy for the company.

Objective: based on a study of strategic management concepts to analyze the mechanisms of development strategy of the organization and develop recommendations on development strategy "Khartsyzsk machine Plant".

Realization of this goal required the following tasks:

    1. Disclose the nature and content of the concept of enterprise development strategies;

    2. Study the structure of the strategic potential and strategic areas of economic enterprises and their use in selecting development strategies;

    3. Explore the stages of enterprise development strategies;

    4. Based on the diagnosis of external and internal environment to develop recommendations on development strategy "Khartsyzsk machine Plant".

Graduation thesis consists of an introduction, three chapters, conclusion, bibliography, annexes.

OVERVIEW OF RESEARCH ON THE TOPIC

Essence and the stages of strategic management at the enterprise

    Historically, the concept of "strategy" has developed in the military lexicon, where it defines the planning and implementation of state policies and political and military alliance of several countries, using all available means.

    In the current economic dictionary [7] economic strategy is defined as "long-term, the most fundamental and important installations, plans, intentions of the government, regional administrations, leadership organizations in the production, income and expenditure, budget, taxation, investment, prices and social protection."

    Strategy - a set of core activities and ways of their implementation. Strategic management - is primarily a management development organization. The subject of strategic management in organizations is to determine the long-term goals, develop plans to achieve them, and managing activities to ensure implementation of the plan.

   In terms of level of management strategies are ranked as follows:

   1) Corporate strategy - implemented in diversified companies and includes: creating and managing a highly productive economic portfolio of business units, creating a synergy among related departments, establish investment priorities.

   2) Business strategy involves: development of measures aimed at enhancing the competitiveness and the preservation of competitive advantages of firms, the formation of a mechanism to respond to external changes, the union of the strategic actions of major functional divisions of the company.

   3) Functional strategy involves: steps to support the business strategy, actions to achieve the goals department.

   4)The operating strategy requires actions to address specific business challenges of subdivision (a functional, territorial).

    In terms of changes in the state of the product, market, industry, position in the industry, the technology used in different growth strategies, strategies for stabilization and reduction strategies (withdrawal).

   Concept and the term "strategic management" introduced in the scientific revolution in the early 70 - ies of the twentieth century to refer to differences between the management of current manufacturing processes and management of the Summit, which focuses on the external environment should be the object of control. Strategic management as a new approach to management was formed in 1970 - 1980 years. Strategic management is closely linked to issues of planning and economic analysis. In this regard, can be considered indicative of the definition of strategic management, formulated by I. Ansoff [1] as "an interrelated set of planning strategies for organizing and implementing a plan of a life."

   Strategic management can be viewed as a dynamic set of five interrelated stages of management processes. These processes are logically follow (or followed) from one another. This is an important feature of the strategic management system.

    Stages of strategic management:

   The first stage. Analysis of the environment - initial stage of strategic management, because it provides a basis for determining the mission and goals of the company and to develop behavioral strategies that enable us to fulfill the mission and achieve their goals. Analysis of the environment involves the study of its three parts. Macro-analysis includes the study of the influence of medium components, such as: state of the economy, legal regulation and management, political processes, natural environment and resources, social and cultural components of society, scientific and technical and technological development of society and all the infrastructure. Immediate environment is analyzed in the following main components: customers, suppliers, competitors, labor market. Analysis of internal environment reveals those inner possibilities and the potential, which can expect the firm to compete in the process of achieving their goals, and also allows more true to formulate the mission and to better understand the goals of the organization. The internal environment is analyzed in the following areas:

   • Human Resources firms, their capabilities, skills, interests, etc.;

   • Organization management;

   • Production, which includes the organizational, operational, technical and technological characteristics, research and development;

   • Finance companies;

   • Marketing;

   • Organizational culture.

   Second stage. Defining the mission and goals, regarded as one of the processes of strategic management consists of three under processes, each of which requires a large and highly responsible work. First under the process is to determine the firm's mission, which in concentrated form expresses the meaning of existence of the company and its mission. Next comes a process of determining long-term goals. Completes this part of the strategic management of a process for determining short-term goals. Defining the mission and goals of the firm leads to the fact that it becomes clear why the company operates and what it seeks.

   The third stage. Analysis and selection strategy. This is the main strategic management process. Using special techniques the organization determines how it will achieve its objectives and implement their mission.

    Fourth stage. Implementation of the strategy is a critical step, because it was he who in the case of the successful implementation leads the firm to achieve its goals. Very often there are cases when firms fail to implement the chosen strategy.

   Fifth stage. Assessment and monitoring of the strategy are the logical last step, carried out in strategic management. This process provides a robust inverse relationship between how the process of achieving the goals and objectives of the organization.

    The main task of monitoring:

    - definition of what is and what indicators to check;

    - assessing the state of the controlled object in accordance with accepted standards, regulations or other benchmarks;

    - identify the causes of deviations, if any, shall be opened as a result of the evaluation;

    - implementation of adjustments, if necessary and possible.

   As a unified development strategy MI Bukhalkov [12] proposes a model - 7C, which characterizes the mechanism of interaction of socio-economic factors such as structure, system, staff, style, shared values and a set of abilities. The main elements of development strategy on the model - 7C are shown in Figure - 1.

стратегия

Figure 1. - Model - 7C enterprise development
animation: volume - 34,3 KB; size, 600x500; consists of 8 frames, the delay between shots - 100 ms delay between the last and first frames - 100 ms, the number of cycles of repetition - endless).

   In the strategic management of the enterprise can use such a strategy known as product development, stabilization of production, market penetration, cost reduction, price changes and all other functional or targeted policies (financial, marketing, competition, etc.).

The importance of strategic management at the enterprise in modern conditions of management.

   The economic crisis of the Ukrainian national economy depends on several factors, among which an important place is occupied by the imperfection of the control system. The turbulent nature of the adverse changes in the economy (inflation, rising prices for raw materials, high interest rates for loans, reducing the population's purchasing power, etc.) and high complexity of the tasks now expanding the role of scientific management to stabilize the socio-economic processes and to ensure high efficiency all types of businesses.

   Many of the processes of development strategies used by entrepreneurs and now, based on the pioneering work of Andrews and Christiansen in 1960 (Harvard Business School). Using a unidirectional approach, these processes generate a number of clearly defined steps that are done consistently, and include data collection and analysis, strategy development, evaluation, selection and implementation. The essence of this approach (also known as the school or school of design choice considering the strategy as the ratio between the potential of the company and the opportunities that it provides a competitive environment. SWOT analysis (strength - strengths, weaknesses - weaknesses, opportunities - opportunities and threats - threats) often used to achieve this goal. Representatives of this school are Christiansen, Andrews, Hamermesh, Porter, Ohmae, Johnson and Scholes.

   Enterprise strategy - a systematic plan for its potential behavior under incomplete information about the future development and business environment, including the formation of the mission, long-term goals, as well as the ways and rules of decision-making for the most effective use of strategic resources, strengths and opportunities, the elimination of weaknesses protection from threats in the environment for future profitability.

   Organization of the development strategy for the company includes the selection of personnel development, organization of their work and control, change management organizational structure in accordance with the needs of strategic management, human resources development in the strategic skills and information and analytical support for the strategy development process. There are many ways of competition and strategies of the company: production, product, pricing, etc. But the core of any strategy lie (to lie) competitive advantage. Strategic management can be defined as the management of competitive advantage. Competitive advantage - this situation firms in the market, which allows it to overcome the forces of competition and attract customers. Competitive advantages are unique tangible and intangible assets owned by the company, by strategically important for the business areas of activity that allow to win the competition.

   The basis of competitive advantage, thus, are unique assets of the enterprise or a special competence in areas important to the business. Competitive advantage is usually implemented at the level of strategic business units and is the basis of the business (competitive) business strategy.

   The strategy should be, on the one hand, have a clear idea about the strengths and weaknesses of the company, its market position and, on the other hand, understand the structure of national economy in general and the structure of the industry in which the enterprise operates. The strategy consists of a number of approaches and disciplines developed by the leadership to achieve the best performance in a specific field of activity. The combination of common and general competitive strategy depends on the characteristics of the industry, the overall competitive position of firms in the environment, the characteristics of the enterprise.

   Develop economic development strategies of enterprises is becoming increasingly important for the Ukrainian enterprises, which are set in a highly competitive, both among themselves and with foreign corporations. Although strategic planning is not in itself ensure success, but it creates the conditions for the emergence of a number of important and often essential enabling factors for the organization.

CONCLUSIONS

   Strategy - a set of core activities and ways of their implementation. Strategic management - is primarily a management development organization. The subject of strategic management in organizations is to determine the long-term goals, develop plans to achieve them, and managing activities to ensure implementation of the plan .. Choosing a strategy involves the study of alternative courses of development of the organization, their evaluation and selection of the best strategic alternatives for implementation. It uses special tools, including quantitative methods of forecasting, the development of scenarios for future development, portfolio analysis.

   Implementation of the strategy through the development of programs, budgets and procedures, which can be regarded as medium-and short-term plans to implement the strategy. In the process of implementing the strategy, each level of leadership will carry out its specific task and carries out the functions assigned to him. A crucial role is played by top management. His activities at the stage of implementation of the strategy can be represented in the form of five successive phases.

   Develop economic development strategies of enterprises is becoming increasingly important for the Ukrainian enterprises, which are set in a highly competitive, both among themselves and with foreign corporations. Although strategic planning is not in itself ensure success, but it creates the conditions for the emergence of a number of important and often essential enabling factors for the organization.

   Company's strategy consists of actions and attitudes of management personnel to achieve a certain goal of activity; strategy provides (to ensure) the direction and adaptation activities of the enterprise in a market environment, the creation of a strategy - is first of all entrepreneurial activity, policymakers increasingly must focus on changes in the external environment than to study the internal problems of the enterprise, a dynamic strategy and in the process of enterprise development, strategies for enterprise partially visible and partially hidden from view. Develop a strategic vision and mission of the enterprise, the definition of goals and strategy selection are the main tasks of choosing the direction of the organization.

   At the present stage of development in Ukraine is the transformation of the whole complex of economic, social, relations of power. And it is very important that these changes were the most effective way, taking into account the well-defined, scientifically-based priorities. Current trends that are observed in the external environment and within our country, necessitated, and the desirability of an overall economic development strategy of enterprises, organizations, government bodies and local self-government in Ukraine.

   Note: at writing of the given abstract a master’s work has not been finished yet. Date of the work’s final end is on December, 1st, 2011. Full text of work and materials on a theme can be received from the author or her supervisor after the named date.

References

1. Ансофф И. Стратегическое управление [Электронный ресурс]. - М.: Экономика, 1989. - СПС «Гарант». - 2008.

2. Ефремов В.С. Стратегия бизнеса. Концепции и методы планирования [Текст]. - М.: «Финпресс», 1998. - 163 с.

3. Портер М.Е. Международная конкуренция [Текст]. - М.: Международные отношения, 1993. - 346 с.

4. Свистунов В. равнению на лидеров индустрии [Текст] / / Кадровик. Кадровый менеджмент. 2007. - № 3.

5. Стратегический учет. / / Под ред. В. Э. Керимова. - М.: Омега-Л, 2005.

6. Исаев Д. Рациональная модель стратегического управления [Текст] / / Финансовая газета. 2008. - № 25, 26.

7. Большой экономический словарь (2-е изд.) [Текст] / под ред. А.Н. Азрилияна. - М.: Ин-т новой экономики, 1997. - 1026 с.

8. Байбурин Т.М. Разработка стратегии управления собственностью Государственное организации машиностроительной отрасли / / Диссер. на соисканию учёной степени кандидата экономических наук. - Владимир, ВлГУ, 2005.

9. Шершньова З.Є., Оборська С.В. Стратегічне управління: Навч. Посібник. – К.: КНЕУ, 1991.

10. Котлер Ф. Основы маркетинга / пер. с англ. [Текст]. - М.: Ростинтэр, 2006. - 468 с.

11. Карпов А. Стратегия компании: от разработки до реализации [Текст]. / / Консультант директора. 2005. - № 11 - С.27.

12. Разработка стратегии предприятия , автор: Мартынов А.В., ведущий консультант ЗАО «РОЭЛ Консалтинг»

13. Економіка підприємства, автор Бойчик.



DonNTU | Master's portal