Добавил:
ivanov666
Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз:
Предмет:
Файл:Strategic analysis and planning. Textbook
.pdf
11
In the 1970s, I. Ansoff, D. Steiner and others founded a school of planning,
which, in contrast to the design school model, considered strategy as the result of a
controlled, conscious process of formal planning, broken down into separate steps,
schematically depicted in in the form of control tables and corresponding models.
Particular emphasis in this school is placed on the quantitative interpretation of the
organization’s goals and the development of a sequence of steps and corresponding
procedures (decomposition, compilation of various tables, etc.). The main tools of this
school are the so-called growth vector (product / market matrix I. Ansoff) and
corresponding diversification models based on portfolio analysis.
In the 1970–1980s, thanks to the work of D. Schendel, K. Hatten, M. Porter,
employees of the Boston Consulting Group — BCG (Boston Consulting Group —
BCG) and the McKinsey company (McKinsey), a school of positioning was formed,
which received its name because its followers considered the principles of choosing a
strategy in accordance with the positioning of the organization in the market as the
most important task. It focuses on the economic aspects of the company's development,
mainly quantified. According to the founders of this school, strategy formation is a
fairly orderly process of strategic planning, based on competitive and industry analysis
and a developed set of analytical techniques that allow you to select the right strategy
for certain conditions.
J. Schumpter, K. Knight were the founders of the school of entrepreneurship,
designed to find an answer to the question: “Where and how is the organization’s
development strategy formulated?” They believe that the development of a company
depends entirely on the dictates of the individual, and not on collective creativity. The
process of strategy formation comes down to the behavior of one person — the
manager, who makes key decisions regarding strategy and management. The central
concept of the school of entrepreneurship is vision, i.e., a mental representation of the
strategy, born or reflected in the consciousness of senior management.
There are many other schools of strategic management, whose representatives
(J. Pierce, R. Robertson, J. Higgens, etc.) are trying to present an “ideal” mechanism
for developing and implementing strategy. Some of these schools have proven
themselves well and hold a reliable position for analyzing the activities of companies
belonging to traditional industries, others demonstrate the effectiveness of their
methodology in innovative business sectors, and others are more suitable for designing
strategic changes in non-profit organizations or municipal organizations. management.
Most modern schools of strategic management are at war with each other, which
is due to their one-sided view of the essence of strategic management. These schools
postulate different approaches to strategy formulation, but in fact concentrate on
12
different parts of the same process. At the same time, in practice, managers must work
with the business system as a whole, rather than with its individual parts, not only to
invigorate strategy formulation, but also to inject real energy into the entire strategic
development process. A modern strategic manager must practice balanced leadership
management, focused on achieving results, and apply an integrated approach to the
entire business system.
1.4. COMPARISON OF STRATEGIC AND OPERATIONAL MANAGEMENT
The term “strategic management” makes a distinction between operational
management at the production level and management at the highest level in a rapidly
changing environment (table 2).
Table 2
Comparison of characteristics of strategic and operational management
Signs
Strategic management
Operational management
Hierarchical steps
Mostly on par
senior management
Includes all levels
with main focus
to middle management
Uncertainty
Significantly higher
Less
Type of problems
Most problems are not
structured
Relatively good
structured
Time horizon
Focus on long-term,
as well as average
and short term aspects
Emphasis on mediumand short-term aspects
Required information
First of all
from the external environment
First of all
from the enterprise itself
Plan Alternatives
Range of alternatives
basically wide
Spectrum limited
Coverage
Concentration on certain
important positions
Covers everything
functional areas
and integrates them
Level of detail
Low
Relatively large
Main controlled quantities
Potential for success (e.g.
market share growth)
Profit, profitability, liquidity
13
1.5. OBJECTS OF STRATEGIC MANAGEMENT
Three groups are distinguished as objects of strategic management:
organizations, strategic economic units (SEU) and functional areas of the organization.
An organization as an object of strategic management is an open, complex
socio-economic system, representing a set of structural units (strategic business units).
A strategic business unit is an independent market-oriented business unit of an
organization that can act as a full-fledged competitor in its market segment and has its
own circle of suppliers, consumers and competitors. It is headed by a director who
bears full responsibility for the strategic development and current activities SEU.
Another name for SEU, which is found in publications on strategic management,
is the strategic business unit (SBU), considered as the basic unit of the organization
for which a separate competitive strategy is formulated.
Application options for the SBU concept:
• SBU is a unit of an organization that is represented by people, processes,
information and other resources of the internal environment; structural division of the
organization;
• SBU is a unit of market competition, is a business that is represented by one
product or a group of closely related products, has a clearly defined market segment
and a set of competitors;
• SBU is a representation of the value chain; designation of a market product,
implying a certain set of actions (functions, operations) within the organization.
The functional area of an organization is a field of activity, organizationally
represented by functional structural units that specialize in performing certain functions
and ensure effective operation as separate SEU, and the organization as a whole.
The object of strategic management often includes a strategic management zone
(SMZ), which implies a separate market segment to which the organization wants to
gain access.
1.6. STRATEGIC THINKING
Strategic thinking is a person’s ability to predict the results and consequences
of actions (one’s own and others’) many steps ahead.
Strategic thinking consists of the following basic elements:
Vision is the ability to foresee how a particular situation will develop; the ability
to answer the question of what results various actions can lead to.
Mission is a clear understanding and acceptance of one’s place in the overall
system, in the environment, including the place of the company or team, and not the
formal one, accepted today in business, but deep, at the level of understanding the
relationships.
14
Values — awareness of basic priorities and principles, in accordance with which
strategic and tactical decisions must be made, the ability to distinguish true values from
slogans, the courage to follow values.
Opportunities are the ability to find the benefits and opportunities for getting
closer to your goals in every situation, even the most negative.
Consequences of lack of developed strategic thinking.
In relation to the person himself: it directly affects self-motivation and the desire
to do something, the presence of vitality, because having a clear vision is one of the
most powerful sources of personal, internal and leadership energy. If there is no “I see
and I want” of one’s own, the brain will replace it with “I must” (i.e. “I want and see
someone else’s”). It is not for nothing that visualization and transurfing techniques
have recently become so widespread, and even the 7,000-year-old qigong, which is
popular today, relies largely on the mechanisms of imagination and visualization
(imagine the movement of energy, etc.). It works and gives a lot of strength, opens up
a huge range of possibilities for the practicing person. In addition, it is the vision of the
final result that allows more targeted actions, spending less resources and achieving
greater efficiency for each specific person.
In relation to the team: without a common vision of the final result, a situation
occurs, as in the fable “The Swan, the Crayfish and the Pike,” when everyone tries to
turn the situation in their own direction due to inconsistency. A common vision of the
result minimizes disagreements within the team and is the basis for coordinated
movement towards the goal (since just agreeing on the goal is not enough; at the level
of detail, the visions always differ, and quite significantly). On the other hand, if, for
example, the manager does not understand all the vectors of movement of each team
member and cannot predict the final result of such movement, then resource costs will
increase significantly, and the result may not be achieved.
In relation to the company: the lack of a clear vision from management threatens
significant costs and losses of resources, internal conflicts, missed opportunities and
other unpleasant reasons for the loss of a competitive position in the market.
Characteristics of strategically thinking managers:
• focus not so much on internal resources, but on external environmental factors;
not so much on deadlines and threats, but on opportunities and key stakeholders;
• formulate the vision of any project, relying not only on the quantitative, but
also on the qualitative side — added value;
• make daily decisions based on business values — important things for the
survival and development of the company, using multifactor analysis;
• make changes based on the mission — understanding who you are working for,
what needs you are satisfying, what key competence you are honing to develop what
product / service;
15
• look beyond plans and procedures and make decisions based on future goals
and efficiency, not just short-term results;
• understand that timing is not the main thing in strategic planning, especially in
the context of the accelerating cyclical nature of crises, the main thing is ideas on which
the company can make money now and in the future.
Implementation of the “80/20” principle in strategic thinking.
The “80/20” principle (or Pareto principle) states that there is a natural imbalance
between input and output, between causes and effects, between efforts and results. A
smaller proportion of causes, resources and efforts lead to the majority of results,
products and successes. A small part of things are the most important, the rest are not
so important.
Strategic thinking “80/20”, used in the management of an organization, can help
change the pattern of behavior and concentrate on the most important 20 %, thereby
helping to achieve more with less cost. In order for a manager to start thinking
according to the 80/20 principle, he must constantly ask the question: where are the
20 % of inputs that lead to 80 % of output.
The most important area of application of the 80/20 principle is to determine
those areas of business where the organization receives the main profits,
and, equally important, those where it suffers losses.
As applied to business, this principle states the following:
• 80 % of product defects can be eliminated by identifying and eliminating 20 %
of the causes; conclusion — these causes should be identified and eliminated;
• 80 % of value is produced from 20 % of all resources; conclusion — the most
valuable products in the assortment should be identified and created;
• 80 % of effects come from 20 % of causes; conclusion — the most important
reasons for possible business failures should be eliminated;
• 20 % of employees do 80 % of the work and achieve 80 % of the results;
conclusion — these employees need to be given greater powers;
• 20 % of customers bring 80 % of the profit; conclusion — you need to focus
on them;
• 20 % of projects provide 80 % of the organization's growth, and vice versa;
conclusion — you need to invest in the first and close the second.
1.7. THE ROLE OF STRATEGIC MANAGEMENT
IN ENSURING COMPETITIVENESS OF THE ORGANIZATION
Strategic management is designed to ensure the organization's survival in the
long term. This means that the organization successfully copes with its tasks of meeting
the needs of all stakeholders (customers, employees, partners, etc.) and is competitive.
16
The competitiveness of an organization is the comparative advantage of a given
organization in relation to other organizations within the country and abroad.
The competitiveness of the organization is ensured by the following competitive
advantages:
• production profitability;
• the nature of innovation activity;
• level of labor productivity;
• effectiveness of strategic analysis and planning;
• adaptability (ability to respond quickly) to changing requirements and market
conditions.
The basis of competitive advantage is the production of a product that
consistently finds buyers. To do this, firstly, it must be interesting to the buyer;
secondly, the buyer is more interested in it than a similar or similar product in consumer
qualities produced by other organizations.
The competitive advantage of an organization is created by the following points:
• price characteristics of the product: it should be cheaper or no more expensive
than similar ones;
• product differentiation: the product must have distinctive features that make it
attractive to the buyer (consumer qualities of the product, image of the organization,
trademark);
• position of the product on the market: history, traditions, some monopolization
of the market.
Sustainable competitive advantage is the long-term benefit of pursuing a
unique, value-creating strategy based on a combination of internal resources and
capabilities that cannot be copied by competitors. Sustainable competitive advantage
enables an organization to maintain and improve its competitive position in the market
and survive in the fight against competitors for a long time. Sustainable competitive
advantage is achieved through the continuous development of existing and creation of
new resources and capabilities in response to rapidly changing market conditions. The
most important in modern conditions is the asset that creates consumer value is
knowledge. The secret to success of prosperous, long-lived organizations is that they
have learned to stay ahead of customers and competitors.
Organizational capabilities that contribute to maintaining the organization's
competitive advantage:
• distinctive — characteristics of the organization that cannot be copied by
competitors or can be copied, but with incredible difficulty; they are divided into
tangible (patents, exclusive licenses, monopoly positions) and intangible (strong
brands, strong leaders, skills, teamwork or undocumented knowledge, corporate
culture, business processes, strong partners);
17
• reproducible — characteristics of the organization that can be copied by
competitors (technical, financial, marketing resources; documented knowledge; nonexclusive licenses).
The criteria for sustainable competitive advantage are: price; difficulty or
expensiveness to copy; uniqueness; indispensability.
1.8. MODEL OF A STRATEGIC MANAGEMENT SYSTEM
The strategic management model is presented in fig. 1. It demonstrates the
primacy of the mission and goals of the organization, which determine the tasks and
tools of strategic analysis necessary to formulate the concept of corporate strategy and
develop a strategic program of action (strategic planning). This model takes into
account the stage of strategy implementation, as well as strategic controlling, which
provides feedback between the elements in this model.
Fig. 1. Strategic management system model
18
1.9. MISSION OF THE ORGANIZATION
A mission is a short or multi-page policy statement from the management of an
organization, which reflects all aspects of coordinating the interests of various groups
and the main characteristics of the organization.
In a broad sense, mission is the raison d'être of an organization. In a narrow
sense, a mission is a written statement regarding what social benefit the organization
intends to bring (or is already bringing) to others.
The mission of the organization should reflect the goals and interests of various
groups associated with the activities of the organization and involved in the process of
its functioning, with an emphasis on the interests of owners, employees, customers,
business partners of the organization (commercial and non-commercial services), the
local community (social and environmental environment) and society as a whole
(macroenvironment) (fig. 2).
Fig. 2. The relationship between the organization’s mission and the interests of the parties
The objectives of the mission of modern Russian business acceptable to society
may be:
• formation of a new quality of life, summarizing the consumer properties of the
company's products;
• desire to improve the already formed quality of life and expand its distribution;
• creation of values of a higher level of significance for society than the resources
expended;
• qualitative changes in the company itself as a result of the emergence and
mobilization of additional resources and a new attitude towards peace;
• increased adaptation of the company to market requirements and its integration
into the global community.
19
The mission of the organization is necessary for the following reasons:
• it gives subjects of the external environment a general idea of the organization,
thereby forming and consolidating its image;
• it makes the goal and purpose of the organization clear to employees of the
organization, helps to establish a certain climate in the organization, creating its
corporate spirit;
• it is the basis for establishing the goals of the organization, provides a standard
for the allocation of resources, and the ability to more effectively manage the
organization.
The components of a mission related to its purpose or values or identity are:
1. Business (purpose) — what the organization does.
2. Development (values) — the dynamism of the organization’s activities in
developing markets, changing types of activities, clients, employees in order to take
into account the current times.
3. Clients (purpose) — those for whom the organization carries out its activities.
4. Employees (values) are the most important factor in the organization; the
success of the organization depends on their qualifications, dedication and desire to
work.
5. Profit (identification) is an indicator of the success of an organization’s
activities, on which its resources and development opportunities depend.
6. Territory (identification) — the place where the organization operates.
The mission components are presented in order of their importance for foreign
companies. Research shows that for domestic organizations the ranked list looks
different:
1. Profit.
2. Development.
3. Clients.
4. Case.
5. Workers.
6. Territory.
1.10. GOALS OF THE ORGANIZATION
The goals of the organization are the specific state of the individual
characteristics of the organization towards which its activities are aimed.
Depending on the duration of the goals, there are strategic, tactical and
operational. Strategic goals are the final state, the desired result that the organization
20
seeks to achieve in the foreseeable future. Tactical goals are the results that
organizational units strive for. Operational goals are specific results expected from
departments, work groups, and people in an organization. They are located in the tree
of organizational goals, respectively, at levels I, II and III of decomposition (fig. 3).
Fig. 3. Tree of organizational goals
Requirements for the goals of the organization
To determine whether an organization's strategic goals are correctly formulated,
you can use the SMART rule, an acronym for five concepts:
• Specific — to be clear and precise, not allowing room for misinterpretation of
the goals by participants in achieving them. You should not use vague expressions to
formulate a goal: “maximize profits”, “reduce costs”, “make more efficient”, “increase
sales”;
• Measurable — express everything quantitatively, including subjective
expectations, recording what the result could be if the goal is achieved. It is advisable
to translate any goal, even a qualitative one, into a quantitative measurement. If the
goal cannot be measured, then this indicates an incorrectly formulated or even false
goal;
• Achievable (agreed) — goals must complement each other and work for each
other. Each goal within the organization must correspond to a higher-level goal.
Different goals must not be allowed to come into conflict with each other. Achieving
each individual subgoal (for example, developing a new reward system) should lead to
achieving the overall goal of the company (increasing its profitability);
Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]