Classmates

Dynamics is the key to prosperity and success of a business. Even the most successful enterprise can collapse before our eyes if you stop keeping your finger on the pulse.

A correctly chosen business strategy for the development of an organization allows not only to satisfy absolutely all the wishes of consumers, but also to do it much faster than competitors.

Choosing a path

Any competent manager sooner or later begins to ask questions:

• is it worth continuing to move in the existing direction;
• is it worth closing the existing direction;
• how to correctly move to a different stream of development and what kind of activity should be chosen at this stage.

All these questions directly depend on the status that the organization currently has in the market. The manager must understand exactly what tasks the enterprise copes with 100%, and where there are still weak points.

When choosing the right direction for the development of an organization, it is worth using reference business development strategies.

In this case you will stick specific plan, which has been extensively tested in practice and invariably gives positive results.

Reference or, as they are also called, basic strategies are invariably associated with the following factors:

• development industry;
• the position that the company managed to occupy within its niche;
• product;
• technology;
• market.

Each of the above factors can be in one of the states: new or existing.

Global basic strategies are divided into four groups, each of which has its own characteristics and characteristics.

Group No. 1 – concentrated growth

This strategy is directly related to changes not only in the product, but also in the market itself.

If a strategist (company owner) relies on concentrated growth, then it is necessary:

1. Improve your own products.
2. Start producing something new. The development sector does not change.

To sell manufactured products, you need to strengthen your position in the market. If already known distribution channels do not give the desired effect, it is necessary to radically change the market.

Types of strategies #1:

1. Market development. The product remains the same, but the sales market changes.
2. Strengthening market positions. In this case, the firm tries to achieve horizontal integration by promoting old products. This type of development involves a huge amount of marketing effort.
3. Product. In this case, the company produces new products, but sells them through old distribution channels.

A clear example of efficiency.

The Coca-Cola company entered the Russian market much later than its eternal rival, Pepsi.

But the company's management is well aware of its disadvantageous position, and the Coca-Cola holding spends huge amounts of money on building a production base.

In 1994, a company plant was built in Moscow and a little later - in Pulkovo near St. Petersburg. The company did not spare more than one hundred million US dollars for this event.

But the brand’s popularity began to rapidly increase, and soon, even in rural areas, people were drinking Coca-Cola.

Group No. 2 – integrated growth

Following the path of integrated growth, the company will develop and strengthen its position by adding new structures.

The company can expand both from within and by acquiring new property. In this case, the status of the company within the industry changes.

Types of strategies #2:

1. Vertical, forward-moving integration. The structures that connect the consumer and the enterprise come under the latter’s total control.
2. Vertical backward integration. In this case, control over the supplier is strengthened. This effect can be achieved by creating your own subsidiary structure, which should carry out the supply. Instead of losses, supplies begin to bring additional profits.

An example of efficiency.

In the 90s, six meat companies divided the market among themselves. The result was fierce competition.

The Mimox company in 1997 was the undoubted leader, owned 30% of the market and was the leader in Moscow in the production of meat products.

But after 10 months the situation changed radically. They lost most of their possessions, falling back two units and becoming only “No. 3” in the meat business. Everything was heading towards the sale of a controlling stake.

In six months general manager managed to radically change the situation and save the enterprise from ruin.

The Mimox company simply abandoned the intermediary between the plant and wholesale warehouses, and also built its own markets. It was understood that one market would deal wholesale trade, and – another retail.

Group No. 3 – diversified growth

This strategy is applied only if the company has reached its peak and in this market can no longer sell certain products in a specific industry.

Types of strategies #3:

1. Centered diversification. Search and implementation of additional resources for the production of new products (services).
2. Horizontal diversification. Searching for development opportunities in an existing market through a new product using new technologies.
3. Conglomerate diversification. The company decides to conquer new markets using the products it already produces.

An example of efficiency.

The supplier of raw materials for the Neftehimprom financial and industrial group bought shares in Dneproshin. Controlling stake.

It turns out that Neftehimprom has entered the tire production. Previously, he was involved in oil refining and tire sales.

Now he decided to manufacture tires and absorb smaller companies.

Group No. 4 – reduction

When a business has exhausted its resources and needs to regroup its forces, downsizing strategies are used.

This usually occurs after a long period of growth or to try to maintain its position during a downturn in the economy.

Targeted and planned reduction strategies are used to achieve results.

Almost always, downsizing strategies have a very painful impact on the state of the enterprise. But sometimes a strategist simply has no other way.

Types of strategies #4:

1. Liquidation. The company has completely outlived its usefulness and can no longer evolve further.
2. "Harvest" The company refuses long-term and very promising cooperation in order to receive a one-time income in the near future.
3. Reduction strategy. If there is a chance to develop another, more profitable business, this strategy is applied.
4. Reducing costs. The company is trying to cut costs and reduce costs.

All of the strategies listed are basic and truly effective. If a person does not see a way out of a dead end, this does not mean that there is none. There is light even at the end of the tunnel.

What is an organization's business strategy? What does it define? What are the most important elements business strategies?

Business strategy of the company- this is the direction and course of development of an enterprise in the long term, which makes it possible to achieve a competitive advantage through the most effective and optimal use of available resources in order to meet the needs of the market and the expectations of shareholders (business owners).

In other words, a business development strategy is:

• Where does the company want to go in the long term?
• What markets does the company intend to compete in and what actions will senior management take?
• How can a company achieve best results in this niche than competitors
• What resources (skills, assets, finances, production capacity) are needed to compete successfully?
• Which external factors will have the greatest impact?
• What are the expectations of shareholders (business owners)?

Corporate business strategy, sometimes called competitive strategy business is defined by six components or parameters. The first four are applicable to any business (to any business unit of a company), including those operating independently of others. The remaining two are for businesses (business units of companies) operating in conjunction with other business units.

Business strategy structure

The main elements of business strategy can be reduced to the following components.

#1 The market in which the company competes. The scope of a company's activities is determined by the goods (services) it offers (or does not offer); the markets in which it seeks (or does not seek) to operate; companies with which it competes (or avoids competition); and the degree of vertical integration.

Sometimes it is particularly important for a company to make decisions about which products it should not produce and which market segments it should not operate in, since this helps to accumulate the resources necessary to compete successfully in other areas.

#2 Investments. The following investment alternatives exist: investing for the purpose of growth (or entering the market); making investments in order to maintain the existing situation; minimizing investments (“milking” the business); recovery of the maximum possible amount of assets through liquidation of the business or “harvesting”.

#3 Functional strategies needed to compete in selected markets. Typically, features competition are determined by one or more functional strategies, such as:

• product range strategy;
• communications strategy;
• pricing strategy;
• distribution strategy;
• production strategy;
• information technology strategy;
• segmentation strategy;
• global strategy;
• internet strategy

#4 Strategic assets and competencies that underpin strategy and provide sustainable competitive advantage. Strategic competencies are what a company can do exceptionally well, such as produce or market a product, that is strategically important to the business.

A strategic asset is a resource that is “stronger” than a similar resource from competitors, such as a strong brand or a loyal customer base. Strategy developers must consider the cost and feasibility of creating or maintaining assets or competencies that will provide the basis for UCP (unique competitive advantage).

As a rule, the business units of modern corporations, with the exception of a few highly specialized ones, are organizationally interconnected. On high level development structure of the corporation looks like a group of different divisions, each of which is engaged in various types activities. In its simplest form, one product is supplied to a strictly limited number of markets, or several different products are supplied to the same market. In both cases, a strategy is being developed for a group of business units, so two additional parameters need to be considered.

#5 Distribution of resources between company departments. Financial resources (both those created within the company and those attracted from outside), as well as non-financial assets, such as fixed production assets (factories, premises, land), equipment, personnel, must be distributed between the company's divisions. Even for small company decisions regarding resource allocation are of strategic importance.

#6 Creating a synergy effect from the interaction of company divisions, i.e., creating additional value due to the fact that the company's divisions support and complement each other. Obviously, if a diversified corporation manages to achieve synergy, it will have an advantage over companies that cannot or do not want to achieve it (synergy can also be achieved by

BUSINESS STRATEGY

Every successful company must have a business development strategy, understanding that this is very important for achieving new successes in the future.

Business strategy is an integrated model of actions designed to achieve company goals. The content of a strategy is a set of decision-making rules used to determine the main directions of activity. In other words, it is a plan for how to take the company from where it is now to where it wants to be. That is, finding a way to achieve your business goals.

The following elements influence the choice of a particular business strategy:

• market
• industry
• manufactured product
• technology used
• the company's place in the industry market

How to develop an effective enterprise strategy?

When choosing a strategy, you must first find answers to the following important questions:

1. What specific product (service) does your company offer for sale?
2. Which customers and what market are your products (services) intended for?
3. Why do customers need the service you offer?
4. Who are your main competitors? What is their market share?
5. What are your competitors' main strengths?
6. What are the main weaknesses your competitors?
7. What are the technical alternatives to your product/service?
8. What are your company's strengths?
9. What are your company's weaknesses?
10. What strategies should you employ to make the most of your strengths?
11. Is it compliant? corporate culture assigned tasks?
12. What promising opportunities are there in the chosen direction?
13. What potential threats and risks may there be in the chosen direction?

Based on the answers received, you can develop a plan to achieve your goals, determine possible options solving this problem, assessing resources and capabilities. And start taking action. But you need to remember that The strategy development process does not end with any immediate action. It usually ends with the establishment general directions, promotion of which will ensure growth and strengthening of the company’s position.

The formulated strategy should be used to develop strategic projects using the search method. The role of strategy in search is, first, to help focus attention on specific areas and opportunities; second, discard all other possibilities as incompatible with the strategy.

The company's strategy is developed and implemented at all levels strategic management:

“First level. Corporate". Present in companies operating in several business areas. Here decisions are made on purchases, sales, liquidations, repurposing of certain areas of business, strategic correspondence between individual areas of business is calculated, diversification plans are developed, and global financial resource management is carried out.

“Second level. Business areas." The level of the first managers of non-diversified organizations, or completely independent ones, responsible for the development and implementation of business strategy. At this level, a strategy is developed and implemented, based on the corporate strategic plan, the main goal of which is to increase the competitiveness of the organization and its competitive potential.

"Third. Functional". Level of managers of functional areas: finance, marketing, R&D, production, personnel management, etc.

"Fourth. Linear". The level of managers of departments of an organization or its geographically distant parts, for example, representative offices, branches.

A business strategy is not universal and always leads to success. Business success, as well as strategy itself, is an equation with many variable variables. Where your developed strategy will lead you depends only on you. But what it should be, a strategy, is unambiguous.

An integrated algorithm of actions, determined by the company’s goal setting, is usually called a business strategy. This model of action includes a list of rules, compliance with which is necessary to achieve the goals. A business strategy regulates a set of decisions and determines the direction of action for the successful implementation of the company’s ambitions.

When choosing a business strategy, the following components are taken into account:

• market policy;
• the industry in which the business operates;
• type of product being manufactured;
• manufacturability;
• the company's authority in a specialized market segment.

Business strategy development

World-class experts are unanimous in their opinion that when choosing a strategy, it is necessary to take into account a number of nuances:

• what the service or product offered is;
• relevance of the promoted product or service;
• detailed study of competing market share;
• formation of a database of potential clients;
• analysis of the advantages and disadvantages of competitors;
• search for alternative technical components of the business;
• formation of an evidence base of the advantages of an existing business;
• analysis of the shortcomings of your enterprise;
• systematic search for solutions to level out business weaknesses;
• analysis of corporate ethics as an important component of a successful enterprise;
• review of the development prospects of a business project;
• compiling a list of potential risks;
• review of the company's potential and resources to eliminate possible problems.

A competent business strategy necessarily takes into account detailed answers to each of the above points. Analytical work in the field of enterprise capabilities and resources, step by step plan actions allow us to fully compose an overall picture of achieving the maximum results that the company strives for.

A business strategy presupposes the presence of general directions, the implementation of which becomes the key to the successful functioning of an enterprise and strengthening its position in the realities of fierce market competition.

In conditions wide range possible actions, the strategy helps determine the specific vector of the company’s movement that ensures maximum performance. In this case, the alternative is always taken into account and remains in sight as a backup option. In leading companies on the world stage, strategy is developed by a conglomerate of specialists and operates at all management levels.

Levels of strategic management

• Corporate level. As a rule, this level is demonstrated by enterprises operating simultaneously in several areas. Specializes in making decisions on diversification, procurement and liquidation issues, changing the profile of one or more components of an existing business, performs management functions in the field of financing.
• Level of management of independent enterprises and organizations. The development of a strategic plan is based on the need to improve the competitive capabilities of the enterprise.
• The level of management of functional areas of business, heads of finance, marketing, production, personnel management, and so on.
• The linear level of strategic management includes heads of enterprise branches.

When drawing up a business strategy, it is necessary to remember that market realities are constantly changing. A business strategy helps to operate in conditions of partial uncertainty and should definitely be developed at all stages of enterprise management.

What is a business strategy? These are plans and measures, as well as management activities that are aimed at achieving the most favorable market position for a company or private entrepreneur that will satisfy consumer demand and generate maximum profit. This is conducive to the creation optimal conditions for a long period of time of enterprise development in market conditions. Its context includes defined goals and mission, as well as identification of types of communication with consumers.

To develop far-reaching plans, you first need to consider the work of the enterprise within the boundaries of five components:

1. Market.
2. Industry.
3. Productive.
4. Technological.
5. Position of the enterprise in market conditions.

On given time There are a large number of types of strategic promotion of any enterprise in market conditions, which have been tested by the experiences of others and are considered exemplary. It is important to adapt the chosen direction to suit yourself, and not stupidly copy other people’s experience. But, in any case, without today’s own development in a highly competitive market, any company will fail.

Strategic planning has several types:

1. Concentrated lift. It has an impact on strengthening market positions. This direction of growth involves the improvement of the product being produced, or the creation of something new, more in demand by customers.
2. Integrated Growth. The implementation of this type is carried out thanks to the expansion of the business system and the introduction of new branches. This provides for the internal development of the enterprise (company), or the purchase of other enterprises with similar activities. This will make it possible to reduce costs and increase profits in places where investments were previously required.
3. Diversification growth. This type of business strategy of a company shows its desire to go beyond the boundaries of its influence. This could be an expansion of the range of goods and services that have nothing to do with the current production or service sector. That is, the enterprise is looking for new types of its activities without connection with existing ones.
4. Reduction. There are times when you need to go back a little before moving forward. It may be that the market situation has become unstable, and the management of the enterprise makes an unpopular decision to suspend all or part of its work, or to sharply reduce costs, or to obtain the maximum benefit in the shortest period of time, until the subsequent liquidation of the enterprise.

Defining Strategic Options

Sometimes the time comes when you need to start looking for new ideas that can help you gain a competitive advantage and achieve certain goals. With the help of brainstorming, you can choose various options, the implementation of which gives you an advantage over your competitors.

Opportunities and threats should be explored, even resorting to SWOT analysis (with its help, the strengths and weaknesses of the enterprise are analyzed, as well as opportunities and threats with external environment). Next, it is necessary to compile a complete list of them in order to then maximize the availability of advantages and minimize threats. Better yet, turn threats into advantages.

Problem Solving. You will encounter problems every day, but some of them can be solved in real time. First, a search for the problem is carried out: by asking leading questions and looking for answers to them, you can determine what it is. And then its formulation is determined and possible ways solutions.

How to develop a business strategy

Any business strategy of an enterprise is a general master plan, which contains answers to the following questions:

1. What will I create?
2. What is the essence of my business?
3. Who needs what I will do?
4. How can I influence the improvement of the lives of many people?
5. What will help me stand out in competitive environment?
6. How is my offer unique?
7. What potential does my business have?
8. How many opportunities and threats are there?
9. What will my actions be if business conditions change significantly?
10. What results can I boast of in a couple of years?

Do market research. Before you start implementing your business, you need to figure out whether it has any potential. You need to familiarize yourself with supply and demand.

Select your target audience. Potential buyers are good, and there are many of them, but among them is your target audience. This is exactly what you need to keep your focus on. Find and focus your attention on those who are not getting their needs and wants met by current sellers.

Formulate a proposal. If you are burning with the desire to distinguish yourself in something in a competitive environment, and to satisfy your needs to the maximum target audience, you need to get serious about formulating a unique selling proposition.

Assess the potential. It is necessary to assess the prospects for the development of your own business when entering the market.

How business strategy affects leadership

A large number of various studies have been conducted on how external and internal conditions influence leadership positions, but the scientific literature does not have information about the existence of studies on the impact of leadership style on the strategic development of a company.

Market strategies, which consist of broad and niche strategies, have a narrow impact on leadership positions. Any study with its practical consequences shows that managers must adapt their management style, starting from the strategic plans being implemented. When the development of far-reaching plans is underway, the company's leadership abilities must be assessed.

Future research will need to explore the moderating effects of external competitive conditions. This will provide an opportunity to learn about the indirect influence of leadership on effective work enterprises.

Implementation of strategic plans

Typically, management, with the participation of the team, develops and takes as a basis the following philosophy:

1. Strategic thinking.
2. Customer orientation.
3. Keeping the best, constantly making changes.

The enterprise must have a clearly expressed desire to increase sales volume own production products, while simultaneously increasing the return on assets and production assets.

Expanding your business activity together with competitive dominance, the company projects them on target sectors that are of great importance for the company, provides automation various processes, with further entry into the market.

Business strategy and its audit

Organization is considered a rather complex process. For its viability and prosperity, a combination of a large amount of effort and a streamlined workflow of all its components are needed. This is achieved through proper management and management. But all things are of such a nature that, regardless of the quality of management, everything in this world, as usual, lives its own life, slowly but surely, ignoring the intended plan. In this case, there will be little effect from current control, and an audit is carried out from time to time, which is an in-depth analysis of each process in the business.

With the help of an audit, you can determine whether the company has a clear and understandable strategy for everyone, and whether it is suitable for the conditions environment, are employees familiar with it, do they work in accordance with its requirements...

An audit of a business strategy occurs in three stages:

1. The environment is assessed.
2. The enterprise itself is assessed.
3. The first two stages are integrated, that is, the capabilities of the enterprise are matched with environmental conditions.