Aaker D. Strategic market management - file n1.doc

In a market economy, the role of the “regulator” of production, distribution and consumption is played by the market itself. Its main principle - principle economic freedom, according to which subjects of a market economy, being the owners of factors of production, independently make decisions about what, how, how much and for whom to produce. The market system of economic relations is based on free exchange between sellers and buyers. No one is forcing them to make deals. Business entities exist in a competitive environment, in which they can survive only by winning a buyer for their goods and services. Activity in a market economy is associated with risk and responsibility: sellers and buyers spend their own money and risk it. The highest measure of responsibility for one's own economic decisions is the possible loss of property. Since firms planned tasks do not receive, management in these conditions solves the following problems:

Focus on demand and market conditions;

Production of those types of goods that are in great demand among buyers and guarantee the expected profit;

Ensuring operational efficiency. Let us consider in general terms the concept of “efficiency* -

the most important concept in economics. It comes from the word “effect*.” In economics, an effect means a specific positive result of an activity. This could be an increase in profit, or the amount of money saved, or a reduction in the duration of the production process due to new technology.

If the magnitude of the effect is compared with the costs that caused this effect, we obtain the efficiency formula:

Efficiency = effect / costs

Effective management of a company should lead to the efficiency of the company and individual aspects of its activities.

All of the above does not mean that the state does not interfere in the economic life of society. The modern market economy is regulated by the state, which applies different methods impact on her. Such methods include financial policy, control over monopolies, assistance to entrepreneurship. There are a certain number of enterprises in the public sector, and the state itself is involved in business. An economy in which the market is regulated is called mixed. But even in a mixed economy, the principle of economic freedom remains unshakable, meaning that the economic entity is free, focuses on the needs and demands of the market and is responsible for the results of its decisions and actions. Management activities in market conditions are called management. We will get acquainted with it in subsequent sections.

1.3. What is management?

Today everyone knows the word “management”, because in a short time it has firmly entered the vocabulary of the Russian language. Translated from English, this word (management) sounds like “management”. Many of those who used to be involved in manufacturing now declare themselves management specialists.

When Americans or Europeans talk about management, they mean a manager - a person, a subject of management, who operates in market structures. We are talking about those organizations that are engaged in business. Business is aimed at making a profit by creating and selling certain products and services. This means that business management is the management of commercial activities, business corporations. But a businessman and a manager are not the same thing. A businessman is a person who “makes money”, the owner of capital that is in circulation and generates income. A businessman is a business person who has no subordinates, or a major owner who may not hold any permanent position in the corporation, but is the owner of its shares. When people talk about a manager, they usually mean a professional manager who has undergone special training, and not just an engineer, lawyer or economist. The manager holds a permanent position in the corporation.

Managers work at all “echelons” of management, and according to American concepts, the manager’s task includes organizing specific work within the framework of a certain number employees who report to him.

In Western enterprises there are:

Top management, i.e. senior management management (CEO and other board members);

Middle management - middle management (heads of departments and independent departments);

Lover management - lower levels of management (heads of subdepartments and other similar units).

This means that there is leadership at various levels in the government, in the army, and in the church, but the management of business enterprises differs from other types of management in that the purpose of the enterprise, and therefore the task of its management, is the production of goods or the satisfaction of social needs through market.

A comparison should also be made of such concepts as “manager” and “entrepreneur”. An entrepreneur is a person who undertakes something on his own initiative, acting on his own responsibility, at his own peril and risk, relying on his own strength and resources. In this sense, entrepreneurs can be called I.V. Tsvetaev - the creator and first director of the Museum of Fine Arts. A.S. Pushkin in Moscow, Thor Heyerdahl, who undertook the famous voyages on the Kon-Tiki, Ra and Tigris, P.M. Tretyakov, the founder of the Tretyakov Gallery in Moscow, and many other famous people, whose names in our minds are in no way associated with the word “entrepreneurship”. In a narrower sense, entrepreneurship is a special case of business, a type of activity of a person who carries out business, implements innovations, invests his own funds in a new business, taking personal risks.

If a manager gravitates toward a bureaucratic leadership style, then the difference between him and an entrepreneur is very great. These differences become blurred when a manager actively seeks opportunities and takes intentional risks to achieve change and improvement. This management style is entrepreneurial, and the manager himself is entrepreneurial.

Management is a very capacious concept. We defined it as management in market conditions, as a special type of activity in managing a commercial enterprise. This definition of management is widely known - the ability to achieve set goals using labor, intelligence and the motives of behavior of other people. This definition “hidden” the content of this activity. Let's look at this definition.

Skill. To succeed, you need to know how to do it and be able to apply your knowledge in practice. Management has its own tricks. This is nothing more than a set of principles, methods, means and forms of production management with the aim of increasing its efficiency and profitability. This can be learned, management is a science.

Achieve. In management, it is necessary not only to try your best, but to achieve. Until we achieve the desired result, we cannot consider that we have learned to manage.

Set goals. Goals must be chosen and set correctly, otherwise everything previous loses its meaning. Founder of the school of scientific management F.U. Taylor defined goal setting and implementation as the art of knowing exactly what needs to be done and how to do it in the best and cheapest way. The main thing in management is to set goals that meet the interests of the enterprise.

Using labor, intelligence and motives of people's behavior. An enterprise is, first of all, people. Therefore, management is the organization of the work of people, employees. And it should be such that it meets the needs of employees to the maximum extent, intensifies their work and increases the efficiency of their work.

Working with people is always very difficult. After all, everyone has their own psychological characteristics, abilities, and shortcomings, which manifest themselves differently in different specific situations. The manager must own scientific knowledge, which each time in his practical work will receive a new “sound.” The creative application of one's knowledge in different management situations also requires the development of the personal qualities of a manager. All this suggests that management can rightfully be considered not only a science, but also an art.

Since it is managers who manage the organization, management is often identified with managers - a certain category of people. Management also refers to the management apparatus or specific body of a functioning commercial enterprise. Any enterprise has such a body, that is, it has leadership, or management. The management of this enterprise represents it in society; The successes and failures of an enterprise are, first of all, the successes and failures of management.

The concept and essence of strategic market management.

Strategic management- this is the process of making and implementing strategic decisions, the central link of which is strategic choice based on comparison of the enterprise’s own resource potential with opportunities and threats external environment in which it operates

Strategic market management is designed to help business leaders make strategic decisions (and make them quickly) and also formulate a strategic vision.

A strategic decision involves creating, changing, or using a strategy. Unlike tactical decisions, strategic decisions are usually very expensive, both in terms of resources and the time required to change or reverse them.

One of the most important roles of the strategic market management system is to accelerate strategic decision making.

The critical step here is usually recognizing the need for a strategic response. Many strategic miscalculations were made not due to the adoption of erroneous decisions, but because the process of searching for a strategic solution was absent as such.

In addition, the role of strategic market management is not limited to choosing one of several decision options, but involves their preliminary identification (which is the main focus of the analysis).

2. Strategic thinking and its role in modern management.

Strategic thinking is a special type of systems thinking that combines rational and creative components, objective and subjective aspects, is based on certain principles, and integrates a variety of concepts and methods in the complex process of strategic activity.

There are two conflicting positions regarding the nature of strategic thinking.

The first is based on the fact that strategic thinking is one of the advanced forms of analytical reasoning, which requires the consistent and precise use of logic and formal methods.

The second position is based on the fact that the essence of strategic thinking is the ability to break traditional ideas, which requires the use of creative methods and an informal approach (the creative aspect of strategic thinking). Proponents of this approach are convinced: a business strategy without a creative approach is not a strategy, but a plan, a program of action formed on the basis of appropriate analysis.

In fact, what is necessary is a compromise - a constructive integration of both aspects of thinking on a situational basis.

Logic and formalized approaches are necessary to identify a set of elements of the system of interrelations of the problem being solved, to ensure a systematic transition from goals to solution options, justified taking into account the selected criteria.

Creativity and freedom of thought must ensure innovation and breakthrough to new opportunities, taking into account conflicting positions of stakeholders, integrating values and interests, synthesizing all aspects of the problem and foreseeing the consequences of its solution in the future.

What should prevail in strategic thinking - rational or creative - depends on the goals of the organization, its position in the market, and the competitive environment. But without a creative approach in business today it is almost impossible to achieve success. Therefore, the basis of strategic thinking in business is creativity and creative thinking, especially when it comes to start-ups or small businesses looking to grow.

Classification (types) of strategies in modern management

The most significant and frequently used classification characteristics systematization of strategies:

 basic concept of achieving competitive advantage (strategy minimizing costs, strategy differentiation, focusing strategy, strategy innovation, rapid response strategy, synergy strategy);

 level of decision making (corporate, business and functional strategies);

 industry life cycle stage ( company strategies growing, mature and declining industries);

 main characteristics of the product and the scope of its distribution (product marketing strategies, globalization strategy);

 relative strength of industry position companies(strategies of the industry leader and followers, related and unrelated strategies diversification);

 degree of aggressiveness of the company’s behavior in competition (offensive and defensive strategies competition).

3. Most often, strategies are classified into the following large blocks:

 basic strategies;

 competitive strategies;

 industry strategies;

 portfolio strategies;

 functional strategies.

4. Basic strategies include those that describe the most general options for the development of a company: growth strategy, reduction strategy, combined strategy.

5. Competitive strategies include: strategies for achieving competitive advantages; strategies for behavior in a competitive environment. Competitive advantages are understood as unique tangible or intangible assets company or special competence in areas of activity that are important for a given business. Competitive behavior, in turn, reflects behavior in one of the clearly defined positions of the competition field.

6. When considering an industry, it is necessary to determine such indicators as its type (administrative or economic), stage of the life cycle, scale, average costs, key success factors, etc. The actual value of certain industry indicators predetermine this or that industry strategic line.

7. Based on the industry life cycle model (identifying the stages of emergence, growth, maturity and decline of the industry), all industries can be divided into three groups: developing, mature and industries in decline. Firms in these industries have similar strategies even though they may produce different products. goods.

8. Portfolio (corporate) strategy  is a strategy that describes the general direction of development of a company with different types of business and is aimed at ensuring a balance in the portfolio of goods and services. Portfolio strategies can be divided into active and passive. Passive strategies require minimal information about the future. The basis of such strategies is diversification, ensuring maximum compliance of returns with the selected market index. Active strategies use available information to improve investment performance compared to simple diversification.

9. Functional strategies  strategies that are developed by functional departments and services of the enterprise. This is a strategy marketing, financial, production strategy, etc. The purpose of the functional strategy is the allocation of resources of the department (service), the search for effective behavior of the functional unit within the framework of the overall strategy.

The strategic management process, its tasks and main

Stages.

The process of strategic management is a sequence of decision-making, their implementation, control, and correction. This process is cyclical in nature, and the more volatile and uncertain the environment, the shorter the length of the decision-making cycle.

Strategic management

To date, there is no unambiguous, sufficiently clear definition of the concept of “strategic management”. Here are the most common definitions.

Strategic management- is the process of determining the interaction of an organization with its environment, expressed through the use of selected goals and the achievement of the desired result by allocating the organization's resources in accordance with an effective plan of action.

Strategic management- this is the process by which managers establish long-term directions for the development of the organization, its specific goals, develop strategies for achieving them in the light of all possible internal and external circumstances, and accept the chosen plan of action for execution.

Strategic management- this is the management of an organization that relies on human potential as the basis of the organization, orients production activities to consumer demands, responds flexibly and carries out timely changes in the organization that meet the challenge from the environment and allow it to achieve competitive advantages, which together allows the organization to survive in long term, while achieving your goals.

determining the purpose and main goals of the company’s business;

analysis of the company's external environment;

analysis of its internal situation;

selection and development of company strategy;

analysis of a diversified company's portfolio, design of its organizational structure;

choice of degree of integration and control systems;

management of the "strategy - structure - control" complex;

determination of standards of conduct and policies of the company in certain areas of its activities;

providing feedback on the company's results and strategy;

improvement of strategy, structure, management.

Forecasting is a proactive reflection of the future; view cognitive activity, aimed at determining trends in the dynamics of a particular object or event based on an analysis of its state in the past and present.

Forecasting methods - methods that provide scientifically based forecasts of the future:

- expert assessments;

- extrapolation;

- modeling;

- use of analogies.

Expert assessment- the procedure for obtaining an assessment of the problem based on the group opinion of specialists (experts). A joint opinion is more accurate than the individual opinion of each specialist

Strategy I

Using existing products, achieve a higher market share (the policy of persuading existing customers to purchase more products (advertising), or luring customers away from competitors, attracting new ones).

Strategy II

Finding new markets in which to offer existing products. There is a policy of searching for a new market niche, or new sales channels, new geographic markets.

Strategy III

Development of new types of goods through improvement; or product offers with different technical characteristics for various consumer groups.

Strategy IV

Search for a new attractive market. There are concentric (use of old experience and technology), horizontal (use of old sales space); conglomerate diversification (addressing completely new production and sales areas).

The third option is the most risky for entrepreneurs who have no experience in a new field of activity.

Product diversification – offering products with better characteristics and design than competitors (leaders in quality, scientific and technical progress achievements).

Concept and criticism.

Typically, the following “economic” stages of business are distinguished (allowing comparison with the stages of human life): emergence (birth), formation (childhood), growth (youth), saturation (maturity), decline (aging), liquidation (death).

Emergence business is associated with the identification of unsatisfied or not fully satisfied needs of the economy for some type of goods or services, with the search and occupation of a free market niche. The main goal of a business at this stage is survival, i.e. transition to the next stage of the cycle. This requires a business leader to have such qualities as faith in success, willingness to take risks, and high performance. Particular importance at this stage should be given to the search and adaptation of everything new and unusual.

Becoming– consolidating its position in the market and in the business community. The main task is to strengthen the competitiveness of business. This is a high-risk internal stage, because It is during this period that rapid and poorly controlled growth of the organization often occurs. At this stage, many newly formed firms fail due to the inexperience and incompetence of businessmen or managers.

Height– the stage of continued acceleration and, as a rule, the complete capture of the market part acceptable for this business. At the same time, there is a transition from integrated management, carried out by a small team of like-minded people, to differentiated management using simple or more sophisticated forms of planning and forecasting. Intuitive risk assessment by the organization's management is no longer sufficient, and this forces managers to resort to analytical risk assessments, which contributes to the emergence of highly specialized workers in the organization.

Saturation– the development of the company at this stage is usually carried out in the interests of systemic balanced growth based on a stable structure and clear management. Experienced administrators come to management, while extraordinary talented specialists are often replaced by more “obedient” ones. The maturity of an organization is associated with its penetration into new areas of activity, expansion and differentiation, however, it is during this period that bureaucracy in management actively arises. There are three stages of saturation (maturity): early, intermediate and final. The period of early maturity is characterized by random growth of the company, intermediate – by balanced growth, final – by saturation and stagnation of activity.

Recession– a stage characterized by the loss of competitive positions in the market, the aggravation of intra-company contradictions and conflicts, the deterioration of the financial condition of the company and a decrease in its value. The main task of the organization is the struggle for survival, complicated by the bureaucratization of both the internal space of the company and the external environment. New ideas at this stage rarely find adequate implementation.

Liquidation– completion of this business. Essentially, this can be either a concentrated transfer of capital to another industry or field of activity, or a dispersion (dispersion) of capital among numerous creditors and the liquidation of capital as a whole. Finally, business owners may go bankrupt.

Decisions related to attempts to manage the life cycle of a particular business and aimed at accelerating or slowing down the transition from one stage to another are among major strategic decisions. The connection between enterprise strategy and the movement of an enterprise through the phases of its life cycle is very strong. Unsuccessful decision in an area seemingly unrelated life cycle, may have long-term consequences in the form of the onset of a new stage. Therefore, objective patterns of evolution and change in business are of paramount importance when developing strategy and even solving tactical management problems. This chapter is devoted to a description of such patterns and examples of their manifestation in Russian and foreign economic reality.

Market.

On international markets The easiest way to get out is to start exporting. Most often, companies begin their export activities with indirect export. In this case, significant investments are not needed. The company simply hires third-party salespeople who provide various services and have international sales skills. Most indirect export transactions are carried out through domestic export sellers, who buy products in the domestic market and sell them abroad, and through domestic export agencies, which do not buy goods but simply seek foreign buyers and receive a commission for their services. Some indirect exports go through cooperative organizations that link many producers, where export activities are managed collectively.

As the overseas business's sales increase, the company will likely move to direct exporting by creating a department or division to do so. The exporter independently establishes contacts with foreign buyers and manages market activities. In this state of affairs, it may be necessary to hire international manufacturer representatives, foreign agents who sell related non-competitive products to a limited number of importers. An exporting company can alternatively use import houses located abroad, which buy products directly from the exporter and resell them to wholesalers, retailers and industrial users in their home countries. Since such import houses do not have exclusive territorial rights, the exporter can use the services of several such organizations in the same country. However, this leads to a decrease in their loyalty to the exporter. Another alternative is to open in foreign country a sales office staffed either by local employees or those coming from the exporter's home country. Since this entails a physical presence on foreign territory, this alternative can be considered a form of investment.

Multinational strategy- a strategy in which a company adapts its strategic approach to the specific market situation of each country. In this case, the company's overall international strategy is a combination of country strategies. A multinational strategy is appropriate for industries where multinational competition is prevalent.

Global strategy- a strategy that is the same for all countries, although there are slight differences in the strategies in each market due to the need to adapt to its specific conditions, but the basic competitive approach (for example, low cost, differentiation or focus) remains the same for all countries in which the firm operates . A global strategy works best in industries that are globally competitive or in industries that are beginning to globalize.

43. The concept of business units, their main characteristics. Basic

business unit strategies.

Business unit- a separate organizational and legally formalized active business structure. It is completely or partially economically separate and is responsible for a specific type of activity necessary to carry out functions in the business process. The functions of a business unit are assigned to it in a single complex. Depending on the organizational structure, it may be responsible for generating profits, for coordinating activities, or for developing policy.

After conducting a strategic analysis of the external environment and the competitive position of the business units of a diversified company, it is necessary to determine specific strategies for these business units. To do this, it is necessary to conduct a number of studies, namely, to conduct the following types of analysis:

1) analysis of strategic fit;

2) analysis of the resource base;

3) prioritizing business units for resource allocation.

You can then move on to identifying new strategic initiatives to improve overall corporate performance—in other words, making strategic choices for each business unit. Let us consider these stages of developing strategies for business units of a diversified company in more detail.

Strategic issues that arise at the corporate level are fundamentally different from those that arise at the individual business unit level. While the strategy of a multi-business corporation is about defining the overall direction of the business and creating synergies between different types of business, the strategy of a business unit usually determines how to operate in the competitive environment within its industry to achieve success*.

The task of creating (or transforming) a business unit strategy involves the following five stages, which are closely related:

1. Setting goals. What financial and non-financial goals will determine the future strategy of this business unit?

2. Determining the scale of activity. What are the boundaries of its activities in terms of product and market coordinates, i.e. In what area and how widely will this business unit develop its activities?

3. Determination of the bases on the basis of which a competitive advantage will be ensured. The reason why target consumers will prefer the company's products over those of its competitors.

4. Value chain design. How is competitive advantage created and maintained within the planned bases that provide those advantages?

5. Value chain management. How will the business unit manage the activities in its value chain and integrate them with the value chains of customers, suppliers and other business partners?

Advertising strategy is a strategy for the optimal form, content, time and route of delivery of a mass advertising message to a specific audience, which serves as part of the implementation of a communication marketing strategy. The goal of an advertising strategy is to achieve a certain communication effect among the audience in contact with the advertising message and encourage it to target behavior. The internal structure of the planning sequence of the main elements of an advertising strategy can be reflected as follows: an advertising strategy describes how the advertiser achieves its goals. A strategy reflects a specific course of action to be taken: which media will be used, how often each will be used, what the ratio will be between the media used, and when they will be used.

The strategy must meet several conditions, it must be:

· doable, i.e. the goals set in it must be achievable based on the current situation, available resources and a certain time

· interactive, must depend on goals and strategies that are higher in relation to it, and determine goals and strategies that are lower in relation to it, i.e., realize its area of achievement main goal

· cyclical, i.e. it must be constantly adjusted and supplemented when obtaining the results of its implementation and changing (or predicting) the current situation (for example, the market or macro-situation with legislation), as well as higher-level goals and strategies.

54. Pricing Strategies .

Pricing policy means general principles which the company intends to adhere to in setting prices for its goods. Pricing strategy accordingly refers to a set of methods by which these principles can be implemented in practice.

· premium pricing strategy (“cream skimming”);

· neutral pricing strategy;

· price breakthrough strategy (lower prices).

Price breakthrough strategy - setting prices at a level lower than most buyers believe a product of a given economic value deserves, and making a large amount of profit by increasing sales volume and capturing market share.

The first condition for the successful implementation of this strategy is the presence of a large circle of buyers who are ready to immediately switch to purchasing goods from a new seller as soon as he offers a lower price. Moreover, for manufacturers of goods of prestigious demand, such a strategy is not at all acceptable. This strategy is also ineffective for cheap consumer goods - even a large relative price reduction here will be expressed in an absolutely small amount, which buyers may not pay attention to. It also brings little return for goods whose properties are difficult or impossible to compare in advance, before consumption.

The essence of this strategy can be defined as “gaining high profitability at the expense of sacrificing high volume.” To "skim the cream" in the form of a large profit from each unit of goods sold, the company sets prices so high that such "cream prices" become unacceptable to most buyers. However, there is a significant limitation here: the increase in the mass of profit due to sales at an increased price must be greater than the loss of mass of profit due to a reduction in the number of sales compared to the level possible at a lower price.

Buyers tend to accept the company's desire to skim the cream if they attach special importance to those differences for which the company wants to receive a premium price.

Neutral pricing strategy - setting prices based on the price/value ratio that corresponds to most other similar products sold on the market.

The essence of a pricing strategy is not only to avoid using prices to increase a captured sector of the market, but also to prevent price from in any way influencing the reduction of that sector. Thus, when choosing such a strategy, the role of prices as an instrument of the company’s marketing policy is reduced to a minimum. Neutral pricing often becomes a forced strategy for firms that do not see opportunities to implement a premium or price breakthrough strategy. Those. in a market where buyers are very sensitive to price levels, and competitors harshly respond to any attempt to change the existing proportions.

In turn, Slepov V.A. identifies the following pricing strategies:

Differentiated pricing strategies are based on the heterogeneity of customer categories and the possibility of selling one product at several prices. Let's look at these strategies in more detail:

1. The discount strategy in the second market is based on the transaction's own fixed and variable costs. Generics, secondary demographics, and some foreign markets provide opportunities to benefit from this strategy.

2. The periodic discount strategy is based on the characteristics of demand of various categories of buyers. Widely used for temporary and periodic price reductions, for example, for tickets, matinees, fashion products out of season, tourist tariffs, similarly, this principle is applied when reducing prices for outdated models.

3. The random discount strategy (random price reduction) is based on search costs. The main condition for applying this strategy is the heterogeneity of the price range. However, for high-income earners, searching for the lowest price is not worth the time investment. For others, it's the opposite.

4. Price discrimination strategy. According to this strategy, the company offers the same product at different prices to different categories of buyers at the same time.

Competitive pricing strategies are based on taking into account the competitiveness of the company in prices, and, as a rule, are implemented in the following forms:

1. Market penetration strategy is based on the use of economies of scale. It is used to introduce new products to the market and strengthen existing positions. Examples include the proliferation of discount stores and manufacturers banding together to drive speculators out of the market by lowering prices.

2. The learning curve strategy is based on the benefits of acquired experience and relatively low costs compared to competitors. Prerequisite for the implementation of this strategy - the influence of the experience of firms and the sensitivity of buyers to the price level.

3. The price signaling strategy is based on the firm's use of customers' trust in the pricing mechanism created by competing firms. Most often used when targeting new or inexperienced buyers who are unaware of competing products but consider quality important.

4. Geographic strategy - refers to competitive pricing for adjacent market segments.

Assortment pricing strategies are used when a firm has a range of similar, related or interchangeable products. The following types of strategies can be distinguished:

1. The “set” strategy is used in conditions of uneven demand for interchangeable goods. The strategy stimulates an increase in sales volume, because the set is offered at a price that is lower than the price of its elements. For example, a set lunch, a set of cosmetics.

2. The “bundle” strategy is based on different assessments by customers of one or more of the company’s products.

3. The above-par strategy is used by a firm when it faces uneven demand for substitute goods and when it can earn additional profits by increasing the scale of production.

4. The “image” strategy is used when the buyer focuses on quality based on the prices of interchangeable goods. With this pricing, the company introduces to the market an identical version of an existing model under a different name and at a higher price. For example, selling environmentally friendly products (“green badges”), i.e. prices increase more than quality when implementing this strategy.

Thus, pricing is one of the most important and most difficult issues. The choice of general orientation in pricing, approaches to determining prices for new and already manufactured products, services provided in order to increase sales volumes, turnover, increase production levels, maximize profits, and strengthen the company’s market position is carried out within the framework of marketing.

Price setting is one of the important elements of marketing, which directly affects sales activities, since the level and ratio of prices to individual species products, especially competing products, have a decisive influence on the volume of purchases made by customers.

Resistance to change

Carrying out strategic change in an organization is a very difficult task. The difficulties in solving this problem are primarily due to the fact that any change encounters resistance, which can sometimes be so strong that those who carry out the changes cannot overcome it. Therefore, in order to make a change, you must at least do the following:

uncover, analyze and predict what resistance the planned change may encounter;

reduce this resistance (potential and real) to the minimum possible;

establish the status quo of a new state.

By the way, the bearers of resistance, just like the bearers of change, are people. In principle, people are not afraid of change, they are afraid of being changed. People are afraid that changes in the organization will affect their work, their position in the organization, i.e. the existing status quo. Therefore, they strive to prevent changes in order not to end up in a new situation that is not entirely clear to them.

Attitude to change can be considered as a combination of states of two factors:

acceptance or non-acceptance of the change;

open or hidden demonstration of attitude towards change.

The management of the organization, based on conversations, interviews, questionnaires and other forms of information collection, should try to find out what type of reaction to changes will be observed in the organization, which of the organization’s employees will take the position of supporters of the changes, and who will end up in one of the other three positions (Fig. 8 ). This type of forecast is especially relevant in large organizations and in organizations that have existed without change for a fairly long period of time, since in these organizations resistance to change can be quite strong and widespread.

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Reducing resistance to change plays a key role in implementing change. Analysis of the potential forces of resistance allows us to identify those individual members of the organization or those groups in the organization who will resist the change, and to understand the motives for not accepting the change. In order to reduce potential resistance, it is useful to unite people into creative groups that will facilitate the change, involve a wide range of employees in developing a change program, and carry out extensive explanatory work among employees in the organization aimed at convincing them of the need carrying out changes to solve the problems facing the organization.

The success of a change depends on how management implements it. Managers must remember that when implementing a change, they must demonstrate confidence in its correctness and necessity and try to be as consistent as possible. in implementing the change program. At the same time, they must always remember that people's positions may change as the change is carried out. Therefore, they should ignore slight resistance to change and be calm about people who initially resisted change and then stopped resisting.

Strategies.

Corporate culture- a set of behavioral models that are acquired by an organization in the process of adaptation to the external environment and internal integration, which have shown their effectiveness and are shared by the majority of members of the organization. Components corporate culture are:

adopted leadership system;
conflict resolution styles;
current communication system;
the position of the individual in the organization;
accepted symbols: slogans, organizational taboos, rituals

Every organization develops its own set of rules and regulations that govern the daily conduct of its employees in its workplace, conducting its activities in accordance with the values that are essential to its employees. When creating organizational cultures, it is necessary to take into account the social ideals and cultural traditions of the country. In addition, for a more complete understanding and assimilation of values by employees of the organization, it is important to ensure various manifestations of corporate values within the organization. The gradual acceptance of these values by members of the organization will allow them to achieve stability and great success in the development of the organization. Following them is encouraged by the administration with appropriate rewards or promotions. Until newcomers learn these rules of behavior, they cannot become full-fledged members of the team.

annotation

“Strategic Market Management” is one of the most significant works of the recognized management classic David Aaker. The new 7th edition maintains the best traditions of this illustrious book: it is distinguished by its simplicity of presentation and coverage of all essential aspects of creating, evaluating and implementing business strategies. Along with this, the book reflects the latest trends in the field of strategic management, adds fresh examples and cases, and shows ways to apply strategic developments in practice. After reading this book, you will be able to properly understand and control the dynamic environment, propose forward-looking and creative approaches that are adequate to the conditions and changes that the company faces, and create strategies based on sustainable competitive advantages. The publication will be useful to managers developing enterprise development strategies, students of MBA programs and other educational courses on strategic marketing, strategic management and strategic market planning.

Chapter 1. Business Strategy: Concept and Trends

Plans are nothing, planning is everything.

Dwight Eisenhower

Even if you are on the right path, do not stop, otherwise you will be trampled.

Will Rogers

If absolute superiority cannot be achieved, you, by skillfully using available resources, must achieve relative superiority at the most important point.

Carl von Clausewitz

In the 1930s American department store chains Sears And Montgomery Ward had approximately equal opportunities and potential, had comparable sales volumes and profitability. But after two decades Sears was almost three times larger than its careless and inactive competitor. Interestingly, one of the main reasons department stores are lagging behind Ward from a competitor was associated with the belief of the head of the company, Suel Avery, that economic depressions inevitably followed wars. Based on these considerations, in the period 1941–1957. Ward did not open a single new department store. Another reason was that the company management, realizing the growing role of the car in making purchases, Sears decided in 1946 that an aggressive and expensive step was necessary, namely, the construction of suburban shopping centers with huge parking lots. But neither Sears, nor Ward did not pay attention to the emergence of such new competitors as discount stores, on the one hand, and specialized retail enterprises, on the other, and did not bother to adjust their strategies. Ultimately department stores Montgomery Ward were “struck off the lists of the living,” and the company Sears has survived largely due to its strong brands (such as the Craftsman tool brands and Kenmore household appliances), as well as transformation into a network of retail enterprises specializing in the sale of clothing, household goods and household appliances.

Supermarket chains Kmart, Wal-Mart And Target appeared around 1962 and used largely similar strategies. But if Target is thriving and Wal-Mart became the largest company in the United States, then Kmart announced its bankruptcy. Trademark Target defined itself as a store selling high quality goods at discounted prices, and the name Wal-Mart has become synonymous with value. Company Kmart did everything to find a value proposition; but it was never able to develop the competencies that are necessary in this competitive space.

Ultimately fate Sears, Kmart, Wal-Mart and other players are determined by whether they were able to analyze the competitive environment, make the right strategic choice and support it with strategic initiatives. Analysis of historical experience allows us to conclude that almost every organization is dependent on the strategic decisions made by its management (right or wrong).

The book brought to your attention is designed to help managers in defining, selecting and implementing business strategy. We would like to introduce readers to concepts, methods and procedures that they can use to improve the quality of their decisions.

Chapter 1 and Chapter 2 accomplish several things. First, they address the approach to strategy and its management. Secondly, a number of concepts and methods are described and positioned. In addition, these chapters provide an introductory overview and summary of the book, and explain the structure of other parts and chapters. Thus, in the future, in order to refresh the memory of the material covered, we would recommend that readers refer to the first two chapters.

Chapter 1 begins by defining the concept of business strategy and then examines the basic strategic directions and the key concept of a strategic business unit, the development of strategy as one of the components of business is analyzed and, in conclusion, some reasons for the emergence, characteristics and trends of strategic market management are analyzed.

What is business strategy?

Before we talk about developing strategies, let's ask ourselves two questions: what is a business unit? And what is business strategy? In this case, it seems most interesting and useful to get answers to these questions from groups of managers. An experiment like this will quickly help you understand that these questions are not simple and that the answers to them are unlikely to be unambiguous.

Business unit concept

Under strategic business unit (SBU) refers to any organizational unit that has its own business strategy and a manager responsible for ensuring sales and making a profit. Thus, an organization may have many business units that are connected to each other horizontally and vertically. For example, a company HP must set strategic directions for the multiple product markets in which it competes, each typically requiring its own business strategy. Thus, there may be a separate business strategy for the LaserJet product line, but within this framework we can talk about strategies for product lines representing LaserJet ancillary materials, for independent segments such as large companies in the United States, or for such geographical regions like South America.

Choosing how many business units to operate requires trade-offs, both organizationally and strategically. On the one hand, there is an irresistible desire to have a large number of business units, since each of them has the opportunity to develop an optimal strategy for its market. Therefore, a strategy for each country, each region or each major segment may have its own benefits. On the other hand, having too many business units can lead to ineffective programs, a lack of scale, and an inability to leverage the strategic skills of the best managers. These considerations lead to the idea of the need to combine business units into larger organizations.

Business units can be aggregated to create critical mass, coordinate strategies, and manage the inherent similarities between markets and strategies. Those business units that are too small to fit the strategy should be merged to support the management structure. Larger business units have the appropriate staffing and programs to increase their chances of success. Of course, to save costs, two business units may have common elements, such as common sales personnel or equipment.

Another advantage of large business units is synergy, where there is greater strategic interaction between subunits. Yes, corporation Procter&Gamble combines the Head & Shoulders, Pert and Pantene brands into the hair care category to simplify sales promotion, optimize product innovation and provide retailers with guidance on how to position the product on store shelves. Company HP can simplify the LaserJet family of printers because some of them, intended for home and office use, have similar functions. This gives it the opportunity to reduce costs due to partial overlap between the components of the product and the customer base. Corporation Mobile unites countries into regions, other companies divide the world into global SBUs. It is worth noting here that the choice between conducting operations in a certain country, region and global aggregation is one of the most important strategic decisions that many companies must make.

The final argument in favor of aggregation is the use of similarities between markets and strategies. Thus, in the Eastern European market the company Coca-Cola may consider merging its brands such as Coke and Diet Coke, but not Fanta and Sprite. A HP may consolidate its LaserJet and InkJet printers in some countries as they face very similar market conditions, resulting in overlapping brand strategies.

Business strategy concept

Business strategy, sometimes called competitive strategy or simply strategy, is defined by four elements or areas: product-market investment strategy, customer value proposition (or value to the buyer), assets and competencies, functional strategies and programs. The first element defines where the firm should compete, and the remaining three indicate how it should do so to win (Figure 1.1).

Commodity-market investment strategies - where to compete

The main component of strategy is the business sphere and the dynamic processes occurring within it. Which sectors should receive investment and management attention?

The scope of the business is determined by the goods that the company plans to offer and which it refuses to produce; the markets it does or does not want to serve; competitors with whom it will compete; conflicts that she seeks to avoid; as well as the level vertical integration. Sometimes the most important business decision becomes which products or segments a company should avoid because these choices - if strictly adhered to, of course - can save the necessary resources to compete successfully in other markets. In some cases, such assessments can lead to quite painful decisions about the sale or liquidation of the company.

Many organizations demonstrate the benefits of clearly defining their scope of work. Yes, company Williams-Sonoma offers products for the home and kitchen. Dell- related products for computers. P&G provides a wide range of packaged consumer goods. Wal-Mart And Amazon cover a wide area of business, offering value while saving cash and allowing you to make all your purchases in one place.

Even more important than the business sphere itself are the dynamic processes within it. Which markets should you enter in the coming years and which should you leave? Which ones will rise or fall? Based on such decisions, the allocation of financial resources generated within or outside the organization, as well as non-financial resources such as plants, equipment and people, occurs. Which business sectors should receive investment as they become more important in the future? Even in a small organization, resource allocation decisions play a key role in business strategy.

The investment pattern determines the future direction of the firm. The options and approaches used are obvious; Nevertheless, it is advisable to list the available possibilities.

Investing in growth (or entry into commodity market).
Investments in strengthening existing positions.
Exploitation (“milking”) of the business by minimizing investment.
Return of the maximum possible amount of assets from liquidation or divestment (sale) of a business.

In mid-2000, six months before A. J. Lafley took over as CEO P&G, the value of the corporation's shares fell by half. This was due to overinvestment in new business initiatives such as Olay Cosmetics and Fit Wash, which failed to live up to expectations or fail.

Two years later the company returned most lost, even though during this period of time the total value of stock exchange quotes decreased by a third. The strategy of focusing on twelve large brands, such as Tide, Arial (in Europe), Always/Whisper, Crest, Folgers, Iams, Pampers, Charmin, helped to do this ", "Bounty", "Pantene", "Downy"/"Lenor" and "Pringles". Thus, after the "waste" of resources ceased, the hair care group was able to focus on revitalizing the Pantene brand. Smaller brands received less attention, and those that did not fit the company's strategic plans (such as Jif and Crisco) were eliminated.

Customer Value Proposition(or values for the buyer) are the perceived functional, emotional and social
tional benefit that the company's product offers. One or more value propositions must be relevant and meaningful to the buyer and reflected in the positioning of the product or service. To successfully implement the strategy, proposals must be sustainable over time and differentiated from what competitors offer. A customer value proposition may include the following elements:

good price ( Wal-Mart);
superiority in some important attribute of a product or service (for Tide this is the cleanliness of linen after washing);
better overall product quality (“Lexus”);
breadth of product range ( Amazon);
innovative proposals ( 3M);
shared passion for an activity or product ( Harley-Davidson);
global connections and prestige ( Citigroup).

In 2003 IBM There was a new CEO, Sam Palmisano, who was supposed to continue the highly successful work of his predecessor, Lou Gerstner, who managed in the 1990s. achieve a significant shift in the company's operations, forcing synergies and technology IBM work for the buyer.

The strategy developed by Palmisano for IBM, was based on a new value proposition called “on-demand”. The main idea was to make computer resources (in particular, unused power) and computer-controlled sources of information available to those who need them, at that moment when the need arises. Computer systems and networks were intended to be simplified by directly connecting software and hardware using a software-driven network system.

Assets and competencies

The strategic assets and competencies on which business strategy is based provide sustainable competitive advantage (SCA). Strategic competencies- these are certain areas of activity that are strategically significant for a business unit in which it is strongest (for example, production or product promotion). Typically, competencies are based on knowledge or process. Under strategic assets refers to certain resources (for example, a brand or currently relevant customers) that are superior in their parameters to similar resources of competitors. The strategy formulation process must take into account the costs and technical capabilities of creating or maintaining the assets or competencies that underpin SCM.

The number of assets and competencies can include a lot - from buildings and location of the company to competence in R&D, or even a metaphorical symbol, such as a tire man - a symbol of the company Michelin. Building a strong asset or competency is often challenging, but can result in meaningful and lasting advantage.

An important asset and source of SCM can be the synergies that are achieved when managing a business that integrates product markets. An example of synergy would be two business units that share a sales force, office, or warehouse, allowing them to achieve cost or investment savings. Company Gillette created synergies after the purchase Duracell, taking advantage of the fact that the goods of both companies were sold through the same distribution network. Companies can also offer retailers and/or customers combinations of coordinated products (such as athletic shoes and apparel), thereby creating value that would not exist without the companies working together. SCMs of organizations based on synergy are sustainable because they are determined by respect for the organization, the scope of its product-market activities and its business strategy, which is difficult to copy. More details about synergy and UKP will be discussed in Chapter 8.

The ability of a company's assets and competencies to support its business strategy depends on the strength they have relative to the assets and competencies of competitors. How strong and relevant are the existing assets and competencies? To what extent can they be owned by the company through a trademark or years of investment? To what extent are they determined by the unique synergies within a unique organization?

Functional strategies and programs

The targeted value proposition or set of assets and competencies must drive the company's functional strategies and programs, which in turn must be implemented through a variety of short-term tactical actions.

Functional strategies and programs that contribute to the implementation of business strategy include the following:

Production strategy.
Distribution strategy.
Brand building strategy.
Communication strategy.
Information strategy.
Global strategy.
Segmentation strategy.
Quality program.
Customer Relations Program.

Whether an organization has a need for functional strategies and programs can be determined by asking itself a few questions. What must happen for a firm to realize its value proposition? Do the necessary assets and competencies exist? Is there a need to create, strengthen or support them? How should this be done?

Value Proposition IBM, which was based on the “on-demand” principle, led to the intensification of work in all divisions of the company in the field of R&D, aimed at creating goods and services provided “on demand”, and the emergence of an internal initiative to transform the IBM to an on-demand company. Thus, the server software group has developed products that allow access to the computer hardware at any time when the need arises. If the proposed strategy remained only at the level of a slogan or empty rhetoric, then defining such a new business area as “on-demand” and establishing a connection between it and IBM would not be successful; To implement this strategy, it was necessary to develop special programs to turn the dream into reality.

Strategic directions

Any business strategy consists of many elements, organized in accordance with the four directions we have named (product-market investment strategy; customer value proposition; assets and competencies; functional strategies and programs). The complexity and apparent number of alternative strategies can become limitless. However, as a rule, a business strategy is based on a limited number of strategic directions. Strategic direction is a defined value proposition for a specific product market, supported by assets and competencies, as well as functional strategies and programs. Conceptualizing and labeling strategic directions helps formulate and describe alternative business strategies. It also provides an opportunity to communicate the chosen strategy to employees, partners, investors and consumers.

A strategy can include more than one strategic direction, which is actually a feature of the most successful strategies. For example, a company Virgin Atlantic Airways combined a value creation strategy with innovation and customer intimacy strategies. In order to implement these strategies Virgin constantly pushing the boundaries of its service. Thus, strategic directions can be considered as the building blocks that make up a business strategy. Similarly, business strategy can be thought of as a set of integrated strategic directions.

Some of the most common and important strategic directions, such as quality, value, innovation, focus and globality, are discussed in more detail in Chapters 9, 10 and 11. Chapter 9 also talks about strategic directions determined by product attribute, product design, product breadth range, corporate social responsibility, brand awareness and customer intimacy. These chapters provide an overview of strategic directions that are widely used, successful, and well studied. The list of possible directions is not complete, but the options we describe make it possible to understand all the others.

(if it happens).

The main subject, organizational unit of a market economy is an enterprise (firm, organization). A company is an economic unit that independently makes decisions, strives to maximize profits, produces products (goods, services) for other economic entities in the market, and bears social responsibility to society and each employee. Today, the main thing for small, medium, and large enterprises and firms is not so much the desire to reduce production costs and product prices, but rather the company’s ability to provide the consumer with a product more High Quality or having some new properties (mostly for the same price).

Modern production must meet increased requirements, due to the following reasons:

high production flexibility, allowing you to quickly change the range of products. The fact is that the product life cycle has become shorter, and the variety of product ranges and the volume of production of one-time batches have increased;

significant complication of production technology, requiring completely new forms of control, organization and division of labor;

serious competition in the goods market, which has radically changed the attitude towards product quality, requiring the organization of after-sales service and additional branded services;

a sharp change in the structure of production costs;

uncertainty of the external environment. Uncertainty has become one of the most important concepts of management, and in the sense of constant variability of conditions, behavior, rapid and flexible reorientation of production and sales.

Dynamic changes in technology, the struggle for consumers and product quality, and increased competition force enterprises to reconsider the entire range of management issues. Restructuring of intra-company management in Lately is the basis for the reorganization of the entire economic mechanism of enterprises. Focus on consumer demand, pursuing a flexible scientific, technological, innovation and market policy, and the desire for innovation have become the main ideas of the new management philosophy. The core of this philosophy lies in the recognition of the social responsibility that lies with managers.

The special place of management in a market economy is due to the fact that it ensures the integration of economic processes in the enterprise and in the state as a whole. The management of firms links together their internal resources and the external environment, the most significant components of which are government regulation of the economy, competition, and the state of the social environment; enhances the adaptability and competitiveness of business.

Studying the activities of an enterprise and its effective management is necessary for:

analysis of the current state of affairs;

predicting the behavior of an enterprise in changing market conditions;

determining the best ways for a firm to use limited resources.

In the 80s, the business world saw a break in stereotypes of management thinking and outdated conceptual approaches to management. Of course, modern management does not completely reject the rationalistic model. Moreover, the latter was and remains methodological basis formation of organizational structures, planning, pre-project studies, economic calculations. Elements of strict command control remain preferable in certain extreme conditions, requiring, for example, the rapid concentration of conditions in any area of work or when solving production tasks(production of mass standard products, etc.). Where it is necessary to experiment, search, create under conditions of increased economic risk, and establish connections between business partners, purely administrative levers become ineffective - a new, flexible and diverse behavioral management focused on the creative manager is required.

The philosophy and concept of management in traditional and new organizations consist of different aspects (Table 31.1).

The traditional organization is a response to standard technology and an unchanging external environment. The new organization is a response to rapid change, constantly changing technologies and environmental uncertainty. The modern approach to organization is a balanced combination of human values, organizational change and continuous adaptation to changes in the external environment.

It should be emphasized that the schools of “rational management” and behavioral, psychological directions that existed for a long time in parallel, but at the same time largely opposed to each other, are currently demonstrating an active search for ways of integration. Rigid, strictly formalized strategic planning is transformed into the concept of strategic management, the basic principles of planning and control change accordingly, and the number of people employed in the headquarters services of enterprises is reduced. Emphasis on the development of clear and constant benchmarks in intra-company planning, regular procedures for financial and other control, i.e. all those elements that are associated with hard management are constantly giving way to methods of “soft” flexible management (involving personnel in the affairs of the company on the basis of greater mutual trust, encouraging entrepreneurship in the process of work, etc.)

Table 31.1

Traditional organization concept

Traditional organization concept	Concept of a new organization
1. Focus on operational issues	1. Focus on strategy
2. Focus on stability	2. Focus on timely adaptation to changes in the external environment and impact on it
3. Technological imperative	3. Organizational imperative
4. The most important resource is cars	4. The most important resource is people
5. Maximum division of work, simple and narrow specialties	5. Optimal grouping of work, broad multifaceted specialties
6. External control (managers, staff of controllers, formal procedures)	6. Self-control (self-regulating systems), self-discipline
7. Pyramidal and rigid organizational structure, development of vertical connections (“subordination - management”)	7. Flat and flexible organizational structure, development of horizontal connections that ensure effective interaction between departments and employees
8. Autocratic management style	8. Democratic style, based on the interest of all employees in the overall success of the organization
9. Competition, political game	9. Cooperation, collegiality
10. Low interest of the organization’s employees in success	10. High interest of grassroots workers in overall success
11. Action only in the interests of the organization or its divisions	11. Act not only in the interests of the organization, but also in the interests of society
12. Alienation	12. Involvement
13. Low risk appetite or risk aversion	13. Orientation towards innovation and associated risk taking

The addition of “hard” administrative management with elements of “soft” management provides significant reserves for increasing the profitability of enterprises. In practice, a kind of balance is established between these elements: at the stages of idea formation, its development, marketing and provision of services to the consumer, behavioral approaches dominate, while when performing routine operations, primarily production, strict management methods are used, which are often enriched with techniques from the arsenal " soft" approaches.

LOGICAL AND CULTURAL-ETHICAL FOUNDATIONS OF MANAGEMENT

1. Take into account the evolution of problems and ideas, as well as imagine the possible course of events and manage changes (innovations). Reflect on the development and changes in market technologies (equipment), external environment, customer needs and requirements.

2. Use as leading decision criteria along with profitability. profitability, generally accepted moral values, personal development, progress in science and technology.

3. Based on trust in a person, relying on initiative, creativity, dedication, honesty, consciousness of people, recognizing a person’s right to make an unintentional mistake, understanding the inevitability of the risk associated with trust.

4. Rely on the participation of all team members in solving a common problem, use a pluralistic (variant) approach, and take into account the diversity of opinions on the same issues.

5. Evaluate success and failure based on specific results and consequences.

6. Consider the management triptych: decision - trust - risk.

From a management perspective, all enterprises and firms have one thing in common - they are organizations. An organization is a group of people whose activities are consciously coordinated to achieve common goals. Complex organizations have General characteristics, which include: resources, dependence on the external environment, horizontal division of labor, divisions, vertical division of labor, the need for management. From these positions, organizational management is understood as a process of planning, organization, motivation and control necessary in order to formulate and achieve set goals. Let us note that management in the modern world acts not only as component modern, combined labor, but also as a function of the sale of property.

From the point of view of a systems approach in relation to the organization and its management, all organizations are open systems, i.e. characterized by interaction with the external environment (Fig. 31.1). If the management organization is effective, then during the transformation process there is an added value of inputs, as a result of which many possible additional outputs appear (profit, increased market share, increased sales volumes, organizational growth, etc.)

To effectively formulate a goal and achieve it, management performs a set of functions. The most important connecting functions of any management system are the development and adoption of decisions and the function of information exchange (communication). The general functions of management include the functions of planning (including strategic planning, ongoing planning for the implementation of strategies), organization (including organizing and coordinating employees), motivating employees to act effectively, and the control function (including accounting and analysis of the organization's activities).

Rice. 31.1. Model of the organization as an open system

It is customary to distinguish the following main types of organizational management structures: linear, functional, linear-functional, matrix, divisional (relatively independent departments of the company), program-targeted. We will not give them all a detailed description, we will only note that the first three types are traditional, developed within the framework of a formal approach to management; the matrix structure is not practical enough, since it is difficult to implement. The remaining two structures (divisional and program-targeted) best meet the requirements of today.

The experience of leading enterprises shows that the key to successful operations lies in observing and constantly ensuring a certain logic in the organization of enterprise management (Fig. 31.2).

Management experts believe that the basic premise efficient work An organization is the skillful, thoughtful actions of its leaders. Qualified actions of management make it possible to direct the behavior of workers in the right direction, create the necessary production orientation and arouse motivation for their actions. As a result, the team’s production activities acquire the necessary focus, organization and productivity. Thus, success comes when quality leadership generates active employee behavior, and their interaction is manifested in effective production activities.

Rice. 31.2. Enterprise management organization diagram

In modern management, it is customary to distinguish three main types (directions) of activity:

technical activities for the creation and development, application in production of advanced types of materials, equipment, and technologies. The main thing in this type of activity is the birth of a new technical idea. The manager's job is to look for capable people and provide them with creative conditions (creation of innovation groups, departments, firms, venture branches);

management activities to coordinate actions, ensure orderliness and consistency production processes. Success is here

is achieved mainly by the ability to obtain results through the efforts of subordinates (management itself - management of internal factors);

management activities for organizing the actions of an enterprise in the market of goods and services (system of strategic management of the enterprise’s activities in the market). It received a special name - marketing management activity (company management based on taking into account external factors).

Marketing and management represent two sides of enterprise management, with the first acting as a generator of ideas, and the second designed to ensure their achievement.

Let us dwell on the content and main tasks of enterprise management. The director (manager) must:

know, study and analyze facts related to the activities of the enterprise; regularly conduct retrospective analysis; identify the logic of developments in the enterprise and in the environment with which you have to interact; study the consumer; diagnose internal problems of the production team; predict the effect of external factors;

outline current and long-term goals, and current goals and objectives should be under constant control; develop a strategic concept; develop a competitive strategy of action aimed at using the potential capabilities of the team; determine your own socio-economic, production, entrepreneurial tactics;

provide, organize, combine resources and means (workers, machines, materials, finances, information) to achieve goals; coordinate and harmonize production programs from the standpoint of their overall resource provision; determine permissible flow rates -

resource allocation according to estimates and balances using the regulatory framework; special attention must be paid to the control of key resources;

create effective execution structures; use program management structures, combine decentralization with the necessary centralization; within acceptable limits, delegate management powers, create temporary or permanent specialized structures, cells for the implementation of particularly important functions;

be able to select and recruit people, promote proactive and capable people in a timely manner; inform the team about the goals and objectives of management; train people and develop their abilities, do not let talents fade, evaluate people; to interest and force to work and get rid of obviously unnecessary unpromising workers.

The evolution of intra-company management systems makes it possible to understand that successive systems correspond to the growing level of instability (uncertainty) of the external environment. Since the beginning of the century, two types of enterprise management systems have been developed: management based on control over execution (after the fact) and management based on extrapolation of the past. To date, two types of control systems have emerged:

the first, based on determining the position (management based on anticipating changes, when unexpected phenomena began to arise and the pace of change accelerated, but not so much that it was impossible to determine the reaction to them in time). This type includes: long-term and strategic planning; management through the choice of strategic positions;

the second, associated with a timely reaction, providing a response to rapid and unexpected changes in the environment (management based on flexible emergency solutions). This type includes management: based on the ranking of strategic objectives; by strong and weak signals; in the face of strategic surprises.

The choice of combinations of different systems for a particular enterprise depends on the instability of the environment in which it operates. The choice of a system for determining positions is determined by the novelty and complexity of the tasks. The choice of a timely response system depends on the pace of change and predictability of tasks. The synthesis and integration of these management systems will allow us to formulate a strategic management method that most fully meets the conditions of flexibility and uncertainty of the external environment.

Strategic planning is a modern modification of intra-company planning. The essence complex systems strategic management is that in companies, on the one hand, there is clearly defined and organized so-called strategic planning. On the other hand, the enterprise management structure, systems and mechanisms for interaction of its individual links are built in such a way as to ensure the development of a long-term strategy for success in competition and create management tools for transforming this strategy into current production and economic plans.

The emergence of strategic management is caused by deep objective reasons arising from changes in the nature of the operating environment of enterprises. The analysis showed that about 20% of the largest American corporations currently use a strategic management system, and its individual elements are characteristic of 75% of companies. The strategic management method combines a strategic approach to setting objectives and a program-targeted approach to their implementation.

Tips for a manager

Ten golden rules for leadership

1. Be able to determine the importance, priority and sequence of tasks.

2. Do not entrust to others the most significant issues on the solution of which the future of the enterprise depends.

3. Be demanding towards subordinates and yourself. Avoid irresponsibility and laxity.

4. Act quickly and decisively in cases where delay is dangerous.

5. Be well informed on those issues and problems that are within the competence of the manager, i.e. on which decisions have to be made.

6. Do not engage in secondary matters that can be trusted to performers.

7. Act only within the framework of the possible and the real, take risks, but avoid too risky and especially adventurous actions.

8. Be able to lose in situations where losing is inevitable.

9. Be fair, consistent and firm in your management actions.

10. Find pleasure in work, engage in those types and forms of management activities that bring pleasure (satisfaction).

An analysis of the development experience of industrial countries indicates that the transition from narrow specialization to integration is observed in the content and nature of management activities. According to the general assessment, the end of the 20th century. - a time of dynamic changes in competitive conditions. This is no longer just a struggle of companies for their “market niche”, but a “race for every meter” in all directions; acceleration of innovation, search for highly qualified personnel, involvement of consumers in the sphere of corporate influence, selection and implementation of political priorities. “New strategic thinking” is increasingly linked to the “globalization of business” and the transition to a new model of economic growth.

In the “era of action”, those firms that will succeed are those that:

can concentrate on the main areas of their activities and rely on the key values of the organization;

are able to effectively manage time, the accelerating flow of innovations and ideas;

create conditions for flexible forms of organization, work modes, various combinations of resources and employee efforts;

believe that joint work should bring satisfaction to all participants (this is the moral and ethical reserve of the organization);

have a high level of management (in terms of innovation, profitability and responsibility).

Let us highlight the main trends in the development of enterprise management:

1. Organizational searches for management. There is a variety of structural solutions here: from network organizational forms and group work to maximum independence of departments, risky “innovative teams”, fully responsible for profits and losses. In a relatively small organ corporate governance the solution of only strategic development issues related to large investments is concentrated, the functions of integrating the company’s activities are concentrated. Each department (“division”) fully finances its activities and enters into partnerships with any organizations on a commercial basis.

There is a tendency to reduce the rigidity and hierarchy of existing structures and further develop program-targeted management.

2. The coordination function takes on special importance, since the interdependence of enterprises on a regional and national scale is very strong. Coordination can be divided into several types:

preventive, when problems, difficulties and ways to overcome them are predicted;

eliminating, aimed at eliminating disruptions in the economic system;

regulatory, designed to maintain the established pattern of interaction between business entities,

stimulating, increasing the efficiency of activity in the absence of visible deviations.

3. An exceptional role will be played by the extent to which the management system is configured to support and reward risk and individual initiative aimed at increasing efficiency in all areas of activity (understanding changes in the workforce and motivation systems for work and entrepreneurship). In the near future, the level of education and qualifications of employees will turn out to be the main strategic resource of the organization.

4. Turning business towards managing “organizational culture”, i.e. a system of values shared by the company’s personnel and related to the ultimate goals of the organization. This includes setting high standards of performance, starting with oneself, and providing flexible leadership with an emphasis on personal contacts, and creating an atmosphere of universal involvement in the affairs of the company. The ability and willingness to delegate powers to subordinate levels of the management structure and performers, productive interaction between managers and subordinates, an interested approach to management strategy, and the use of modern information systems are highly valued.

Control questions

1. Briefly describe modern features (environment) of enterprise management.

2. Compare the traditional and new concepts of enterprise management.

3. Give a comparison of hard and soft, flexible control.

4. What is an open system in relation to an enterprise?

5. Expand the logic of enterprise management.

6. What are the main tasks of the organization’s management?

7. What functions and types of management structures do you know?

8. Briefly introduce the evolution of control systems.

9. Discuss the purpose of the strategic management function.

10. Reveal the main trends in the development of enterprise management.

Preface to the Russian edition

Preface

Part 1: Introduction and Overview

Chapter 1. Business Strategy: Concept and Trends What is business strategy? Main strategic directions the path to UKM The concept of a strategic business unit Strategic market management: historical analysis Strategic Market Management: Characteristics and Trends The Need for Strategic Market Management Key Ideas

Chapter 2. Strategic Market Management: Topic Review External analysis Internal analysis Business vision Identification and selection of strategy Selecting strategic options Process Key ideas

Part 2. Strategic analysis

Chapter 3. External and customer analysis External analysis Subject of buyer analysis Segmentation Buyer motives Unmet needs Main ideas

Chapter 4. Competitor Analysis Defining competitors from the perspective of buyers Defining competitors as strategic groups Potential competitors Competitor analysis: studying rivals Strengths and weaknesses of a competitor Collecting information about competitors Key ideas

Chapter 5. Market Analysis Areas of market analysis Actual and potential market volumes Market growth rates Market profitability analysis Cost structure Distribution systems Market trends Key success factors as the basis of competition Risks in markets with high growth rates Key ideas

Chapter 6. Environmental Analysis and Strategic Uncertainty Components of Environmental Analysis The Problem of Strategic Uncertainties Impact Analysis: Assessing the Impact of Strategic Uncertainties Scenario Analysis Key Ideas

Chapter 7. Internal Analysis Financial condition: sales volume and profitability Assessment of activity: not a single profit Determinants of strategic options From analysis to strategy Portfolio analysis of business Main ideas Appendix

Part 3. Alternative business strategies

Chapter 8: Creating Sustainable Competitive Advantage Sustainable competitive advantages The role of synergy Strategic vision and strategic opportunism Dynamic vision Key ideas

Chapter 9: Differentiation Strategies What is an effective differentiation strategy Quality as a strategic option Creating strong brands Key ideas

Chapter 10: Strategies for Cost Reduction, Focus, and Preemption Cost Reduction Strategies Focus Strategies Preemption Strategies Key Ideas

Chapter 11. Strategic Positioning The role of strategic positioning Options for strategic positions Development and selection of a strategic position Main ideas

Chapter 12. Growth Strategies Growth in existing product markets Developing a new product for an existing market Market expansion using existing products Vertical integration strategies Idea Key ideas

Chapter 13. Diversification Related diversification Synergistic mirages Unrelated diversification Strategies for entering a new product market Key ideas

Chapter 14: Strategies for Hostile and Declining Markets Creating Growth in Declining Markets Surviving Profitably Milking or Harvesting Dividing or Liquidating a Business Choosing the Right Strategy in Declining Markets Hostile Markets Key Ideas

Chapter 15. Global Strategies Motives of global strategies Standardization and customization Global leadership global brand Global brand management Strategic alliances Main ideas

Part 4. Implementation

Chapter 16. Implementation Conceptual Framework Idea Structure Systems People Culture Achieving Strategic Congruence Innovative Organization Summary of Strategic Market Management Key Ideas

Application. Planning Forms
Name index
Subject index
Index of companies and brands

Aaker D. Strategic market management - file n1.doc

Part 1: Introduction and Overview

Part 2. Strategic analysis

Part 3. Alternative business strategies

Part 4. Implementation

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