Faculty еconomy
Speciality: Economy of enterprise (Marketing)
In modern conditions of business development strategic planning is a set of procedures and solutions that help companies developed a strategy that provides goals for enterprises.
Strategy - the definition of basic long-term goals and objectives of the enterprise and the establishment of a course of action and allocation of resources required to achieve these goals.
The process of implementing the strategy can be divided into two stages: strategic planning process - developing a set of strategies, ranging from the basic strategy of the enterprise and ending with functional strategies and special projects, strategic management process - implementation of a strategy in time strategy in the world of new circumstances.
Enterprise strategy should be based on a hierarchical level. At this level strategies, complexity, their integration is very different depending on the type and company size.
Unified strategy for all businesses there. Every business is unique even one industry, and therefore determine its strategy is also unique because it depends on the position on the market, its potential, the dynamics of the treatment of competitors, the features of product or service, state of the economy, social services and many other factors.
At present there are three levels of strategies: Level I - basic strategy, the second - competitive strategy, the third - functional strategies.
In order to choose the development strategy should be to conduct a study of external and internal environment of an organization to hold a strategic and competitive analysis, identifies options strategies, then selects one of the options and formulate their own strategy at the last stage prepared final strategic plan, based on prior developments.
Today the issue of choice of strategy development is very urgent because without a specific strategy of the enterprise will be very hard to survive in today's market conditions and to resist the competitive arena.
Thus, the aim of the thesis is to master the technique of development strategy, selection and justification of basic, competitive and functional strategy.
To achieve the goal set in the following tasks: to investigate methods of strategic planning at the enterprise, the concept of enterprise development strategies, to provide classification of enterprise development strategies and methods by which each individual institution may choose the strategy of its development under present conditions, make economic and financial analysis , analysis of planned activities and SWOT - analysis, justify the choice of strategies for enterprise development.
1.1 Types of planning at the enterprise and the essence of strategic planning
Planning - is one of the functions of management, ability to predict the whole enterprise, its financial performance and resources needed to achieve these goals, it is also the ability to predict different surprise which may arise in the course of work, and ability to cope with them.
Planning in the organization may refer to one or another type depending on the signs on which the classification. Feature which determines the type of planning are:
- The degree of uncertainty in the planning;
- Temporary planning orientation of ideas;
- Planning horizon.
Depending on the degree of uncertainty of planned activities of planning, organization can be divided into two types. The first - is the one who gives in completely predictable environment and has no shortage of information. Thus, events in such systems have complete certainty. This type of planning system is called deterministic systems.
Another type of system planning involves the lack of certainty in the environment and lack of information. Planning systems that do not give the full predictability of the result, called probabilistic (stochastic).
Probabilistic systems planning options are:
- Planning system based on firm commitments. This plan is suitable for situations in which there is a high degree of confidence late events;
- Planning for personal responsibility. This plan is acceptable for situations in which there is complete uncertainty;
- Planning, adapted to the random circumstances. This type of planning is intermediate between the first two: on one hand, he faced constant uncertainty in the activity of the firm, and with the other hand, takes into account the possible choices in an uncertain environment and thus increases their predictability.
Types of planning differ also depending on whether the targeted main ideas of planning in the past, present or future. In this sense consists of four types of planning:
- Reactive planning (return to the past). Representatives of reactive planning their ideals and way of existence found in the past. The basic method of reactive planning - a genetic approach. That is, every problem is investigated in terms of its origin and past development. Find the cause of problems in the past to suppress or contain it - and the problem disappears;
- Inaktyvne planning (inertia). This type of planning takes existing conditions as very good, at least as acceptable. Characterized it as imagination is that the equilibrium position in the economic organization is achieved naturally, automatically;
- Preaktyvne planning (prevention). This plan focused mainly on future changes. Preaktyvisty seek to accelerate change faster to approach the future;
- Interactive planning. It has two main features: based on the principle of participation and most creative members' ability to mobilize the organization suggests that the future beyond its reasonable control, and largely a product of creative acts of organization's members. The goal of interactive planning - designing the future.
Depending on what horizon (period) of time covered by plans drawn up by the organization, planning, divided into three types:
- Long-term planning usually covers a long period of time - from 10 to 25 years;
- Medium-term planning guidelines specify certain long-term plan. Until recently, the medium-term planning horizon attain to the level 5 years. However, the unpredictable nature and rate of change of the environment have forced many firms to reduce the length of their plans from 5 to 3 years;
- Short-term planning - is the development of plans for 1 - 2 years. Short-term plans include specific uses of resources are necessary to achieve the objectives, specific plans in a more prolonged.
In these three ways of classifying types of planning a distribution depending on the significance of a given type in the process of planned activities. Hence planning to distribute the following basic types:
- Strategic planning involves the development strategy. Usually strategic planning can be for a long period, although many enterprises strategy based on the medium term. Strategy - this is not a function of time, and primarily function direction. It is not just focused on that period of time, but also includes a set of global ideas of enterprise development;
- Tactical planning must work with the decision about how resources should be located in the enterprise to achieve strategic goals. Tactical planning typically covers short and medium term, that is taken care of middle and lower command levels;
- Operational Planning - a planning specific operations in the general economic stream in the short and medium term, such as production planning, marketing planning. During the operational planning and budgeting understand the enterprise;
- Planning ahead - a plan that is based on the performance of previous years of work that is based on previous work of the enterprise plan for the further work in the future. Long-term planning usually includes short-term planning.
As a function of management, strategic planning is the foundation on which is built the whole system of management functions, or basis for the functional structure of management system. Strategic planning is a tool with which formed the system of functioning of the enterprise goals and combined efforts of all of the enterprise to achieve it.
Strategic planning is a set of procedures and solutions that help companies developed a strategy that provides goals for enterprises. The logic of this definition is: the activity of the machine and taken on the basis of its decision to form a strategy for operation.
Strategic planning can be viewed as a dynamic set of six interrelated management processes that logically follow one another. At the same time, there is strong feedback and influence of each process on the other.
Strategic planning process includes:
- A mission statement, organizations;
- Formulating goals and objectives for enterprises and organizations;
- Evaluation and analysis of the environment;
- Evaluation and analysis of the internal environment;
- Development and analysis of strategic alternatives;
- Choice of strategy.
The process of strategic management (except for strategic planning) also includes:
- Implementation strategy;
- Assessment and control strategy.
The main components of strategic planning are:
- Defining the mission of the organization. This consists in setting protsec raison d'?tre of the firm, its purpose, role and place in a market economy. Mission Statement describes the trend in business where companies are targeted, based on market needs, the nature of consumer product features and availability of competitive advantage;
- Formulating goals and objectives. To describe the nature and level of business claims inherent in one or another type of business, the terms "goals" and "mission". Goals and objectives should reflect the service users. They should create motivation for people working in the firm;
- Analysis and assessment of the environment. Of course, this process is starting the strategic planning process. Because it provides the basis for a strategy of treatment. Analysis of the research environment involves two components: macroenvironment; immediate environment. The analysis includes the study of macro impact media company such components as: the economy, regulation, political processes, environment and resources, social and cultural components of society, scientific and technical level, infrastructure, etc. The immediate environment is analyzed by the following components: customer, supplier, competitors, labor market;
- Analysis and evaluation of internal structure (environment). Analysis of internal environment to identify those internal capabilities and potential, can count on the firm a competitive edge in achieving their goals. Analysis of internal environment to better understand the goals of the company and form its mission. The internal environment is studied in the following areas: human resources, organization management, finance, marketing, organizational structure, etc.;
- Development and analysis of strategic alternatives, the choice of strategy (Phase 5.6). In this process, decisions about how the company will achieve its goals and implement the corporate mission. To make effective strategic choice, senior management should have clear, shared by all concept development firm. The strategic choice should be specific and unambiguous;
- Implementation strategy. Implementation of the strategic plan is a critical process because if the real plan leads us to success. Often the reverse: good strategic plan can be done to "fail" if not take measures for its implementation. Successful implementation of the strategy helps meet the following requirements: goals and actions strategies should be well structured, communicated to employees and accepted by them, must have a clear action plan to implement strategies that ensure the plan provides all the necessary resources;
- Assessment and control strategy. This process provides feedback between the process of achieving the goals envisaged by the strategic plan, and actually the same goals. By means of ensuring such compliance is control, which has the following objectives: identification of controlled parameters, assessment of parameters of controlled object, determine the causes of deviations from the accepted parameters of object standards, norms and other elements; corrections if you feel the need on the implementation strategy.
The main objective of such control - find out to what extent the implementation of the strategy leads to the goals and mission of the firm.
1.2. The concept of development strategy and its role in strategic planning for enterprises in market conditions
In 60 years in the U.S. and most Western European countries began "boom strategic planning", based on the prevailing concept of the company as "open system" at the micro level and the development of forecasting and indicative planning at the national level.
An issue to consider real and robust plans for future development of the enterprise, taking into account the current situation, identify alternative perspectives on development, focus primarily on the financial market and economic prospects, such as sales and income (enterprise and individual), income, profitability investment, efficiency and more. The company became more dependent on consumer demand in determining the prospects of its expansion and continued existence.
Dzh.A.Stayner has identified indicators that contributed to the development of strategic planning in the 60 to 80 years:
- Larger enterprises due to the increased complexity and multidisciplinaryactivities;
- Scientific and technical progress;
- The use of relationships with other organizations;
- Increasing competition in domestic and foreign markets due to filling of markets;
- Development of methodologies and tools planning;
- Leading for companies that focus more on strategic planning.
Application of strategic planning has caused the need to integrate different types of planned activities conducted by all the subsystems of the enterprise and also need further development of strategic activities in the enterprise.
The strategy usually has to ensure sustainable economic growth and enterprise development, improving the competitiveness of their manufactured products and services provided. This concept of "growth" and "development", although interdependent, but by its content may largely disagree. In the manufacturing sector, as in wildlife, development of enterprise may not only while its growth, but at a constant scale of activity, that growth alone will not prevent development.
Height - it is mainly larger firms and expansion of production (output, sales value, number of employees).
Development can be either positive or negative. Therefore, the development may mean qualitative change and restoration of the economic system, improve its functioning based on the improvement of machinery, technology and labor in all units and improving the quality of manufactured products, and deteriorating performance of the company.
In theory and practice distinguish the following basic concepts of economic systems:
- Perfect - the object of entrepreneurship as science and technology are making the necessary innovations - changes to ensure its stability and efficiency improvement;
- Real - a partial reform of the enterprise after the first negative signs in its financial and economic condition;
- Radical - radical changes functioning organizations to their restructuring, which helps improve management, increase efficiency and competitiveness of manufactured products, productivity, lowering production costs, improve financial and economic performance.
The concept of "strategy" of Greek origin. Originally it had military significance and meaning "other general" find the right ways to achieve victory.
The development strategy of the company - a collection of his key objectives and fundamental ways to achieve these goals.
Note: When was writing this abstract, the master’s qualification work is not completed. Date of final completion of work: December, 2010. Full text of the work and materials on a work theme can be received from the author or her scientific supervisor after that date.