Main stages of strategic management. Self-test questions Determining the mission and goals of the company

Strategic management can be viewed as a dynamic set of five interrelated stages of management processes. These processes logically follow (or follow) one from the other. This is an important feature of the strategic management system.

1.2.1 Analysis of the external and internal environment of the organization

In order to determine the organization's behavior strategy and implement this strategy, management must have an in-depth understanding of both the internal environment of the organization, its potential and development trends, and the external environment, its development trends and the place occupied by the organization in it. At the same time, both the internal environment and the external environment are studied by strategic management primarily in order to reveal those threats and opportunities that the organization must take into account when defining its goals and achieving them.

The internal environment has several sections, each of which includes a set of key processes and elements of the organization, the state of which together determines the potential and capabilities that the organization has. The personnel profile of the internal environment covers such processes as: interaction between managers and workers; hiring, training and promotion of personnel; assessment of labor results and incentives; creating and maintaining relationships between employees, etc. The organizational cross-section includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; hierarchy of subordination. The production section includes product manufacturing, supply and warehousing; technological park maintenance; carrying out research and development. The marketing cross-section of the internal environment of an organization covers all those processes that are associated with the sale of products. This is the product strategy, the pricing strategy; product promotion strategy on the market; selection of sales markets and distribution systems. The financial section includes processes related to ensuring the effective use and flow of funds in the organization. In particular, this is maintaining liquidity and ensuring profitability, creating investment opportunities, etc.

Being open systems, organizations are highly dependent on changes in the external environment. Due to the rapid increase in the turbulence of the environment, the nature of the interaction of enterprises with it is becoming more chaotic, and the consequences are becoming more and more significant.

The external environment in strategic management is considered as a combination of two relatively independent subsystems: the macroenvironment and the immediate environment.

The macroenvironment creates the general conditions of the organization's environment. In most cases, the macroenvironment is not specific to an individual organization. However, the degree of influence of the state of the macroenvironment on different organizations varies. This is due both to differences in the areas of activity of organizations and to differences in the internal potential of organizations.

A macro-environmental analysis system gives the desired effect if it is supported by top management and provides it with the necessary information, if it is closely linked to the planning system in the organization and, finally, if the work of analysts working in this system is combined with the work of strategic specialists who able to trace the connection between data on the state of the macroenvironment and the strategic objectives of the organization and evaluate this information from the point of view of threats and additional opportunities for implementing the organization's strategy.

The study of the immediate environment of an organization is aimed at analyzing the state of those components of the external environment with which the organization is in direct interaction.

At the same time, it is important to emphasize that an organization can have a significant influence on the nature and content of this interaction, thereby it can actively participate in the formation of additional opportunities and in preventing the emergence of threats to its further existence.

1.2.2 Defining the mission and goals of the company

In the most general and at the same time in the most in-depth understanding, the role of the organization’s mission is that it establishes a connection, orients in a single direction the interests and expectations of those people who perceive the organization from the inside, and those who perceive the organization from the outside. Moreover, the mission allows you to orient or even subordinate the interests of people “internal” in relation to the organization to the interests of “external” people. By defining what the organization was created and exists for, the mission gives people's actions meaning and purposefulness, allowing them to better see and understand not only what they should do, but also why they carry out their actions. There is a broad and narrow understanding of mission.

In a broad sense, mission is the philosophy and purpose, the meaning of existence of an organization.

An organization's philosophy defines the values, beliefs and principles by which the organization intends to conduct its activities. Purpose defines the activities that an organization intends to carry out and what type of organization it intends to be. The philosophy of an organization rarely changes. As for the second part of the mission, it may vary depending on the depth of possible changes in the organization and in the environment of its functioning.

In a narrow sense, a mission is a formulated statement regarding what or for what reason an organization exists, i.e. mission is understood as a statement that reveals the meaning of the organization’s existence, in which the difference between this organization and similar ones is manifested.

Depending on the specifics of the industry, the characteristics of the state of the environment, the nature and content of the mission, each organization sets its own goals, specific both in terms of a set of parameters of the organization, the desired state of which acts as the goals of the organization, and in the quantitative assessment of these parameters. However, despite the situational nature of fixing a set of goals, there are four areas in which organizations set their goals:

1) income of the organization;

2) work with clients;

3) the needs and welfare of employees;

4) social responsibility.

A properly organized goal setting process involves going through four phases:

Ш identification and analysis of those trends that are observed in the environment;

Ш setting goals for the organization as a whole;

Ш construction of a hierarchy of goals;

Ш setting individual goals.

First phase. The influence of the environment affects not only the establishment of the organization's mission. Goals are also very dependent on the state of the environment. Previously, when the issue of goal requirements was discussed, it was said that they should be flexible so that they can be changed in accordance with changes occurring in the environment. However, one should not conclude from this that goals should be tied to the state of the environment only through constant adjustment and adaptation to changes. Management must strive to anticipate the state of the environment and set goals in accordance with this anticipation. That is why it is very important to identify trends characteristic of the development processes of the economy, social and political spheres, science and technology. Of course, it is impossible to foresee everything correctly.

Moreover, sometimes changes may occur in the environment that do not in any way follow from the revealed trends. Therefore, managers must be prepared to respond to unexpected challenges that the environment may throw at them. But, nevertheless, without absoluteizing trends, they must formulate goals in such a way that these trends are reflected in them.

Second phase. When setting goals for the organization as a whole, it is important to determine which of the wide range of possible characteristics of the organization's activities should be taken as the goals of the organization. Next, certain tools for quantitative calculation of the size of goals are selected. The system of criteria used to determine the goals of the organization is important. Typically, these criteria are derived from the organization's mission, as well as from the results of an analysis of the macroenvironment, industry, competitors and the organization's position in the environment. When determining the organization's goals, it takes into account what goals it had at the previous stage and how much the achievement of these goals contributed to the fulfillment of the organization's mission. Finally, the decision on goals always depends on the resources that the organization has.

Third phase. Establishing a hierarchy of goals involves defining such goals for all levels of the organization, the achievement of which by individual units will lead to the achievement of overall organizational goals. At the same time, the hierarchy should be built according to both long-term goals and short-term ones. The process of decomposing the goals of the upper level into the goals of the lower levels, or the process of reducing the goals of the lower levels into the goals of the higher levels, involves the construction of a tree of goals, in which, depending on the established subordination of goals, a clear relationship between the goal and the means is fixed. This dependence determines which goals in practice act as means to achieve other goals.

Fourth phase. In order for the hierarchy of goals within the organization to acquire its logical completeness and become a truly effective tool in achieving the goals of the organization, it must be brought to the level of the individual employee. In this case, one of the most important conditions for the successful operation of the organization is achieved: each employee, through his personal goals, is included in the process of jointly achieving the ultimate goals of the organization. Employees of the organization in such a situation get an idea not only of what they have to achieve, but also of how the results of their work will affect the final results of the organization’s functioning, how and to what extent their work will contribute to achieving the organization’s goals.

1.2.3 Strategy development

Developing a strategy is a long and labor-intensive process. To develop a strategy, you may need more detailed information both about the external environment (markets, competitors, suppliers, etc.) and about the company (products, company business processes, management, resources, etc.). Unfortunately, today there is no universal set of techniques that would guarantee a company obtaining information of the required quality and in the required volume to develop an effective strategy. It is necessary to understand that conducting an analysis is not an end in itself - its end result is draft decisions. Therefore, company management should do the following: select several (the fewer the better) strategic analysis methods and begin to apply them in practice, and do this regularly. The main thing is, without getting carried away by excessive analysis, move on to the stage of developing a strategy and bring it to some more or less acceptable option.

Strategy development is a market- and customer-oriented creative activity that requires skills such as the ability to exploit market opportunities and customer needs, an eye for promising innovations, a willingness to take reasonable risks, and an intuitive understanding of what it takes to grow and strengthen the business.

The following stages are distinguished in developing a strategy:

1. Analysis of the current situation

2. Strategy formulation

3. Selection of development strategy

4. Strategy implementation

Analysis of the current situation consists of an analysis of the external environment, which includes the influence of factors on the organization, such as competitors, consumers, suppliers, demographic factors, economic factors, socio-cultural factors and an analysis of the company’s internal resources, such as markets and sales, financing, production , operations and technical aspects, personnel. Internal resource analysis provides the organization with ideas for future strategy, matching its advantages to favorable environmental opportunities in the future. Various strategic analysis techniques are used. The most common methods include: SWOT analysis, analysis of the company’s product portfolio (BCG matrix or McKinsey matrix), etc. In accordance with these methods, all the company’s businesses are positioned in the coordinates of “market attractiveness” and “competitive status of the company in this market.”

The next stage in strategy development is strategy formulation. The strategy formation process consists of three stages:

1) formation of the overall strategy of the organization;

2) formation of a competitive (business) strategy;

3) determination of the company's functional strategies.

The overall strategy of the organization is formed by top management. Developing a general strategy solves two main problems:

The main elements of the company's overall strategy must be selected and deployed;

It is necessary to establish the specific role of each of the company's divisions in implementing the strategy and determine ways to distribute resources between them.

Among the general development strategies of a company, there are: strategies of stability, growth, and reduction.

Stability strategy - focusing on existing business areas and supporting them. Typically used by large firms that dominate the market. A concrete expression of this strategy may be the firm's efforts to avoid government (state) control and/or penalties for monopolization (a modus operandi characteristic of Russian monopoly firms).

Growth strategy - increasing the size of the organization, often through penetrating and capturing new markets.

Type of growth strategy:

Ш vertical integration;

Ш horizontal integration.

The growth strategy is carried out in three ways:

1) takeover of competing firms through acquisition (acquisition of a controlling stake);

2) merger - association on an approximately equal basis within a single organization;

3) joint venture - an association of organizations from different countries to implement a joint project if it turns out to be beyond the capabilities of one of the parties. For example, joint ventures between Russia and other countries in the framework of space exploration - on the Russian side there is a wealth of scientific potential, but there is a lack of financial resources.

The downsizing strategy is used when the survival of the organization is at risk. Its varieties are the following:

Turnaround strategy - used if the organization is operating ineffectively, but has not yet reached its critical point. It means abandoning the production of unprofitable products, excess labor, poorly functioning distribution channels and further searching for effective ways to use resources. Once the turnaround strategy has yielded positive results, you can then focus on the growth strategy.

Separation strategy - if a company includes several types of businesses and one of them is performing poorly, it is abandoned - the sale of this business unit or its transformation into a separately operating company.

Liquidation strategy - if a critical point is reached - bankruptcy - the organization is destroyed and its assets are sold. The most undesirable of the reduction strategies: creates inconvenience and losses for both the owners (shareholders) and the employees of the company.

Sometimes the general strategy of an organization is called a portfolio strategy, since it determines the level and nature of the organization’s investments, establishes the size of capital investments in each of its units, that is, it forms a certain composition and structure of the organization’s investment portfolio.

An organization's business (competitive) strategy is aimed at achieving competitive advantages. If a firm is engaged in only one type of business, the business strategy is part of the overall strategy of the firm. If an organization includes several business units (strategic divisions), each of them develops its own target strategy. Options for business strategies are described in the previous paragraph.

Functional strategies are developed specifically for each functional area of the organization. They include the following elements.

An R&D strategy that summarizes the main ideas about a new product - from its initial development to implementation on the market and has two varieties: an innovation strategy and an imitation strategy. Innovation strategies, that is, strategies for developing fundamentally new products and services, are costly and very risky: on average, only one out of seven innovations has market success, the remaining six turn into unrecoverable costs for the company. Therefore, imitation strategies are more popular and are widely used even in modern high-tech industries, such as the computer industry.

Production strategy focuses on decisions about the required capacity, the placement of industrial equipment, the main elements of the production process, and the regulation of orders. The two most important aspects of a manufacturing strategy are:

Ш cost control;

Ш increasing the efficiency of production operations.

Marketing strategy is about identifying suitable products, services and the markets to which they can be offered. Determines the most effective composition of the marketing mix (market research, product and pricing policy, distribution channels and sales promotion).

Financial strategy is responsible for forecasting the financial indicators of the strategic plan, evaluating investment projects, planning future sales, distributing and controlling financial resources.

1.2.4 Choice of strategies

The choice of strategy is carried out by management based on an analysis of key factors characterizing the state of the company, taking into account the results of an analysis of the product portfolio, as well as the nature and essence of the strategies being implemented.

The main key factors that must first be taken into account when choosing a strategy are the following:

Industry strengths and firm strengths can often play a decisive role in determining a firm's growth strategy. Leading, strong firms must strive to maximize the opportunities generated by their leadership position and to strengthen this position. At the same time, it is important to look for opportunities to expand business in industries that are new to the company and have great potential for growth. Leading firms, depending on the state of the industry, must choose different growth strategies. So, for example, if an industry is declining, then one should rely on diversification strategies, but if the industry is rapidly developing, then the choice of growth strategy should fall on a concentrated growth strategy or an integrated growth strategy.

Weak firms must behave differently. They should choose those strategies that can lead to an increase in their power. If there are no such strategies, then they should leave this industry. For example, if attempts to become stronger in a fast-growing industry through concentrated growth strategies do not lead to the desired state, the firm must implement one of the downsizing strategies.

The company's goals give uniqueness and originality to the choice of strategy in relation to each specific company. The goals reflect what the company strives for. If, for example, the goals do not imply intensive growth of the company, then appropriate growth strategies cannot be selected, even though there are prerequisites for this both in the market, in the industry, and in the company’s potential.

The interests and attitudes of top management play a very important role in choosing a company's development strategy. Management may like to take risks, or, on the contrary, may strive to avoid risk by any means, and this attitude may be decisive in choosing a development strategy. Personal likes or dislikes on the part of managers can also greatly influence the choice of strategy.

The firm's financial resources also have a significant impact on the choice of strategy. Any changes in the behavior of the company, such as entering new markets, developing a new project and moving into a new industry, require large financial costs.

The qualifications of employees, as well as financial resources, are a strong limiting factor when choosing a company's development strategy. Without sufficiently complete information about the qualification potential, management cannot make the right choice of company strategy.

The company's commitments to previous strategies create some inertia in the company's development. It is not possible to completely abandon all previous commitments in connection with the transition to new strategies. Therefore, when choosing new strategies, it is necessary to take into account the fact that for some time the obligations of previous years will remain in force, which, accordingly, will restrain or adjust the possibilities for implementing new strategies.

The degree of dependence on the external environment has a significant impact on the choice of company strategy. There are situations when a company is so dependent on suppliers or buyers of its products that it is not free to make a choice of strategy based on the possibilities of more fully using its potential. Strong external dependence can also be due to legal regulation of a company’s behavior, for example, antitrust laws, social restrictions, dependence on the natural environment, dependence on political factors, etc.

The time factor must be taken into account in all cases of choosing a strategy. This is due to the fact that both opportunities and threats to the company, and planned changes always have certain time limits. In this case, it is important to take into account both calendar time and the time duration of intervals for the implementation of specific actions to implement the strategy. A company cannot implement a strategy at any time and not on a timesheet, but only at those moments and at those times in which the opportunity arises to implement the strategy.

1.2.5 Strategy implementation and corrective actions

The strategy is implemented through the development of programs, budgets and procedures, which can be considered as medium- and short-term plans for the implementation of the strategy. In the process of implementing the strategy, each level of management solves its own specific tasks and carries out the functions assigned to it. Top management has a decisive role. Its activities at the strategy implementation stage can be presented in the form of five successive stages.

First stage: in-depth study of the state of the environment, goals and developed strategies. At this stage, the following main tasks are solved:

Ш clarification of the essence of the put forward goals developed by the strategy, their correctness and compliance with each other, as well as with the state of the environment;

Ш bringing the ideas of the strategic plan and the meaning of the goals to the employees of the enterprise in order to prepare conditions for their involvement in the process of implementing strategies.

Second stage: development of a set of solutions for the efficient use of the resources available to the enterprise. At this stage, resources are assessed, allocated and aligned with the strategies being implemented. For this purpose, special programs are drawn up, the implementation of which should contribute to the development of resources. For example, these could be employee training programs.

At the third stage, senior management makes decisions to make changes to the current organizational structure.

The fourth stage consists of carrying out those necessary changes in the enterprise, without which it is impossible to begin implementing the strategy. To do this, a scenario of possible resistance to change is drawn up, measures are developed to eliminate or reduce to a minimum real resistance and consolidate the changes carried out.

Fifth stage: adjustment of the strategic plan if new circumstances urgently require it.

The results of the strategy implementation are assessed, and with the help of a feedback system, the organization’s activities are monitored, during which adjustments to previous stages can occur.

Thus, having considered the theoretical foundations of strategic development. Based on the methodology for conducting the internal and external environment of the company, using the SWOT analysis methodology, portfolio analysis methods, which is based on the construction of the BCG matrix, as well as as a result of calculating competitiveness indicators, a strategic development plan for a specific organization will be developed.

The strategic management process is a set of sequential actions aimed at achieving the goals set for the organization in a dynamic, changing and uncertain environment, allowing for optimal use of existing potential and remaining responsive to external requirements.

Main stages of strategic management:

Environmental analysis;

Defining the mission and goals of the organization;

Formation and choice of strategy;

Strategy implementation;

Evaluation and control of strategy implementation.

The model of the strategic management process is presented in the diagram (Fig. 1.1).

Rice. 1.1. Strategic Management Process

Environmental analysis is the initial process in strategic management, as it creates the basis for determining the mission and goals of the organization and developing a strategy for its development.

The internal environment of the organization is analyzed in the following areas: marketing, finance and accounting, production, personnel, management organization.

When analyzing the external environment, economic, political, social, international factors, as well as competitive factors, are examined. In this case, the external environment is divided into two components: immediate (direct impact environment) and macroenvironment (indirect impact environment).

The purpose of strategic analysis is to identify threats and opportunities in the external environment, as well as the strengths and weaknesses of the organization (this is the so-called SWOT analysis).

The process of defining mission and goals consists of three sub-processes:

Formulating the mission of the organization, which in concrete form expresses the meaning of its existence;

Defining long-term goals;

Definition of medium-term goals.

The formulation and choice of strategy involves the formation of alternative directions for the development of the organization, their assessment and selection of the best strategic alternative for implementation. In this case, special tools are used, including quantitative forecasting methods, development of future development scenarios, and portfolio analysis.

The implementation of strategy is a critical process, since it is the process that, if successfully implemented, leads the enterprise to achieve its goals. The strategy is implemented through the development of programs, budgets and procedures, which can be considered as medium- and short-term plans for the implementation of the strategy. The main components of successful strategy implementation:

The goals of the strategy and plans are communicated to employees in order to achieve on their part an understanding of what the organization is striving for and to involve them in the process of implementing the strategy;

Management promptly ensures the receipt of all resources necessary for the implementation of the strategy, forms a plan for implementing the strategy in the form of targets;

In the process of implementing the strategy, each level of management solves its own problems and carries out the functions assigned to it.

The results of the strategy implementation are assessed, and with the help of a feedback system, the organization’s activities are monitored, during which adjustments to previous stages can occur.

As can be seen from the diagram, the strategy development process is iterative (cyclical). Thus, the definition and selection of a strategy can occur at the stage of analysis of the external environment, and the assessment of the strategy will require additional external analysis. In addition, changes in strategy lead to the need to monitor and annually adjust strategic decisions and plans.

Also, the strategic management process includes five main components that form the following chain of perspective-targeted decisions.

Vision ® Business Area ® Mission ® Strategies ® Programs and Plans

A vision is an image of the possible and desired future state of an enterprise. It allows the entrepreneur to decide on the type of activity and the position he would like to occupy in the market.

A business area is a type of activity associated with a specific economic unit, program, etc. Defining a business involves assessing its prospects and understanding its specific place and capabilities in relation to competitors. Issues of identifying a business in a competitive environment are reflected in the mission statement of the organization.

The mission, or socially significant role of an enterprise, is a qualitatively expressed set of main business goals.

In other words, the mission is a set of target areas of the business. Within each direction, a system of goals can be identified that are achieved through the implementation of the strategy.

Strategy is an integrated model of actions designed to achieve the goals of the enterprise. The content of a strategy is a set of decision-making rules used to determine the main directions of activity. The tools for implementing the strategy are programs and plans that are designed to solve the problems of distributing resources, powers and responsibilities among departments (employees) involved in the implementation of the strategy; development of operational plans and programs.

More on the topic Stages of the strategic management process:

The vision of the organization and its role in strategic management
Popova, I.V.. STRATEGIC MANAGEMENT. BASIC COURSE [Text]: textbook / I.V. Popova; Vladivostok State University of Economics and Service. - Vladivostok: Publishing house VGUES, 2015. - 184 p., 2015

Strategic Management Process- is a set of consistent actions aimed at achieving the goals of the organization, allowing optimal use of existing potential and flexible response to the conditions of a dynamic, uncertain external environment.

Currently, there are five main stages of strategic management:

1. Determining the scope of activity and formulating the mission of the organization.

2. Setting long-term and short-term goals for the organization’s activities based on the mission.

3. Development of a strategy for achieving the goals of the organization.

4. Implementation of the organization's strategy.

5. Monitoring the implementation of the strategy, assessing its effectiveness based on the results of the organization’s activities and introducing corrective actions.

The relationship between the stages of strategic management is shown in Fig. 4.1.

Rice. 4.1. Strategic Management Process

The strategic management process begins with defining the scope of the organization and formulating its mission. Next, strategic goals are set at management levels in the organization.

The strategy development stage consists of three sub-stages:

− first substage - analysis of the external environment;

− second substage - analysis of the internal environment;

− third substage - formation of strategic alternatives and selection of the most acceptable option.

The implementation of the strategy goes through five stages:

− comparison of the chosen strategy and the organization’s environment;

− determining the level of change required to implement the strategy;

− adaptation of the organization’s environment to the strategy;

− choosing an approach to implement the strategy;

− implementation of strategy measures.

The effectiveness of the strategy implementation is assessed at the control stage, and if necessary, changes are made to the previous stages.

Since the conditions of modern business are extremely dynamic, this process is continuous and represents a constantly recurring cycle with intense feedback loops, which are depicted in Fig. 4.1 with dotted lines.

Strategic decisions are never final and are subject to constant adaptation to ongoing changes. But this does not mean that the strategy should be revised almost daily. Such a situation would be a sure sign of poor management quality and, moreover, unsafe, as it would inevitably cause organizational disorder, staff disorientation and other negative factors.

However strategy sustainability is relative: managers do not have the right to ignore unforeseen events, new opportunities, unexpected threats, and other fundamental changes. In addition, managers do not have the right to avoid urgent adjustments, nor to limit strategic decision-making to formal planning regulations.

When considering the strategic management process, it is necessary to take into account that the boundaries between the stages are quite arbitrary and what is most significant is not the separation of stages and formal sequence, but their integration and interconnections.

For example, setting specific strategic objectives certainly benefits from certainty about the business outlook. On the other hand, goal setting and choice of strategy, in turn, stimulate the further development of conceptual ideas about the organization’s place in business, the main directions of its activities, fundamental guidelines, standards of behavior, etc. Practical experience in implementing a strategic plan can radically change all components of the plan (and the overall concept, and the intended goals, and the chosen strategies).

It should be noted that the relative importance of the stages varies depending on the specific organizational situation: the creation of a business or its stable development. For example, an organization that is still looking for or seriously updating its strategy may require intensive repeated repetition of the first three phases to obtain an acceptable result, while for an organization “drifting in the mainstream” of an established strategic plan, the search for rational methods of its implementation and ongoing adjustments.

The above-mentioned features of the stages of the strategic management process have led to the fact that different points of view on the content of the stages have arisen in the literature, each of which has the right to exist, however, it should be remembered that in order for strategic management to be effective, it is necessary not only to know the essence of each of them stage, but also remember their close relationship and interdependence.

So, at the first stage of strategic management, first of all, it is necessary to determine the scope of the organization’s activities.

This implies:

– determination of the need being satisfied;

– identification of consumers;

– determining how to meet the needs of specific consumers.

In other words, in order to determine the scope of activity, it is necessary to answer the questions: What? For whom? How do we produce?

A modern organization, on the one hand, has freedom in choosing the directions of its economic activities and their relationship. On the other hand, certain restrictions are possible. One of the most obvious patterns in choosing the directions of their economic activities, for example for large companies, is the wide diversification of activities.

Initially, an industrial enterprise had a simple and very clear profile: metallurgical companies belong to the metallurgy industry, automobile companies belong to the automotive industry, etc. Already in the second half of the twentieth century, most of the largest corporations in the world were diversified companies. Russian companies also have similar trends today.

An important step in determining the direction of an organization is the formulation of its social purpose or mission.

Mission of the organization - this is the verbally expressed main socially significant functional purpose of the organization in the long term (in addition to making a profit).

Literally, this term means “a responsible task, role,” that is, a business philosophy.

1) satisfied needs;

2) product characteristics;

3) main consumers;

4) sales markets;

5) scale of activity,

6) technology;

7) the culture of the organization;

8) competitive advantages;

9) business growth prospects.

At the same time, the mission focuses attention on the consumer, and not on the product, since the mission (philosophy) of a business is most often determined taking into account consumer interests, needs and requests that are satisfied by the business. Therefore, defining a mission is closely related to marketing and involves answering the question: “How can a company benefit consumers while achieving greater success in the market?”

When formulating a mission, it is necessary to keep in mind that it has broad and narrow content.

Broad interpretation of the mission allows you to reveal all the advantages of the organization, but it is too long and difficult to understand.

In a narrow sense, the mission viewed as a formulated statement as to why the organization exists. In this case, the mission statement should be a bright, concise, dynamic design, easy to understand (often this is a slogan).

An analysis of Russian reality shows that managers of many enterprises also strive to determine the mission of their business.

For example, the Chelyabinsk bakery “Mary” has the following mission: “Bread for the people at any time of the year”; the well-known slogan-mission of one of the cellular operators: “TELE2 - always cheaper”; Inkombank's mission: “We save your time and money.”

Oneximbank: “Not subject to the elements”; Sukhoi Aviation Complex: “We strive to produce competitive and high-quality military and civil aircraft that allow us to meet the modern needs of the global market and the demands of domestic government orders.”

Here are examples of mission statements of foreign companies:

Xerox's mission statement perfectly demonstrates the prospects for business growth: “From copiers to the office of the future.”

In the mid-70s, Polaroid defined its mission as: “Developing and promoting fast photography to meet the needs of affluent families for love, friendship, good memories and humor.”

McDonald's did it this way: "Providing hot, delicious food in a clean restaurant at an affordable price."

When analyzing and discussing the prospects for the development of an organization and its strategy, discussions about the mission are of great importance, as they help managers and other employees to obtain a broader panorama of the business, allowing them to look at the organization’s activities from a bird’s eye view, without which long-term competition is unthinkable.

The mission of a business is of great importance for communication within and outside the enterprise (Figure 4.2).

On the one hand, the mission allows the company’s employees to better understand its activities and managers to have long-term guidelines.

Rice. 4.2. The role of the mission in the communication process

In order for the mission to become acceptable to the organization’s personnel and motivate its activities, the following conditions must be met:

1. Create continuity between previous value systems and new ones.

2. Consider the system of changes in training programs, the stages of distributing new instructions.

3. Make changes to the individual attitudes of team members. Moreover, it is very important who will be the first to change attitudes. These should be people who are socially significant for a given team - not necessarily formal leaders. “Pioneers” must have strong internal energy (charisma), capable of attracting at least some of the least inert employees.

4. Changes in individual attitudes must be followed by changes in individual behavior and group behavior. In the new game there can be no observers, only participants.

5. Explain to the team the need for innovation.

On the other hand, the mission helps to communicate information to shareholders, consumers and suppliers, that is, the immediate environment of the company.

This reveals the dual purpose of the mission. Choice
a narrow mission that takes into account only the prospects for the production and sale of goods can limit the development horizon of the organization and lead to missed business opportunities.

So, the mission can be effective only if the following conditions are met:

– implementation of the mission will really help the organization become better;

– it contains the true vision of the future of the organization;

– it is shared by the majority of the organization’s employees.

Affairs are governed by their ends;
That is what is called a great deed whose purpose is great.

A. P. Chekhov

If the mission sets general guidelines, directions for the functioning of the organization, expressing the meaning of its existence, then the specific final states that the organization strives for are fixed in the form of its goals.

Target- this is the desired state of a strategic management object, expressed quantitatively or qualitatively.

Goals are the starting point of planning and form the basis for building organizational relationships. The motivation system used in the organization is based on goals. Finally, goals are the starting point in the process of monitoring and evaluating the performance of individual employees, departments and the organization as a whole.

Correct goal setting in the context of increasing competition becomes of key importance, since if a false goal is formulated (without the necessary justification), losses at the stage of its implementation can be hundreds or even thousands of times greater than the savings obtained earlier.

Goal Setting Process Different organizations have their own characteristics. Some organizations have completely centralized goal setting, while others have a decentralized goal setting scheme. There is also a compromise option for setting goals, which is intermediate between complete centralization and decentralization. Each option has its own advantages and disadvantages, and its own implementation features.

When complete centralization When setting goals, they are all determined by the highest level of management in the organization. With this approach, all goals are subordinated to a single orientation. This is a definite advantage. A significant drawback of this option is that at the lower levels of the organization there may be rejection of the established goals and even resistance to them.

When decentralization In the process of setting goals, lower levels of the organization are also involved along with the top level. There are two schemes for decentralized goal setting. In the first scheme, the goal setting process is top-down. The decomposition of goals occurs as follows: each of the lower levels in the organization determines its goals based on what goals are set for the higher level. The second scheme assumes that the process of goal setting proceeds from the bottom up. In this case, lower levels set goals for themselves, which serve as the basis for setting goals at a subsequent, higher level.

As we can see, there are significant differences between different approaches to goal setting. However, a general requirement for goal setting is that it is necessary to find an effective method for linking goals to each other. An effective mechanism for solving this problem is considered to be the construction of a so-called goal tree (Fig. 4.3).

Rice. 4.3. Goal tree

Goal tree is a graphical representation of the relationships and subordination of the goals and objectives of one or more systems.

In this case, complex and complex long-term goals are divided in accordance with selected criteria into a number of less complex short-term ones, which are also divided into simple goals (subgoals) and tasks. The goal tree allows you to assess the likelihood of achieving both lower and higher goals in accordance with available resources, as well as set the priority of goals.

The goal tree must satisfy two basic requirements: completeness and consistency. The description of each goal should sufficiently fully disclose its content and be unambiguous, i.e., not allow for different interpretations. Each goal should reveal the content of only one higher-level goal. There should be no cycles on the tree of goals, the presence of which means that the goals in the cycle are inconsistent.

1. The tree of goals is built from top to bottom, with the formulation of the main social goal of the organization - the mission.

2. Goals of the same level should not be included in each other, but can only partially overlap. Splitting intersecting goals at lower levels, as a rule, leads to the identification of almost identical smaller goals in their branches.

3. Goals of one level should be fairly homogeneous in their importance, i.e., play almost equal roles in achieving goals of higher levels.

4. Top-level goals, broken down into smaller ones for lower levels of management, must be recoded into the language of the corresponding department with the transformation of concepts and their symbolic designations.

5. The number of mission division levels is determined by the required accuracy of problem solving. However, it is possible to fragment management goals only as long as they remain within the framework of social and economic categories. The objectives of an enterprise, as a rule, have four levels of division.

6. Those at lower levels of goals must be familiar with their entire branch and mission.

The goal tree is mainly intended to connect goals with the means of achieving them (the lowest level actually reveals a set of means to achieve the general goal), to identify the relationships that exist between subgoals and smaller goals of various branches of the tree at each level. When setting goals, it is mandatory to assess their achievability, i.e., develop a strategy for achieving these goals.

All organizational goals can be divided into general long-term (3–5 years or more) and specific short-term (1–2 years).

The term "general long-term goals" means goals that are broad in scale and time, which, as a rule, do not have clearly defined quantitative characteristics.

Examples of long-term goals:

− transport company: “To become the largest and best transport company in the world”;

− General Electric company: “To become the most competitive company in the world and occupy first and second places in all areas of business in which the company operates.”

Short term goals are more specific and involve operational actions in a short period of time (1–2 years), aimed collectively at achieving a long-term goal.

Short-term goals detail the results to be achieved in the near future. They determine both the pace of development of the company and the level of performance indicators planned for the near future.

Short-term goals may coincide with long-term ones when the company is already operating at the level of indicators planned for the long term. For example, if a company has set itself a goal of continuously increasing profits by 15% annually and has currently achieved this goal, the company's long-term and short-term goals are the same.

More important is the situation when short-term goals differ from long-term goals. This occurs when managers are trying to improve the company's performance and cannot achieve long-term targets in just one year. Here, short-term goals serve as stepping stones towards achieving the final goal.

When formulating goals at any level, it is necessary to remember that they must have a number of characteristics, which together are called SMART characteristic.

SMART is an acronym for the following five words and concepts:

− Specific- specificity, so that there is no room for their incorrect or multiple interpretations.

− Measurable- measurability, that is, everything must be expressed quantitatively, and even primarily subjective expectations, with a fixation of what the result could be if the goal is achieved.

− Achievable- reachability. Goals must be flexible and have room for adjustment in connection with unforeseen changes in the external environment and internal capabilities of the enterprise. This ensures the feasibility of goals.

− Related- correlation: with the strategy, economic goals of the organization, interests of the performer, i.e. actions and decisions aimed at achieving one goal should not contradict the achievement of another.

− Time-bound- limited time frame for achievement.

Stands out eightkey areas, within which each organization defines its goals:

1. Market position. Market goals may be to gain leadership in a certain market segment or increase market share.

2. Innovation. Targets in this area are associated with identifying new ways of doing business: organizing the production of new goods, developing new markets, using new technologies or methods of organizing production.

3. Performance. A more efficient enterprise is one that spends fewer economic resources on producing a certain amount of product. Indicators of labor productivity and resource saving are important for any enterprise.

4. Resources. The need for all types of resources is determined. The current level is compared with the required level, and goals are put forward regarding the expansion or reduction of the resource base, ensuring its stability.

5. Profitability. This group of goals can be expressed quantitatively. For example, to achieve a certain level of profit or profitability.

6. Management aspects. It is possible to ensure profit in the long term only through the organization of effective management, the absence of which, according to many experts, hinders the development of Russian enterprises.

7. Staff. Goals regarding personnel may be related to maintaining jobs, ensuring an acceptable level of remuneration, improving working conditions and motivation, improving skills, etc.

8. Social responsibility. Includes the development of measures to create a favorable image of the company, concern for not causing damage to the environment, and ensuring good working conditions for the organization’s employees.

The diversity of goals is explained by the fact that any enterprise, any economic system is multi-purpose. And the difficulty lies in determining priorities.

The Importance of Setting Goals is due to the fact that they:

− are the foundation for the management process as a whole;

− form the basis of any management decision;

− are the starting point for planning;

− form the basis for building organizational relationships;

− determine the motivation system used in the organization;

− allow you to monitor and evaluate the results of the work of individual employees, departments and the organization as a whole;

− determine ways to increase the efficiency of the organization.

Correct goal setting allows you to solve the following management tasks:

− transform the mission into achievable goals;

− select criteria for establishing the way to achieve goals;

− set realistically achievable goals that require a certain amount of time;

− to make the company’s activities more proactive and focused.

However, when achieving goals, one should beware of self-confidence, passivity, disorder and formalism.

Thus, L. Seivert argued: “Without a goal, every result of labor is equally true and false.” Therefore, choosing the direction of activity, defining the organization's mission and setting goals are priorities in the strategic management process. The next step will be to develop a strategy, which is a way to achieve your goals.

1. Formulate a definition of the concept of “strategic management process”.

2. Why is strategic management presented as a process? Describe its stages.

3. What is the relationship between the stages of strategic management?

4. How often should management review its chosen strategy?

5. Why are there different points of view in the literature on the content of the stages of strategic management?

6. What is the essence of the concept of “organizational mission”?

7. Give examples of diversified foreign and Russian companies. What are their missions?

8. Describe the goals of the organization, what are the requirements for their formulation? How are short-term goals different from long-term goals?

9. What is the essence of the method of constructing a “goal tree”? Name the basic rules for its construction.

Components of strategic management.

Strategic enterprise management includes five main components that form the following chain of long-term and targeted decisions (Fig. 2).

1.Vision is an image of the possible and desired future state of the enterprise.

2. Business area - type of activity associated with a specific business unit, program, etc. Defining a business involves assessing its prospects and understanding your specific place and capabilities in it.

3. The mission, or socially significant role, of an enterprise is a qualitatively expressed set of main business goals.

4. Strategy - an integrated model of actions designed to achieve the goals of the enterprise. The content of a strategy is a set of decision-making rules used to determine the main directions of activity.

Rice. 2. Chain of long-term and targeted decisions in enterprise development management

5. Programs and plans are a system of measures to implement the strategy adopted by the enterprise, designed to solve the problems of distributing resources, powers and responsibilities among departments (employees) involved in the implementation of the strategy; development of operational plans and programs.

Stages of strategic management. Main stages of strategic management:

Environmental analysis;

Defining the mission and goals of the organization;

Formation and choice of strategy;

Strategy implementation;

Evaluation and control of strategy implementation.

Environmental analysis is the initial process in strategic management, as it creates the basis for determining the mission and goals of the organization and developing a strategy for its development. The internal environment of the organization is analyzed in the following areas: marketing, finance and accounting, production, personnel, management organization. When analyzing the external environment, economic, political, social, international factors, as well as competitive factors, are examined. In this case, the external environment is divided into two components: the immediate environment (direct impact environment) and the macroenvironment (indirect impact environment). The purpose of strategic analysis is to identify threats and opportunities in the external environment, as well as the strengths and weaknesses of the organization (this is the so-called SWOT analysis).

The process of defining mission and goals consists of three sub-processes:

Formulating the mission of the organization, which in concrete form expresses the meaning of its existence;

Defining long-term goals;

Definition of medium-term goals.

Management promptly ensures the receipt of all resources necessary for the implementation of the strategy, forms a plan for implementing the strategy in the form of targets;

In the process of implementing the strategy, each level of management solves its own problems and carries out the functions assigned to it.

The results of the strategy implementation are assessed, and with the help of a feedback system, the organization’s activities are monitored, during which adjustments to previous stages can occur.

The sequence of interrelated work on strategic analysis, selection and implementation of strategy constitutes the process of strategic management (Fig. 3). As can be seen from the diagram, the strategy development process is iterative (cyclical). Thus, the definition and selection of a strategy can occur at the stage of analysis of the external environment, and the assessment of the strategy will require additional external analysis. In addition, changes in strategy lead to the need to monitor and annually adjust strategic decisions and plans.

Distinctive feature	Operational management	Strategic management
Main purpose of the organization	Production of goods and services	Long term survival
Way to achieve the goal	Efficient use of internal resources	Search for new opportunities in competition, adaptation to external changes
The importance of the time factor	Focus on the short and medium term	Long-term focus
Role of staff	An employee is one of the organization’s resources, a performer of work	The employee is the basis of the organization, the source of its well-being
Performance criteria	Profitability and rational use of production potential	Flexibility and willingness to change

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