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Abstract

Content

Introduction

Strategy as a socio-economic concept has been widely used since the middle of the ХХ century. The development of strategic management is due to the historical framework, that is, the transition to a market economy, and therefore the rejection of the traditional five-year plans and the transition to an awareness of the need for functioning national economy in accordance with economic laws.

The defining event in the establishment of strategic management was the realization of the inexpediency of using long-term planning and the use of constant reassessment of the initial concepts of development of economic systems, taking into account the perturbations of the internal and external environment.

1. Relevance of the topic

The degree of relevance of strategic management in the economy of modern Russia can be indirectly assessed by the level of demand of russian companies for relevant consulting services. The results of the analysis carried out in nineteen sectors of the russian economy, including mechanical engineering and metalworking, oil and oil and gas industry, pharmaceuticals, construction, agriculture, communications, banks, and so on, show that strategic management today is already a very urgent problem of russian business.

Summarizing the attitude of enterprises to this problem, it can be put in fifth place in importance after financial problems (including the problems of attracting investment and optimization tax payments), legal nature, problems of information technology development and problems of property and business valuation.

2. Strategic management in the works of domestic and foreign scientists

A significant contribution to the development of strategic management was made by I. Ansoff, H. Wissema, D. Cleland, W. King, J.B. Quinn, S. Goshal, G. Mintzberg, A.J. Strickland, V. Gerasimchuk, S. Oborskaya, S. Shershneva, S. Popov, M. Tulenkov and others. Analysis of literary sources gave grounds to highlight the concepts of strategic management of various authors, which is presented in table 1.1 [1].


Table 1.1 – Strategic management concepts by various authors

Concept name Concept characteristics
Design concept: F. Selznick, A. Chandler, K. Andrews and others. Considers strategy building as a construction or design process. At the heart of – the well-known SWOT analysis method allows you to establish compliance internal capabilities of the enterprise and the external environment
Strategic planning concept: I. Ansoff, M. Gould, E. Campbell and others. Considers strategy creation as a systematic formal planning process. The SWOT model is divided into components, detailed technologies are developed for each, then develop budgets and operating plans
Positioning concept: M. Porter and others The main idea – selection of strategic positions by the enterprise, strategy building as an analytical process
Entrepreneurship concept: K. Marx, I. Schumpeter, A. Cole, P. Drucker, G. Mintzberg Strategy formation as a process of prediction, forecasting, insight and vision of a future talented manager
The concept of cognition: G. Simon, S. MacRidaxis, etc. Based on the logic of cognitive psychology, it tries to penetrate the minds of those who develop strategies
Learning concept: J. Quiin and others The formation of a strategy is reflected in the development process: the world is too complex, therefore it is impossible to build a strategy from start to finish. Strategies must be developed gradually, step by step, as the enterprise (region) develops
Power concept: A. Macmillan, J. Sarrazine, E. Pettigrew, J. Bauer, I. Dose, etc. Strategy formation – it is the process of negotiating between conflicting groups within an organization or between an organization and the environment that opposes it
Culture concept: E. Pettigrew, S. Feldman, J. Barney, M. Faresom-company, F. Rieger, etc. Strategy building as a collective process, in which the principles of its formation are determined by the type of organizational culture, the opening of corporate culture took place in the 1980s thanks to Japanese corporations
Environment concept: G. Mintzberg, D. Miller, K. Droge and others. Strategy formation as a creative process initiated by the influence of the external environment
The concept of configuration or quantum theory of change: A. Chandler, D. Miller, G. Mintzberg, I. Doz, R. Miles, C. Snow, D. Hirst, G. Tenheiser and others. This school embraces the past, attempts to integrate the strategy building process, the strategy structure, the organizational structure and the organizational environment at the stage its life cycle; development of a strategy marks the transition of an enterprise from one state to another, that is, the formation of a strategy – it is the process of enterprise transformation

Thus, strategic management – it is such an organization management that relies on human potential as the basis of the organization, focuses production activities on customer requests, responds flexibly and implements timely changes in the organization that respond to the challenge from the environment and allows you to create competitive advantages, in the aggregate, it enables the organization to survive in the long term, while achieving its goals [6].

3. The essence of strategic management

Enterprise strategic management is a set of actions and decisions taken by management that lead to the development of specific strategies designed to help him to achieve his goals. Strategic management – it is governance centered on strategic choices that drive strategic decision-making and implementation. The strategic management is a tool that helps in making management decisions. Its task is – ensure innovations and changes in the activities of the enterprise to a sufficient extent. In solving strategic problems enterprise strategic management plays a key role, it refers to the process of developing and maintaining a strategic balance between the goals and capabilities of the organization in a changing market environment [3].

The purpose of strategic management – to determine the most promising areas of the enterprise, ensuring its improvement and development.

Interest in strategic management was driven by the following:

  1. The awareness that any enterprise is an open system and that the main sources of enterprise success are in the external environment.
  2. In the face of aggravated competition, the strategic orientation of the enterprise & ndash; one of the decisive factors for its survival and development. Strategic management allows adequate respond to the uncertainties and risks inherent in the external environment.
  3. Since the future is almost impossible to predict and the extrapolation used in long-term planning cannot be effectively applied, it is necessary to use scenario, situational approaches, fit well with the concept of strategic management.
  4. In order for an enterprise to respond in the best possible way to the impact of the external environment, its management system must have adaptive capabilities [2].

The development of strategic plans is based on the analysis of the prospects for the development of an enterprise under certain assumptions about changes in the external environment in which it operates. A critical element of this analysis is the definition of the position of the enterprise in the competition for the markets for its products. On the basis of this analysis, the goals of the enterprise development are formed and the strategies for their achievement are selected. If long-term and annual plans of the enterprise offer planning of the selected development directions, then within the framework of strategic management, questions are resolved about which new directions should be developed, and which of existing – liquidate.

Strategic management is aimed at adapting the activities of the enterprise to the constantly changing conditions of the external environment and at deriving benefits from new opportunities.

The subject of strategic management is:

In the second half of the XIX century the management of enterprises has undergone significant changes almost every decade. The conditions for doing business changed, and enterprises faced the task of solving questions of achieving goals, a new approach to the search for means of survival in the competition. And each time the concept of strategic enterprise management acquired a special meaning, often diametrically opposite the one that was invested in it earlier.

Strategic management of the 50s-60s – it is a long-term planning of production and market development. Around this time, long-term plans became the focus of strategic behavior development enterprises.

In the 70s the meaning of strategic choice has changed significantly. This is no longer a fixation of production plans for the long term, but a choice regarding what to do with the business that was successful, but may lose attractiveness due to changes in consumer priorities.

In the 80s the dynamism of the external environment has made the task of timely adaptation to the changes that occur in all spheres of social life so difficult that the creation of the potential for change, the ability of the enterprise properly responding to the challenge from the environment has become the center of the strategic behavior of the enterprise. First, strategic execution, then strategic management finally brought the understanding of strategic the behavior of the enterprise to such management, in which the basis of strategic decisions is the choice regarding the behavior of the enterprise at the moment, which at the same time is considered as the beginning of the future. Thus, the decision is determined by the circumstances that arise, but at the same time it implies that its implementation should not only give an answer to the challenge from the environment, but also provide the possibility of further successful reaction to changes that will occur in the environment.

The evolutionary development of the concept of strategic management can be briefly presented in the form of a table 1.2 [2,3].


Table 1.2 – Evolution of the concept of strategic management

Period Concept basis Prerequisites for modifying the concept
First half of the 20th century Using long-term planning. The beginning of practical application in management –
70s Practical application of strategic planning The need for a quality response to changes in the internal and external environment
80s Formation of the concept of strategic management The problem of growth and development in the face of increased competition
The end of the 90s – the beginning of the XXI century. Strategic entrepreneurship concept Globalization processes, the formation of transnational corporations, fierce competition in the market
Present time Innovation management strategy concept Requirements of the modern globalized economic space, development of scientific and technological progress

The restructuring of the system of economic relations in our country naturally aroused interest in strategic business planning and management organization.

There are four main tasks of developing a strategic plan for an enterprise:

These four tasks predetermine the logical sequence of the formation of strategic management of the enterprise as a whole [5].

4. Stages of the strategic management process

The following main stages of the strategic management process can be distinguished (Fig. 1.1).

5 этапов процесса стратегического управления

Figure 1.1 – 5 stages of the strategic management process
(animation: 7 frames, 5 cycles of repetition, 100 kilobytes)

1. Defining the mission, vision and goals of the enterprise

At this stage, it is necessary, as a first approximation, to understand what the purpose of the enterprise is, how we want to see it in the future. The methodology for formulating the mission of the organization is intended to formulate the main target guidelines and strategic goals of the enterprise, interconnected with the claims of the owners. The essence of the methodology lies in the collective (expert) development of a statement of the company's mission. This document becomes a kind of platform for formulating the company's mission. Engaging enterprise managers as co-authors the document provides an additional psychological effect of reducing resistance to the actions of top management.

Eight spaces can be identified within which enterprise goals can be defined:

  1. Position on the market – desired market share.
  2. Innovation – identifying new ways of doing business.
  3. Labor productivity, cost reduction.
  4. Resources – financial, material, human, marketing, etc.
  5. Profitability.
  6. Management aspects, quality of management.
  7. Personnel (performance of labor functions, attitude to work).
  8. Social responsibility before society.

The process of forming a mission and setting strategic goals is part of strategic management. Strategic goals define such general parameters as the scale, type and scope of the enterprise, for a fairly long term. Corporate wording missions often fit into the form of a bright, memorable advertising slogan. On the one hand, it is used as part of image advertising, and on the other hand, in companies with a strong organizational culture, with highly loyal staff – to motivate employees [6].

Thus, at the first stage, strategically important areas of the enterprise's activity are established – those that are managed and planned relatively independent of other markets and infrastructures. When delimiting strategic economic areas, the following is taken into account:

2. Strategic analysis

Based on the idea of the mission and goals of the enterprise, we can determine the factors of the internal and external environment that maximally affect its development, which means requiring careful study, that is, to identify objects for strategic analysis. Strategic analysis includes an analysis of the external environment (industry trends, consumer preferences, competitive environment, etc.) and analysis of the internal environment (structure of the company and the processes taking place in it). Second stage of strategic planning characterized by an analysis of individual strategic areas. The analysis does not touch upon general corporate problems, since individual strategic areas have their own market specifics and external environment, and their infrastructure has its own strengths and weaknesses in relation to competitors. Hence the various spheres of economic activity businesses have their own risks and special chances of success.

Analysis of the macroenvironment includes the study of the impact of the economy, legal regulation and management, political processes, the natural environment and resources, social and cultural components of society, scientific, technical and technological development of society, infrastructure, etc. The immediate environment is analyzed according to the following main components: buyers, suppliers, competitors, labor market. Analysis of the internal environment reveals those opportunities, the potential that can count on the firm is in competition in the process of achieving its goals. Analysis of the internal environment also makes it possible to better understand the goals of the organization, more correctly formulate the mission, i.e. determine the meaning and direction of the firm's activities [7].

3. Defining the space of strategic choices

When, as a result of strategic analysis, we got an idea of the prospects for changing the external environment and the main characteristics of the internal environment, the time has come for answering the question in what direction should the organization develop?, precisely in what direction?, and not how? The answer will allow you to discard obviously unpromising directions development and will outline the space for strategic choices. As a result, the mission, vision and goals of the organization defined at the previous stage are clarified. Often they are being reformulated, since the result of strategic analysis can be a new understanding of the situation. At this stage, a decision is made as to how, by what means the firm will achieve the goals [6].

4. Development of an enterprise development strategy

At this stage, a company-wide strategy is developed for a set period of time – for a period of 3 to 10 years. Moreover, if the enterprise operates in several strategic areas, then each of them should have its own goals and resources. When limiting the activities of an enterprise to one economic area, the general company strategy determines success factors that provide him with an advantage in the fight against competitors. The corporate strategy includes projects and programs that can help these success factors be implemented.

5. Rationale and implementation of the strategy

At the last stage, the reality of the goals outlined in the previous planning stages is confirmed by justifying the needs and sources of long-term resources, and above all, financial. Based on the results of the analysis of the financial perspective, the assessments of the strategic plan can be adjusted. Enterprises also have to provide for the structure of the areas of economic activity that formed the basis of the strategic plans. Assessment and control of the implementation of the strategy are logically fina process carried out in strategic management. This process provides a stable feedback between the progress of the process of achieving the goals and the actual goals set before the organization. Strategic control is focused on finding out whether it is possible to implement the adopted strategy in the future and whether its implementation will lead to the achievement set goals. Adjustments based on the results of strategic control can relate to both the implemented strategy and the goals of the firm.

Based on the foregoing, the following main features of strategic management can be distinguished:

Conclusion

The main idea of modern strategic management is the idea of adapting an enterprise to a changing external environment, as well as the idea a targeted approach to solving management problems. To be able to adapt to changes in the external environment and at the same time always withstand course to achieve the set goals, the company must have a strategy. Strategy formation becomes vital in those cases when there are sudden changes in the external environment of the enterprise.

In other words, the theory describes the strategic management tools with which you can achieve success, that is, it gives understanding of analytical processes, methods, methods, techniques and procedures and their combinations, allowing to achieve effective results.

At a strategically oriented enterprise, it is important to have strategic thinking as a basis, which will become a principled setting in the activities of the company's personnel, primarily top management; strategic management system in which rational process of strategic planning, and which will allow the development and use of an integrated system strategic plans; and current, daily activities that are subordinated to the achievement of strategic targets.

Master's work is not yet completed when writing this abstract. Final completion: may 2021. Full text of the work and materials on the topic can be obtained from the author or his manager after that date.

References

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