Implementation of strategic planning stages in social organizations. Strategic planning What are the main stages of strategic planning

The strategic planning process in a company consists of several stages:

1. Defining the mission and goals of the organization.
2. Environmental analysis, which includes collecting information, analyzing the strengths and weaknesses of the company, as well as its potential capabilities based on available external and internal information.
3. Choice of strategy.
4. Execution of strategy.
5. Evaluation and control of implementation.

Defining the mission and goals of the organization

“The target function begins with establishing the mission of the enterprise, expressing the philosophy and meaning of its existence.”

“A mission is a conceptual intention to move in a certain direction.” Typically, it details the status of the enterprise, describes the basic principles of its operation, the actual intentions of management, and also defines the most important economic characteristics of the enterprise.

The mission expresses aspirations for the future, shows where the organization’s efforts will be directed, and what values ​​will be a priority. Therefore, the mission should not depend on the current state of the enterprise, it should not be affected by financial problems, etc. It is not customary in the mission to indicate making a profit as the main goal of creating an organization, although making a profit is the most important factor in the functioning of the enterprise.

“Goals are a specification of the mission of the organization in a form accessible to manage the process of their implementation.”

The main characteristics of the goal are as follows:

• clear orientation to a certain time interval;
• specificity and measurability;
• consistency and consistency with other missions and resources;
• targeting and controllability.

Based on the mission and goals of the organization's existence, development strategies are built and the organization's policies are determined.

Concept of strategic analysis

Strategic analysis, or as it is also called “portfolio analysis,” is the main element of strategic planning. “The literature notes that portfolio analysis acts as a strategic management tool, with the help of which enterprise management identifies and evaluates its activities in order to invest funds in its most profitable and promising areas.”

Strategic analysis originated in the late 60s. At this time, large firms and most medium-sized ones turned into complexes that combined the production of diverse products and entered many product markets. However, growth did not continue in all markets, and some of them were not even promising. This discrepancy has arisen due to differences in demand saturation, changing economic, political and social conditions, growing competition and the rapid pace of technological innovation.

It became obvious that moving into new industries would not help the company solve its strategic problems or realize its full potential. The situation required managers to radically change their perspective. In such conditions, extrapolation was replaced by strategic planning and portfolio analysis.

The unit of portfolio analysis is the “strategic management zone” (SZH). SZH represents any market into which the company has or is trying to find an exit. Each agricultural sector is characterized by a certain type of demand, as well as a certain technology. As soon as one technology is replaced by another, the problem of technology correlation becomes a strategic choice for the company. During portfolio analysis, a company evaluates the prospects of a particular line of business.

The main method of portfolio analysis is the construction of two-dimensional matrices. With the help of such matrices, production, divisions, processes, and products are compared according to relevant criteria.

There are three approaches to forming matrices:

1. A tabular approach in which the values ​​of varying parameters increase as the names of these parameters move away from the column. In this case, the portfolio analysis is carried out from the upper left corner to the lower right.
2. A coordinate approach in which the values ​​of varied parameters increase with distance from the coordinate intersection point. The portfolio analysis here is carried out from the lower left corner to the upper right.
3. A logical approach in which the portfolio analysis is carried out from the lower right corner to the upper left. This approach has become most widespread in foreign practice.

Environmental analysis is necessary when carrying out strategic analysis, because its result is the receipt of information on the basis of which assessments are made regarding the current position of the enterprise in the market.

Environmental analysis involves the study of its three components:

• external environment;
• immediate environment;
• internal environment of the organization.

Analysis of the external environment includes the study of the influence of the economy, legal regulation and management, political processes, natural environment and resources, social and cultural components of society, scientific, technical and technological development of society, infrastructure, etc.

Environmental analysis is the process by which strategic planners monitor factors external to the organization to determine opportunities and threats to the firm.

Analysis of the external environment helps to obtain important results. It gives the organization time to forecast opportunities, time to create a contingency plan, time to develop an early warning system for possible threats, and time to develop strategies that can turn previous threats into any profitable opportunities.

“In terms of assessing these threats and opportunities, the role of environmental analysis in the strategic planning process is essentially to answer three specific questions:

1. Where is the organization now?
2. Where does senior management think the organization should be in the future?
3. What must management do to move the organization from where it is now to where management wants it to be?”

The threats and opportunities facing an organization can generally be categorized into seven areas. These areas are economics, politics, markets, technology, competition, international affairs and social behavior.

Economic forces. The current and projected state of the economy can have a dramatic impact on an organization's goals. Certain factors in the economic environment must be continually diagnosed and assessed. “Studying the economic component of the macroenvironment allows us to understand how resources are formed and distributed. This is clearly vital to the organization as access to resources greatly determines the entry status of the organization.

The study of economics involves the analysis of a number of indicators: GNP, inflation rates, unemployment rates, interest rates, labor productivity, taxation standards, balance of payments, savings rates, etc. When studying the economic component, it is important to pay attention to such factors as the general level of economic development, extracted natural resources, climate, type and level of development of competitive relations, population structure, level of education of the workforce and wages.

For strategic management, when studying the listed indicators and factors, what is of interest is not the values ​​of the indicators as such, but, first of all, what opportunities this provides for doing business.

Also within the scope of interest of strategic management is the identification of potential threats to the company, which are contained in individual components of the economic component. It often happens that opportunities and threats come in close conjunction.”

“The analysis of the economic component should in no case be reduced to the analysis of its individual components. It should be aimed at a comprehensive assessment of her condition. First of all, this is fixing the level of risk, the degree of competition intensity and the level of business attractiveness.”

Market factors. The changing external market environment is an area of ​​constant concern for organizations. Market environment analysis includes numerous factors that can have a direct impact on the success and failure of an organization.

International factors. Threats and opportunities may arise from ease of access to raw materials, the activities of foreign cartels (eg OPEC), changes in exchange rates and political decisions in countries acting as investment sites or markets.

By analyzing the external environment, an organization can create an inventory of the threats and opportunities it faces in that environment.

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 a company can count on in competition in the process of achieving its goals.

“The internal environment is analyzed in the following areas:

• personnel of the company, their potential, qualifications, interests, etc.;
• management organization;
• production, including organizational, operational and technical and technological characteristics and research and development;
• company finances;
• marketing;
• organizational culture."

Selecting a strategy in accordance with the results of strategic analysis

Strategy is a long-term, qualitatively defined direction of development of an organization, relating to the scope, means and form of its activities, the system of relationships within the organization, as well as the position of the organization in the environment, leading the organization to its goals.

The strategy is selected taking into account:

• the competitive position of the company in a given strategic economic zone;
• prospects for the development of the most strategic management zone;
• in some cases, taking into account the technology that the company has.

The technological factor must be present when choosing a strategy for an enterprise that operates in an industry where this factor is critical and technology is changing rapidly.

There are four main types of strategies:

1. Concentrated growth strategies – strategy for strengthening market positions, market development strategy, product development strategy.
2. Integrated growth strategies – backward vertical integration strategy, forward vertical integration strategy.
3. Diversification growth strategies – centered diversification strategy, horizontal diversification strategy.
4. Reduction strategies – elimination strategy, harvesting strategy, reduction strategy, cost cutting strategy.

Evaluation of the chosen strategy

The assessment of the chosen strategy consists in answering the question: will the chosen strategy lead the company to achieve its goals?

If the strategy meets the company’s goals, then its further assessment is carried out in the following areas:

• compliance of the chosen strategy with the state and requirements of the environment;
• compliance of the chosen strategy with the potential and capabilities of the company;
• acceptability of the risk inherent in the strategy.

Execution and control of strategy

I. Ansoff in his book “Strategic Management” formulates the following principles of strategic control:

1. Due to uncertainty and inaccurate calculations, a strategic project can easily turn into a fool's errand. This cannot be allowed; expenses must lead to the planned results. But unlike normal production control practices, the focus should be on cost recovery rather than budget control.
2. At each control point, it is necessary to assess the cost recovery during the life cycle of the new product. As long as the payback exceeds the control level, the project should continue. When it falls below this level, other options should be considered, including terminating the project.

Top management functions:

1. In-depth study of the state of the environment, goals and strategy development: a final understanding of the essence of certain goals and a broader communication of the ideas of strategies and the meaning of goals to the employees of the company.
2. Making decisions on the efficiency of using the company's resources.
3. Decisions about organizational structure.
4. Carrying out the necessary changes in the company.
5. Reviewing the strategy execution plan in case of unforeseen circumstances.

Changes that are carried out in the process of implementing strategies are called strategic changes. Organizational restructuring can come in forms such as radical change, moderate change, routine change, and minor change.

Types of organizational structures: elementary, functional, divisional, SEB structure, matrix. The choice of organizational structure depends on the size and degree of diversity of activities, the geographical location of the organization, technology, the attitude towards the organization on the part of the organization's managers and employees, the dynamism of the external environment and the strategy implemented by the organization.

To carry out changes, you need to uncover, analyze and predict what resistance can be encountered when planning changes, reduce this resistance to the possible minimum and establish the status quo of a new state. Styles of change: competitive, self-elimination, compromise, adaptation, cooperation. The task of control is to determine whether the implementation of the strategy will lead to the realization of goals.

1. At the first stage of planning, an essential decision is the choice of organizational goals.

The main overall purpose of the organization, i.e. a clearly expressed reason for its existence is designated as its mission (responsible task, role, assignment). Goals are developed to achieve this mission.

The mission details the status of the organization and provides direction and guidance for defining goals and strategies at various organizational levels.

The mission statement should contain:

• 1. the task of the organization in terms of its main services, its main consumers, its main technologies - i.e. what activities does the organization engage in;
• 2. environmental factors in relation to the organization;
• 3. the culture of the organization - what type of working climate exists in the organization, what kind of people are attracted to this climate.

For example, the mission of the social protection department is to meet the social needs of the population. The mission of the center for social assistance to families and children is to provide comprehensive assistance and support to families and children.

Some leaders do not attach importance to the choice of mission. This especially applies to heads of commercial organizations. They believe that the mission is to make a profit.

The mission is important to the organization, but the values ​​and goals of senior leaders also influence the organization. Researchers note that strategic behavior is influenced by values ​​(Igor Ansof). Gut and Tigiri established 6 value orientations that influence management decision-making, and that the chosen goals depend on them.

2. Second stage. The goals of social protection organizations are formed and established based on the mission of the organization.

Goals must have certain characteristics:

• 1. specific and measurable goals - for example, to provide support to large families registered in the department (absolute number), for example, the goal of a non-state university is to provide training for specialists at lower costs;
• 2. orientation in time - when the result should be achieved (long-term - 5 years, medium-term 1-5 years, short-term up to a year);
• 3. achievable goals - to serve to improve the effectiveness of the organization, goals must be achievable. Goals must be mutually supportive - i.e. actions and decisions necessary to achieve one goal should not interfere with the achievement of other goals of the organization. If this condition is not met, then a conflict between departments may arise in the organization.

For example, the goals of the center for social assistance to families and children are:

• * implementation of the right to protection of family and children by the state;
• * promoting the development and strengthening of the family as a social institution;
• * improving socio-economic living conditions and family well-being;
• * humanization of family connections with society and the state;
• * establishing harmonious family relationships;
• * prevention of child crime and neglect.
• 3. The third stage of the strategic planning process, after establishing the organization's mission and goals, examines the organization's external environment.

The external environment is assessed according to three parameters:

• 1. changes that affect different aspects of the current strategy;
• 2. what factors pose a threat to the strategy;
• 3. which factors provide more opportunities to achieve the goal by adjusting the plan.

They mainly pay attention to factors such as social, economic, political, technology development, the state of the labor market, and investments.

Environmental analysis is the process by which strategic planners monitor factors external to the organization to determine opportunities and threats to the organization.

4. Fourth stage. A management survey of an organization's internal strengths and weaknesses is a methodological assessment of the organization's functional areas, designed to identify its strategic strengths and weaknesses.

The survey covers the study of such internal factors: marketing, financial condition, production, staff condition, organization culture:

• 1. marketing - market share and competitiveness; goods or services offered; demographic situation; the opportunity to market new products or services; efficiency of customer service; advertising opportunities; for example, for a non-state university, two aspects of marketing are important: marketing of educational services and specialists.
• 2. the current financial condition of the organization must be taken into account in any planning, since the lack of financial reserves can ruin any undertaking. When analyzing the financial condition, the main attention should be paid to the possibility of reducing production costs, the degree of dependence of the enterprise on suppliers, and the degree of physical and moral wear and tear of equipment.
• 3. As for organizations in the social sphere, their financial condition is determined by their organizational and legal form. The source of funding for government institutions (which are social services at present) are, first of all, budget funds. At the same time, the state establishes certain standards for budgetary financing of relevant costs. This means that financial management should be aimed at optimizing costs (selecting the best, optimal option). Therefore, many types of social services are paid. It is also possible to use additional sources of financial resources;
• 4. production - purposeful activity to create something useful; whether the organization can produce goods or services at a lower price than competitors; is there access to new materials and technologies; is the equipment modern; production, i.e. the provision of social services is the purposeful activity of all social services;
• 5. state of personnel - type of employees; competence of employees and top management; reward system; staff development; performance evaluation;
• 6. culture - morals, customs, moral and psychological climate. It is the internal culture that shapes the image of the organization both among suppliers and consumers, and in the labor market, thereby attracting the necessary employees.

Fifth stage. Analysis of strategic alternatives. After an assessment of the external environment has been made and the internal environment of the organization has been examined, management can determine the strategy that it will follow.

The organization faces 4 main strategic alternatives:

• 1. limited growth - adhered to by most organizations. Goals are set based on what was previously achieved, taking into account inflation. The limited growth strategy is used in mature industries with static technology and the organization is satisfied with its position. This is the easiest, most convenient and least risky course of action;
• 2. growth - annual increase in the level of short-term and long-term goals compared to the level of indicators of the previous year. This strategy is used in dynamic industries with changing technologies. Growth can be internal or external. Internal growth is the expansion of goods or services. External growth - acquisition of a supplier company or one company acquiring another;
• 3. reduction - managers rarely choose this strategy. Goals are set below what has been achieved in the past.

There may be 3 options:

• a) liquidation - complete sale of property;
• b) cutting off the excess - some divisions are separated;
• c) reduction or reorientation - reduction of part of its activities;
• 4. combination - combining any of the three strategies. This type is usually chosen by large companies.
• 5. At the sixth stage, the choice of strategy occurs. A strategic alternative is selected that will maximize the organization's long-term performance, i.e., outcome.

The choice is influenced by factors:

risk - what level of risk is considered acceptable. A high degree of risk can destroy an organization;

knowledge of past strategies - management is often influenced by past strategies;

reaction to the owners (if a joint stock company) - shareholders limit the flexibility of management when choosing an alternative (commercial structures);

time factor - a decision can contribute to the success or failure of an organization (implementing a good idea at the wrong time can lead to the collapse of the organization).

7. The seventh stage is the implementation of the strategic plan. The plan must be realistic.

It is necessary to dwell on the main components of formal planning:

1. tactics - short-term strategies that are consistent with long-term plans;

Characteristics of tactical plans:

• a) tactical plans are developed in development of strategy;
• b) tactics are developed at the level of middle managers;
• c) the results of tactical plans appear quickly and are correlated with specific actions (the results of the strategy may appear after several years).

The tactical goal of social work at this stage is to meet the needs of those categories of the population most in need of social protection, taking into account the possibilities of the economy (since targeted social policy is currently being implemented).

Policy - provides a general guide for action and decision-making that facilitates the achievement of goals. Policies are usually formulated by senior level managers over a long period of time. For example, policies to provide equal employment opportunities for women; non-disclosure of the organization's trade secrets.

procedures - describes the actions that should be taken in a specific situation. If the decision-making situation is repeated, then management applies a time-tested method of action, and for this it develops standardized instructions. Essentially, a procedure is a programmed decision. For example, the procedure for assigning an old-age pension.

rules - made when management restricts the actions of employees to ensure that specific actions are performed in specific ways. That is, a rule specifies what should be done in a specific, individual situation. Rules differ from procedures in that they are developed for a specific and limited issue. The procedure is designed for a situation in which a sequence of several interconnected actions takes place.

Sometimes conflicts arise due to the unwillingness of workers to comply with rules and procedures. In order to avoid a conflict situation, the manager needs to inform subordinates about the goals of the rules and explain why it is necessary to perform the work exactly as prescribed by the rules or procedures.

Implementation management is necessary to execute the strategic plan. Let's look at management tools that ensure consistency:

A budget is a method of allocating quantified resources to achieve quantified goals.

Management by objectives is a process consisting of 4 interdependent and interconnected stages:

• a) developing clear, concise statements of goals;
• b) development of realistic plans to achieve them;
• c) systematic monitoring, measurement and evaluation of work and results;
• d) corrective measures to achieve planned results.
• 1. The first stage - developing goals - repeats the outline of the planning process.

Once long-term and short-term goals for the organization are developed, managers formulate these goals for the next level of employees down the line. Managers should support employees in the following areas: information; clarifying the relationships between levels of authority and responsibility; support from staff; horizontal and vertical coordination; resources.

• 2. At the second stage of management by goals, the main tasks and measures necessary to achieve the goals are determined; establishing relationships between main activities; clarification of roles, relationships, delegation of relevant powers; estimation of time spent for each main operation; determining the resources needed for each operation; checking deadlines and adjusting action plans.
• 3. After a set period of time, the degree of achievement of goals is determined, problems and obstacles are identified, the causes of problems are determined, personal needs are identified, and rewards are given for effective performance.
• 4. If the goals are not achieved, management has clearly established the reason, it is necessary to decide what measures should be taken to correct the deviation.
• 5. If the goals are achieved, then the process of management by goals can begin again - with the establishment of goals for the upcoming period.
• 8. Eighth stage. The strategic plan is evaluated by comparing performance against goals. Evaluation must be carried out systematically and continuously.

The strategic and tactical goals of social work management, the main directions of its development can be outlined in the concept of social work and the program-target model of social work management; a social worker can participate in planning programs and social policy.

Lecture, abstract. The essence and content of strategic planning - concept and types. Classification, essence and features. 2018-2019.

Structure and content of strategic plans

INTRODUCTION

Strategic planning is one of the management functions, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions; the functions of organization, motivation and control are focused on the development of strategic plans. The dynamic process of strategic planning is the umbrella under which all management functions are sheltered; without taking advantage of strategic planning, organizations as a whole and individuals will be deprived of a clear way of assessing the purpose and direction of the corporate enterprise. The strategic planning process provides the framework for managing the members of the organization. Projecting everything written above onto the realities of the situation in our country, it can be noted that strategic planning is becoming increasingly relevant for Russian enterprises, which are entering into fierce competition both among themselves and with foreign corporations.

STRATEGIC PLANNING AS A MEANS OF ACHIEVING A GOAL.

Strategic planning is a set of actions and decisions taken by management that lead to the development of specific strategies designed to help the organization achieve its goals. The strategic planning process is a tool that helps in making management decisions. Its task is to ensure innovation and change in the organization to a sufficient extent. There are four main types of management activities within the strategic planning process:

Resource Allocation

Adaptation to the external environment

Internal coordination

Organizational strategic foresight

Resource distribution.

This process involves the allocation of scarce organizational resources, such as funds, scarce management talent, and technological expertise. For example, in 1994, the Moscow Cellular Communications company decided to somewhat reorganize its structure, namely, the fixed-line cellular communication service, which grew from an additional to one of the main services, was taken over by the MCC department of the Towbar company. This decision made it possible to slightly reduce the MSS staff, which naturally reduced costs, and at the same time fully represent the fixed cellular communication service on the market, because the Torkop company was founded as a result of the distribution of organizational resources and fully met the necessary requirements (First of all, qualified personnel and technological experience).

Adaptation to the external environment

Adaptation covers all actions of a strategic nature that improve the relationship of an enterprise with its environment. Businesses need to adapt to both external opportunities and threats, identify appropriate options, and ensure that strategy is effectively adapted to environmental conditions. As an example, consider the activities of the Russian computer equipment manufacturer Stins Comman. About three years ago, this company entered the computer market, namely the segment represented by powerful workstations. At the beginning of its activity, this company was not able to compete in this market segment with more experienced Russian and Western companies, therefore, not seeing any special prospects, the company’s management decided to sharply develop a new market niche - a home computer (HomePC & Half Office), the basis of which was a low price, the presence of a variety of basic configurations, equipment with promising peripheral devices, additional technical and, above all, software services (Namely, the Amata computers were one of the few equipped with a whole package of rather rare training programs). That is, in this case, we see that the company successfully adapted to the conditions of the external environment, namely, it moved in time from an unpromising segment to a more promising one.

Internal coordination

Involves coordinating strategic activities to reflect the strengths and weaknesses of the enterprise in order to achieve effective integration of internal operations. Ensuring effective internal operations of the enterprise is an integral part of management activities.

Awareness of organizational strategies

This activity involves systematically developing the thinking of managers by creating an enterprise organization that can learn from past strategic decisions. The ability to learn from experience allows an enterprise to correctly adjust its strategic direction and increase professionalism in the field of strategic management. The role of the senior manager involves more than simply initiating the strategic planning process; it also involves implementing, integrating and evaluating the process.

The model of the strategic planning process is presented in Diagram 1.

ESSENCE OF STRATEGY

Word "strategy" comes from Greek strategos,“the art of the general.” The military origins of this term should not come as a surprise. Exactly strategos allowed Alexander the Great to conquer the world.

A strategy is a detailed, comprehensive, comprehensive plan designed to ensure that an organization's mission is achieved and its goals are achieved.

Several key messages related to strategy must be understood and, more importantly, accepted by senior management. First of all, strategy is mostly formulated and developed by senior management, but its implementation requires the participation of all levels of management. The strategic plan must be supported by extensive research and evidence. To compete effectively in today's business world, a business must continually collect and analyze vast amounts of information about the industry, competition, and other factors.

The strategic plan gives the enterprise certainty and individuality, which allows it to attract certain types of workers, and, at the same time, not attract other types of workers. This plan opens the way for a business to guide its employees, attract new employees, and help sell products or services.

Finally, strategic plans must be designed to not only remain coherent over long periods of time, but also to be flexible enough to allow modification and reorientation as needed. The overall strategic plan should be viewed as a program that guides the firm's activities over an extended period of time, recognizing that the conflictual and constantly changing business and social environment makes constant adjustments inevitable.

GOALS OF THE ORGANIZATION (ENTERPRISE)

The first and perhaps most significant decision in planning will be the choice of enterprise goals. It must be emphasized here that those enterprises that, due to their size, have a need for multi-level systems also need several broadly defined goals, as well as more specific goals related to the overall goals of the organization.

Enterprise mission

The main overall purpose of the enterprise - the clearly expressed reason for its existence - is designated as its mission. Goals are developed to achieve this mission.

The mission details the status of the enterprise and provides direction and guidance for defining goals and strategies at various organizational levels. The mission statement of the enterprise should contain the following:

1. The mission of the enterprise in terms of its main services or products, its main markets and its main technologies

2. The external environment in relation to the company, which determines the operating principles of the enterprise

3. Organizational culture. What type of work climate exists within the company?

Mission selection

Some leaders never bother choosing and articulating the mission of their organization. Often this mission seems obvious to them. If you ask a typical small business owner what their mission is, the answer will probably be: “Of course, to make a profit.” But if we think carefully about this issue, then the inadequacy of choosing profit as the overall mission becomes clear, although it is undoubtedly an essential goal.

Profit is a completely internal problem of the enterprise. Since an organization is an open system, it can ultimately survive only if it satisfies some need outside itself. To earn the profits it needs to survive, a firm must monitor the environment in which it operates. Therefore, it is in the environment that management looks for the overall goal of the organization. The need for mission selection was recognized by prominent leaders long before the development of systems theory. Henry Ford, a leader who understood the importance of profit, defined Ford's mission as providing people with low-cost transportation.

Choosing an organization's mission as narrow as profit limits management's ability to explore acceptable alternatives when making a decision. As a result, key factors may not be considered and subsequent decisions may lead to low levels of organizational performance.

Characteristics of targets

General production goals are formulated and established on the basis of the overall mission of the enterprise and certain values ​​and goals that are oriented by top management. To truly contribute to the success of an enterprise, goals must have a number of characteristics:

Specific and measurable goals

Orientation of goals in time

Achievable Goals

ASSESSMENT AND ANALYSIS OF THE EXTERNAL ENVIRONMENT

After establishing its mission and goals, management must begin the diagnostic phase of the strategic planning process. The first step is to study the external environment. Managers evaluate the external environment according to three parameters:

1. Assess changes that impact different aspects of the current strategy

2. Determine which factors pose a threat to the company's current strategy.

3. Determine which factors present greater opportunities to achieve company-wide goals by adjusting the plan.

Environmental analysis is the process by which strategic planners monitor factors external to the enterprise to determine opportunities and threats to the firm. Analysis of the external environment helps to obtain important results. It gives the organization time to anticipate opportunities, time to plan for possible threats, and time to develop strategies that can turn previous threats into any profitable opportunities.

In terms of assessing these threats and opportunities, the role of environmental analysis in the strategic planning process is essentially to answer three specific questions:

1. Where is the company located now?

2.Where does senior management think the company should be located in the future?

3. What should management do to move the enterprise from the position it is in now to the position where management wants it to be?

The threats and opportunities that an enterprise faces can generally be divided into seven areas (Figure 2).

MANAGEMENT SURVEY OF THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ENTERPRISE

The next challenge that management faces is determining whether the enterprise has internal strength. The process by which internal problems are diagnosed is called a management survey.

A management survey is a methodical assessment of the functional areas of an enterprise, designed to identify its strengths and weaknesses.

Marketing.

When examining the marketing function, seven general areas of analysis and research are worth considering:

1. Market share and competitiveness

2. Diversity and quality of product range

3. Market Demographics

4. Market research and development

5. Pre-sales and after-sales customer service

7. Profits

Finance/Accounting

Financial analysis can benefit an organization and help improve the effectiveness of the strategic planning process. A detailed analysis of the financial position can reveal existing and potential internal weaknesses in the organization, as well as the relative position of the organization in comparison with its competitors. Examining financial performance can reveal to management areas of internal strengths and weaknesses over the long term.

Operations

Continuous analysis of operations management is essential to the long-term survival of an enterprise. Here are some key questions to answer when examining the strengths and weaknesses of the operations management function.

1. Can we produce our goods or services at a lower cost than our competitors? If not, why not?

2. What access do we have to new materials? Are we dependent on a single supplier or a limited number of suppliers?

3. Is our equipment up to date and well maintained?

4. Are purchases designed to reduce the amount of inventory and lead time? Are there adequate controls over incoming materials and outgoing products?

5. Are our products subject to seasonal fluctuations in demand, which forces us to resort to temporary layoffs of workers? If this is so, how can this situation be corrected?

6. Can we serve markets that our competitors cannot serve?

7. Do we have an effective and efficient quality control system?

8. How effectively did we plan and design the production process? Can it be improved?

Human Resources

The origins of most problems in organizations can ultimately be found in people. If an organization has skilled employees and managers with well-motivated goals, it is able to pursue various alternative strategies. Otherwise, performance improvement should be sought because the weakness is most likely to jeopardize the future performance of the organization.

Culture and image of the enterprise

The culture and image of an enterprise are strengthened or weakened by the company's reputation. Does the firm have a good reputation for achieving its goals? Was she consistent in her activities? How does this business compare to others in the industry?

EXPLORING STRATEGIC ALTERNATIVES

The company has four strategic alternatives at its disposal - limited growth, growth, contraction and a combination of these options.

Limited growth.

The strategic alternative that most organizations pursue is limited growth. The limited growth strategy is characterized by setting goals based on what has been achieved, adjusted for inflation. The limited growth strategy is used in mature industries with static technology when the organization is generally satisfied with its position.

Height

The growth strategy is implemented by annually significantly increasing the level of short-term and long-term goals above the level of the previous year. The growth strategy is used in dynamically developing industries with rapidly changing technologies.

Reduction

The alternative least often chosen by managers and often referred to as a strategy of last resort is the downsizing strategy. As part of the reduction alternative, there may be several options:

1. Liquidation

2. Cutting off excess

3. Downsizing and refocusing

Combination

The strategy of combining all alternatives will most likely be followed by large firms that are active in several industries. A combination strategy is a combination of any of the three strategies mentioned.

The strategic choices made by managers are influenced by a variety of factors. Here are some of them:

2. Knowledge of past strategies

3. Reaction to owners

4. Time factor

STRATEGIC PLANNING AND COMPANY SUCCESS

Some organizations and businesses can achieve a certain level of success without spending much effort on formal planning. Moreover, strategic planning alone does not ensure success. However, formal planning can create a number of important and often significant benefits for the organization.

The current rate of change and increase in knowledge is so great that strategic planning seems to be the only way to formally forecast future problems and opportunities. It provides senior management with a means of creating a plan for the long term. Strategic planning also provides the basis for decision making. Knowing what the organization wants to achieve helps clarify the most appropriate courses of action. Formal planning helps reduce risk in decision making. By making informed and systematized planning decisions, management reduces the risk of making the wrong decision due to erroneous or unreliable information about the capabilities of the enterprise or the external situation. Planning, as it serves to formulate set goals, helps create unity of common purpose within an organization. In industry today, strategic planning is becoming the rule rather than the exception.

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The strategic planning process is carried out in several stages:

1 - definition of the organization's mission;

2 - determining the goals of the organization;

3 - management research and assessment of the strengths and weaknesses of the organization;

4 - assessment and analysis of the external environment;

5 - formation and analysis of strategic alternatives;

6 - choice of strategy;

7 - strategy implementation;

8 - assessment of the strategy for compliance with established criteria.

Let's consider the content of these stages.

Stages I - II: defining the mission and goals of the organization.

These are the first and most important decisions that a manager makes. The mission and overall organizational goals of the organization serve as a guide for all other stages of planning. The contents of these stages were discussed in the previous lecture. Let us note once again that goals must satisfy the following basic requirements: achievability, specificity, time orientation.

Stage III: assessment of the strengths and weaknesses (positions) of the organization. At this stage of the planning process, the pros and cons of the organization's activities are determined.

Stage IV: assessment and analysis of the external environment consists of identifying trends, threats and chances, as well as possible “exceptional” situations that can qualitatively change past trends.

Stage V - formation and analysis of strategic alternatives (formation of strategy options).

A strategy is a comprehensive, integrated plan designed to implement the mission and achieve the goals. In other words, a strategy is a detailed, comprehensive, comprehensive plan that is developed for the future and should contribute to the achievement of the organization’s mission and goals; it is specified by stage VI - the choice of strategy is the most important stage of strategic planning. It is intended to compare the company's prospects in the types of activities in which it is engaged. This is necessary to determine development priorities and allocate resources between various activities. At this stage, the analysis can be completed, and the organization's management can move on to drawing up long-term programs, plans and budgets. But often existing activities do not provide grounds for confidence in achieving long-term goals, since they do not provide sufficient growth rates or are strategically vulnerable (high probability of changes in the structure of needs), etc. Taking this into account, it is necessary to analyze diversification paths (from Lat.-Remote - expansion of activities into new areas).

Stage VII - implementation of the strategy.

Planning for the implementation of the strategy is carried out using administrative levers (tactics, procedures, rules, policies) and economic levers (by forming a budget, using a system of indicators).

All considered strategies are implemented using the following administrative levers:

1. Tactics are short-term plans that specify the strategy.

2. Policy is a general guide for actions and decisions that facilitate the achievement of goals, provisions according to which the parameters for making minor decisions that are often repeated are established. The policy gives general instructions for the implementation of activities, and in fact is the most typical and simple type of so-called “stable plans” (directives aimed at increasing overall overall efficiency based on compliance with the simplest principles of the organization), designed to manage the daily processes in the organization. In addition to policies, these include procedures and rules.

3. Procedures - actions that should be performed in a specific situation.

4. Rules - indicate what should be done in a specific one-time situation. They are designed for specific, limited issues and are often advisory in nature.

The use of tactics, policies, procedures and rules makes it possible to create a certain organizational and administrative mechanism aimed at ensuring the implementation of the strategy.

Stage VIII - assessment of the strategy for compliance with established criteria. The process of evaluating an organization's strategy is a feedback mechanism for adjusting the strategy.

Often, when implementing a strategic plan, obstacles arise due to either an imperfect assessment by managers of the external environment, or an overestimation of the company's capabilities. Therefore, the strategy implementation process must be constantly analyzed, provide feedback to adjust the strategy, and serve as a means of preventing errors when developing a new one.

When assessing the effectiveness of a strategy, the following aspects must be taken into account:

There is a strategy in conjunction with the financial capabilities of the company;

The management of the company is sufficiently qualified for its implementation;

It fits within a level of risk acceptable to the company’s management;

It takes into account all the opportunities and threats of the external environment;

Can this strategy be implemented within the existing organizational structure and if not, how difficult will it be to change it;

The existing organizational culture is suitable for implementing the strategy;

There is a strategy for the best way to use a firm's resources.