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Strategic Management: Lecture Notes. Goldstein G.Ya

The term "strategic management" appeared in everyday life at the turn of the 1960s and 70s. He marked the differences between current management at the level of production and management carried out at the level of the corporation as a whole. The need for this distinction was due to changes in the business environment. These changes are:

1) an increase in the dynamism of the external environment of the organization;

2) the emergence of new needs;

3) increased competition for resources;

4) internationalization and globalization of business;

5) increasing role of scientific and technical progress and innovations;

6) availability of modern technologies;

7) development information networks, which makes it possible to quickly disseminate and receive information;

8) role change human resources In the organisation.

The essence of the transition from operational to strategic management is to shift the focus of top management to the external environment. This allows you to respond in time to ongoing changes.

There are many definitions in the literature strategic management. It can be defined as management process consisting of the formulation and implementation of strategies that promote the best competitive fit between an organization and its environment in order to achieve the organization's objectives.

Strategic management is a system of purposeful actions of the organization, leading to a long-term excess of the level of performance of the organization over the level of performance of competitors.

The task of strategic management is to prepare the organization for possible changes in the market situation, to withstand the adverse effects of the external environment in the long term.

The strategic management process, like any management process, is revealed through interrelated management functions: basic and specific. But the content of some basic functions changes and new specific management functions appear.

Thus, planning becomes strategic planning, and new functions such as marketing, innovation management, public relations, logistics, human resource management, etc.

The planning process begins with goal setting. They perform organizing, motivating and controlling functions. A goal is a desired, possible, and necessary state of a managed object.

The target beginning in the activities of the organization arises as a reflection of the goals and interests of various groups of people associated with its activities. These are the interests of the owners, employees of the organization, its customers, business partners, the local community and society as a whole.

The organization sets many different goals. These goals differ by levels, spheres, periods of time. There are four main levels of goals in an organization: mission, strategic, tactical and operational goals. At the top of the goal hierarchy is the mission.

The mission is a fundamental, unique, high-quality goal that emphasizes the features of the company's business, its difference from other companies in the industry.

It reveals the reason, the meaning of the existence of the company, its purpose. The corporate mission connects the organization and the external environment, it is there that the organization seeks its purpose. The mission can be determined by the range of needs met; set of consumers; manufactured products; competitive advantages; technologies to be used; growth and funding policies; the culture of the organization, which determines the relationship within the company, the requirements for employees. Many organizations express their mission through slogans, such as Saratovstroysteklo - "Through the quality of glass - to the quality of life."

The mission should not carry specific instructions on what, how and in what time frame the organization should do. It sets the main direction of the movement of the organization. The specific end states that an organization aspires to are fixed in the form of its goals.

Strategic goals are set by senior management based on the mission. These are general long-term goals that determine the future state of the organization as a whole. Unlike the mission, they indicate the timing of their achievement.

Tactical goals are set by middle and senior management for the middle level in the organization. They define the results that the main units of the organization must achieve in order to achieve the strategic goals. Thus, tactical goals are a means of achieving strategic goals.

Operational (production) goals are set by the lower and middle management levels for the lowest level in the organization. They refer to short-term benchmarks derived from tactical goals. These are specific, measurable results of the activities of departments, working groups, individual employees in the organization. They are a means to achieve tactical goals.

The organization defines goals for various functional units (production, marketing, finance, etc.); various performance results (product quality, labor productivity, production costs, sales volume, efficiency, etc.).

The main areas of goal setting are: profitability, markets, productivity, products, financial resources, production capacity, research and innovation, organization (restructuring), human resources, social responsibility.

Imagine a diagram of the goals developed by Japanese companies.

1. Basic goals:

1) sales volume;

2) growth rate (sales or profit);

3) tribal:

a) the amount of profit;

b) the rate of profit on all capital;

c) the ratio of profit to sales volume;

d) earnings per share;

4) market share;

5) capital structure;

6) Dividends;

7) share price;

8) wages of employees;

9) the level of product quality;

10) basic growth policy;

11) basic sustainability policy;

12) basic profit making policy;

13) basic policy regarding social responsibility. 2. Operational matters:

1) value-added assignments;

2) tasks for labor productivity;

3) investments per 1 worker;

4) capital turnover ratio;

5) policy in the field of cost reduction.

2. The essence and significance of strategic planning

Strategic planning is the process of developing strategies and basic methods for their implementation. This is an adaptive process, as a result of which there is a regular (annual) adjustment of decisions drawn up in the form of plans, a revision of the system of measures for the implementation of these plans based on continuous monitoring and evaluation of ongoing changes inside and outside the organization.

Strategic planning determines what an organization must do in the present to achieve desired goals in the future, based on the fact that the environment and the organization will change. In other words, with strategic planning, it is as if a look from the future into the present is carried out.

It is legitimate to interpret strategic planning as a system of the whole variety of types of planned activities in an organization. It summarizes long-term, medium-term, annual, operational, functional planning. The main semantic load is assigned to long-term planning. Its purpose is to make operational management decisions justified not only from the point of view of the current situation, but above all from the standpoint of tomorrow.

In accordance with the goals set, strategic, tactical and production (operational) plans are developed.

To effectively manage the processes of setting goals, planning and monitoring the implementation of plans, the method of management by objectives (MPC) is widely used. Through the UOC, managers, together with employees, determine the goals of the organization, departments, individual person and use them for subsequent monitoring of the results achieved.

The first stage is goal setting. This is the most difficult step in the UOC, it involves looking beyond current, daily duties to answer the question: “What are we trying to achieve in the short term, in six months, a year?” A joint agreement between managers and employees creates a strong commitment to achieve set goals. A well-formulated goal should be specific, realistic, have a time frame and specific performers.

The second stage is the development of action plans. These plans define the sequence of actions required to achieve the intended goals. They are developed both for divisions, departments, and for individual employees.

The third stage is monitoring, monitoring the implementation of plans and, if necessary, adjusting them. During the implementation of the plan, the leader must give subordinates freedom of action, for example, through the removal of current, daily control over their activities.

Instead, more attention can be paid to training and advising employees to achieve their goals. Control is usually carried out three, six and nine months after the start of the planning period. This periodic monitoring allows managers and employees to see how plans are being implemented and whether corrective actions are needed to achieve planned goals.

The fourth stage is the assessment of the results of activities, their compliance with the set goal. Estimates can be used as the basis of the personnel remuneration system. Evaluation of the performance of employees, departments, the organization as a whole serves as the basis for setting goals for next year, and the UOC cycle resumes.

The advantages of the UOC are that it:

1) focuses people's efforts on corporate goals, which increases the likelihood of their achievement;

2) expands cooperation between managers and workers;

3) makes tasks clear and precise for performers;

4) improves people's motivation;

5) allows you to identify talented managers for future promotion (as it focuses on the compliance of goals and plans);

6) increases the personal responsibility of performers. Disadvantages of the UOC:

1) it requires high professionalism of the leader;

2) poor relations between the administration and employees reduce the effectiveness of the UOC;

3) it requires a large amount of work, knowledge of the goals of the organization and departments;

4) the UOC procedure tends to define short-term goals;

5) there is a possibility of a conflict between operational and strategic goals;

6) The UOC is in conflict with mechanistic structure organization that prevents employees from participating in management.

3. Strategy, its elements and levels

Strategy - a comprehensive plan to achieve the mission and goals of the organization by establishing the best fit between the organization and its external environment.

A well-designed strategy has four components: scale, resource allocation, competitive advantage, and synergy. Scale refers to the type and number of markets in which the organization intends to compete. The choice of markets determines the structure and volume of production. The strategy includes a project for distributing the organization's resources among various divisions, business units, departments.

Competitive advantages are the unique tangible and intangible assets that a firm owns and that create its superiority over its competitors. Significant competitive advantages are provided to the corporation by its internal and external competencies. As a rule, they require a significant period of time and experience in a particular industry to create them. For example, internal competencies include the following:

1) R&D (KNOW-HOW, technologies, ability to create competitive products);

2) availability of proven and effective business processes (project management, logistics, sales, marketing, planning, staff motivation, etc.);

3) the presence of unique technologies that are inaccessible to competitors;

4) the availability of qualified personnel, which can not be easily found in the market and the training of which requires a considerable amount of time.

External competencies include:

1) relations with suppliers and consumers (agents, dealers, distributors);

2) lobbying opportunities;

3) the presence of a "promoted" trademark;

4) the ability to provide financing in the required volume and at an acceptable cost (relations with financial institutions and investors).

Synergy occurs when the joint activity of all parts of an organization produces an effect greater than the sum of their individual actions. Synergy emphasizes that the first three elements of the strategy are not only interconnected, but also complement, reinforce each other, and lead to the best interaction effect.

The strategy is formulated at three levels: corporate, business unit and functional.

4. Strategy formulation: main steps and tools

Strategy formulation is the process of developing and defining a strategy, i.e. the process of strategic planning. Each organization has its own specific approach to formulating a strategy, but there is a general sequence of steps in this process:

1) setting strategic goals;

2) organization analysis;

3) analysis of the external environment;

4) establishment of correspondence between the organization and the environment.

Analysis of the organization, its potential involves the diagnosis of its strengths and weaknesses in comparison with other organizations. The potential of an organization is usually assessed in areas such as marketing, finance, production, research and development, human resources, management quality, organization structure.

Analysis of the external environment involves the identification of opportunities and threats to the organization for all factors of the external environment. Such an analysis requires the use of information from a variety of sources.

After completing the analysis of the external environment and the enterprise, it is necessary to bring its strengths and weak sides with the opportunities and threats of the external environment. The balance between the environment and the organization is established in such a way that the competitive advantages of the organization, its strengths were aimed at realizing the opportunities and eliminating the threats of the external environment, as well as the weaknesses of the organization. The considered method of analyzing the organization and its environment is called SWOT-analysis.

In addition, to formulate a strategy, establish a correspondence between the characteristics of the organization and its external environment, you can use the SWOT matrix.

To study the environment, the method of compiling its profile can be applied. This method it is convenient to use for compiling a profile of a separate macroenvironment, business environment And internal environment organizations.

This method is used to assess the relative importance for the organization of individual environmental factors. The method is as follows.

Individual environmental factors are listed in the environment profile table. Each factor is given by expert way:

1) assessment of its importance for the industry on a scale: 3 - high value;

2 - moderate value;

1 - low value;

2) assessment of its impact on the organization on a scale:

3 - strong influence;

2 - moderate influence; 1 - weak influence;

0 - no influence;

3) assessment of the direction of influence on a scale: + 1 - positive direction;

From this assessment, management can conclude which environmental factors are relatively more important to their organization and therefore deserve the most serious attention.

5. Variety of strategies: corporate strategy and its types; business strategy and its types; functional strategies of the organization

There are two main approaches to formulating a corporate strategy - the formulation of the main (fundamental) strategy and the analysis of the business portfolio. The main strategy is general program actions developed at the corporate level.

It is usually formulated for an organization that competes in one market or several, but closely related. There are three main main strategies: growth, stabilization, reduction.

Growth can be generated from within. This includes concentrated growth strategies that involve product or market change:

1) strengthening positions in the existing market, increasing market share;

2) market development, development of new markets;

3) development of new products.

Growth can be based on external sources. These include the acquisition of other industries, mergers, consolidation of risky enterprises, the creation of strategic alliances. The second group of growth strategies is formed by integrated growth strategies.

These include forward and backward vertical integration strategies. Such growth is carried out both by merging, absorbing new structures, and by expanding from within. The third group of growth strategies includes diversified growth strategies. There are three of them:

1) the strategy of concentric diversification;

2) horizontal diversification strategy;

3) strategy of conglomerate diversification. The reduction strategies are:

1) liquidation strategy;

2) the strategy of "harvesting";

3) the strategy of cutting off the excess;

4) cost reduction strategy.

The first occurs when the firm is unable to conduct further business.

The "harvest" strategy involves abandoning the long-term view of the business in favor of maximizing revenue in the short term. It is applied to an unpromising business that cannot be sold profitably, but can generate income while reaping the rewards. The goal is to get the maximum possible cash after the end of investment. Main methods:

1) reduction of material and technical maintenance of production;

3) reduction in the range of products;

4) reduction of wholesale channels;

5) refusal to serve small customers;

6) a decrease in the quality of services (reduction of sales assistants, an increase in the timing of order fulfillment, etc.).

A pruning strategy means that the firm closes or sells redundant divisions that are not profitable or do not fit well with other divisions.

The cost reduction strategy is to look for opportunities to reduce costs in order to increase the competitiveness of the company and survive in the long term.

Implementation is associated with a decrease production costs, increasing labor productivity, reducing the hiring and even dismissal of staff, reducing social programs, the removal from production of unprofitable goods.

A stabilization strategy is being developed to maintain the status quo. The firm's strategic plan is to stay in business and protect itself from external threats.

This strategy is often used by firms that lack the resources to grow or have weak growing markets. A stabilization strategy is useful after the implementation of the strategies rapid growth or abbreviations.

When a firm is diversified and has many various industries, lines of business, especially unrelated ones, a business portfolio approach is used to formulate corporate strategy. This approach presents a corporation as a collection of various divisions, strategic business units (SBUs), each of which has its own mission, product lines, competitors, markets, and its own competitive strategy.

The starting point for using a business portfolio is to identify each SBU that is part of a corporation. The next step is their classification and analysis of the current product portfolio.

The simplest, but rather abstract tool for classifying SBUs is the Boston Consulting Group (BCG) matrix. It categorizes SBUs according to two criteria: its market growth rate and its market share.

The BCG matrix allows you to compare SBU positions within the same portfolio. With its help, you can identify market leaders and establish a balance between divisions in the context of the four quadrants of the matrix.

In theory, SBUs operating in fast-growing industries need a constant influx of capital to expand their capacity and maintain competitiveness. SBUs operating in slow-growing industries, on the contrary, should have an excess of cash.

Corporate portfolios must be balanced, providing the right mix of SBUs that need capital to grow with units that have excess capital.

Analysis of the current business portfolio involves answering the following questions:

1) whether the portfolio includes a sufficient number of business units in attractive industries;

2) whether the portfolio contains too many "question marks";

3) whether there are enough “money cows” to develop the “stars” and fund the “question marks”;

4) whether the portfolio gives a sufficient amount of both profit and money;

5) whether the portfolio is highly vulnerable in the event of negative trends, unforeseen events;

6) are there many “dogs” in the portfolio that are weak in terms of competitiveness. Depending on the answers to these questions, the strategic portfolio of the corporation is formed. A business strategy is formulated for each business unit.

It aims to search best practices competition in their market. Even if an organization competes in only one market, it must develop a competitive strategy.

The main tools for developing this strategy are: five forces of competition; competitive strategies of M. Porter and life cycle goods.

The structure of competition in the industry, according to M. Porter, is formed under the influence of the five forces of competition, which determine the level of profit in the industry. This:

1) penetration of new competitors;

2) the threat of the appearance of substitute goods on the market;

3) the ability of buyers to defend their interests;

4) the ability of suppliers to dictate their terms;

5) competition between companies that have already established themselves in the market.

Competitive strategies are formulated based on an understanding of the features and rules of competition that operate in the industry and determine its attractiveness. aim competitive strategy is to change these rules in favor of your company.

M. Porter presents three general competitive strategies that can be used by organizations to create competitive advantages and increase competitiveness. This:

1) leadership in cost reduction;

2) differentiation;

3) focusing.

Cost leadership is the most characteristic of the three general strategies. The company keeps costs lower than those of its competitors. The nature of cost leadership depends on the characteristics of the industry: it can be economies of scale, advanced technology, access to cheap sources of raw materials, a standardized product, strong and cheap distribution system. However, the leader in cost reduction cannot afford to ignore the principles of differentiation.

Differentiation means that the company strives for uniqueness in some aspect that is considered important to a large number of customers.

Achieving uniqueness reduces the power of buyers, but increases costs. The challenge is to reduce the total cost to consumers of using the product. This is achieved by increasing the convenience and ease of use and expanding the range of customer satisfaction. Differentiation may affect the product, its properties, delivery methods, after-sales service, etc.

A company relying on differentiation should not forget about ways to reduce costs, as it can lose competitiveness.

The point of focusing is to select a segment industry market, a specific group of customers and serve them better than competitors. There are two types of focus strategy: achieving cost advantages or increasing differentiation.

The product life cycle (PLC) is a concept that describes the sales of products, profits, customers, competitors and the strategy of the organization from the moment a product enters the market until it is withdrawn from the market. A typical LCP consists of four stages:

1) bringing the product to market;

3) maturity;

The goal during the introduction phase is to create a market for the new product. The growth rate of sales depends on the novelty of products and expectations, customer requests. At this stage, only one or two firms enter the market, and competition is limited. But production and marketing costs are high. There is no or very little profit. Buyers are offered one or two basic models product.

The purpose of the growth stage is to expand sales and the collection of new product modifications. New competitors enter the market, profits rise as sales increase and costs decrease. In order to stretch the period of market growth, a firm can use several strategic approaches:

1) improve the quality of the novelty, give it additional properties, release new models;

2) penetrate into new market segments;

3) use new distribution channels;

5) reduce the price in a timely manner to attract an additional number of consumers.

At the stage of maturity, the growth rate of sales slows down. The company is trying to maintain distinctive advantages for as long as possible. Competition at this stage reaches a maximum, as a result, profits in the industry as a whole per unit of production are reduced, as the system of discounts is extended. Some competitors are starting to leave the industry. Market modification, product modification, and marketing mix strategies are useful here.

The last stage of the life cycle is a decline, the volume of sales is declining. There are many reasons for this: changing tastes, the emergence of new products, increased competition, including foreign ones. The firm must either continue producing the product, discontinue it, or adopt a "harvest" strategy by cutting all possible costs (R&D, advertising, sales force, etc.).

Functional strategies focus on planning the functional activities of the organization, the SBU. Many organizations develop marketing, financial, manufacturing, human resource, and research and development strategies.

LECTURE No. 6. Strategic management

1. The concept of strategic management, its necessity and features

1) an increase in the dynamism of the external environment of the organization;

2) the emergence of new needs;

3) increased competition for resources;

4) internationalization and globalization of business;

5) increasing role of scientific and technical progress and innovations;

6) availability of modern technologies;

7) development of information networks, which makes it possible to quickly disseminate and receive information;

8) changing the role of human resources in the organization.

The essence of the transition from operational to strategic management is to shift the focus of top management to the external environment. This allows you to respond in time to ongoing changes.

There are many definitions of strategic management in the literature. It can be defined as a management process consisting of the formulation and implementation of strategies that promote the establishment of the best competitive fit between an organization and its environment in order to achieve the organization's objectives.

Strategic management is a system of purposeful actions of the organization, leading to a long-term excess of the level of performance of the organization over the level of performance of competitors.

The task of strategic management is to prepare the organization for possible changes in the market situation, to withstand the adverse effects of the external environment in the long term.

Thus, planning becomes strategic planning, and new functions appear, such as marketing, innovation management, public relations, logistics, human resource management, etc.

The planning process begins with goal setting. They perform organizing, motivating and controlling functions. A goal is a desired, possible, and necessary state of a managed object.

The mission is a fundamental, unique, high-quality goal that emphasizes the features of the company's business, its difference from other companies in the industry.

Imagine a diagram of the goals developed by Japanese companies.

1. Basic goals:

1) sales volume;

2) growth rate (sales or profit);

3) tribal:

a) the amount of profit;

b) the rate of profit on all capital;

c) the ratio of profit to sales volume;

d) earnings per share;

4) market share;

5) capital structure;

6) Dividends;

7) share price;

8) wages of employees;

9) the level of product quality;

10) basic growth policy;

11) basic sustainability policy;

12) basic profit making policy;

13) basic policy regarding social responsibility. 2. Operational matters:

1) value-added assignments;

2) tasks for labor productivity;

3) investments per 1 worker;

4) capital turnover ratio;

5) policy in the field of cost reduction.

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Section I Pricing and strategic management

Considering the evolution of management systems, it is customary to single out 4 main systems for the development and implementation of strategies, budget planning, which came into practice at the beginning of the 20th century.

This period is characterized by a policy of offering a standard product at the lowest price, which required the ability to produce products at minimal cost. Given the repetition of past events and their predictability, the company's management was required not to plan for the future, but to effectively manage it.

The increase in the pace of change has led to the fact that since the 50s, long-term planning has been used as a management system.

This system was based on the assumption of a gradual development of the environment. This allows extrapolating trends into the future. The planning process includes making forecasts based on past sales and cost data and developing plans for scaling up operations and developing resources.

Most of the popular strategic models during this period emphasized increasing the company's market share. In the 1970s, long-term planning methods based on extrapolation of past trends stopped working in a dynamically developing environment and competition. Changes in the nature of demand, processes of rapid growth and differentiation of consumers, expansion of the range of manufactured products, a decrease in the level of serialization, a change in the role of quality characteristics, an increase in the random nature of fluctuations, the emergence of new more efficient technologies, and an increase in the pace of changes in these technologies.

In this situation, it was necessary to focus the enterprise on the study of consumer needs, the behavior of competitors and preparing them for maneuver in the external environment.

The advent of strategic planning, which focused on the market situation and used the methods of conscious planning of changes based on a strict procedure for their anticipation, regulation and adaptation to the goals of the organization.

In the 1990s, there was a change in views on the possibility of using a cyclic system for building strategies.

Considering the cons existing systems strategic planning, Minsberg highlighted:

invariability of the external environment during the period of development of the plan

strategies based on analytical data

this approach is based on a strict formalization of the strategy development process

By the early 1990s, it became clear that the rigid separation of the processes of formulating and implementing strategies was detrimental to organizations.

The globalization of the economy, the rapid development of technology, the qualitative improvement of communications and information systems led to the need to anticipate possible changes and influence events in the external and internal spheres of the enterprise. In this situation, the formulation and implementation of a strategy is an interactive process.

Strategic management as a system has a number of characteristics:

strategic decisions are significant enough and affect the well-being of the organization

strategic management deals with development issues

when making strategic decisions the company is seen as open system oriented to the external environment.

making strategic decisions involves a variety of thought processes

interaction between organization and strategy plays a crucial role

creating a strategy is an ongoing process, the organization must be ready to revise the strategy

a modern strategic management system should make it possible to use the knowledge of individual employees in the interests of the company

the formation of many modern strategies takes place in the context of globalization goods market, capital, human resources and information

Strategic management
Lecture notes. Taganrog: Izd-vo TRTU, 1995. 93 p.

The secret to success is the willingness to use
favorable opportunities when they arise.
Disraeli

Essence of competitive strategy
is the attitude of the company towards its
external environment.
M. E. Porter

The lecture notes contain a description of theoretical and practical approaches to strategy development commercial firm in modern market conditions, and the main attention is paid to the practical tools for making strategic decisions by the top management of such firms.

Lecture notes can be used in practical activities businessmen, persons responsible for making integrated solutions in business, technology, scientific research and other fields of activity.

This lecture notes are an electronic version of the work:
Goldstein G.Ya. Strategic Management: Lecture Notes. Taganrog: Izd-vo TRTU, 1995. 93 p.

1. SUBJECT AND OBJECTIVES OF THE COURSE
1.1. Essence of strategic management
1.2. Basic requirements for a strategic manager

2. STRUCTURE AND LEVELS OF THE STRATEGIC MANAGEMENT PROCESS
2.1. The main stages of strategic management
2.2. Main organizational levels of strategy development
2.3. The main generalizing conclusions on the topics of chapters 1,2

3. PURPOSE OF THE FIRM, ITS GOALS AND MAIN TASKS
3.1. Business Definition
3.2. Determination of long-term and short-term goals
3.3. Taking into account the interests of the company's investors when setting goals
3.4. The main generalizing conclusions on the topic of chapter 3

4. CONTENT AND FACTORS DETERMINING THE CORPORATE STRATEGY
4.1. General content of the strategy
4.2. Corporate strategy of a diversified company
4.3. Strategy in SZH
4.4. Functional and operational strategies
4.5. Factors that determine the company's strategy
4.6. The main generalizing conclusions on the topic of chapter 4

5. INDUSTRY AND COMPETITIVE ANALYSIS
5.1. Place and content of industry and competitive analysis
5.2. Definition of dominant in the industry economic characteristics
5.3. Key drivers driving change in the industry
5.4. Analysis of the competitive forces acting on the firm
5.5. Assessment of competitive positions and possible actions of competing companies
5.6. Identification of key factors for competitive success
5.7. Summarizing Industry and Competitive Analysis

6. COMPANY SITUATION ANALYSIS
6.1. Purpose of analysis
6.2. Evaluation of the applied strategy
6.3. SWOT analysis
6.4. Strategic cost analysis
6.5. Assessing the strength of a firm's competitive position
6.6. Determining the Firm's Preferred Strategic Actions
6.7. Summarizing conclusions on the topic of chapter 6

7. SINGLE BUSINESS STRATEGY
7.1. Foundations of a Single Business Strategy
7.2. Choosing a basic competitive strategy for a single business
7.3. Choosing an investment strategy
7.4. Industry Competitive Practices
7.5. Common strategic mistakes
7.6. Summarizing conclusions on the topic of chapter 7

8. VERTICAL INTEGRATION AND DIVERSIFICATION AS PART
CORPORATE STRATEGY
8.1. Growth and development of the corporation
8.2. Vertical integration
8.3. Diversification
8.4. Summarizing conclusions on the topic of chapter 8

9. PORTFOLIO ANALYSIS AND MANAGEMENT OF A DIVERSIFIED COMPANY
9.1. BCG matrix
9.2. Matrix McKinsey
9.3. SZH evolution matrix
9.4. Conclusions and possible "traps" of the matrix analysis of the SBA portfolio
9.5. Market entry strategy
9.6. Exit Strategies
9.8. Development (adjustment) of a corporate strategy based on the analysis of the SZH portfolio
9.9. Summarizing conclusions on the topic of chapter 9

10. STRATEGY IMPLEMENTATION TOOL
10.1. Key tasks for implementing the strategy
10.2. Practical recommendations for ensuring the organization of a strategically effective company
10.3. Corporate culture that ensures the effective implementation of the strategy
10.4. Fundamentals of the company's management action policy in the strategic area

11. ORGANIZATION OF STRATEGIC CONTROL
11.1. The role of control in the implementation of the strategy
11.2. Types of control systems
11.3. Management levels and control systems

LITERATURE

1. Ansoff I. Strategic management. M.: Economics, 1989.
2. Goldstein G.Ya. Taganrog: TRTU, 1995.
3. Bogdanov A.I. Strategic management scientific and technological progress at the enterprise (association). M.: VAF, 1991.
4. Townsend R. Secrets of management. Moscow: Interkontakt, 1991.
5. Santelainen T. et al. Management by results. Moscow: Progress, 1989.
6. Yuksvyarav R.K., Khabakuk M.Ya., Leimann Ya.A. Management consulting: theory and practice. M.: Economics, 1988.
7. Hill C.W.L, Jones G.R. strategic management. Boston: Houghton Mifflin Co, 1992.
8. Thompson A.A. Jr, Strickland A.J. strategic management. Homewood Il.: Irwin inc., 1990.

It is a rapidly developing area of science and management practice that has emerged in response to the increasing dynamism of the external business environment.

Term "strategic management" was introduced into use by American business researchers at the turn of the 60-70s. in order to mark the difference between current management at the production level and management carried out at the highest level. The need to fix this difference was caused primarily by changes in business conditions. The leading idea, reflecting the essence of the transition from operational to strategic management, was the idea of the need to shift the focus of top management to the external environment of the company in order to respond appropriately and in a timely manner to the changes taking place in it.

Currently, there are many definitions of strategy, but all of them are united by the concept of strategy as a conscious and thoughtful program of actions developed by management for the successful functioning of the organization.

Strategy – it is a general program of action that prioritizes problems and resources to achieve the main goal. It formulates the main goals and the main ways to achieve them in such a way that the company receives a single direction of movement.

Strategic management - this is the process of making and implementing strategic decisions, the central link of which is a strategic choice based on a comparison of the enterprise's own resource potential with the opportunities and threats of the external environment in which it operates.

In Russian practice, the mechanism of strategic management is in its infancy. At the same time, domestic and foreign analysts believe that Russian market entered the stage when the lack of a developed strategy hinders enterprises at every turn.

In a command economy, when developing its plans, an enterprise received from above information about the range of products, suppliers and consumers, prices for its products, which were automatically laid down as the basis for developing plans. Herself scheduled work turned to searching effective ways performance of tasks in a sufficiently predictable external environment. This task remains in the market conditions, but this is only part of the planned work.

Now the enterprise must itself determine and predict the parameters of the external environment, the range of products and services, prices, suppliers, markets, i.e. define long-term goals and a strategy for achieving them.

Thus, the development of a strategy is necessary in order to have a well-thought-out course of action and a program of action to achieve the desired results.

The essence of strategic management is the answer to three critical questions:

What is the current state of the company?

Where would it like to be in three, five, ten years?

How to reach the desired position?

To answer the first question, managers must have a good understanding of the current situation in which the enterprise is located before deciding where to go next. And for this, an information base is needed that provides the process of making strategic decisions with relevant data for analyzing past, present and future situations.

The second question reflects such an important feature of strategic management as its orientation to the future. To answer it, it is necessary to clearly define what to strive for, what goals to set.

The third issue of strategic management is related to the implementation of the chosen strategy, during which the two previous stages can be adjusted. The most important components or limitations this stage are the available or available resources, the management system, the organizational structure and the personnel who will implement the chosen strategy.

In terms of its subject content, strategic management refers only to the main, basic processes at the enterprise and beyond, paying attention not so much to available resources and processes as to the possibilities of increasing strategic potential enterprises. Strategic decisions are at the heart of strategic management.

Strategic Decisions are management decisions that:

1) are future-oriented and lay the foundation for making operational management decisions;

2) are associated with significant uncertainty, since they take into account uncontrollable external factors affecting the enterprise;

3) are associated with the involvement of significant resources and can have extremely serious, long-term consequences for the enterprise.

Strategic decisions include:

reconstruction of the enterprise;
introduction of innovations (new products, new technologies);
organizational changes (changes in the organizational and legal form of the enterprise, the structure of production and management, new forms of organization and remuneration, interaction with suppliers and consumers);
entering new markets;
acquisition, merger, etc.

The main stages of strategic management

The process of strategic management is carried out in several stages: analysis of the environment, definition of the mission and goals, choice of strategy, implementation of the strategy, evaluation and control of implementation.

Analysis of the external environment

Analysis of the internal environment

Forecast of the development of the external environment

Organization Resource Forecast

Determining the target state of the business

Mission Statement

Definition of strategic goals
^

Strategy Development

Implementation of the strategy

Evaluation and follow-up

Fig.1 Stages of strategic management

Let us consider in more detail the process of strategic management in the context of the identified stages.

Environmental Analysis

The process of strategic management begins with the collection of information that is in the area of interest of the chosen area of work. The specialists of the organization constantly monitor the external and internal environment for factors that may affect the activities carried out by the organization. This information gives a general vision of the business picture, an understanding of the processes taking place in the external environment, an awareness of the organization's potential, its capabilities, and the mechanism of its interaction with the external environment. The result of such an analysis is the opportunity to get answers to a number of questions: “What is happening in the external environment?”, “What development trends are expected in the future?”, “What is the position of the organization in the external environment?”, “What are our strengths and weaknesses?”, “How can our potential change in the future?”. In other words, the analysis makes it possible to develop a forecast for the development of the external and internal environment for the planned period.

^ External environment

Strategy development logically begins with external analysis , analysis of factors that are outside the scope of constant control of the management of the enterprise and which may affect its strategy. The main purpose of external analysis is to identify and understand the opportunities and threats that may arise for the enterprise in the present and future.

Possibilities- these are positive trends and environmental phenomena that can lead to an increase in sales and profits.

These are, for example, tax cuts, income growth for the population and enterprises, weakening of the positions of competitors, development of integration, reduction or, conversely, increase in customs barriers, etc. The task of the analysis is to highlight real opportunities on the basis of which it is possible to provide competitive advantage enterprises.

Threats - these are negative trends and phenomena that can lead, in the absence of an appropriate response from the enterprise, to a significant decrease in sales and profits.

This is a decrease in the purchasing power of the population and enterprises, increased competition in the market, unfavorable demographic changes, tightening state regulation etc.

Analysis of the external environment is the process of forming an information picture of the external environment, revealing the opportunities and risks for the organization.

Strategic management considers the external environment as a combination of two environments: the macro environment and the immediate environment.

The macro environment includes common factors, which do not directly concern the short-term activities of the enterprise, but may influence its long-term decisions. Since the number of possible factors of the macro environment is large enough, in order not to get bogged down in the analysis, it is recommended to limit ourselves to those areas that have a significant impact on the activities of the enterprise.

Rice. 2. Business environment

Macro-environment factors include: economics, legislation, politics, social environment, technology.

Studying economy involves the analysis of a number of indicators: the value of the gross national product, inflation rates, unemployment rates, interest rate, labor productivity, taxation rates, balance of payments, savings rates, etc.

When studying the economic component, it is important to pay attention to factors such as the overall level economic development, mined Natural resources, climate, type and level of development of competitive relations, population structure, level of education of the labor force and wages.

For strategic management, when studying the listed indicators and factors, it is not the values of the indicators as such that are of interest, but first of all, what opportunities for doing business this gives, as well as the disclosure of potential threats to the company, which are contained in individual components of the economic component. It often happens that opportunities and threats go hand in hand. For example, low price labor force, on the one hand, can lead to lower costs. But, on the other hand, it is fraught with the threat of reducing the quality of work.

Analysis legal regulation, involving the study of laws and other regulations establishing legal regulations and the framework of relations, gives the organization the opportunity to determine for itself the permissible boundaries of actions in relations with other subjects of law and acceptable methods of defending their interests.

It is important to pay attention to such aspects of the legal environment as the effectiveness legal system, established traditions in this area and the procedural side of the practical implementation of legislation.

^ Political component macroenvironment should be studied in the first place in order to have a clear idea of the intentions of public authorities in relation to the development of society and the means by which the state intends to implement its policies.

At the same time, it is important to understand basic characteristics political system: what ideology determines the policy of the government, how stable the government is, how it is able to carry out its policy, what is the degree of public discontent and how strong are the opposition political structures.

Studying social component The macro-environment aims to understand the impact on business of such social phenomena and processes as the attitude of people to work and quality of life, the customs and beliefs existing in society, the values shared by people, the demographic structure of society, population growth, the level of education, etc.

Analysis technological component allows you to see in a timely manner the opportunities that the development of science and technology opens up for the production of new products, for the improvement of manufactured products and for the modernization of the technology of manufacturing and marketing products.

Studying immediate environment (microenvironments) organization is aimed at analyzing the state of those components of the external environment with which the organization is in direct interaction.

These include: buyers, suppliers, competitors, labor market.

Analysis buyers has as its main task the compilation of a profile of those who buy a product sold by the organization. Studying buyers allows an organization to better understand which product will be most accepted by buyers, how much sales the organization can expect, how much buyers are committed to the product of this particular organization, how much it can expand the circle of potential buyers, what the product expects in the future, and much more.

The buyer profile can be compiled according to the following characteristics:

geographic location;
demographic characteristics (age, education, field of activity);
socio-psychological characteristics (position in society, style of behavior, tastes, habits, etc.);
the attitude of the buyer to the product (why he buys this product, whether he himself is a user of the product, how he evaluates the product, etc.).

Analysis suppliers is aimed at identifying those aspects in the activities of entities that supply the organization with various raw materials, semi-finished products, energy and information resources, finance, etc., on which the efficiency of the organization, the cost and quality of the product produced by the organization depend.

A detailed analysis of the parameters of their work is carried out: specialization, location, terms of delivery, prices, quality, packaging, packaging, etc.

Studying competitors those. those with whom the organization has to fight for the buyer and for the resources that it seeks to obtain from the external environment in order to ensure its existence, occupies a special and very important place in strategic management. Such a study is aimed at identifying the strengths and weaknesses of competitors and, on the basis of this, build your competitive strategy.

Analysis labor market is aimed at identifying its potential in providing the organization with the personnel necessary to solve its problems. The organization should study the labor market both from the point of view of the availability of the necessary specialty and qualifications in this personnel market, the necessary level of education, the required age, gender, etc., and from the point of view of the cost of labor.
^

Internal environment

The next important component of strategic management is the analysis of the internal environment of the organization and the forecast of its capabilities.

Analysis of the internal environment - this is the process of studying the totality of the internal elements of the organization, which allows to identify its strengths and weaknesses, as well as internal development reserves.

Internal variables are factors within an organization that are primarily controllable and adjustable.

^ The main variables of the organization's internal environment are:

Control system is a set of means that ensure the coordination of all elements of the organization's activities. The control system includes the following components:

building an organizational structure;
creating a hierarchy of subordination;
development of norms, rules and procedures governing the work of the enterprise;
distribution of rights and responsibilities between people and organizational units.

Human resources (personnel). The indicators for assessing the personnel potential of an enterprise can be: personnel qualification, socio-demographic structure, personal characteristics, socio-psychological attitudes, motivation model, personnel policy, staff turnover, etc.

^ Material and technical base. Includes a description of fixed assets belonging to the enterprise and rented, materials, low-value and fast-wearing items. Their size, composition, condition, i.e. physical and moral depreciation of fixed assets, qualitative characteristics.

The analysis should show whether the material and technical base of the enterprise corresponds to the modern level, and how effectively it is used.

Technology. This concept includes a set of methods and means that ensure the delivery of goods and services to the consumer. This includes the organization of trade and procurement activities, transportation, organization of trade and technological processes.

Goods. Assortment, quality, functional features, packaging of goods sold, the most and least attractive characteristics of goods, from the point of view of buyers

The analysis should show whether the offered goods correspond to consumer demand whether there are claims to the range and quality of goods and services on the part of buyers.

Marketing. Due to its particular importance, this element of the organization's activities should be highlighted. In this context, it should be considered as a set of tools that ensure the effective interaction of the organization with the market. When analyzing functions marketing identify seven important elements of the study: market share and competitiveness, variety and quality of the assortment, market demography (study of changes in the market and in the structure of customers), market research and development; pre-sales and after-sales customer service; sales, advertising, promotion of goods; profit as a generalizing indicator of the effectiveness of the activities of a commercial organization.

Finance. Composition, sources of formation and use, financial management, credit system, analysis and control system financial condition organizations.

^ Organizational culture . The particular importance of the analysis of organizational culture for strategic management is that it determines not only the relationship between people in the organization, but also has a strong influence on how the organization builds its interaction with the external environment, how it treats its customers and what methods it chooses to compete.

^ Development of the mission and goals of the organization

The next, after analyzing the external and internal environment of the organization, the stage of strategic management is the goal-setting stage, which consists of a number of successive steps:

1. Definition of the mission (concept, philosophy) of the business.

2. Defining the goals of the organization (setting long-term general goals for the planning period, defining specific goals (tasks)).

The organization itself does not and cannot have goals. Goals have individuals who are trying to achieve them with the help of the organization. At the same time, they may conflict with the goals of other people.

Thus, one of the main tasks of the company's management is the coordination of various and partly conflicting interests. To accomplish this task, there are several approaches, one of which is the development of the company's mission.

^ The concept and meaning of the mission of the organization.

Mission - this is the main, most common goal of the organization (this term literally means "responsible task, role").

What does the term mission include? The mission is a kind of credo of the organization. Its content in a concise form reflects the meaning of the existence of the enterprise in the market, the expediency of its functioning. The mission shows what the enterprise intends to give to society, the owner, and its employees.

At the same time, it focuses attention on the consumer, and not on the product, since the mission (philosophy) of the business is most often determined taking into account the buyer's interests, needs and requests that are satisfied by the business.

To illustrate the concept of mission, two approaches to business can be compared: open a hairdressing salon or a beauty salon for women. The second approach is based on consumer needs and considers the business more broadly, with the prospect of growth: today - only hairstyles, tomorrow - make-up, medical procedures, etc. In this case, the business mission can be defined, for example, as follows: "We make women beautiful."

^ Mission Statement Goals

Let's look at why the mission is still formulated, what it directly gives to the activities of the organization.

Firstly, the mission gives the subjects of the external environment a general idea of what the organization is like, what it is striving for, what means it is ready to use in its activities, what its philosophy is, etc. In addition, it contributes to the formation or consolidation of a certain image of the organization in the representation of the subjects of the external environment.

Secondly, the mission promotes unity within the organization and the creation of a corporate spirit, since it makes clear to employees the overall goal and purpose of the organization.

Thirdly, the mission creates an opportunity for more effective management of the organization due to the fact that it is the basis for setting the goals of the organization, ensures the consistency of the set of goals.

The mission should not carry specific instructions regarding what, how and in what time frame the organization should do. It sets the main directions of the movement of the organization and the attitude of the organization to the processes and phenomena occurring inside and outside it.

It is very important that the mission is formulated very clearly, so that it is understandable to all subjects interacting with the organization, especially to all members of the organization. At the same time, the mission should be formulated in such a way that it excludes the possibility of ambiguous interpretation, but at the same time leaves room for creative and flexible development of the organization.

^ Mission defines groups of individuals and organizations , cooperation with which contributes to the prosperity of the company, establishes their requirements and formulates the priorities of the work of managers. The most stable, strong influence on the mission of the organization is exerted by the interests of owners, employees and customers.

^ Mission Statement should be simple and easy to understand. At the same time, the mission can be formulated both in the form of a single phrase, and in the form of a multi-page policy statement by the company's management, which reflects all aspects of coordinating the interests of various groups and the main characteristics of the company. Various options(abbreviated and extended) can be used for various purposes - as a representative document for inclusion in the company's annual report to shareholders, as an intra-company founding document, etc.

However, it should be noted that many firms adhere to the position that the mission statement should be bright and concise (often this is a slogan). In this form, the mission also performs advertising functions.

Defining the mission is the prerogative of the top management of the company. ^ How to approach its formulation? There are no universal rules for this.

According to another author, to describe the mission, the range of questions should be wider: “What is our business?”, “Who are our clients?”, “What needs of our clients can we satisfy?”, “How should this be done?” (Sorokina M.V.).

However, all authors agree that it is not customary to call it a mission to make a profit. The mission should reflect the highest values of the organization: product - service, market - buyer, social role- staff. Making a profit is seen as an important condition for doing business.

Let's give examples of the company's mission statements.

Company Matsucita This is how he defines his mission: Matsucita wants to contribute to the improvement of the quality of life by supplying the world with cheap, like water, electrical appliances.” This formulation reflects all three of the above-named aspects. Company mission Xerox perfectly demonstrates the prospects for business growth - « From copiers to the office of the future. McDonald's – "limited menu offer hot and tasty food with fast service in a friendly atmosphere of a clean restaurant and low prices.”

Other examples of missions:

"Two centuries of tradition - a guarantee of quality" (Foil Rolling Plant, St. Petersburg).

“We work in the market of weighing equipment” (“Tenro”, Kemerovo).

“One Step Ahead of Demand” (Kamyshinsky KhBK, Volgograd Region).

“We don't just sell equipment. Our main task is to offer a solution to problems for your business” (“Laike”, Novosibirsk).
^

Organization goals

The concept and types of goals

The next stage of goal-setting is connected with the definition of the goals of the enterprise.

If the mission sets general guidelines, directions for the functioning of the organization, expressing the meaning of its existence, then the specific final state that the organization strives for at every moment of time is fixed in the form of its goals. In other words,

Goals - this is a specific state of individual characteristics of the organization, the achievement of which is desirable for it and the achievement of which its activities are aimed at.

Goals express a managerial commitment to achieve specific results within a specified time frame. They indicate how much, what kind action must be taken and what time.

^ Classification of goals.

By scope goals are divided into general and specific. Shared goals provide the realization of the organization's business vision. The term “general” refers to goals that are broad in scope and time. For example, total sales, profitability, market share. On the basis of general goals, specific goals are formulated. They can be determined by main activities (for example, sales volume for individual groups of goods, product departments, etc.) and by functional purpose (sets of goals in the field of marketing, personnel management, etc.)

^ By the duration of the planning period goals are divided into long-term (planning horizon more than 5 years), medium-term (planning period from 1 year to 5 years), short-term goals (usually within a year). Long-term goals are usually very broad, but the narrower the planning horizon, the more specifically the goal should be expressed.

^ In accordance with the specifics of the formulation goals can be divided into quantitative and qualitative. The degree of achievement of quantitative goals can be measured. Qualitative goals are formulated as detailed description state to be reached.
^

Goal Requirements

When setting goals, there are several key requirements that correctly formulated goals must satisfy. Since if the goals are defined incorrectly or poorly, then this can lead to the fact that we will move in the wrong direction and this can have negative consequences for the organization, but if the goals are poorly defined, then they will be declarative, i.e. they will be fixed, but they will not fulfill their purpose.

First, the goals must be strenuous, but achievable. Of course, in the goals there must be a certain challenge for employees. They shouldn't be too easy to achieve. But they also should not be unrealistic, going beyond the limits of the performers. On the one hand, the goals, the achievement of which does not require full commitment from the staff, lead to discourage employees. Time is freed up for clarifying relationships, gossip and other negative phenomena.

On the other hand, unattainable goals do not allow the employee to assess the degree of success of the work done. Exaggerated goals reduce the level of motivation of employees and the effectiveness of their incentives. Why strive forward if there is no chance of success anyway?

Third, goals should be measurable. This means that goals must be formulated in such a way that they can be quantified, or else it would be possible to assess in some other objective way whether the goal has been achieved.

When formulating goals, one should not be limited to general instructions. For example, the following formulations will be illiterate: “The goal is to maximize profits, optimize costs, increase turnover, open new outlets". Such goal setting cannot serve as a clear guideline, does not allow assessing the degree of their achievement, does not make it possible to assess necessary resources and deadlines for achievement. The goal statement should contain quantitative indicators and the period for which it should be achieved. Examples of correct formulations of goals are the following: to increase net profit for 2003 to 500 thousand rubles, to increase total sales in 2003 by 15%.

Often, the implementation of the above rule encounters certain difficulties due to the specificity of the goals. For example, it is not always possible to describe by number the level of quality of goods and services sold, which must be achieved. In this case, either several indirect indicators are used, which allow, in a complex, to accurately characterize established requirements or give detailed verbal description desired state. For example, when choosing a certain level of quality as a goal, GOSTs, a description of various standards, should be used.

Fifth, the multiple goals of the enterprise must be comparable-mi and mutually supportive, that is, actions and decisions aimed at achieving one goal should not contradict the achievement of another. Failure to take this factor into account leads to conflicts between departments.

Sixth, the goals must be legitimate, understandable and recognized by the employees of the organization. The worker needs to understand why the realization of these goals is so important. The task of the manager is to provide employees with all necessary information in order for them to recognize the legitimacy of these goals, consider it expedient to implement them. Setting goals based on the principle of participation is one of the key elements modern management. Goals lowered from above always seem to be imposed, involuntarily provoke a reaction of opposition. Employees should be involved as widely as possible in the search for goals. In addition, the participation of the employee in setting goals simplifies their implementation, since in the process of coordination, “pitfalls” that would impede future work are eliminated.
^

Hierarchy of goals

At any large organization, which has several different structural divisions and several levels of management, a hierarchy of goals is formed, which is a decomposition of goals more high level to a lower level target. The specificity of the hierarchical construction of goals in the organization is due to the fact that:

Higher-level goals are always broader in nature and have a longer-term time interval to achieve;

Lower-level goals act as a kind of means to achieve higher-level goals.

The hierarchy of goals plays a very important role, as it establishes the "connectivity" of the organization and ensures the orientation of the activities of all departments towards achieving the goals of the upper level. If the hierarchy of goals is built correctly, then each subdivision, achieving its goals, makes the necessary contribution to achieving the goals of the organization as a whole.

^ Goal Setting Directions

There are eight key spaces within which an enterprise defines its goals.

1. Market position. Market goals may be gaining leadership in a certain market segment, increasing the company's market share to a certain size.

2. Innovation. Targets in this area are associated with the definition of new ways of doing business: the organization of the production of new goods, the development of new markets, the use of new technologies or methods of organizing production.

3. Performance. More effects are the enterprise that spends on production a certain amount products less economic resources. Indicators of labor productivity, resource saving are important for any enterprise.

4. Resources. The need for all types of resources is determined. The current level is compared with the necessary, and goals are put forward regarding the expansion or reduction of the resource base, ensuring its stability.

5. Profitability. These goals can be quantified:

Achieve a certain level of profit, profitability.

6. ^ Management aspects. The short-term profit of an enterprise is usually the result of entrepreneurial talent and intuition, as well as luck. It is possible to ensure profit in the long term only at the expense of the organization effective management, the absence of which, according to many experts, hinders the development of Russian enterprises.

7. Staff. Goals in relation to personnel may be related to the preservation of jobs, ensuring an acceptable level of remuneration, improving working conditions and motivation, etc.

8. ^ Social responsibility. Currently, most Western economists recognize that individual firms should focus not only on increasing profits, but also on the development of generally recognized values. Actually, the introduction of the concept of “interested persons” of a business, the development of measures to create a favorable image of the company, and concern for not causing damage are related to this. environment.

That. we have identified the key areas within which the company sets its goals. Naturally, when setting goals, it is very difficult to bring together the divergent interests of the subjects of influence. Owners expect the organization to provide high profits, large dividends, growth in share prices and security for invested capital. Employees want the organization to pay them high wages, give them an interesting and safe job, provide conditions for growth and development, and carry out good social Security and so on. For buyers, the organization must provide a product at a suitable price, of appropriate quality, with good service and other guarantees. Society requires the organization not to harm the environment, to help the population, etc. When setting goals, a difficult task is set - to find a compromise between these divergent interests of the subjects of influence.

Strategic Management: Lecture Notes. Goldstein G.Ya

2. The essence and significance of strategic planning

3. Strategy, its elements and levels

4. Strategy formulation: main steps and tools

5. Variety of strategies: corporate strategy and its types; business strategy and its types; functional strategies of the organization

The main stages of strategic management

Strategy Development

Implementation of the strategy

Fig.1 Stages of strategic management

Environmental Analysis

Internal environment

Organization goals

The concept and types of goals

The next stage of goal-setting is connected with the definition of the goals of the enterprise.

Goal Requirements

Hierarchy of goals

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