General provisions and essence of the strategic management process - the essence of strategic management. The concept of strategic decisions Types of financial strategies

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TOPICA:

“Limitations in the strategic decision-making system”

Introduction

1. Strategic decisions and their adoption

2. Limitations in the strategic decision-making system

Conclusion

List of used literature

Introduction

If you compare a manager with the captain of a ship, the problem of choosing a path becomes clearer. Where should the ship sail? How should the company develop? The answer to this question is given by strategic management (strategic management and planning).

The essence of strategic management lies in answering three most important issues: 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 this important feature strategic management, as its orientation to 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 this stage are the available or available 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.

1. Strategic decisions and their adoption

Let's consider the main characteristics of strategic decisions. There are nine of them:

1) reflecting management’s point of view of what the organization should be like and what it should do;

2) designed to assist the organization in ensuring interaction with the external environment. (The organization constantly adapts to the changing environment.);

3) also taking into account the organization's own resources and helping to ensure accurate matches between business activities and available resources;

4) including the idea of a major change in the organization’s work system;

5) extremely complex, including varying degrees of uncertainty; they imply that the organization must make assumptions about future events based on information that is not very reliable;

6) requiring a comprehensive approach to managing the organization; successful strategic decisions involve the work of managers outside their functional areas, as well as consultations with other managers who may have different views on the future activities of the organization;

7) having a long-range sight; they involve a long-term perspective and have long-term significance;

8) involved in the assessments and expectations of key company participants within the organization; many authors argue that an organization's strategy is a reflection of the attitudes and opinions of influential internal participants in the company;

9) seriously affecting resources and operations; they influence the organization's resource base and trigger waves of lower-level organizational decisions.

The presented characteristics clearly show how strategic decisions differ from operational ones. Table below 2 systematizes these differences.

table 2. Differences between strategic decisions and operational ones

Strategic decision making is not simply a matter of proposing, evaluating, and selecting options. This process takes place in conditions of instability external environment, which imposes certain restrictions and creates difficulties for planning and increases the risk of risk. Bowman and Ash (1987) cite the following considerations that determine the complexity of decision making, which predetermines the occurrence of shortcomings in strategic plans.

* The dynamic nature of the external environment quickly invalidates the corporate plans of many firms, unless they are formulated in the most general terms.

* Information cannot be obtained in the quantity or quality required to perform a comprehensive analysis of the internal and external environment or to conduct an exhaustive study of alternative strategies.

* Decision makers are able to grasp a very limited and simplified set of interrelated variables. In fact, they deliberately simplify the complexity of a problem, using, for example, breaking it down into separate manageable parts and then treating them sequentially.

* Systematic, formalized planning procedures can eliminate the emergence of radical “dissident” but potentially fruitful ideas.

* Where a corporate plan is drawn up by planners, line managers (who must implement it) often become dissatisfied with decisions in which they were not involved. In addition, employees of planning departments often do not have access to vital information that ordinary managers possess.

* Problems often arise when introducing a new corporate planning process. If several so-called universal management methods are vigorously advocated (for example, management by objectives, quality circles, management by deviations), then in preparation new system planning; Most likely, insufficient attention will be paid to both the development of the organization and the development of management methods.

Strategic decisions are management decisions that:

Focused on the future and laying the foundation for the adoption of operational management decisions;

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

They involve 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;

Acquisitions, mergers, etc.

Strategic decisions are characterized by the fact that they:

Innovative by nature, and since it is common for people and organizations to reject all new products, special measures are required to overcome rejection (persuasion, training, involving performers in the strategy development process and, finally, coercion). Such decisions must be open and understandable to employees, which can be implemented through the use of internal marketing;

Aimed at the long-term goals of the enterprise, at opportunities, not at tasks, at the future, not at the present;

They differ from tactical decisions in that the set of alternatives is not defined; the procedure for their formation plays an important independent role;

Directed towards the future and are therefore uncertain in nature;

Require knowledge - the result, as a rule, depends more on the quality of the decision than on the speed or timeliness of its adoption. There are no strict time frames for them;

Subjective by nature and, as a rule, not amenable to objective assessment;

Irreversible and have long-term consequences.

2. Limitations in the strategic decision-making system

Making strategic decisions about the development of an enterprise requires a systematic approach with an analysis of the economic situation in the region, marketing factors, the capabilities of the company itself, legal and financial support. Qualitative analysis of all these factors requires a long time and significant financial costs. Enterprises, as a rule, have neither one nor the other.

Moreover, developmental problems are more than simple connections of cause-and-effect chains or their components. They are characterized by the uncertainty of the present situation, the inaccuracy of available information, the many factors influencing the outcome in the future and the inability to take them into account, as well as the subjective priorities of the people making the decision.

A large number of specialists and entire institutes are involved in the development of methods and tools to help managers make decisions. Their efforts can be divided into two large groups of developments.

The first group uses the achievements of applied mathematics, operational research and information technologies, creating formal models and process algorithms. The use of these techniques is effective in some cases. At the same time, this direction is criticized for being overly simplified and for focusing more on procedures and processes that are more easily quantifiable. The second group of techniques come from cognitive and social psychology and rely on intuition, creativity, group discussion and effective communication as a path to formulating strategic decisions. The limitations of these methods are associated with subjectivity, the need to rely on incomplete mental models situation, insufficient use of expert data.

The need arises to combine these two approaches and use the communicative capabilities of group techniques with the advantages of the analytical approach.

An attempt to solve this difficult problem is the methodology developed by University of Michigan professor Richard Duke to create Policy Exercises, which are essentially simulation games (AI). Policy Exercises can be translated into Russian as “exercises to develop an organization’s policy.”

The simulation component is the operating model real system, and the dynamic model of the system's behavior is created by the people taking part in the game. Policy Exercises are free, or open, games in which there is no “correct” model of behavior and no strict rules and scoring systems that limit the players’ decision-making abilities. This direction is apparently closest to the well-known organizational activity games (OAGs) in Russia, the methodology of which was developed by G.P. Shchedrovitsky. and his followers.

strategic decision operational simulation

Conclusion

Strategic planning of a company's activities is a complex, multifaceted task.

Strategic planning is one of the most important functions of strategic management. It provides the basis for developing economically feasible management decisions, the implementation of basic functions in the company (organization, marketing, accounting, control, analysis) and motivation.

Strategic planning should not be considered a guarantee of future success. However, the current rate of change and increase in knowledge is so great that strategic planning seems to be the only way to formally predict future problems and opportunities. It provides senior management with a means of creating a plan for the long term. Potential benefits of developing a strategic plan include:

1. improving the quality of organizational work;

2. having a clear idea of the direction of movement towards the future;

3. the ability to timely solve major organizational problems;

4. achieving higher economic indicator"cost - effectiveness";

5. taking a proactive rather than a wait-and-see approach to the problems facing the organization;

6. Formal planning helps reduce risk when making decisions. By making informed and systematized planning decisions, management reduces the risk of making the wrong decision due to erroneous or unreliable information about the capabilities of the enterprise or the external situation;

7. planning, since it serves to formulate set goals, helps create unity of common purpose within the organization.

List of used literature

1) Ackoff R. Planning the future of the corporation. M., 1985.

2) Akulov V., Rudakov M. Features of decision-making by the subject of strategic management // Problems of theory and practice of management. 1999. No. 3.

3) Ansoff I. New corporate strategy. St. Petersburg, 1999.

4) Bakhtereva B.V. Experience in creating regulations “Development, approval and modification of the strategic plan” //In the labyrinths modern management. M., 1999.

5) Vikhansky O.S. Strategic management. M., 1995.

6) Zub A.T., Stati M.P. Business planning and administration. M., 1998.

7) Idrisov A.B., Kartyshev S.V., Postnikov A.V. Strategic planning and analysis of investment efficiency. M., 1996.

8) Reiter G.R. Why is strategic planning needed? //In the labyrinths of modern management. M., 1999.

9) Sterlin A.R., Tulin I.V. Strategic planning in US industrial corporations. M., 1990.

10) Strategic planning / Ed. E.A. Utkina. M., 1998.

11) Trenev N.N. Strategic management. Uch. village M., 2000.

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Now let's look at the main characteristics of strategic decisions. We identify nine such characteristics.

1. Strategic decisions reflect management's view of what the organization should be like and do.
2. Strategic decisions are designed to assist the organization in ensuring interaction with the external environment. The organization constantly adapts to the changing environment.
3. Strategic decisions also take into account the organization's own resources and help ensure accurate matches between business activities and available resources.
4. Strategic decisions involve imagining a major change in the way an organization operates.
5. Strategic decisions are extremely complex and involve varying degrees of uncertainty. They imply that the organization must make assumptions about future events based on information that is not very reliable.
6. Strategic decisions require a comprehensive approach to managing an organization. Successful strategic decisions involve managers working outside their functional areas, as well as consultation with other managers who may have different views on the organization's future activities.
7. Strategic decisions have a long-term focus. They involve a long-term perspective and have long-term significance.
8. Strategic decisions are related to the assessments and expectations of key company participants within the organization. Many authors believe that an organization's strategy is a reflection of the attitudes and opinions of influential internal members of the company.
9. Strategic decisions have a major impact on resources and operations. They influence the organization's resource base and trigger waves of lower-level organizational decisions.

The presented characteristics clearly show how strategic decisions differ from operational ones. In table 2.1 systematizes these differences.

Table 2.1

Differences between strategic and operational decisions

Strategic decision making is not simply a matter of proposing, evaluating, and selecting options. This process takes place in conditions of instability of the external environment, which imposes certain restrictions and creates difficulties in planning, which increases the risk of risk. Bowman and Ash cite the following considerations that determine the complexity of decision making, which predetermines the occurrence of shortcomings in strategic plans:

- for many firms, the dynamic nature of the external environment quickly devalues corporate plans, except in cases where they are formulated in the most general terms;
- information can never be obtained in the quantity and quality required to carry out a comprehensive analysis of the internal and external environment or to allow an exhaustive exploration of alternative strategies;
- decision makers are able to capture little more than a very limited and simplified set of interrelated variables. In fact, they deliberately simplify the complexity of a problem, using, for example, breaking it down into separate manageable parts and then treating them sequentially;
- systematic formalized planning procedures can exclude the emergence of radical “dissident”, but potentially fruitful ideas;
- Where a corporate plan is drawn up by planners, line managers (who must implement it) often become dissatisfied with decisions in which they had no part. In addition, employees of planning departments often do not have access to vital information that ordinary managers possess;
- problems often arise when introducing a new corporate planning process. If several so-called universal management methods are vigorously advocated (for example, management by objectives, quality circles, management by deviations), then in preparing a new planning system, it is likely that insufficient attention will be paid to both the development of the organization and the development of management methods.

These considerations can form the basis for explaining the fact that even in fairly large organizations Often there are no defined procedures for formal strategic planning and no structures responsible for this process. Sometimes corporations define the boundaries of strategic planning, believing that extending it to all areas of activity is inappropriate from the point of view of saving management resources. For example, McDonald's Corporation, in its marketing planning guide, states that the extent of formal planning is determined by the degree of market diversification and the size of the organization. Small organizations those working with a single product use formal planning methods to a lesser extent, and large organizations expanding their market to a greater extent. Numerous non-profit, charitable, municipal and other similar organizations either do not need or do not have the practice of formal strategic planning. But this does not mean that they do not consider strategies for their own development and do not develop ways to implement them. They simply often act situationally, developing ad hoc methods for the specific circumstances of their existence in the external environment, i.e. methods that are considered most appropriate for a given organization in a given specific setting. However, in government organizations, even highly specialized ones, there are highly formalized planning systems.

Let's look at the differences between strategic planning and annual budgeting and forecasting. Although these are interrelated, they are significantly different processes. The following series of differences between them can be identified.

Period of time. Budgeting and forecasting are usually limited to a period of one year, while strategic management operates over a longer period, usually three to ten years.

Accents. Budget planning and forecasting are usually concerned with achieving specific short-term goals. Strategic management is associated with the implementation of strategies that have long-term objectives.

Financial details. Budget planning and forecasts have a lot of financial detail and provide month-to-month comparisons of results. Strategic plans have significantly less detail than estimates.

Impacts of the external environment. Strategic management is associated with the most important trends in the external environment over a significant period of time and the organization's response to them. Budget planning and forecasting are largely internal processes that provide information for strategic planning.

Introduction
1. Theoretical foundations of strategic decisions in the activities of an enterprise
1.1.
The concept and essence of strategic decisions, role and significance in the strategic process
1.2.
Comparative characteristics of strategic decisions with operational decisions
1.3.	17
Technology for developing and implementing strategic decisions
Conclusion
2. development and adoption of strategic decisions in the activities of Gazobezopasnost LLC 2.1.

Introduction

Analysis and assessment of the activities of Gazobezopasnost LLC

2.2. Technology for the development and implementation of strategic decisions of Gazobezopasnost LLC

List of used literature

applications The relevance of the research topic lies in the fact that modern strategic management ensures coordination of the goals and capabilities of the enterprise with the interests of all parties interested in its activities. It involves not only determining the general course of development of the enterprise and organizing the business on this basis, but also increasing the motivation and interest of all employees in its implementation. This involves setting up a new set of processes that reflect the priority of goals and development dynamics, ensuring the timeliness of decisions and actions, foreseeing the future, analyzing the consequences of control actions and innovation. The adoption and development of strategic decisions at Russian enterprises as a whole is becoming increasingly important. This concerns the issues of priority of problems to be solved, determination of the structure of the company, justification of capital investments, coordination and integration of strategies developed by production departments.

The purpose of writing the test is to study strategic decisions in the activities of the organization.

In accordance with the stated goal in

test work

the following tasks are defined:

1. Theoretical foundations of strategic decisions in the activities of an enterprise

1.1. The concept and essence of strategic decisions, role and significance in the strategic process

Strategic management can be defined as a set of fundamental decisions designed to ensure that a company is compliant with its development environment (and, therefore, the viability of the enterprise in a sufficiently long term).

A management decision is the result of analysis, forecasting, optimization, economic justification and selection of an alternative from a variety of options for achieving a specific goal of the management system.

The impulse of a management decision is the need to eliminate, reduce the relevance of the problem by solving it, i.e., bringing the actual parameters of an object (phenomenon) closer to the desired, forecast ones in the future.

Examples of strategic decisions include, but are not limited to, the choice of markets and product range, size and geography of operations, modes of competition and business partners, sources of materials and marketing concepts, technology and production capability structure, organizational structure, legal form and management system ( including the selection and education of the right types of leaders), the formation of an adequate organizational culture, etc.

The listed solutions are interconnected. Suppose that, due to changes in demand and other environmental conditions, a firm is forced to reformulate its product-market strategy. It goes without saying that the new strategy must correspond to the business capabilities of the company - the structure of production facilities, the composition and quality of personnel, the potential of the research and development service, available distribution channels, special skills that are a source of competitiveness, etc. (despite the fact that in all In these aspects, perhaps, serious changes are also inevitable). (Any strategy is, in this sense, the organization’s response to external conditions, but the reaction is not arbitrary, but limited by the competence and competitiveness of the enterprise, as well as the means at its disposal.)

Further, a new business strategy can lead to a reorganization of the company (remember A. Chandler’s well-known formula that structure follows strategy) and to the reconstruction of the management system (up to a change in top managers, due, for example, to the fact that the profile of the previous ones does not match new conditions). Finally, all these changes cannot but depend on the level of aspirations, entrepreneurship and values of leading shareholders and managers (and in a broader sense, they will necessarily be mediated by a specific organizational culture, which determines the characteristics of the company’s behavior and, as experience shows, is extremely inert).

Ultimately, it's about quality. strategic management judged by the degree to which it ensures the balance of the organization with the external environment, as well as the internal balance and stability of the company itself. At the same time, this is one of the key factors in the competitiveness and profitability of an enterprise, as well as in its successful fulfillment of the various requirements that are placed on a modern company by its numerous partners-consumers, investors, managers, executive personnel, trade unions, business contractors, government agencies, interested social movements, etc. .

Defining strategic decisions as fundamental means that there are also non-strategic decisions - current or operational. This division is fundamental for management. At the same time, it cannot be strict and rather depends on the context. Let's say the decision to hire an ordinary employee is not strategic. On the other hand, hiring a senior executive or hiring a particularly qualified researcher may be of strategic importance to the firm.

The following points can be noted as essential features of strategic decisions: they are often unique and take the form of entrepreneurial initiatives; are taken relatively rarely and without pronounced frequency; relatively long-term; concentrated more on the problems of interaction between the company and its future environment; multidimensional; are based on incomplete, inaccurate and highly generalized information and are therefore subject to high levels of uncertainty and ignorance, as well as significant risks.

Current solutions are the opposite in their characteristics: they are more standard and repeatable; are taken quite regularly; more short-term; are associated primarily with maintaining current competitiveness; focused rather on internal processes; based on more accurate and detailed information; less risky, etc.

Strategic decisions themselves and the choice of a specific strategy are not something fundamentally new: from time immemorial, a good leader had to think and act in accordance with changes in environmental conditions, as if anticipating future dangers and opportunities and carrying out the necessary changes in a timely manner. However, the emergence of systematic strategic management dates back only to the 50s - 70s. of the past century and is considered a product of the development of Western (primarily American) practice and theory of management of large corporations.

1.2. Comparative characteristics of strategic decisions with operational decisions