Tools formation of technology and substantiation of strategy of development of the enterprise

Annotation: The article discusses the tools and methods for determining the strategic development of an enterprise based on a detailed study of the internal and external environment.

Keyword: strategy, planning, methods, tools, analysis, factors.

The formation of the enterprise strategy is influenced by many factors, the interaction of which is specific to the industry and always changes over time.

The main principles of strategy selection are:

• 1)    a rational strategy should contain three important components: the main goals or objectives of the activity; the most significant rules or procedures limiting the scope of activity; the sequence of activities aimed at achieving the goals. Since strategies determine only the General direction of development and are not just programs for achieving fixed goals, the strategy should take into account the evolution of the goals.

• 2)    effective strategies are developed around several quantitatively limited concepts and directions, which gives them stability and balance. Some areas may be temporary, others remain until the end of the strategy. At the same time, it is necessary to coordinate activities in such a way that each direction is adequately provided with resources regardless of the «cost/income» ratio.

• 3)    strategy deals not only with unpredictable, but often with unknown factors. None of the specialists will be able to give an accurate forecast of how the competing forces will behave, what impact the factors of influence will have and whether the enterprise will expect a stunning success or a profound failure. The essence of the strategy development process is to build a position strong and flexible enough to ensure that the goals are achieved.

• 4)    for each level of management it is necessary to develop a strategy. At the same time, the subordination of strategies and consistency with higher-level strategies should be clearly defined. It does not matter how the strategy is developed, but it is imperative that the selected generalizing conclusions be taken into account [2].

In order for an economic strategy to be effective, its development must take into account some of the requirements, which include:

• -    clearly formulated strategic goals, that is, the company does not know what it wants to achieve in the future, it is useless to start developing any strategies;

• -    providing marketing thinking for all employees of the organization. In this case, the strategy will be effective if the interests and values of the staff correspond to the role assigned to them and if they have a vested interest in the prosperity of their organization. The value of human capital, knowledge, skills, know-how, accumulated experience, capitalized in the company's employees, is constantly increasing,

• -    the strategy should be flexible, providing the ability to influence the external environment, such as the implementation of unexpected attacks on the enemy, which lead to increased competitive position of the organization;

• -    the strategy will be effective if it protects the positions of the organization. The company should take care of creating a reliable defense system in case of an offensive by competitors, as well as strengthening its strengths and getting rid of weaknesses [3].

The strategy formulation process is presented in figure 1.

Figure 1 – outline of the strategy development process

This process includes identification of potential opportunities and threats from the external environment of the enterprise, assessment of risks and possible alternatives to the environment. In addition, before making any strategic decision, it is necessary to assess all the strengths and weaknesses of the organization, as well as strategies for personal and available resources. It is necessary to objectively assess the ability of the organization to use existing opportunities and to confront risks. The strategic alternative based on the correspondence between the existing market opportunities and the ability of the enterprise to function effectively at a given level of risk will be considered as an economic strategy.

At the preliminary stage of strategy development, a comprehensive analysis of the internal state of the enterprise is carried out, as a result of which its strengths and weaknesses are identified, the possibilities of resource support for actions aimed at achieving the goals are evaluated.

This takes into account both the resources of the organization and the possibility of obtaining these resources from outside (loans). At the same stage, the external macro - and micro-environment of the enterprise is studied in detail, the risk assessment is carried out taking into account the identified opportunities and threats. The procedure for the development of enterprise strategy includes the establishment of the relationship between the strategic management zone (SPH), analysis of its activities, assessment of the degree of interconnection and interaction between different SPH.

The effectiveness of the future strategy largely depends on the degree of elaboration of the preliminary stage. At its core, the task of the optimal strategy in the limiting case is to combine three circles (figure 2) or at least to maximize the intersection area (B) of the circles.

At the second stage of strategy development, strategic alternatives are formulated, taking into account the various conditions of the environment, the company's resources and strategic goals. Various alternatives are quite a lot, but in practice they are limited:

• 1)    the potential of the organization, depending on the degree of novelty of the goods, the level of economic development of the enterprise, the availability of financial resources,

• 2)    staff qualifications,

• 3)    organizational culture of the organization;

• 4)    the objectives of the enterprise and the requirements of the environment [4].

At this stage, we select those development alternatives that are in the plane of the intersection of the three circles, that is, in sector B.

The third stage of strategy development is to assess the strategic alternatives selected. Corresponding to the external environment, the goals of the organization and its resources, the strategic alternative should not contradict other strategies of the enterprise. In strategic choice, the organization faces contradictions between three groups of orientations: between long-term and short-term rents and sales, between internal and external flexibility, between flexibility and synergy.

The fourth stage of strategy development consists in choosing one or several best strategies.

The tools necessary for the formation and justification of the development strategy of the transport enterprise is closely related to the implementation of the General economic policy or the state strategy for the development of the entire market system. Currently, the most important prerequisite for strategic planning and growth of production volumes at domestic enterprises was the development of free market relations, their constant and continuous improvement.

Therefore now strategic planning at our enterprises should be directed to their long-term development, achievement of higher rates of economic growth on the basis of step-by-step improvement of various production and technical factors and organizational and administrative structures for the purpose of ensuring high quality of work of the personnel and a standard of living of the workers.

Of the enterprise as an organized system can stimulate its growth, implementing targeted selection, for example, the market expansion and investment attraction. Growth restriction does not limit development. Contrary to popular notions, for example, the development of personality is not a condition or a state determined by what a person possesses.

Thus, strategic planning is designed to ensure the necessary economic growth and the desired level of development of enterprises for the coming long-term period. A modern enterprise is an organized system or focused on the production of services, which is part of the economic system. The common elements of this and that system are the people, the staff of workers with their own economic goals. Therefore, the required level of development of the enterprise depends on the nature of the influence of individuals on it – its main elements and the whole state – the whole system, part of which is the enterprise.

The process of strategy justification in enterprises includes the implementation of the following interrelated functions:

• 1)    definition of long-term strategy, main ideals, goals and objectives of the enterprise development;

• 2)    creation of strategic business units at the enterprise;

• 3)    justification and clarification of the main objectives of market research;

• 4)    implementation of situational analysis and choice of the direction of economic growth of the enterprise;

• 5)    development of the main marketing strategy and integrated production planning;

• 6)    choice of tactics and precise planning of methods and means: achievement of objectives;

• 7)    monitoring and evaluation of the main results, adjustment of the chosen strategy and ways of its implementation.

The development strategy of the organization is determined by studying the external environment and possible internal prospects of its activities, taking into account unforeseen market circumstances. It consists in establishing the long-term orientation of the enterprise to any kind of production activity and occupation of the corresponding or planned position, both in the domestic and foreign market. At the same time, strategic issues related to the choice of products, consumers, applied production processes, used economic resources, as well as the formation of common lines of behavior in the market, taking into account their capabilities and the forces of competitors are clarified.

In the process of strategy development, the General or main objectives of the enterprise are set by senior management and agreed with all departments. The planning services offer each production an initial gross and net profit option for the long term. After their consideration, the units put forward their proposals, thereby creating the necessary prerequisites for the development of common strategic planning objectives. The approved plans provide for the General objectives of the organization, its place in the regional market, organizational management structure, personnel policy, production strategy, selection of new products, General sales policy, financial results, policy of acquisitions or acquisitions, the volume of investments.

In addition to the General scheme, in the practice of forming strategies in American firms, the following features can be identified, which, in our opinion, should be taken into account at Russian enterprises.

• 1.    Plans usually contain only one strategy for upcoming actions. Programmes that provide options in the event of a change in the original strategy are not usually included in the plan.

• 2.    The plans assess all the strengths and weaknesses of the enterprise in the analysis of opportunities or dangerous events in the environment.

• 3.    Plans include forecasts and assumptions that are not typically developed in detail.

• 4.    In most plans, risk assessment is also not carried out, and risk is taken into account when considering various options.

• 5.    All plans are based on the expected goals, which reflect the most important indicators of the financial performance of the enterprise.

• 6.    The long-term plans reflect data on required investments, expected income and expenses, dividends paid in the long-term period.

• 7.    The plans assesses the diversification that occurs as a result of possible mergers and acquisitions of the organization.

Thus, the long-term plan mainly reflects the overall strategy of the enterprise and describes the model of the future from the perspective of a very broad approach. The so-called model-7C characterizing the mechanism of interaction of such important social and economic factors as structure, system, employees, style, joint values and set of abilities can now be taken as a single strategy of development of the enterprise.

All these factors are closely intertwined and have a complex impact on the specific planning and management results of the organization. The given model defines the variation of strategic development of the enterprise not only as a process of creating formal schemes and systems of indicators, but also as a mechanism of creative interaction and mutual agreement between personnel of all categories [19].

Therefore, the main objective of the strategy is to justify the most important goals and to develop the right action plan for long-term development.

In modern planning theory, it is customary to distinguish eight main areas of activity, within the boundaries of which each enterprise determines its main goals. These are the position of the organization in the market, innovative activity, level of productivity, availability of production resources, degree of stability, management system, professionalism of personnel and social responsibility. As evidenced by the best domestic practice, the most significant in the market conditions are the financial objectives that determine the state of solvency and economic stability of enterprises.

Sources used

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