The benefits of strategic planning. Advantages and Disadvantages of Strategic Planning
Nature, functions and benefits strategic planning
The dynamic strategic planning process is an umbrella that covers all management functions. If an organization does not engage in strategic planning, it and its individual members will not be able to evaluate how well they are moving towards their main goal. This process is the fundamental structure that guides all members of the organization.
Strategic planning- a set of management actions and decisions leading to the development of specific strategies that are designed to help the organization achieve its goals.
According to P. Lorange, the strategic planning process is an auxiliary tool for making management decisions, the purpose of which is to ensure the proper level of innovation and change in the organization. In particular, Lorange points to the presence in this process of all four main types of management activities: resource allocation, adaptation to external environment, internal coordination and organizational strategic awareness.
Resource Allocation
It is the process of allocating scarce organizational resources: funds, talented managers, and experienced technical specialists. For example, in the fall of 1987 Phillip Morris decided to restructure its division General Foods, which was seen by many as an attempt to make more profit from the food industry giant acquired Phillip Morris in 1985. According to the new plan, Phillip Morris divided General Foods into three autonomous companies, thereby hoping to reduce the number of managers and other corporate-level personnel. It was decided to reinvest the saved funds in development General Foods.
Adaptation to the external environment
Adaptation to in this case should be understood in the broad sense of the word. This concept covers all strategic actions that contribute to improving the company's relationship with the environment. Companies must adapt to opportunities and threats in the external environment, identify possible courses of action, and develop strategies for effective adaptation. The strategic planning of all successful firms involves creating new opportunities by developing effective product systems, interacting with government and society at large, and so on.
A striking example of successful adaptation to the environment is the exit Coca-Cola to the decaffeinated soft drink market. Before introducing new products, the company spent a lot of time researching threats and opportunities in the external environment. RC 100 was the first decaffeinated cola to be brought to market Royal Crown. The response from consumers interested in “healthier” drinks has been encouraging. Then Pepsi offered her brand Pepsi-Free. A Coca-Cola it bided its time, taking cautious competitive measures, and eventually, recognizing the changing consumer environment, introduced a range of decaffeinated products to the market.
Internal coordination
Internal coordination is the coordination of strategic activities taking into account the strengths and weaknesses firm in order to achieve effective integration of its internal operations. For example, being the executive director ITT, G. Ginin was responsible for the integration of the activities of more than two hundred and fifty different enterprises, but ensuring effective internal operations is an integral part of the manager's work in organizations of any size.
Organizational Strategic Awareness
This line of work involves firmly establishing a systematic approach to management development by creating an organization that can learn from the company's past strategic decisions. This allows the organization to better define its strategic direction and increase professionalism in the field of strategic management. Sustained success of companies such as IBM, Delta Air Lines And Eastman Kodak, confirms their managers' constant desire to learn from past experiences and anticipate the future.
The role of the senior manager is not only to initiate the strategic planning process, but also to implement, integrate and evaluate it.
Before examining the various elements of this process, it is useful to discuss its model. It is clear that due to the dynamic nature of organizations it is impossible to create one specific model for the planning process, but in Fig. 9.1 presents in a general, simplified form the most essential management functions, thanks to which plans are converted into actions.
Rice. 9.1. Strategic planning process.
The Nature of Strategy
Word strategy comes from Greek strategos- “the art of a commander.” The military origin of this term is not surprising. It was thanks to the “art of the commander” that Alexander the Great conquered the world.
Strategy– a detailed, comprehensive, integrated plan developed to ensure the accomplishment of the mission and goals of the organization.
Senior management simply needs to understand and, more importantly, accept a set of initial requirements regarding strategy. First of all, the strategy is formulated and developed mainly by senior management, but its implementation requires the participation of all levels of management. Yes, a new direction Chrysler was initiated and carried out by its head, Lee Iacocca. Popularity of new models, activation marketing activities and ultimately, the increase in the profitability of this company can be considered the result of both the correct formulation and successful implementation of the strategy.
A strategic plan must be written from the perspective of the corporation as a whole, not the individual. The founders of private enterprises can still afford to a certain extent combine your personal strategies with organizational ones, but in joint stock companies open type such luxury is unacceptable. Executive Director a company may well want to have a personal jet, mansions, luxurious offices, etc., but all this is not always combined with the interests of his organization.
The strategic plan must be based on comprehensive research and evidence. To compete effectively in the modern business environment, a company must constantly collect and analyze a huge amount of information about its industry, market, competitive conditions, etc.
A strategic plan gives a firm an identity that allows it to attract certain types of workers and not others. This plan becomes the organization's vision, which serves as a general guide for the staff and helps the firm sell its products.
Finally, the strategic plan must be designed in such a way that it does not require changes over time, but at the same time is flexible enough to be adjusted if necessary. The overall strategic plan should be viewed as the fundamental program that guides the firm's activities over an extended period, but it should be understood that due to competition and frequent changes in the business and social environment, constant adjustments to the plan are inevitable.
Organizational Planning and Success
Some organizations, like people, are able to achieve some degree of success with little or no formal planning. Moreover, strategic planning in itself does not guarantee success. A well-designed car will not run if it is filled with low-quality gasoline; An organization that has developed a good strategic plan may fail due to ineffective performance of organizational functions, motivation and control (Table 9.1). However, formal planning can bring significant benefits to an organization.
Table 9.1. The influence of strategy ("what is done") and actions ("how it is done") on the success of the company.
Source. Benjamin W. Tregoe and John W. Zimmerman, "The New Strategic Manager", Business(May–June 1981), p. 17.
The current pace of change and expansion of knowledge is so rapid that strategic planning is the only way to formally anticipate future problems and opportunities. It is a tool that allows top management to plan the organization's activities for the long term, as well as a basis for decision making. Only by knowing what the organization wants to achieve can you draw up clear plan actions. Formal planning helps reduce risk in the decision-making process. By making informed and systematic decisions during planning, the manager reduces the risk of making wrong decisions due to erroneous or unreliable information about the organization's capabilities or the external situation. Planning, during which the stated goals of the organization are formulated, helps to achieve unity of the overall organizational goal. In modern industrial society, strategic planning is the rule rather than the exception.
A recent study of Fortune 500 companies by R. Paul and J. Taylor found a number of interesting facts regarding strategic planning, in particular the following characteristics this function.
1. The corporation's small (less than six employees) planning department is supplemented by planning at lower levels.
2. Even in the largest corporations, the planning function has existed for no more than ten years.
3. Strategic plans are developed in meetings senior management corporations annually.
4. The annual strategic plan is combined with the annual financial plan.
5. Most organizations believe that the planning function can be improved.
The benefits of planning are confirmed by many studies indicating a direct relationship between it and the success of the organization. One such study carefully analyzed questionnaires filled out by 217 vice presidents of one hundred and nine largest American corporations. It found that planners were the most successful in key metrics such as profit as a percentage of sales and return on investment.
A more complex study was conducted on thirty-six firms from the pharmaceutical, food, chemical, steel, oil and engineering industries. To minimize the effect of other factors, firms were paired by size, industry, and other factors. At the beginning of the research, none of the firms united in eighteen pairs practiced formal planning. Then one of the firms in each pair began to engage in this activity. Monitoring of the objects' activities was carried out for seven years. In terms of returns on invested capital, stock returns, and earnings per share growth, all companies that used planning outperformed those that did not.
One of the most famous long-term studies examining the benefits of strategic planning is the PIMS (Profit Impact of Marketing Strategies) program. It was started on the basis General Electric, and subsequently covered more than two hundred companies producing over one and a half thousand product assortments. As a result, more than thirty factors affecting the profitability of organizations were identified. This information has become invaluable to firms using strategic planning.
All of these studies were primarily based on top management, but a number of other studies have confirmed the direct relationship between planning and the effectiveness of other levels of the organization. For example, a study of railroad crews found that foremen with excellent performance scores devoted more time to planning than foremen with lower performance scores. Other studies, the results of which were later summarized by A. Fill, R. House and S. Kerr, confirmed the relationship between planning and increasing productivity and people's satisfaction with their work.
Drawing up a strategic plan is the conscious and systematic preparation of an organization for the future (Figure 9.2). All managers should engage in formal planning to some extent, but the development of strategic plans for the entire organization is primarily the responsibility of senior management. Other managers help them by providing relevant information and ensuring feedback.
In large organizations, complex formal strategic plans are almost always written, often with thousands of different documents attached, so a detailed discussion of specific planning issues is beyond the scope of this book. We will focus on the main components of organizational planning, which we will discuss in detail in the following sections of this chapter. And we will start with the goals and mission of the organization.
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INTRODUCTION
In this course work I examined theoretical aspects development of enterprise (company) strategy, and also presents the practical part.
In the first chapter of the work, a definition is given to the concept of strategic planning. Answers have been found to the question of how to formulate a strategy. The content, structure and features of strategic management, as well as types of development of business strategies are presented. The advantages and disadvantages of strategic planning are reflected.
The second chapter pays attention to the issue of organizational strategy: the essence and types of strategy.
The main goal of this work is to show that strategic planning is the most important integral part enterprise management, and without it it is hardly possible successful work enterprises in a market economy. In today's rapidly changing economic situation it is impossible to achieve positive results without planning your actions and without predicting the consequences.
Strategic planning is one of the management functions, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions; the functions of organization, motivation and control are focused on the development of strategic plans. The dynamic process of strategic planning is the umbrella under which all management functions are sheltered; without taking advantage of strategic planning, organizations as a whole and individuals will be deprived of a clear way of assessing the purpose and direction of the corporate enterprise. The strategic planning process provides the framework for managing organizational members. Projecting everything written above onto the realities of the situation in our country, it can be noted that strategic planning is becoming increasingly relevant for Russian enterprises, which are entering into fierce competition both among themselves and with foreign corporations.
The problem of strategic planning has received much attention in Western literature, but unfortunately in our country for a long time not given enough attention to this problem. The need for the appearance of training manuals on planning was caused by the transformation of centralized planning into a system of state regulation, which required a radical revision of all elements of the intra-company planning system. The purpose of these manuals is to study the means, methods and technologies for justifying planning decisions at an enterprise, acquiring skills in developing strategic, tactical and operational calendar plans.
- The role of strategic planning in the activities of the organization.
Strategic planning is one of the functions of management
e tion, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions. Functions of the organization, m O motivation and control are focused on the development of strategic plans. Without taking advantage of strategic planning, organizations as a whole and individuals will be deprived of a clear strategy. O Soba assessment of the purpose and direction of the corporate enterprise. Etc O The strategic planning process provides the basis for managing V members of the organization. Strategic planning gives h the opportunity for shareholders and company management to determine the direction and pace of business development, to outline global themes n market trends, understand what organizational and structural changes e disagreements must occur in a company for it to become a competitor o way b Noah, what is its advantage, what tools does it need for successful development. 1The development of market relations poses many tasks for an enterprise that determine the principles of the formation of its economy. In these conditions, the enterprise itself develops a concept and strategy for its development based on an assessment of available resources and an analysis of the market situation, determining the main stages of development and the pace of renewal, justifying the scope of activity and forms of interaction with both partners and competitors.
2Domestic and international analysts believe that Russian business has entered a stage when the presence of a developed strategy is necessary for enterprises at every step. The short-term strategic decisions that made some companies successful immediately after 1991 no longer work, and many new companies have disappeared or stopped growing after reaching a certain level. Therefore, managers of new companies, as well as directors of many state-owned enterprises, come to understand the need to develop a development strategy. This is facilitated by the identification of the enterprise as an integral, separate system and the formation of new targets and interests of the enterprise.
3- Rapid changes in the external environment of domestic enterprises stimulate the emergence of new methods, systems and approaches to management; if the external environment is practically stable, then there is no particular need to engage in strategic management. However, at present, most Russian enterprises operate in a rapidly changing and unpredictable environment, therefore requiring strategic management.
The financial and economic crisis of 1998 dealt a particularly significant blow to precisely those enterprises that were involved in the operations of financial pyramids. It forced, first of all, medium and small businesses to strive to maximize their benefits by minimizing risk in the long term. This path opens only when the enterprise begins to engage in strategic planning.
There are signs of some economic growth, political stability has been achieved, the contours of the state industrial policy are emerging, and the main parameters of the medium-term program for the country's socio-economic development are being clarified.
The need to establish a strategic management system in domestic practice is also determined by ongoing integration processes, which must move to a stable and effective state.
The next important prerequisite for the development of strategic management is the process of business globalization, which has also affected our country. Global firms view the world as a single whole, and when national differences and preferences are erased, standardization of consumption occurs. Products of global companies - Mars, Siemens, Sony, L'Oreal and many others are sold throughout the world and are an important factor in competition in national markets. It is possible to resist the onslaught of goods from global firms only by acting in similar ways, i.e., by developing a strategy for working in a competitive environment. 4
The enterprise, as it were, is forced, with the help of flexible planning and production management, to formulate strategic methods for the most economical achievement of its goals with limited resources, and with the help of analysis as a method of economic management to solve the following problems:
Identify reserves and pa develop directions for their mobilization;
Justify options for the development of production units;
Promptly process materials as a basis for control and ongoing production regulation.
Flexible system planning and management, as is known, is based on a systems approach, which allows us to consider complex systems as a single whole, consisting of interconnected and complementary elements. The system itself is understood as a set of objects characterized by a certain set of connections between large objects and their parts, functioning as a single whole, subordinate to the achievement of a single goal (satisfying needs and demand, achieving a certain sales volume and market share, achieving a certain amount of profit and a certain amount of costs and etc.). 5
Thus, considering an enterprise (firm) as an organizationally integral set of interacting and interconnected units connected to achieve (fulfill) certain goals, we can conclude that an enterprise is a system, and an open system. The openness of the system is determined by interaction with the external environment through the market, competition in this market, social relations, government regulation, etc. An enterprise as a system has a high degree of uncertainty in its activities, because belongs to the class of complex systems, the complexity of which is determined not simply by a large number of elements and connections between them, not only by an unlimited number of potential possible connections, but by the presence in each element of a person acting as a control subsystem.
An enterprise as an open system is not self-sufficient; it always depends on information, energy and other resources coming from outside.
Moreover, an open system has an unlimited ability to adapt to changes in the external environment, rearrange its connections, and move from one quality of functioning to another in order to ensure its successful functioning.
The main properties of open systems are of a general nature:
An open system is an ordered integrity, i.e. it has a common goal to achieve which it is created;
This is a self-stabilizing system, i.e. has the ability to flexibly respond to changes in the external environment to ensure its survival;
It is a self-organizing system, i.e. it is able to overcome internal limitations and ensure the achievement of new, more stable states.
The efficiency of the enterprise as open system depends, first of all, on the person whose behavior either contributes to or hinders the implementation of the system’s purpose. Thus, a person is a key resource of the enterprise system. 6
Features of the development of an enterprise (firm) as an open system in conditions of market relations, determined on the basis of an analysis of the basic laws of a market economy and the dynamics of the formation of market relations, are as follows:
The development of an enterprise as a system is determined by the dynamics of demand and supply of goods and services;
The competitiveness of enterprise products (services) is determined by the level of innovation based on innovation;
The desire to survive forces enterprises to optimize their costs and prices and achieve sustainable operation.
Lack of planning puts firms in a position where they:
They do not understand future tasks;
They do not know how to view management as a continuous process, where current actions are organically connected with future ones;
They lose orientation in the economic world because they are guided only by short-term interests and do not understand the general meaning of the events taking place;
Fails to identify basic market needs
They find themselves in a weaker position compared to other market participants.
Planning the activities of firms and their business relationships provides the following important advantages:
Enables preparation for future use favorable conditions;
Identifies emerging problems;
Prepares the company for sudden changes in the external environment;
Encourages managers to implement their decisions in further work;
Improves coordination of activities in the organization;
Creates the prerequisites for improving the educational training of managers;
Increases the ability to provide the company with the necessary information;
Promotes a more rational distribution of resources;
Clearly formalizes the duties and responsibilities of participants
firms;
Improves organizational control.
Practice shows that the rapid growth and success of a company is very often not associated with formal planning, but rather is a consequence of the entrepreneurial talent of the manager, his energetic and decisive management of the activities of the enterprise (company). 7 Many enterprises, incl. Russians begin to apply strategic planning methods during the period of their development when the stage of rapid success has already passed and the enterprise has entered the stage of resource maturity. At this stage, although the enterprise has significant financial achievements, the likelihood of it losing flexibility and entrepreneurial spirit increases, which predetermines the need to ensure stability. 8
Thus, directors of Russian companies have a growing understanding of the importance of forming long-term goals and planning for long-term development. The matter is complicated by the fact that many Russian enterprises find themselves in a kind of information vacuum. On the other hand, there is an abundance of disordered external information, a lack of systematized guidelines for choosing the direction of development. In addition, the tools for developing and implementing one’s own strategy differ significantly from the previously adopted planning system, and relatively little is known about them. Most of domestic producers is just beginning to understand what is called strategic management. 9
Initially strategic planning, and then the entire arsenal of various types strategic management was aimed at the competitiveness of enterprises operating in conditions of fierce competition characteristic of a market economy.
For Russian enterprises, two areas can be identified that require the use of strategic planning methods.
1. Newly emerging private firms. The main feature of these firms is that the rapid process of capital accumulation has led to an increase in the complexity of the activities of many of these firms, as well as to the emergence of other factors that create the need for forms of planning adequate to the modern market economy.
The main problem associated with the use of planning in this area is distrust of formal planning, based on the opinion that business is the ability to “turn around”, to correctly navigate the current situation, and as a consequence of this, insufficient attention to even the not very distant future . However, many of the larger private firms have begun to create planning departments or at least have staff dedicated to this type of activity.
2. State and former state (now privatized) enterprises. For them, the planning function is traditional, but their planning experience relates mainly to the period of centralized economic management. Hence, planning at these enterprises was of a secondary nature, reflecting planning activities at the central and sectoral level, and therefore did not imply serious ability to analyze and foresee possible options development of the enterprise when market conditions change, as well as determine your own development goals.
Therefore, state and privatized enterprises, as well as organizations of the first type, need to re-master the experience of intra-company and, above all, strategic planning. 10
The modern market places special demands on businesses And yatiyam (firms). Complexity of competitive relations, high about mobility inside corporate and market processes create new prerequisites for a more serious approach to the application of planning methods in modern conditions e small market economy. 11
The effectiveness of the functioning of an enterprise (firm) in market conditions is largely determined by the market situation. The survival and development of the enterprise primarily depends on it. It is the market, with its instability, the complication of competition, the unforeseen behavior of partners, the reduction life cycle demand for services (goods), etc., predetermines the need for analysis and assessment of the environment with a forecast of its changes over time, and on the basis of this planning, ensuring compliance of the results of the enterprise’s activities with market requirements.
Obviously, the level of development of enterprises in modern conditions high competition and globalization of production and sales is determined primarily by three, equally important indicators their activities:
- labor productivity;
- competitiveness of products;
- the quality of growth and development, determined by the degree of innovation of the technological base and the adequacy of management systems and organizational development of the external and internal situation of the company.
Increasing and improving these indicators is today the key task of enterprise managers, since it is their totality that determines the current position of the enterprise in the market and the possibilities and prospects for its successful and stable development. The low value of at least one of them makes the position of the enterprise in best case scenario, unstable, and development prospects are uncertain.Timely resolution of identified problems will improve the enterprise management system.
Thus, a strategic planning system can help a manager anticipate business development trends and changes in competitive situations in the market being served; monitor and understand the influence of the external environment, especially consumers; make strategic choices and implement strategy. 12
Special methods and strategic management techniques help managers evaluate and analyze various And dy situations, focus attention on decisive problems and directions, ultimately ensure sustainable development of the enterprise and competitiveness in the future l state term perspective. 13
- Strategic planning: essence, functions, structure.
2.1. The essence and function of strategic planning
Being a management function, strategic planning is the foundation on which the entire system of management functions is built, or the basis of the functional structure of the management system. Strategic planning is a tool with the help of which a system of goals for the functioning of an enterprise is formed and the efforts of the entire enterprise team are combined to achieve it.
Strategic planningis a set of procedures and decisions with the help of which an enterprise strategy is developed to ensure the achievement of the goals of the enterprise. 14 The logic of this definition is as follows: the activities of the management apparatus and the decisions made on its basis form the strategy for the operation of the enterprise, which allows the company to achieve its goals (Fig. 1.1).
Rice. 1.1. Logic of strategic planning
The strategic planning process is a tool with the help of which management decisions in the field of economic activity are justified. Its most important task is to provide innovations and organizational changes necessary for the life of the enterprise. As a process, strategic planning includes four types of activities (strategic planning functions) (Fig. 1.2). These include: resource allocation, adaptation to the external environment, internal coordination and regulation, organizational changes.
1 . Resource Allocation. This process includes planning the allocation of resources, such as material, financial, labor, information resources, etc. The enterprise's operating strategy is based not only on business expansion and meeting market demand, but also on the efficient consumption of resources and the constant reduction of production costs. Therefore, the effective distribution of resources between various areas of business and the search for combinations of their rational consumption is the most important function of strategic planning.
Rice. 1.2. Functional structure of strategic planning
2. Adaptation to the external environment. Adaptation should be interpreted in a broad sense as the enterprise’s adaptation to changing market conditions management. The market environment in relation to business entities always contains favorable and unfavorable conditions (advantages and threats). The task of this function is to adapt the economic mechanism of the enterprise to these conditions, i.e., to take advantage of competitive advantages and prevent various threats. Of course, these functions are also performed in the day-to-day management of the enterprise. However, the effectiveness operational management will be achieved only if competitive advantages and barriers are foreseen in advance, i.e. planned. In this regard, the task of strategic planning is to provide new favorable opportunities for the enterprise by creating an appropriate mechanism for adapting the enterprise to the external environment. 15
3. Coordination and regulation. This function involves coordinating the efforts of the structural divisions of the company (enterprises, production facilities, workshops) to achieve the goal provided for by the strategic plan. The enterprise strategy includes complex system interrelated goals and objectives. The decomposition of these goals and objectives involves dividing them into smaller components and assigning them to the relevant structural units and performers. This process does not occur spontaneously, but on a planned basis in a strategic plan. Therefore, all components of the strategic plan must be linked by resources, structural divisions and performers, and functional processes. This linkage is ensured by the system for generating planning indicators, as well as the presence in the enterprise management apparatus of the corresponding unit or executor responsible for coordination. The objects of coordination and regulation are internal production operations. 16
4. Organizational changes. This activity involves the formation of an organization that ensures the coordinated work of management personnel, the development of the thinking of managers, and the consideration of past experience in strategic planning. Ultimately, this function is manifested in various organizational changes at the enterprise: redistribution of management functions, powers and responsibilities of management staff; creating an incentive system that contributes to achieving the goals of the strategic plan, etc. It is important that these organizational changes are carried out not as a reaction of the enterprise to the current situation, which is typical for situational management, but are the result of organizational strategic foresight. 17
Strategic planning as a separate type of management activity imposes a number of requirements on employees of the management apparatus and presupposes the presence of five elements:
The first element is the ability to simulate a situation. This process is based on a holistic view of the situation, which includes the ability to understand the patterns of interaction between the needs and consumer demand of buyers, competitors with the quality of their products and the needs of one’s own company, i.e. its ability to meet customer needs. Thus, the most important part of strategic planning is analysis. However, the complexity and inconsistency of the source data give rise to the complexity and variability of the analytical work performed within the framework of strategic planning, making it difficult to model the situation. In this regard, the role of the analyst can hardly be overestimated: the greater his ability to abstract, the more clearly the connections between the components that gave rise to the situation are revealed. The ability to move from the concrete to the abstract and back again is an important condition for competence in matters of strategy. Using this ability when developing a strategic plan, you can identify the need and possibility of changes in the company. 18
The second element is the ability to identify the need for change in the company. The intensity of changes in enterprises and organizations in a market economy is much higher than in a planned economy, which is explained by the greater dynamism of the external market environment. In conditions of monopoly, any changes are aimed at maintaining the expansion of the company. Now they are represented by a variety of variables that characterize the company: from the efficiency of production costs to the company's attitude to risk, including product range, product quality and after-sales service. Determining the need for change requires two types of abilities:
The readiness of management staff to respond to trends arising from the action of known factors and the given industry;
Scientific and technical potential, intelligence, intuition, and creative abilities of managers, which, based on taking into account a combination of known and unknown factors, make it possible to prepare the company for action in unforeseen circumstances and find opportunities to increase its competitiveness. 19
The third element is the ability to develop a change strategy. Search for a rational strategy intellectual, creative process of searching for an acceptable option for the functioning of an enterprise. It is based on the ability of managers and specialists to foresee various situations and to recreate a “mosaic canvas” of future events from individual disparate factors. Strategic plan developers must be able to write various scenarios and master forecasting tools.
Fourth, the ability to use sound methods during change. The arsenal of means and methods of strategic planning is quite large. It includes: strategic models based on operations research methods; Boston Advisory Group (BCG) matrix
The fifth element is the ability to implement strategy. There is a gap between strategy as a scientifically based plan and the practical activities of enterprise employees. two-way communication. On the one hand, any actions not supported by a plan usually turn out to be useless. On the other hand, a thinking process that is not accompanied by practical activity is also fruitless. Therefore, enterprise employees involved in implementing the strategy must know the technology. 20
2.2. Strategic Planning Framework
In Fig. 1.3. presented circuit diagram strategic planning process.
Strategic planning can be viewed as a dynamic set of six interrelated management processes that logically follow from one another. At the same time, there is a stable feedback and influence of each process on the others.
1 2 3 4
5 6 7 8
Rice. 1.3. Strategic Planning Framework
The strategic planning process includes:
Defining the mission of an enterprise or organization;
Formulating the goals and objectives of the functioning of an enterprise or organization;
Assessment and analysis of the external environment;
Assessment and analysis of internal structure;
Development and analysis of strategic alternatives;
Choice of strategy. 21
The strategic management process (except for strategic planning) also includes:
Implementation of the strategy;
Assessing and monitoring the implementation of the strategy.
As can be seen from Fig. 1.3, strategic planning is one of the components of strategic management. Strategic management is sometimes considered synonymous with the term strategic planning. However, it is not. Strategic management, in addition to strategic planning, contains a mechanism for implementing decisions.
Main components of strategic planning:
1 . Defining the organization's mission.This process consists of establishing the meaning of the company’s existence, its purpose, role and place in market economy. IN foreign literature This term is usually called the corporate mission or business concept. It characterizes the direction in business that firms focus on based on market needs, the nature of consumers, product features and the presence of competitive advantages.
2 . Formulation of goals and objectives.To describe the nature and level of business aspirations inherent in a particular type of business, the terms “goals” and “objectives” are used. Goals and objectives should reflect the level of customer service. They must create motivation for people working in the company. The target picture must have at least four types of targets:
Quantitative goals;
Qualitative goals;
Strategic goals;
Tactical goals, etc.
Goals for lower levels of the firm are considered as objectives.
3 . Analysis and assessment of the external and internal environment. Environmental analysis is generally considered the original process of strategic management because it provides both the basis for defining the firm's mission and goals and for developing behavioral strategies that will enable the firm to achieve its mission and achieve its goals.
One of the key roles of any management is to maintain balance in the organization’s interaction with the environment. Every organization is involved in three processes:
Receiving resources from the external environment (input);
Transformation of resources into products (transformation);
Transfer of the product to the external environment (output). Management is designed to provide a balance between input and output. As soon as this balance is disturbed in an organization, it takes the path of death. The modern market has dramatically increased the importance of the exit process in maintaining this balance. This is precisely reflected in the fact that in the structure of strategic management the first block is the environmental analysis block. 22
Analysis of the environment involves the study of its three components:
Macroenvironment;
Immediate surroundings;
Internal environment of the organization.
Analysis of the external environment (macro and immediate environment) is aimed at finding out what the company can count on if it successfully conducts its work, and what complications may await it if it fails to avert in time the negative attacks that may present her with an environment.
Analysis of the macroenvironment includes the study of the influence of the economy, legal regulation and management, political processes, natural environment and resources, social and cultural components of society, scientific, technical and technological development of society, infrastructure, etc.
The immediate environment is analyzed according to the following main components: buyers, suppliers, competitors, labor market.
Analysis of the internal environment reveals those opportunities, the potential that a company can count on in competition in the process of achieving its goals. Analysis of the internal environment also allows us to better understand the goals of the organization and more accurately formulate the mission, i.e. determine the meaning and direction of the company’s activities. It is extremely important to always remember that the organization not only produces products for the environment, but also provides an opportunity for existence for its members, giving them work, providing them with the opportunity to participate in profits, providing them with social guarantees, etc.
The internal environment is analyzed in the following areas:
Personnel potential;
Organization of management;
Finance;
Marketing;
Organizational structure and so on.
4 . Development and analysis of strategic alternatives, choice of strategy. Strategy development is carried out on top level management and is based on solving the problems described above. At this stage of decision-making, the manager needs to evaluate alternative ways of operating the company and choose optimal options to achieve your goals. Based on the analysis, in the process of developing a strategy, strategic thinking is formed through discussion and agreement with the management line apparatus of the concept of the development of the company as a whole, the recommendation of new development strategies, the formulation of draft goals, the preparation of directives for long-term planning, the development of strategic plans and their control. Strategic management assumes that the company determines its key positions for the future depending on the priority of its goals. A firm faces four major strategic alternatives: limited growth, growth, contraction, and a combination of these strategies. 23 Limited growth is followed by most organizations in developed countries Oh. It is characterized by the establishment of goals based on what has been achieved, adjusted mergers of firms in unrelated industries. Managers rarely choose a reduction strategy. In it, the level of goals pursued is set lower than what was achieved in the past. For many firms, downsizing may mean a path to streamlining and refocusing operations. In this case, several options are possible:
liquidation (complete sale of inventories and assets of the organization);
deduction of excess (separation by firms of some of their divisions or activities);
downsizing and refocusing (cutting down part of one's activities in an attempt to increase profits).
Downsizing strategies are most often used when a company's performance continues to deteriorate, during an economic downturn, or simply to save the organization. The strategy of combining all alternatives will be followed by large firms that are active in several industries.
Having selected a particular strategic alternative, management must turn to a specific strategy. The main goal is to select a strategic alternative that will maximize the long-term effectiveness of the organization. To do this, managers must have a clear, shared vision of the company and its future. Commitment to a particular choice often limits future strategy, so the decision must be subject to careful examination and evaluation. Strategic choice is influenced by various factors: risk (a factor in the life of the company); knowledge of past strategies; the reaction of shareholders, who often limit management's flexibility in choosing strategy; time factor depending on the choice of the right moment. Decision-making on strategic issues can be carried out in different directions: “bottom-up”, “top-down”, in the interaction of the two above-mentioned directions (strategy is developed in the process of interaction between top management, planning service and operational units).
The formation of the company's strategy as a whole acquires everything higher value. This concerns the priority of problems to be solved, the determination of the structure of the company, the justification of investments, the coordination and integration of strategies. 24
5. Implementation of the strategy. Execution of the strategic plan is a critical process because, if the plan is actually implemented, it leads the firm to success. It often happens the other way around: a well-developed strategic plan can “fail” if measures are not taken to implement it. Very often there are cases when firms are unable to implement the chosen strategy. This happens because either the analysis was carried out incorrectly and incorrect conclusions were drawn, or because unforeseen changes occurred in the external environment. However, often the strategy is not implemented because management cannot properly attract the company's existing potential to implement the strategy. This particularly applies to the use of human potential.
Successful implementation of the strategy is facilitated by compliance with the following requirements:
The goals and activities of the strategy must be well structured, communicated to employees and perceived by them;
It is necessary to have a clear action plan for implementing the strategy, providing for the provision of the plan with all the necessary resources.
6. Strategy assessment and control. Assessment and control of strategy implementation is the logical final process carried out in strategic management. This process provides stable feedback between the progress of the process of achieving goals and the actual goals facing the organization.
The main tasks of any control are the following:
Determining what and by what indicators to check;
Assessment of the condition of the controlled object in accordance with accepted standards, regulations or other benchmarks;
Finding out the reasons for deviations, if any are revealed as a result of the assessment;
Making adjustments if necessary and possible. 25
In the case of monitoring the implementation of strategies, these tasks acquire a very specific specificity, due to the fact that strategic control is aimed at finding out to what extent the implementation of the strategy leads to the achievement of the company's goals. This fundamentally distinguishes strategic control from managerial or operational control, since it is not interested in the correct implementation of the strategy or the correct execution of individual jobs, functions and operations. Strategic control is focused on determining whether it is possible in the future to implement the adopted strategy, and whether its implementation will lead to the achievement of set goals. Adjustments based on the results of strategic control may concern both the strategy being implemented and the company’s goals.
2.3. Advantages and Disadvantages of Strategic Planning
The main advantage of strategic planning is a greater degree of validity of planned indicators, a greater likelihood of the implementation of planned scenarios for the development of events.
The current rate of change in the economy is so great that strategic planning seems to be the only way to formally forecast future problems and opportunities. It provides the company's top management with the means to create a long-term plan, provides a basis for decision-making, helps reduce risk in decision-making, and ensures the integration of the goals and objectives of all structural divisions and executives of the company. 26
In domestic enterprise management practice, strategic planning is rarely used. However, in the industry of developed countries it is becoming the rule rather than the exception.
Features of strategic planning:
must be supplemented by the current one;
strategic plans are developed at meetings of the company's senior management annually;
annual detailing of the strategic plan is carried out simultaneously with the development of the annual financial plan (budget);
Most Western companies believe that strategic planning mechanisms should be improved.
Along with obvious advantages, strategic planning has a number of disadvantages that limit the scope of its application and deprive it of its universality in solving any economic problems.
Disadvantages and limited capabilities of strategic planning:
1. Strategic planning does not and cannot provide due to its essence detailed description pictures of the future. What it can give is a qualitative description of the state to which the company should strive in the future, what position it can and should occupy in the market and in business in order to answer main question whether the company will survive or not in the competition.
2. Strategic planning does not have a clear algorithm for drawing up and implementing a plan. Its descriptive theory boils down to a specific philosophy or ideology of doing business. Therefore, the specific tools largely depend on the personal qualities of a particular manager, and in general, strategic planning is a symbiosis of intuition and the art of top management, the manager’s ability to lead the company to strategic goals. Strategic planning goals are achieved through the following factors: high professionalism and creativity of employees; close connection of the organization with the external environment; product updates; improving the organization of production, labor and management; implementation of current plans; inclusion of all employees of the enterprise in the implementation of the goals and objectives of the enterprise.
3. The process of strategic planning for its implementation requires a significant investment of resources and time compared to traditional long-term planning. This is due to more stringent requirements for the strategic plan. It must be flexible and respond to any changes both within the organization and in the external environment. The number of employees involved in strategic planning is higher than in long-term planning.
4. The negative consequences of errors in strategic planning are, as a rule, much more serious than in traditional, long-term planning. The consequences of an incorrect forecast are especially tragic for enterprises engaged in non-alternative economic activities. High degree risk in long-term planning can be explained by those areas of production and economic activity in which decisions are made about manufactured products; directions of investment; new business opportunities, etc.
5. Strategic planning must be supplemented with mechanisms for implementing the strategic plan, i.e. The effect can be achieved not by planning, but by strategic management, the core of which is strategic planning. And this presupposes, first of all, the creation of an organizational culture at the enterprise that allows it to implement the strategy, a system of labor motivation, a flexible management organization, etc. Therefore, the creation of a strategic planning subsystem at a specific enterprise should begin with putting things in order in the management system, improving the overall management culture, strengthening performance discipline, improving data processing, etc. In this regard, strategic planning is not a panacea for all management ills, but just one of the means. 27
- Methods of strategic planning.
In the system of managing socio-economic processes occurring in society, as well as in ensuring the normal functioning commercial organizations planning occupies a special place - a way to ensure the unity of direction of efforts to achieve common goals. Without planning, the system is unchanged over time and does not adapt to changes in the external environment. Therefore, no management is possible without planning the activities of the enterprise, since effective functioning largely depends on it. 28
Depending on the size of the enterprise, the nature of the tasks and possible timing Their solution plan can take different forms. In accordance with this, planning is divided into:
long-term, designed for a period of 5 to 15 years and providing for the formation of long-term goals of the enterprise aimed at best use its resources, based on long-term forecasts;
medium-term, for a period of one to five years. Compared to long-term plans, medium-term plans are more detailed, contain a large number of quantitative indicators, and they emphasize the allocation of resources. The objects of such planning are the production capacity of the enterprise, capital investments, needs for financial resources, Scientific research and development, etc.;
short-term, or current, - designed for a period of up to one year. 29
In recent years, the role of strategic planning has especially increased, the purpose of which is to develop strategic decisions and formulate plans aimed at developing the enterprise in the long term and achieving competitive advantages, taking into account possible changes in the external environment.
Thanks to strategic planning, an enterprise can assess its potential capabilities with the necessary accuracy, develop appropriate production programs, coordinate the efforts of all services, set specific goals for each department, and determine alternative actions for the long term.
Strategic planning is fundamentally different from other types of planning, since it does not use the traditional approach “from the past to the future”, but involves the direction of analysis and management decisions “from the future to the present”. This is what causes the main difficulties: everyone knows how to plan “from the base,” but few know how to build a plan for their current actions based on ideas about the future of the business. 30
A huge contribution to the formation and development of strategic planning was made by F. Abram, I. Ansoff, M. Porter, G. Hamel, G. Mintzberg, K. Hofer, G. Steiner, A. Thompson, A. Strickland. It was with their work that the classical theory of strategic planning began. In the field of strategic planning methodology, a special place is occupied by applied developments of leading firms in the consulting business such as Boston Consulting Group, McKinsey, Arthur D. Little.
Strategic planning has replaced long-term planning and taken a leading place in the planning activities of the company. In strategic planning, compared to long-term planning, the space of a company’s activities has become more voluminous, including, along with the main elements of the organization’s internal environment, external aspects: social factors, tastes and needs of customers, actions of competitors, etc. The main difference between strategic planning and long-term planning is its variability, development alternative versions development of the future enterprise.
Currently, strategic planning has taken its place among the functions of management. Today, along with formal, quantitative methods, strategic planning uses a creative, intuitive approach.
Strategic planning methodology, a set of the most important theoretical principles and methods used in the process of drawing up plans, provides answers to the following questions.
What are the development goals of the corresponding strategic planning object?
What approaches to solving strategic planning problems should you use?
What system of indicators can be used to ensure optimization of strategic plans?
The method of strategic planning is understood as a specific method, technique by which any planning problem is solved. The following methods for developing plans are used in strategic planning:
expert method, based on the use of indirect and incomplete information, the experience of expert specialists, and intuition;
method of socio-economic analysis, which consists in a comprehensive study of socio-economic reality, knowledge of internal connections and dependencies of phenomena in order to determine progressive development trends;
a method of direct engineering and economic calculations designed to determine market needs for a given type of product and the possibilities of its production; the balance sheet method used to ensure consistency among interrelated indicators;
economic and mathematical methods and models that solve, for example, issues such as drawing up an optimal production program for given labor and material resources;
a method of system analysis and synthesis, which consists in decomposing phenomena into their component parts and identifying on this basis the key problems of long-term development. 31
Methodological approaches to strategic planning can only be implemented with the help of special indicators. The development of strategic programs and plans is impossible without the use of a system of indicators, which must be flexible, adaptive, and capable of reflecting all changes in the state of the planning object.
Since strategic planning is a central element of a company’s management system, management principles are generally significant for it, which include:
the principle of unity of centralism and independence. It is associated with providing branches with the maximum possible freedom in business activities, including planning, but within the framework of the overall strategy of the company;
the principle of unity and complexity of forecasts, programs and plans. It is aimed at coordinating and integrating into a single whole the plans of structural divisions and branches developed on the basis of the overall strategy of the organization;
the principle of checking the implementation of programs and plans. Verification of the implementation of the intended goals is carried out to identify errors made in the process of strategic planning; to take into account opportunities that were not previously taken into account or that have arisen again; to identify new needs that arise during the implementation of plans and attract the necessary resources. 32
CONCLUSION
In this work, I examined theoretical issues related to strategic planning. The need to introduce strategic planning at the enterprise was assessed.
Based on the results of the work, the following conclusions can be drawn:
1. Strategy is a complex and potentially powerful tool with which a modern company can cope with changing conditions. But this is not a simple weapon, and its implementation and use are not cheap.
2. Strategy is a tool that can seriously help a company that finds itself in conditions of instability, as well as failures in law enforcement, in the functioning of the healthcare system and urban utilities.
Therefore, strategy deserves the most serious attention as a management tool suitable not only for firms, but also for a wide range of social institutions. But we must be aware that it in no way complements the natural behavior of people working in organizations, and they, as a rule, treat it without any enthusiasm.
3. Strategic planning as a logical, analytical process of determining the future position of a company depending on external operating conditions was developed by firms that sought to reverse the process of slowing growth and obsolescence of equipment and technology.
Unlike its predecessor, long-term planning, strategic planning is a much more complex process that affects the organization. In many cases in initial period The application of strategic planning caused resistance in the company and did not give the desired improvement in its activities.
At the same time, practice shows that in irregularly operating enterprises the organization of planning, as a rule, is at a low level. Consequently, significant reserves associated with business efficiency should be sought at the level of enterprises and associations. To implement them, every enterprise must have a clear strategic planning system.
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8. Bowman K. Fundamentals of strategic management: trans. from English M: Unity, 2001.
9. Idrisov A.B. Strategic planning and analysis of investment efficiency, 2000.
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1 Ilyin A.I. Planning at the enterprise: Proc. aid for students universities, educational in economics special and eg. / A. I. Ilyin. - 2nd ed., revised. - Mn.: New knowledge, 2005. 635 p.
2 Vishnevskaya, O.V. Direction of strategic development of an enterprise: models, control and management influences / O.V. Vishnevskaya // Management in Russia and abroad. 2004. - No. 5. P.58-66.
3 Ilyin A.I. Planning at the enterprise: Proc. aid for students universities, educational in economics special and eg. / A. I. Ilyin. - 2nd ed., revised. - Mn.: New knowledge, 2005. 635 p.
4 Ilyin A.I. Planning at the enterprise: Proc. aid for students universities, educational in economics special and eg. / A. I. Ilyin. - 2nd ed., revised. - Mn.: New knowledge, 2005. 635 p.
5 Vishnevskaya, O.V. Direction of strategic development of an enterprise: models, control and management influences / O.V. Vishnevskaya // Management in Russia and abroad. 2004. - No. 5. P.58-66.
6 Vishnevskaya, O.V. Direction of strategic development of an enterprise: models, control and management influences / O.V. Vishnevskaya // Management in Russia and abroad. 2004. - No. 5. P.58-66.
7 Ilyin A.I. Planning at the enterprise: Proc. aid for students universities, educational in economics special and eg. / A. I. Ilyin. - 2nd ed., revised. - Mn.: New knowledge, 2005. 635 p.
8 Lyasko V.I. Strategic planning for enterprise development: Tutorial for universities. M., 2005. 288 p.
9 Lyasko V.I. Strategic planning for enterprise development: Textbook for universities. M., 2005. 288 p.
10 Ilyin A.I. Planning at the enterprise: Proc. aid for students universities, educational in economics special and eg. / A. I. Ilyin. - 2nd ed., revised. - Mn.: New knowledge, 2005. 635 p.
11 Lyasko V.I. Strategic planning for enterprise development: Textbook for universities. M., 2005. 288 p.
12 Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 hours Part 1. Strategic planning. Mn.: New Knowledge LLC, 2006.
13 Vishnevskaya, O.V. Direction of strategic development of an enterprise: models, control and management influences / O.V. Vishnevskaya // Management in Russia and abroad. 2004. - No. 5. P.58-66.
14 Adiev R.V. Strategic planning at the enterprise. Money and credit No. 7, 2001.
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18 Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 hours Part 1. Strategic planning. Mn.: New Knowledge LLC, 2006.
19 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
20 Adiev R.V. Strategic planning at the enterprise. Money and credit No. 7, 2001.
21 Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 hours Part 1. Strategic planning. Mn.: New Knowledge LLC, 2006.
22 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
23 Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 hours Part 1. Strategic planning. Mn.: New Knowledge LLC, 2006.
24 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
25 Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 hours Part 1. Strategic planning. Mn.: New Knowledge LLC, 2006.
26 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
27 Adiev R.V. Strategic planning at the enterprise. Money and credit No. 7, 2001.
28 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
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30 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
31 Vikhansky O.S. Strategic management: Textbook for universities, for example. And special “Management” M.: Gardarika, 2001.
32 Ilyin A.I. Planning at the enterprise: Proc. Benefit. At 2 hours Part 1. Strategic planning. Mn.: New Knowledge LLC, 2006.
Advantages and Disadvantages of Strategic Planning
The main advantage of strategic planning is to a greater extent the validity of planned indicators and the greater likelihood of the implementation of planned scenarios for the development of events.
The current rate of change in the economy is so great that strategic planning seems to be the only way to formally forecast future problems and opportunities. It provides the company's top management with the means to create a long-term plan, provides a basis for decision-making, helps reduce risk in decision-making, and ensures the integration of the goals and objectives of all structural divisions and executives of the company.
In domestic enterprise management practice, strategic planning is rarely used. However, in the industry of developed countries it is becoming the rule rather than the exception. Features of strategic planning: must be complemented by current planning; strategic plans are developed at meetings of the company's senior management annually; annual detailing of the strategic plan is carried out simultaneously with the development of the annual financial plan (budget); Most Western companies believe that strategic planning mechanisms should be improved.
Along with obvious advantages, strategic planning has a number of disadvantages that limit the scope of its application and deprive it of its universality in solving any economic problems.
Disadvantages and limited capabilities of strategic planning: strategic planning does not and cannot, due to its nature, provide a detailed description of the picture of the future. What it can give is a qualitative description of the state to which the company should strive in the future, what position it can and should occupy in the market and in business in order to answer the main question - whether the company will survive or not in the competition; strategic planning does not have a clear algorithm for drawing up and implementing a plan. Its descriptive theory boils down to a specific philosophy or ideology of doing business. Therefore, the specific tools largely depend on the personal qualities of a particular manager, and in general, strategic planning is a symbiosis of intuition and the art of top management, the manager’s ability to lead the company to strategic goals. Strategic planning goals are achieved through the following factors: high professionalism and creativity of employees; close connection of the organization with the external environment; product updates; improving the organization of production, labor and management; implementation of current plans; inclusion of all employees of the enterprise in the implementation of the goals and objectives of the enterprise; the process of strategic planning for its implementation requires a significant investment of resources and time compared to traditional long-term planning. This is due to more stringent requirements for the strategic plan. It must be flexible and respond to any changes both within the organization and in the external environment. The number of employees involved in strategic planning is higher than in long-term planning; the negative consequences of strategic planning errors are, as a rule, much more serious than in traditional, long-term planning. The consequences of an incorrect forecast are especially tragic for enterprises engaged in non-alternative economic activities. The high degree of risk in long-term planning can be explained by those areas of production and economic activity in which decisions about manufactured products are made; directions of investment; new business opportunities, etc.; strategic planning must be supplemented with mechanisms for implementing the strategic plan, i.e. The effect can be achieved not by planning, but by strategic management, the core of which is strategic planning. And this presupposes, first of all, the creation of an organizational culture at the enterprise that allows it to implement the strategy, a system of labor motivation, a flexible management organization, etc. Therefore, the creation of a strategic planning subsystem at a specific enterprise should begin with putting things in order in the management system, improving the overall management culture, strengthening performance discipline, improving data processing, etc. In this regard, strategic planning is not a panacea for all management ills, but just one of the means.
Planning is carried out in order to achieve:
1. “protective advantages” arising from the reduction of opportunities for error in decision making;
2. “Positive benefits” associated with an increased likelihood of success in achieving organizational goals.
Planning application:
Makes it possible to prepare for the use of favorable conditions for the planning object;
Clarifies problems encountered during planning;
Encourages managers to implement their decisions in future work; "-i: and improves coordination of activities in the organization;
Creates the prerequisites for improving the educational training of managers;
Increases the ability to provide a business entity with the necessary information;
Promotes a more rational distribution of resources;
Improves control in the organization.
Forecasts, programs and plans developed in the country at all levels of the national economy are the most important tools for implementing the policies of the relevant management entities, making it possible to organize clear, justified work to achieve the objectives set for society. In order to successfully manage the development of the national economy and regulate various processes, it is necessary for all subjects of management to accurately and correctly set goals, and prepare scientifically based measures that contribute to the achievement of goals. In a market that focuses every manufacturer and entrepreneur on obtaining high final results, planning acquires new functions. It should ensure the process of producing competitive products, promote full employment of resources, fair distribution of income and an increase in the quality of life.
Benefits of planning:
* At the macro level, it is based on the conscious use of a system of objective economic laws; main provisions and conclusions economic theory, accumulated experience and economic practice to provide scientifically based management of the development of territories through the use of a system of planning documents;
at the micro level is to the best way justify such types, volumes, terms and other indicators of production and sale of goods, performance of work and provision of services, which, with skillful use of available resources, can bring high income to an economic entity.
Advantages of planned farming:
* Interrelation in the plans of social and economic aspects of the development of society;
* Concentration of forces on the implementation of priority areas of activity;
* An integrated approach to problem solving;
* Taking into account the possibilities of continuous long-term and current planning;
* Reports from sectoral and territorial approaches;
* An attempt to balance the use of labor, material and financial resources;
* A characteristic feature of a planned system is coordination, therefore progressive adaptive mechanisms are used in the planned system;
* To manage the development of an exogenous type, a mechanism for the functioning of the organization is created - a set of adaptive forecasting structures; planning; stimulation.
Disadvantages of centralized planning and forecasting:
* Weak consideration of natural laws and trends in the development of commodity-money relations;
* The growing role of the plan as an end in itself of activity according to the principle of “plan at any cost”; a kind of fetish of the plan over economic relations;
Lack of room for maneuvering the actions of enterprises in different regions and inflexibility of the situation planning system;
Methodological weakness of planning, does not take into account reserves, initiative, micro-level diversity;
Significant expenditures of effort, time and money for the development, coordination, approval, clarification, and maintenance of stability of planned indicators;
insufficient coordination of efforts to develop forecasting;
Significant implementation costs individual species forecasts;
* Fuzzy detection of forecast development targets;
Violation of prospects in the use of retrospective and forecast information;
* The methodology for developing and implementing forecasts is insufficiently developed.
In a complex organization, in conditions of interdependence of its elements, any deviation from a coordinated plan leads to large costs, so the incentive system must strictly punish for failure to fulfill the plan. A planned evolutionary system must be a system of development, order and stability if it is based on progressive, correct mechanisms. The larger and more complex the organization, the more difficult it is to implement an endogenous development system. The planned system of endogenous development is a development system based on the planning and use of endogenous resources and creating opportunities for the use of endogenous resources - unlocking the employee’s potential. The planned system of endogenous development is a triad, including:
* Progressive climate;
* Progressive environment;
* The mechanism of their functioning.
The liberal evolutionary system solves the problem associated with the “denial of coordination” through self-organization and decentralization of endogenous type development control. It leads to the creation of property. In this case, coordination characteristic of a planned evolutionary system is lost. When designing evolutionary systems, both a centralized planned system is used, with its adaptation and coordination, and a liberal system with its inherent self-organization and instability. The planned system uses adaptive mechanisms and archetypes. To manage the development of an exogenous type, a progressive mechanism is created that encourages the system to unlocking potential, but at a sufficiently high speed, the mechanism of innovation cannot ensure progress through systemic limitations.
The planned evolutionary system is based on the coordination of the organization's exogenous resources. It is more difficult to transform a planned evolutionary system into endogenous development, the higher the complexity of the organization and the more often changes occur. Planned
the evolutionary system is ineffective in conditions of rapid change. The liberal evolutionary system solves the problem associated with the “denial of coordination” through self-organization and decentralization of endogenous type development control. It leads to the creation of property. In this case, coordination characteristic of a planned evolutionary system is lost. When designing evolutionary systems, both a centralized planned system, with its adaptation and coordination, and a liberal system with its inherent self-organization are used.