6.2. The order of developing a strategic plan
The development of a strategic plan includes the following steps:
- formation of long-term development goals of the enterprise and their disaggregation to a complex of tasks;
- justification of the concept of long-term development of the enterprise, ensuring achievement of the goal;
- determination of long-term forecasts of enterprise development under different options for changing the external environment and possibilities for changing the internal potential;
- justification of directions and indicators of the strategic plan for the development of the enterprise, including business plans for an investment or entrepreneurial project.
Let's look at each of these steps in more detail.
The first stage - the formation of long-term development goals of the enterprise - is very important, as the long-term results of the enterprise's activity are anticipated when the purpose is justified, the most common guidelines and mission of the enterprise development are formed.
Basic rules for justifying a goal:
- must be specific and understandable (goal measurability);
- should be achievable in the foreseeable future (realistic goal);
- can be disaggregated into a set of tasks that ensure the achievement of the goal, i.e., be able to build the target tree (comparability of goals and objectives);
- should formalize the mission (main functional purpose) of the enterprise in the long-term period (the specificity of the goal).
The goal is formulated by top management and predetermines the concentration of efforts to implement it. The importance of determining goals is due to the fact that they are:
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- are the foundation for planning, management, organization, coordination and control;
- determine the prospects for doing business;
- serve as a guide for the formation of the company's image.
The content of the goal depends on the external conditions of activity of enterprises, the state system for regulating entrepreneurship; real capabilities of the enterprise in the implementation of maneuver and the means of conducting business: the life of the enterprise, subjective factors (qualifications of senior management, pressure of other market participants, etc.).
There are eight key spaces within which an enterprise defines its objectives:
1. Position on the market (share and competitiveness).
2. Innovation of production and sales of products and services.
3. Profitability of the enterprise.
4. The resource intensity of products and services and the possibility of additional resource mobilization.
5. Mobility of management: organizational structures, forms and methods of interaction, motivation, etc.
6. Qualifying staff and the possibility of changing it.
7. Social consequences of changes and their impact on the level of enterprise development.
8. The ability to quantify the target. The formulated goal is disaggregated through a set of tasks, then the tasks are detailed before the activities that are specified in the target standards and indicators that determine the ideal future state of the enterprise. An example of the disaggregation of the goal is shown in Fig. 4.
Fig. 4. An example of building a target tree
Stage 2. Justification of the concept of long-term development. The concept as a system of views on the prospects of an enterprise is based on future opportunities and risks, and also relies on the resource potential of the future (technology, technology, personnel, etc.). Realization of the set goal assumes to take into account in the justification of the concept three basic conditions:
- the stability of economic relations both within the enterprise and in the external environment;
- the efficiency of the enterprise at all stages of its development;
- Innovation of strategic directions.
These conditions for determining the concept of enterprise development are based on three main approaches:
- the mimicking of the costs of production and sales of products and services and the formation on this basis of competitive advantages - a very vulnerable strategy, especially for enterprises;
- a high level of specialization and, on this basis, improving the quality of products and services - the allocation of basic services or products, followed by the diversification of related and additional services that provide the effect of "synergy" due to the integrated and mutually supportive system of production, promotion and sale of products and services;
- targeting only one segment of the market with the study of its needs and specialization for their maximum satisfaction.
Based on this, four groups of basic conceptual strategies are distinguished:
- the strategy of concentrated growth - includes plans to strengthen positions in the market; search for new markets for available goods and services; modernization of the product or service for sale on the existing market;
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- growth strategy due to the increase in the number of structures (integrated growth), including horizontal mergers of enterprises in the same market segment, production or sales (creation of a network of enterprises of the same profile); vertical mergers on the chain of production-distribution-realization, carried out on different organizational and legal conditions; conglomerate mergers of enterprises from different spheres of the economy in order to diversify the types of activities);
- the strategy of diversified growth through the production of new goods and services;
- a reduction strategy - includes a liquidation plan when an enterprise can not conduct an existing business, so it sells its business in whole or in part.
In addition, the company's strategies are divided into levels:
- corporate - involves strengthening the market position, the formation of corporate interests and goals, culture;
- business (business strategy) - developed by types and activities based on corporate strategy;
- functional - management, i.e., justification of approaches to ensure effective management of the implementation of business strategies;
- operational - includes the strategy of logistics, commerce of production, marketing, ensuring the implementation of business business strategy.
Stage 3. Development of forecasts for long-term development of the enterprise (at least three options). Forecasting the development of the enterprise takes into account the change in the external environment, which implies:
- determination of the market potential and its conjuncture;
- changing quality needs in products and services;
- growth of incomes of the population and directions of its use (as a growth factor);
changing the internal environment:
- growth in production and sales of products and services;
- qualitative and quantitative change of resource potential;
- competitiveness and sustainability of the enterprise.
Forecasting can be carried out by trend models, by target standards, using economic-mathematical, simulation and network modeling.
Practical modeling tasks are:
- analysis and forecasting of the economic situation inside and outside the enterprise;
- analysis and forecasting of sales markets and logistics;
- preparation of planned decisions on the subsequent operation of the enterprise.
Each of the methods gives its own version of the forecast, which is then compared, analyzed, evaluated from the point of view of the possibility of developing the enterprise in different variants, and the degree of controllability of the forecast indicators is determined. Variants of forecasts should be at least three: the minimum, the maximum and the most probable.
Forecasts should be developed for periods that exceed the periods of the long-term (strategic) plan.
Stage 4. The development of a long-term plan involves the evaluation and selection of the most effective and realistic version of the forecast, its specification. In the long term, the goals and strategies are expressed in the planned indicators and tasks (in aggregate form, sometimes in limiting values).
The nomenclature of long-term (strategic) plans includes:
1. Joint company strategic plan:
- general business business portfolio, which determines the prospects for the types of business, activities of the enterprise;
- strategies and key indicators of the company's development, taking into account the set goals and forecast calculations;
- a plan for strategic transformation (changing types and objects of activity, creating a network of enterprises, etc.).
2. Plans by business type:
- business portfolios by type of business and activities;
- the main indicators of the development of business types;
- plans for new products and technologies.
3. Strategic plans for the development of functional areas of the enterprise:
- commercial activities;
- development of production;
- development of material and technical supply;
- the development of complex functional areas of activity (marketing, personnel, etc.).
4. Plan for improving the organizational structure and legal form of the enterprise:
- a plan for the reorganization of the enterprise as a legal entity (taking into account changes in tasks, volumes and structure of economic activity);
- reengineering (redesigning) the organizational structure of the enterprise:
5. Plans to improve the management system (manual):
- the arrangement and reserve of leading cadres;
- staff development;
- improving the organizational structure of management;
- improving the system of personnel incentives;
- development of information management system.
This approximate list of strategic (long-term) plans at each enterprise is specified taking into account the purpose and strategy of the enterprise development, as well as taking into account the completeness and reliability of information characterizing the future conditions of its activity.
The draft strategic plan is submitted for discussion to the general meeting of shareholders or other management bodies, where it is considered as a general direction in the activities of the enterprise. It is advisable to involve ordinary employees to participate in the development of the most promising areas of activity. The strategic plan, approved by the supreme management body, acquires a policy-making character and is implemented in stages, mainly through the inclusion of strategic indicators in the current plans and ensuring their implementation.
Current planning is a short-term strategy that implements a long-term (strategic) plan. The current plan is developing:
o in the development of the strategic plan;
o as a rule, at all levels of management;
o for a shorter period of time compared to the strategic plan;
o to determine the results of strategy implementation in a shorter period of time.
In the system of plans (strategic and current), the implementation of the strategy means:
o determination of the indicators of the current work plans of the enterprise taking into account their strategic values;
o Formation of procedures for the implementation of planned indicators with the definition of specific resources for them, justification of the set of tasks for each division of the enterprise;
o Action planning and development of calendar plans and schedules;
o monitoring the implementation of strategic and current plans.
Thus, the implementation of strategic (long-term) plans implies their interconnection with the current ones and the formation of a planning system in the enterprise with different time horizons.
Test questions and tasks
1. What are the objectives of strategic planning in the enterprise?
2. What are the main planning methods used to develop an enterprise development strategy?
3. Name the types of strategies and their characteristics.
4. Describe the stages of developing a strategic plan.
5. How are the tasks of the strategic plan organized?
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