General provisions and essence of the strategic management process - the essence of strategic management. The essence, goals and objectives of strategic management. Basic enterprise development strategies

10.07.2021

Strategic management is a field of science and management practice, the purpose of which is to ensure the development of organizations in rapidly changing environmental conditions. The theory of strategic planning and management was developed by American researchers and consulting firms, then this apparatus became part of the arsenal of methods of intra-company planning in all developed countries, and is now increasingly in demand by Russian businessmen.

As experts in the field note strategic management V.D. Markova, S.A. Kuznetsov, its essence lies in the answer to three most important questions:

what is the current position of the enterprise;
what position it would like to be in three, five, ten years;
how to achieve the desired position? (Fig. 1.1).

Before deciding where to move next, managers must have a good understanding of the current situation in which the enterprise is located and answer the first of the questions posed above, which requires an information basis that provides the strategic decision-making process with relevant data for analyzing past, present and future situations . The second question reflects such an important feature of strategic management as its focus on the future. To answer it, you need to clearly define what to strive for and what goals to set. The third issue of strategic management is related to the implementation of the chosen strategy, during which adjustments to the two previous stages may occur. The most important components or limitations of this stage are the available or accessible resources, management system, organizational structure and personnel who will implement the chosen strategy.

In its substantive content, strategic management addresses only the main processes within the enterprise and beyond, paying attention not so much to available resources and processes, but to the possibilities of increasing the strategic potential of the enterprise.

Strategic management is defined as a set of strategic management decisions that determine the long-term development of the organization, as well as specific actions that ensure rapid the enterprise's response to changes in external conditions, which may entail the need for strategic maneuver, revision of goals and adjustment of the general direction of development.

Strategic management is based on strategic decisions, which 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 of enterprises, etc.

Strategic management is the process of making and implementing strategic decisions, the central element of which is 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.

1.1.2. The history of strategic management

The emergence of strategic management techniques and their use in practice is best understood in a historical context. Business historians generally identify four stages in the development of corporate management: budgeting, long-term planning, strategic planning and strategic management.

Table 1.1. Stages of development of control systems

Parameter	Types of control systems
budgeting	long-term planning	strategic planning	strategic management
Assumptions	The past repeats itself	Trends continue - extrapolation	New phenomena/trends are predictable	Partial predictability from weak signals
Type of changes	Slower company response	Compare with the company's reaction	Faster company response
Process	Cyclical	Real time
Management Basis	Deviation monitoring, comprehensive management	Anticipating Growth, Fundamentals and Opportunities	Changing strategic factors	Accounting for market development and external environment
Emphasis on management	Stability/reactivity	Foresight	Study	Creation
Period	Since 1900	Since the 1950s	Since the 1970s	Since the 1990s

Budgeting

Before the Second World War, during the era of the formation of corporations, special planning services, especially long-term ones, were not created in companies. Corporate leaders regularly discussed and outlined plans for the development of their business, but formal planning associated with the calculation of relevant indicators, maintaining financial reporting forms, etc. , was limited only to the preparation of annual financial estimates - budgets for expenditure items.

Budgets were drawn up, firstly, for each of the major production and economic functions (R&D, marketing, capital construction, production); secondly, for individual structural units within the corporation: departments, factories, etc. Similar budgets in the modern economy serve as the main tool for distributing internal corporate resources and monitoring current activities. A feature of budgetary and financial methods is their short-term nature and internal focus, i.e. the organization in this case is considered as a closed system. When using only fiscal methods, the main concern of managers is current profit and cost structure. The choice of such priorities naturally poses a threat to the long-term development of the organization.

Long-term planning

In the 50s - early 60s of the XX century. characteristic business conditions American companies were high growth rates of commodity markets, relatively high predictability of trends in the development of the national economy. These factors determined the need to expand the planning horizon and created the conditions for the development of long-term planning.

The core idea of the method is to create a sales forecast for the company for several years in advance. At the same time, due to the slow increase in the characteristics of variability in the external environment, long-term planning was based on extrapolation of the company's development trends that had developed in the past. The main indicator - the sales forecast - was based on extrapolation of sales in previous years. Next, based on the target figures specified in the sales forecast, all functional plans for production, marketing, and supply were determined. Finally, all plans were aggregated into a single financial plan corporations. The main task of managers was to identify financial problems limiting the growth of the company. In other words, does the firm have enough internal resources or does it need to resort to debt?

This approach, better known in our country as the method of “planning from what has been achieved,” was widely used under the conditions of centralized management of the Soviet economy. The main guidelines for enterprises were production volumes set from above, and not sales volumes, as in market economy, the achievement of which, as a rule, was limited by limited resources. With this approach, calculations of the return on capital investments and comparison (discounting) of costs over time were widely used.

Strategic planning

At the end of the 1960s, the economic situation in many industrialized countries changed significantly. As the crisis grew and international competition intensified, forecasts based on extrapolation began to diverge more and more from real figures, while the most typical phenomenon was the setting of optimistic goals with which the real results did not coincide. The firm's senior management generally assumed that future performance would improve, but the firm often did not achieve the planned results. Thus, it turned out that long-term planning does not work in a dynamically changing external environment and fierce competition.

The crystallization of the fundamental elements of the concept of strategic planning is largely associated with the search for ways to overcome the limitations of the long-term planning system, clearly manifested in the uncertainty of the parameters of the overall economic development. The strategic planning system does not assume that the future must necessarily be better than the past, and the premise that it is possible to study the future by extrapolation is rejected. Actually, the main difference between long-term extrapolative planning and strategic planning lies in the different understanding by managers of the role of external factors. The main thing in strategic planning is the analysis of both the internal capabilities of the organization and external competitive forces and the search for ways to use external opportunities, taking into account the specifics of the organization. Thus, it can be said that the purpose of strategic planning is to improve the organization's response to market dynamics and the behavior of competitors.

Strategic management

By the 1990s, most corporations around the world began the transition from strategic planning to strategic management. Strategic management is a set of strategic management decisions that determine the long-term development of the organization, and specific actions that ensure the organization’s rapid response to changes in external factors, which may entail the need for strategic maneuver, revision of goals and adjustment of the general direction of development.

I. Ansoff recommends considering strategic management as consisting of two complementary subsystems: analysis and selection of a strategic position and operational management in real time. Thus, strategic management, in contrast to strategic planning, is an action-oriented system that includes the process of strategy implementation, as well as evaluation and control. Moreover, the implementation of strategy is a key part of strategic management, since in the absence of implementation mechanisms, the strategic plan remains just a fantasy.

Paraphrasing P. Drucker, I. Ansoff writes: “Strategic planning is management by plans, and strategic management is management by results,” thus placing emphasis in strategic management on constant monitoring of the external environment and the results obtained, since in modern conditions The uncertainty of the external environment increases with the simultaneous weakening of signals about changes in it, which leads to the need to have sensitive subsystems for monitoring changes in external environment. The emergence of strategic surprises such as the sequestration of the Russian budget forces strategic decisions to be made outside of planning cycles. To capture such surprises, systems for collecting and analyzing information in real time (online) are being created.

In our opinion, the differences between strategic management and strategic planning are characterized by the commonality of the following important factors:

strategic management is characterized by a quick dual response to changes in the external environment: long-term and operational at the same time. Long-term response is included in strategic plans, operational response is implemented outside the planning cycle in real time;
strategic management considers ways to change the external environment, and not just adapt to it; Strategic management also means that the management process must be proactive rather than reactive. With a proactive strategy, managers try to influence events in the external environment, rather than simply react to them. These factors explain the desire big business influence the adoption of political, economic, legislative and other changes at the macro and micro levels;
strategic management includes elements of all previous management systems, i.e. involves drawing up budgets, using extrapolation to estimate relatively stable factors, applying elements of strategic planning, and adapting strategic decisions made in real time.

Strategic management is often called market strategic management. The inclusion of the word “market” in the definition means that strategic decisions should take into account developments in the market and the external environment to a greater extent than internal factors. A company implementing strategic management must have external orientation(on consumers, competitors, market, etc.). This is the so-called marketing, or market, approach to organizing management, in contrast to the production approach, focused on internal production capabilities.

The essence of strategic management lies in answering three critical questions:

What is the current position of the company?

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

How to achieve the desired position?

The second question reflects such an important feature of strategic management as its focus on the future. To answer it, you need to clearly define what to strive for and what goals to set.

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

The differences between strategic management and strategic planning, in addition to the fact that they are related to the process of strategy implementation, are determined by several other important factors:

Information content – in strategic management, the degree of uncertainty in the external environment increases while signals about changes weaken and, consequently, the information content of the management system decreases. This leads to the development of more sensitive information surveillance systems for the external environment;

The emergence of strategic surprises such as the sequestration of the Russian budget, which force strategic decisions to be made outside of planning cycles, i.e. strategic management is characterized by a quick response to changes in the external environment within planning periods. To capture such surprises, systems are created for collecting, analyzing information and making strategic decisions in real time (on-line system);

The reaction of strategic management to external changes is twofold: long-term and operational at the same time. Long-term response is included in strategic plans, operational response is implemented outside the planning cycle in real time;

In strategic management, the external environment is not viewed as something given and unchangeable, to which the company must adapt. Rather, methods and strategies for changing the external environment are considered;

Strategic management includes elements of all previous management systems, i.e. involves the preparation of budgets, the use of extrapolation to estimate relatively stable factors, the application of elements of strategic planning, and the improvements necessary to adapt strategic decisions made in real time.

Another definition of strategic management is the activity of ensuring the implementation of the organization's goals in a dynamic, changing and uncertain environment, allowing for optimal use of existing potential and remaining susceptible to external changes.

FEDERAL AGENCY FOR EDUCATION STATE EDUCATIONAL INSTITUTION

HIGHER PROFESSIONAL EDUCATION

"VOLGA STATE UNIVERSITY

SERVICE»

Department: "Management"

TEST

Discipline: Management

I've done the work

student gr. IZU-1S

Sharov Yu.V.

Checked:

Tolyatti 2010

Department: "Management" 1

CHECK WORK 1

1.The essence, goals and objectives of strategic management. Basic Strategies enterprise development. 4

2. Procedure and technologies for developing and implementing enterprise strategy 9

Defining the mission of the organization 10

Formulation of goals and objectives 10

Analysis and assessment of the external and internal environment 10

Development and analysis strategic alternatives, choice of strategy 11

Implementation of strategy 13

Strategy assessment and control 13

3.Strategic analysis and its significance for crisis management. 14

3. Development and implementation of long-term and current plans 20

References: 22

Federal Agency for Education 23

The essence, goals and objectives of strategic management. Basic enterprise development strategies.

Currently, strategic management is the most important factor successful survival in increasingly complex market conditions. However, one can constantly observe a lack of strategicity in the actions of organizations, which often leads them to defeat in the competition.

Strategic management at any given moment records what the organization must do in the present in order to achieve its goals in the future, based on the fact that the environment will change, and the living conditions of the organization will change too. That. If intra-company management is focused on creating optimal management conditions (models) that ensure the implementation of planned goals, then strategic management is focused on creating appropriate conditions for the competitiveness and development of the company depending on changes in the external market environment.

Today there is no unambiguous, sufficiently clear definition of the concept of “strategic management”. Here are the most common definitions.

Strategic management is the process of determining the interaction of an organization with its environment, expressed through the use of selected goals and the achievement of the desired result by allocating the organization's resources in accordance with an effective plan of action.

Strategic management is the process by which managers establish long-term directions for the development of the organization, its specific goals, develop strategies for achieving them in the light of all possible internal and external circumstances, and implement the chosen plan of action.

Strategic management- this is the management of an organization that relies on human potential as the basis of the organization, focuses production activities on consumer demands, reacts flexibly and carries out timely changes in the organization that meet the challenge from the environment and allows achieving competitive advantages, which together allows the organization to survive in the long term while achieving its goals.

Determining the purpose and main goals of the company’s business;

Analysis of the company's external environment;

Analysis of its internal situation;

Selection and development of company strategy;

Analysis of the portfolio of a diversified company, design of its organizational structure;

Selecting the degree of integration and control systems;

Management of the “strategy - structure - control” complex;

Determination of standards of behavior and policies of the company in certain areas of its activities;

Providing feedback on the company's results and strategy;

Improving strategy, structure, management.

In connection with the above, we can determine the main tasks of strategic management:

Allocation of resources in the most effective way for the development of the organization;

Carrying out the functions of planning and monitoring the implementation of the set strategic goal;

Determining the most promising directions for the development of the organization.

The purpose of strategic management comes down to formulating a strategy, the implementation of which will allow the organization to have maximum development over a certain period of time.

Main features of strategic management:

1. Focused on a long-term market perspective (5 years or more).

2. It involves the interaction of various economic units implementing a common economic policy.

3.The basic principles of strategic management are determined by the state and changes in the external environment.

The algorithm for developing strategic policy is shown in Fig. 1

Rice. 1 Algorithm for developing strategic policy

It is according to this scheme that this work is structured.

There are a number of restrictions on the use of strategic management, which indicate that this type of management, like all others, is not universal for all situations and all tasks.

Firstly, strategic management, by its very nature, does not and cannot provide an accurate and detailed picture of the future. The description of the desired future of the organization developed in strategic management is a set of qualitative wishes for what state the organization should be in in the future, what position it should occupy in the market and in business.

Secondly, strategic management cannot be reduced to a set of routine rules, procedures and schemes. He does not have a theory that prescribes what and how to do when solving certain problems or in certain situations. Of course, there are a number of recommendations, rules and logical schemes for analyzing problems and choosing a strategy, as well as for carrying out strategic planning and practical implementation of the strategy.

Thirdly, the negative consequences of errors in strategic foresight are sharply increasing. In conditions when completely new products are created in a short time, the directions of investments are radically changed, when new business opportunities unexpectedly arise and opportunities that have existed for many years disappear before our eyes, the price of payment for incorrect foresight and, accordingly, for errors in strategic choice often becomes fatal for the organization . The consequences of an incorrect forecast are especially tragic for organizations that have no alternative way of functioning or that implement a strategy that cannot be fundamentally adjusted.

The definition of strategy for a company fundamentally depends on the specific situation in which it finds itself. The choice of business strategy is influenced by strengths the enterprise, its goals, interests and management’s attitude towards market opportunities and the potential of the company, financial resources, qualifications of employees, obligations of the enterprise, degree of dependence on the external environment, time factor, position of the enterprise relative to the market. We can say that as many firms exist, there are just as many specific strategies. However, this does not mean that it is impossible to typologize strategies. There are general approaches to strategy formulation and general frameworks within which strategies fit.

Thompson and Strickland developed a matrix for determining business strategy based on 2 components (the speed of market development and the level of development of the enterprise, i.e. its competitive position), characterizing the position of the enterprise in the market (Fig. 2).

Fig. 2 Matrix of business strategies

Centered Diversification Strategy is based on the search and use of additional opportunities for the production of new products contained in the existing business and does not imply a transition to another market ( New Product-old market). That is, existing production remains at the center of the business, and new production arises based on the opportunities that are contained in the developed market, the technology used, or in other strengths of the company’s functioning.

Conglomerate diversification strategy is based on the expansion of the company through the production of new products that are technologically unrelated to those already produced and sold in new markets (new business - new product - new market).

Horizontal integration strategy is focused on finding growth opportunities in the existing market by creating new products based on attracting new technologies (old market - new product - new technologies).

Reduction Strategies are implemented when a company needs to regroup forces after a long period of growth or due to the need to increase efficiency, when there are recessions and dramatic changes in the economy, such as, for example, structural restructuring, etc. The implementation of these strategies is often not painless for the company. However, it must be clearly understood that these are the same firm development strategies as growth strategies, and under certain circumstances they cannot be avoided. Moreover, sometimes these are the only possible strategies for business renewal, since in the vast majority of cases renewal and growth are mutually exclusive business development processes.

Vertical integration strategy is aimed at the acquisition or absorption by an enterprise of the entire technological chain within which this enterprise operates.

Focus Strategy firms in the selected market segment. In this case, the company thoroughly determines the needs of a certain market segment for a certain type of product. A company may strive to reduce costs or pursue a policy of specialization in the production of a product. It is also possible to combine these two approaches. However, it is absolutely necessary for the strategy to be carried out that the company must base its activities, first of all, on an analysis of the needs of customers in a certain market segment. That is, it should base its intentions not on the needs of the market in general, but on the needs of very specific clients.

Leadership strategy in minimizing production costs based on the fact that the company achieves the lowest costs of production and sales of its products. As a result, it can achieve a larger market share through lower prices for similar products. Firms implementing this type of strategy must have good production and supply organization, good technology, and a good product distribution system. In order to achieve the lowest costs, everything that is related to the cost of production and its reduction must be carried out at a high level of execution.

Concentrated Growth Strategies. This includes those strategies that are associated with changes in the product and (or) market and do not affect other elements. When following these strategies, a firm tries to improve its product or start producing a new one without changing its industry. As for the market, the company is looking for opportunities to improve its position in the existing market or move to a new market. Such strategies are divided into:

- strategy to strengthen market position, in which the company does everything to win the best position with a given product in a given market;

- market development strategy, which consists in searching for new markets for an already produced product; financial enterprises, are closely related to the concept strategic management in management. Methodology..., considering goals And tasks basic strategies development enterprises, setting the direction of his innovative development. On the...

Economic, social and organizational strategies development enterprises

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To continue to be successful, an organization must have clearly defined goals that can be achieved through strategic management.

Strategic management is management activities on processing and implementation of solutions aimed at complete and efficient use available resources aimed at fulfilling the tasks assigned to the organization for the future.

Strategic management involves the development of long-term goals and policies, attitudes and guidelines, fundamentally new areas of activity, and a wide range of important organizational decisions on future-oriented problems associated with uncontrollable external factors. The essence of the theory of strategic management lies in the use of the concept “From the future to the modern, and not from the past to the future.”

The subject of strategic management is the following problems:

1. Directly related to the main goals of the organization. Decisions on the creation of new and liquidation of old industries, the development of new products, technologies, and markets are of a strategic nature. A solution to save material, energy and labor resources are not strategic.

2. Associated with certain elements of the organization that are necessary to achieve the goal. Strategic goals include planning the development and release of new products, purchasing new technological equipment, inviting new specialists, and the like.

3. Associated with uncontrollable external factors. When choosing a strategy, it is important to determine what economic, political, social and other factors influence the future of the organization; it requires constant monitoring of the external environment.

Strategy formation is carried out in the following way. First determine strategic goal; assess the organization's market opportunities and resources; develop a general concept of the strategy, and within its framework, options for discussion. Then the developed options are finalized, analyzed and evaluated. The best of them is accepted as the basic one, which serves as the basis for creating special and functional strategies, preparing strategic and operational plans and programs.

The choice of strategy is influenced by various factors: The type of business and the characteristics of the industry in which the organization operates (the level of competition from organizations producing similar products).

The state of the external environment (stability or variability of the external environment, predictability of changes).

The nature of the goals that the organization sets for itself (values when making decisions by managers).

The level of risk as a factor in the organization’s activities (acceptable level of risk).

Internal structure of the organization (strengths and weaknesses of the organization that allow it to successfully compete in the market).

Experience in implementing past strategies (allows you to avoid past mistakes, but limits your choice).

Time factor (contributes to success or failure of implementation new technology, supplying products to the market, etc.).

The multifactorial nature of strategy selection requires the development of several strategic alternatives, from which the best one is selected.

Strategic Alternatives- this is a set different strategies that allow you to achieve the strategic goals of the organization within the framework of the selected basic strategy and limited resources. Each strategic alternative presents different opportunities to the organization and has different costs and benefits.

There are two main directions of development of strategic management: regular strategic management and real-time strategic management.

Regular strategic management represents a logical development of strategic planning and consists of two complementary subsystems: strategy analysis and planning, strategy implementation.

Real-time strategic management

associated with solving unexpectedly emerging strategic problems. It arises and develops in those industries where changes in the external environment are too fast and unpredictable, which requires an urgent, adequate response and the organization simply does not have time to review its strategy. This strategic management system provides the following methods of solving the problem: coercive, adaptive, crisis, resistance management.

Forced method used in conditions of acute time pressure, when a quick reaction is required and involves the use of force to overcome resistance. This method is too expensive and socially undesirable, but it offers advantages in strategic response time.

The difficulties in using this method are the following: the lack of a sufficient information base at the beginning of the changes; failure to anticipate the sources and strength of resistance to change; failure to address the root cause of resistance; premature structural changes resulting from a slowdown in the pace of change; sabotage of changes; lack of understanding of the need to improve competence and create new management potential.

Adaptive Changes- These are gradual, minor changes that over a long period of time affect traditional criteria, the power structure and the competence of managers. The process arises as a reaction to constant external influence or to unsatisfactory production and economic performance of the organization. Slow adaptation is generally carried out by trial and error. But even with slow change, organizational conflicts arise that can be resolved through compromises, agreements, and changes in the leadership of the organization.

Adaptive changes must be supported by appropriate motivation. This requires changes in the mood and thinking of those working in the balance of power. Then the necessary organizational changes, increasing the competence of management personnel.

Crisis management used in cases where changes in the external environment threaten the existence of the organization and it is in a difficult situation.

The primary task of top management is not to fight resistance to change, but to take quick and effective action to prevent panic.

Resistance management. This method can be implemented within a time frame determined by the development of events in the external environment. As the urgency of change increases, this method approaches compulsory, and as it decreases, it approaches adaptive.

Advantages of the method: it speeds up the appropriate measures of the organization before the onset of changes in the external environment and at the same time takes into account the distribution of power within. The disadvantage of the method is that it is complex and requires constant attention from management.

Introduction

Methodological foundations of strategic management

1 Scientific hypotheses

2Scientific approaches to strategic management

The essence and content of strategic management

1The essence of strategic management

Characteristics of Strategic Management

1Conditions for the emergence of strategic management

2New management pyramid

3 Distinctive characteristics of strategic management

4Advantages and limitations of strategic management

Conclusion

Bibliography

Introduction

Strategic management examines the problems of growth and survival of large organizations. The importance of strategic behavior in enabling a firm to survive competition over the long term has increased dramatically in recent decades. The acceleration of changes in the environment, the emergence of new demands and changes in consumer position, increased competition for resources, internationalization and globalization of business, the emergence of new unexpected business opportunities opened up by advances in science and technology and a number of other reasons have led to a sharp increase in the importance of strategic management. But there is no single strategy for all companies, just as there is no single universal strategic management. Thus, in order to draw up a strategy for a particular company, it is necessary to conduct a strategic analysis of its internal and external environment.

strategic management strategy

1. Methodological foundations of strategic management

.1 Scientific hypotheses

In the strategic management system, methodological approaches are beginning to acquire increasing importance, which is understood as a single holistic direction of using the logic, principles and methods of strategic management in the development of forecasts, projects, strategic programs and plans of all levels and time horizons. All of them are based on certain hypotheses.

The randomness hypothesis. There is no single recipe for managing a company. Sometimes the randomness hypothesis is interpreted as follows: if there is no universal solution, then each company is unique in nature and must and must find its own path. However, the current understanding of this hypothesis is as follows: between two solutions common to all, there is a certain set of different types of managerial behavior corresponding to different types of problems.

The hypothesis of dependence on the external environment. The problems that the external environment poses to the company determine the optimal model of the company's behavior. In the second half of the twentieth century, this hypothesis acquired vital importance. At the beginning of the century, when companies largely determined their environment, it could be neglected.

Correspondence hypothesis (borrowed from cybernetics). To achieve success, the level of aggressiveness of the company's strategy must correspond to the level of turbulence in the environment.

The Strategy, Capability, and Performance Hypothesis. A company's performance is optimal when its strategic behavior matches the level of environmental turbulence, and its business capabilities match its strategic behavior.

The multi-element hypothesis rejects the idea that any one component of management, be it key managers, structure, culture, or system, is central to success. On the contrary, the success of a company is the result of the interaction and complementarity of several key elements (although different conditions one or more components may predominate over others).

Balance hypothesis. For each level of environmental turbulence, you can select a combination (vector) of elements that optimizes the success of the company. It only takes one glance to realize that only a small number of companies are behaving optimally.

1.2 Scientific approaches to strategic management

Analysis of the theory and practice of managing economic systems made it possible to establish the need to apply the following scientific approaches to strategic management:

systemic approach - consideration of a system (enterprise) as a set of interconnected elements that has an input, an output (goal), a connection with the external environment, and feedback;

marketing approach - orientation of the control subsystem towards the consumer;

functional approach - consideration of a need as a set of functions necessary to satisfy it;

reproduction approach - focus on the constant resumption of production of goods for the needs of a specific market with the lowest total costs;

normative approach - establishing management standards for all subsystems of the management system for the most important elements;

integrated approach - taking into account technical, economic, organizational, environmental, social, psychological aspects of management in their interrelation;

integration approach - focus on researching and strengthening the relationships between individual subsystems and elements of the management system; between stages of the life cycle of a control object; between management levels vertically; between control subjects horizontally;

dynamic approach - consideration of the control object in dialectical development, in cause-and-effect relationships and subordination;

process approach - considering management functions as a series of continuous interrelated actions;

quantitative approach - the transition from qualitative to quantitative assessments using mathematical and statistical methods, engineering calculations, expert assessments, point systems;

administrative approach - regulation of functions, rights, responsibilities, quality standards, costs, duration, elements of the management system in regulations;

behavioral approach - helping the employee to understand his capabilities and abilities based on the application of concepts from behavioral sciences.

situational approach - the use of methods that are most appropriate to a given situation and adapted to it.

2. The essence and content of strategic management

.1 The essence of strategic management

The essence of strategic management lies in answering three critical questions:

What is the current position of the company?

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

How to achieve the desired position?

To answer the first question, managers must have a good understanding of the company's current situation before deciding where to go next. And this requires an information basis that provides the strategic decision-making process with relevant data for analyzing past, present and future situations. The second question reflects such an important feature of strategic management as its focus on the future. To answer it, you need to clearly define what to strive for and what goals to set. The third issue of strategic management is related to the implementation of the chosen strategy, during which adjustments to the two previous stages may occur. The most important components or limitations of this stage are the available or accessible resources, management system, organizational structure and personnel who will implement the chosen strategy.

In its substantive content, strategic management addresses only the main, basic processes within the enterprise and beyond, paying attention not so much to available resources and processes, but to the possibilities of increasing the strategic potential of the enterprise. Strategic management is based on strategic decisions.

Strategic decisions are management decisions that:

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

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

) 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 of enterprises, etc.

Strategic management extends to the long-term goals and actions of the company. We can say that the formulation of a strategy (course of action) and its clear tools are the core of management and the surest sign good management companies.

determining the purpose and main goals of the company’s business;

analysis of the company's external environment;

analysis of its internal situation;

selection and development of strategy at the level of the strategic business zone (SZH) of the company;

portfolio analysis of a diversified company;

designing its organizational structure;

choice of degree of integration and control systems;

determination of standards of conduct and policies of the company in certain areas of its activities;

providing feedback on the company's results and strategy;

improving strategy; management structures.

The relationship between these components is shown in Figure 1.

Figure 1 - Contents of strategic management

Strategic management begins with defining the mission (purpose) and main goals of the company. This sets the context within which the strategy must be formulated and the criteria for its suitability determined. The mission (purpose) establishes why the company exists and what it should do. Purpose external analysis is the identification of strategic opportunities and threats. The external environment of the company is considered at two levels: industry and broader macroenvironment.

Purpose internal analysis is the identification of strengths and weaknesses in the company's activities. This includes identifying the quantitative and qualitative characteristics of the organization's resources in the areas of production, marketing, materials management, R&D, information support, finance, etc.

Strategic choice involves generating a range of strategic alternatives that are consistent with the firm's mission and objectives, its internal strengths and weaknesses, external opportunities, and alternatives. The basis of this process is usually a SWOT analysis. For a diversified company, the problem is choosing the optimal set of SBAs (creating an optimal portfolio of SBAs), for which special procedures are used (the so-called “matrix technique”). Optimization of the SZH portfolio is associated with the use of market entry and exit strategies.

To implement the chosen strategy, the company must use a suitable organizational structure and an appropriate system of organizational control.

In practice, the strategy is developed at four levels of company management (Table 1).

Table 1 - Main levels of company strategy development

	Responsible for development (decision making)
Corporate strategy	Executive Director, Key Vice Directors (decision made/reviewed by the Board of Directors)	Creation and management of a portfolio of agricultural enterprises Ensuring synergies of agricultural enterprises as a competitive advantage Determining investment priorities and resource management in the most attractive agricultural enterprises Revision/revision/unification of the main strategic approaches of the chiefs of agricultural enterprises
SZH strategy	General manager/chief of SZH (decisions are made/reviewed by the company management)	Determination of actions and approaches for successful competition and in the interests of obtaining competitive advantages. Formation of a reaction to changes in external conditions. Unification of strategic initiatives of key functional services. Actions to solve specific problems
Functional strategy	Functional managers (decisions are usually made/reviewed jointly with the management of SZH)	Creation of functional approaches to support business strategy and achieve functional goals and functional strategies in R&D, production, marketing, finance, personnel. Revision/revision/unification of the basic approaches of lower-level managers
Operational strategy	Chiefs of field units/lower level managers, including functional ones (decisions are made/reviewed by heads of functional departments)	Develop narrower and more specific approaches and actions to support functional and SBA strategies and to achieve the goals of field units and functional departments

This process is shown schematically in Figure 2.

Figure 2 - Information flows when forming the strategy of a diversified company

3. Characteristics of strategic management

.1 Conditions for the emergence of strategic management

The main conditions for the emergence of strategic management include:

technological breakthroughs that require forecasting new production and technological capabilities;

saturation of the market for goods and services, which has led to increased competition and more complex consumer demands;

the beginning of the process of globalization of markets and the emergence of transnational corporations capable of influencing the market up to its division.

3.2 New management paradigm

The actions of organizations and their leaders cannot be reduced to simply reacting to ongoing changes. The need for conscious management of changes on the basis of a scientifically based procedure for their anticipation, regulation, adaptation to the goals of the organization and to changing external conditions is increasingly being recognized. In the same way, the organization itself must adequately respond to changes in the external environment.

The principles of the new management paradigm should constitute the entire system for improving the management of the organization. In the conditions of operational management, these principles make it possible to understand the nature of organizational and managerial mechanisms for subordinating production to consumption and meeting market demand. They are especially important for understanding the concept of strategic management, which has become increasingly widespread in recent years. They allow:

understand the structure of the strategy planning process, the role and methodology of strategic market segmentation;

understand the new methodological tools used in analyzing strategic alternatives and choosing a strategy;

select and design a strategy implementation management system and organizational structures management of the company, allowing it to achieve its goals in the context of strategic changes.

In a highly competitive and rapidly changing environment, firms must not only focus on the internal state of affairs, but also develop a long-term behavioral strategy that would allow them to keep up with changes occurring in their environment.

In the past, many firms were able to operate successfully by focusing mainly on day-to-day work, on internal problems associated with increasing the efficiency of resource use in current activities. Now, although the task of rational use of potential in current activities is not removed, it is extremely important to implement such management that ensures the company’s adaptation to rapidly changing business conditions.

A number of reasons have led to a sharp increase in the importance of strategic management. The main ones are:

accelerating environmental change;

the emergence of new requests and changes in consumer positions;

increased competition for resources;

business internationalization;

the emergence of new unexpected business opportunities opened up by advances in science and technology;

development of information networks that make lightning-fast dissemination and receipt of information possible;

wide availability of modern technologies;

changing role of human resources.

There is no strategy that is the same for all companies, just as there is no single universal strategic management. Each company is unique in its own way, therefore the strategy development process for each company is unique, as it is influenced by:

the company's position in the market;

dynamics of company development;

company potential;

behavior of competitors;

characteristics of the goods produced by the company or services provided by it;

state of the economy;

cultural environment and many other factors.

At the same time, there are some fundamental points that allow us to talk about some general principles for developing a behavioral strategy and implementing strategic management.

3.3 Distinctive characteristics of strategic management

Strategic decisions are related primarily to external rather than internal problems of the organization. In management, the term “strategic” itself means “influencing the relationship between firms and the environment.”

Strategic management was born evolutionarily from strategic planning, which constitutes its essential basis. In contrast to long-range planning, strategic planning and management determines what the organization must do now to achieve desired goals in the future, and also develops the ability to respond to changes in the environment to achieve those goals.

Strategic management involves not only adapting an enterprise to the external environment, but also directed influence on the environment, changing it and creating conditions for implementing the strategy and achieving goals. The external environment is the area of strategic changes that are carried out in the process of implementing the strategy.

Strategic management requires an entrepreneurial style of behavior of TOP managers, which is characterized by a desire for change, anticipation of future dangers, search for new opportunities and new management solutions, etc.

Strategic management is the combination of intuition and art of top management to lead the organization towards strategic goals, high professionalism and creativity of employees who ensure the organization’s connection with the environment, as well as the active involvement of all employees in the implementation of the organization’s tasks aimed at achieving the goal. Strategic management is a process that is unique to each company.

3.4 Advantages and limitations of strategic management

strategic management provides a common understanding of why the organization operates and certain management decisions are made (this allows for a unified focus on the activities of all departments and personnel of the organization to achieve its strategic goals);

strategic management is intended to ensure not the current success of the organization, but its constant development in conditions of unstable external environment and fierce competition;

strategic management allows you to combine the decisions of managers at all levels of management related to strategy;

strategic management provides the ability to evaluate alternative options for using resources, that is, to wisely transfer resources to strategically sound and effective projects;

strategic management creates an environment that encourages the active leadership of the organization, rather than a passive response to changing situations;

The newest and most progressive developments are used in strategic management.

However, some disadvantages inherent in strategic management should be noted:

strategic management, by its nature, cannot provide an accurate and detailed picture of the future, which makes it difficult to develop strategic plans and their implementation;

strategic management does not have a descriptive theory that prescribes what and how to do when solving limited problems and in specific situations. Each manager understands and implements strategic management in his own way, but not everyone has strategic foresight;

it requires enormous efforts, large expenditures of time and resources in order for the organization to begin the process of strategic management;

Currently, the negative consequences of errors in strategic foresight are sharply increasing.

Conclusion

Having studied the topic of the test, we can determine the high role of strategic management in the economy of modern companies. The correct formulation of a strategy determines the competitive ability of a company in the market for goods and services.

Bibliography

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V.L. Bakshtansky, O.I. Zhdanov “10,000 days of management in life” “PER SE”, Moscow 2001.

V.VGlukhov “Management”, “Spetslit” St. Petersburg, 2000

F. Cutler “Marketing. Management" "Peter", St. Petersburg 2001

Yu.V. Kuznetsova, V.I. Podlesnykh "Management" Publishing House "Business Press", St. Petersburg 2001