Strategic Management and Planning at a Level of Firm

The analysis of a financial condition can benefit to firm to reveal already available potential internal weaknesses of the organization in comparison with its competitors.

For a long survival of firm the continuous analysis of management of operations is rather important. During inspection strong and weaknesses of function of management of operations it is necessary to pay attention to the following questions: whether 1. The firm can sell the goods or services under lower price, than its competitors? If is not present, why? 2. The firm has what access to new materials? On how many suppliers she is fastened? 3. What equipment in firm? 4. Whether purchases are designed for decrease in size of material stocks and time of realization of the order? Whether there are adequate mechanisms of the control over entering materials and leaving products? 5. Whether production of firm is subject to seasonal fluctuations of demand? If so as it is possible to correct an existing situation? 6. Whether the firm can serve those markets which its competitors cannot serve? 7. Whether the firm possesses the effective and productive monitoring system of quality? As far as process of manufacture is effectively planned?

Sources of the majority of problems in the organization are covered in human resources. Here it is necessary to take into account: type of employees, competence and preparation of a management, system of compensations, continuity of supervising posts, preparation and improvement of professional skill of employees, losses of leading experts and their reasons, quality of products and work of employees. The culture of firm (an atmosphere or a climate in the organization) is used for attraction of workers of separate types and for stimulation of the certain types of behavior. Image of corporation is created with the help of employees, clients and public opinion. The culture and an image of firm are supported or weaken under action of reputation of the company.

Having resulted internal forces and weaknesses in conformity with external threats and opportunities, the management is ready to a choice of corresponding strategic alternative.

5. Studying strategic alternatives and a choice of strategy

Development of strategy is carried out top-level managements and based on the decision of the above described problems. At this stage of decision-making it is necessary for manager to estimate alternative ways of activity of firm and to choose optimum variants for achievement of objects in view. On the basis of the lead analysis during development of strategy there is a formation of strategic thinking by discussion and coordination with the administrative linear device of the concept of development of firm as a whole, the recommendation of new strategy of development, a formulation of projects of the purposes, preparation of instructions for long-term planning, development of strategic plans and their control. Strategic management assumes, that the firm defines the key positions on prospect depending on prioritization the purposes. Before firm four basic strategic alternatives cost: the limited growth, growth, reduction and a combination of these strategy. To the limited growth adhere the majority of the organization in the advanced countries. The establishment of the purposes is typical of him from achieved, the corrected associations of firms in any way not connected branches. Most less often heads choose strategy of reduction. In it the level of the pursued purposes is established below achieved in the past. For many firms reduction can mean a way of rationalization and reorientation of operations. In this case some variants are possible: * liquidation (full sale of material stocks and actives of the organization); * deduction superfluous (branch firms of some divisions or kinds of activity); * reduction and reorientation (reduction of a part of the activity in attempt to increase the profit).

To strategy of reduction resort more often in that case when parameters of activity of the company continue to worsen, at economic recession or it is simple for rescue of the organization. Strategy of a combination of all alternatives will be the large firms actively working in several branches adhere.

Having chosen the certain strategic alternative, the management should address to concrete strategy. An overall objective - a choice of strategic alternative which will as much as possible raise long-term efficiency of the organization. For this purpose heads should have the precise concept of firm divided by all and its future. Adherence to a concrete choice frequently limits the future strategy, therefore the decision should be exposed to careful research and an estimation. The strategic choice is influenced with various factors: risk (the factor of a life of firm); knowledge of the last strategy; reaction of owners of actions which frequently limit flexibility of managements at a choice of strategy; the factor of time dependent on a choice of the necessary moment. Decision-making on strategic questions can be carried out on different directions: " from below upwards ", "from top to down ", in interaction of two above-named directions (strategy is developed during interaction between the top management, scheduled service and operative divisions).

Formation of strategy of firm as a whole gets the increasing value. It concerns prioritization decided problems, definition of structure of firm, validity of capital investments, coordination and integration of strategy.

IV. THE CONCLUSION

For the enterprise of any pattern of ownership and any scales of economic activities management of economic activities, definition of strategy, and as planning is essential. Now heads of the enterprises are compelled to make economic decisions in conditions of uncertainty of consequences of such decisions, besides at lack of economic, commercial knowledge and a practical operational experience of new conditions.

Many economic zones in which the enterprises work, are characterized by the raised risk since there is no sufficient knowledge of behavior of consumers, positions of competitors, about a correct choice of partners, there are no reliable sources of reception of commercial and other information. Except for that many managers do not have experience in management of firms in market conditions. In marketing activity of the enterprises there is a set of problems. Heads of the enterprises making final or intermediate production, feel restrictions on the part of solvent demand of the population and enterprises-consumers. The question of selling has come in sphere of the direct control of a management of the enterprises. As a rule, state enterprises had no and have no qualified employees of service of selling. Now almost all the enterprises have realized importance of the marketing program. The majority of them should solve tactical questions since many have already faced a problem of overstocking of warehouses the production and sharp falling of demand for it. Has remained strategy of selling of production in the market is not clear. Trying to change the assortment, many enterprises making products of industrial purpose, start to pass to consumer goods. If production of industrial purpose in some cases of the enterprise develop also the divisions consuming this production is issued. Reconstructing assortment, the enterprises began to predict beforehand selling and to find consumers of production.

Heads at a choice of consumers take into account: direct contact, communication with the end user, solvency of the customer. For the enterprise search of new consumers, development of the new markets (the part of heads searches new consumers independently) became rather actual.

Also the new phenomenon - mutual relations of the enterprises with new commercial structures which frequently are engaged in realization of a part of production of the enterprise is noticed, and other part comes true on old channels. Besides the enterprise can address to firm on all complicated questions of maintenance of manufacture.

Thus, management and strategic management of activity of the enterprise are necessary in any sphere of economic activities.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Table of contents:

I. INTRODUCTION

II. MANAGEMENT. KINDS OF THE PURPOSES

III. STRATEGIC PLANNING

1. Essence, functions of strategic planning

2. The purposes of the organization

3. An estimation and the analysis of an environment

4. Administrative research of internal factors of firm

5. Studying strategic alternatives and a choice of strategy

IV. THE CONCLUSION

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Literature: 

1.Bank .J., Kakabadse A., Vinnicombe S. - Working in Organizations, 2005 

2. Michael Porter - What Is Strategy 

3. William  Rothwell - Effective Succession Planning. Ensuring Leadership Continuity and Building Talent from Within, 2007 

4. Огарков А.А.  Управление организацией: Учебник. – М.: Эксмо, 2006. 

5. Мескон  М.Х. Основы менеджмента: Пер.  с англ. / Мескон М.Х., Альберт М., Хедоури Ф. – М.: Вильямс, 2007.