Strategic management is an integral part of the management process of any organization. It allows you to make decisions not based on the current situation, but predicting certain events. To do this, various analytical methods are used that provide managers with the necessary information. There are many models of strategic management. They will be discussed further.
General definition
The management strategy relies on the potential of the company's employees as its foundation. This type of management allows you to flexibly respond to changing environmental conditions in which the organization operates. Strategic management is carried out by almost any company. This process allows you to gain competitive advantages, increase your financial stability, profitability of production in the long term.
Such management allows you to achieve the goals set by the company, to ensure the fulfillment of its interests in the future. This has a positive effect on all performance indicators of the organization, thanks to which it will be able tosurvive, take the best position in the market.
Object and subject
The object of strategic management can be organizations of different levels and types, their separate business units, as well as functional zones. The subject of long-term management are the problems that arise in achieving the main goals of the company. It can also be issues that are related to external uncontrollable factors affecting the organization. The subject of management can be problems that are associated with some elements of the organization to achieve the goals.
The management strategy is a system that includes different areas of management. They may relate to production technology, personnel management, organizational issues, etc. The strategy allows you to plan in advance the company's actions for changes in the external environment in order to achieve the required performance.
Strategic planning and management answers three important questions. This allows you to determine what position the company currently occupies in the market and what place it would like to take in a few months, years. Also, strategic management allows you to choose the ways in which the company could achieve the required results.
Entity and functions
The management technology used by the organization's management is selected based on an assessment of the company's existing resources. The essence of strategic management is to create a thoughtfulplan of action in the long term, as well as its gradual implementation. For this, constant monitoring and evaluation of changes in the company's activities is carried out. The external environment is unstable, so you need to carefully monitor its changes.
Management technology denotes 5 main functions for strategic management. These include planning in the long term, organizing the implementation of goals and coordinating the actions of responsible employees to implement tasks. At the same time, all personnel are motivated to achieve the set plans. The last stage of strategic management is to control the implementation of strategic tasks.
At the same time, the process of long-term planning is accompanied by such actions as forecasting, developing a strategy, as well as determining the resources for its implementation (budgeting).
To do this, a deep analysis of various economic indicators, both inside and outside the organization, is carried out. Considering them in dynamics, understanding the causes of changes in various parameters allows us to foresee their changes in the future. Having identified the factors constraining development, assessing its own position in the market, and identifying ways to gain a competitive advantage, the company develops a system of actions in the future. This allows you to choose a reasonable course of action to achieve the main goals of the organization.
The essence of strategic management involves the use of three variables. This is the time (for which perspective the forecast is made),magnitude (a quantitative expression of changes in the future) and direction (where development trends are directed).
Goals and objectives
Choosing a goal in the process of creating an organizational strategy modeling is one of the most important steps. This allows you to set a line in front of the company, a frontier to which it aspires. The purpose of strategic management is to ensure competitiveness not only at the moment, but also in the future, in a changing environment.
To achieve this goal, the company sets itself several tasks. These are the steps that lead to the achievement of the desired result. There are certain stages of strategic management. So, the organization must first form a vision of the future and develop its mission. The next step is to select a target at the global level. Only then is the corporate strategy developed. It is aimed at achieving the set goal. All actions are divided into stages. These are the tasks that the manager assigns to his employees to achieve the desired end result.
After creating the concept of the development of the organization in the long term, it is implemented in the production and other processes that take place in the enterprise. In the course of fulfilling the assigned tasks, the management constantly monitors the quality and completeness of the fulfillment of the tasks assigned to employees. The movement of the organization towards the goal is also assessed. If necessary, make the necessary adjustments.
Whendevelopment of the concept of strategic management take into account a number of statements. The entire management process is based on them. Every organization is a complex economic and social system. She has certain traits that are unique to her. It should be noted that any company is an open system. It is subject to various external factors. Therefore, it must quickly adapt to constantly changing environmental conditions.
In a market economy, any company strives to achieve its goals and gain competitive advantage. Therefore, you can not consider your organization separately from other players and market participants. Since each organization is unique, it is required to set goals to achieve the set goals, taking into account its characteristics.
Thompson Model
In the process of development and formation of business, the understanding of the need to conduct management activities, taking into account the constant changes in the environment, gradually developed. As a result, many models of strategic management appeared that described the mechanism for conducting strategic management. There are many similar concepts that have been applicable in the past and exist today.
Thompson's model of strategic management was very popular. This is one of the most detailed concepts that allows you to understand the sequence of the management process in the long term. This model reflects 4 main elements that, according toThompson, allow you to perform the process of building company plans correctly. These components include strategic analysis, selection, implementation and monitoring.
Thompson proposed to consider the process of strategic management as a dynamic community of stages that are interconnected and logically replace one another. Between each of them there is a certain logical connection. Each of these stages affects each other and the entire management process.
Other models
The strategic management model was also developed by other well-known economists. So, one of the possible views on this process is the Lynch approach. He presented the management model in two versions. The first approach did not differ from the universal technique proposed by Thompson. The second approach is flexible monitoring in the development and implementation of strategic plans.
David's model includes 3 stages of management. According to this concept, a strategy is first formulated, then it is implemented. After that, the results are evaluated.
Rational model
Modern management tools allow organizations to respond responsively to changing conditions and adjust their activities. This significantly improves the qualitative and quantitative performance of the organization. Modern concepts of strategic management are based on the classical approach to the implementation of this process. This is a rational model.
The presented concept is based on accurate and thorough research and development of the company's long-term plans. Strategic management, according to the presented approach, is carried out in 3 stages. These include strategic analysis, selection and implementation.
Each of these steps is important for choosing the right course of action. The analysis stage involves understanding the mission of the organization. At this stage, a vision of the direction and speed of the company's development is formed. Based on the decisions made at this stage, the formation of goals is carried out. The process of determining them is based on an analysis of both external and internal environmental factors, as well as on a consolidated determination of the company's position in the market.
Strategic alternatives are formed at the selection stage. Each direction of movement is evaluated. After that, a decision is made to choose the most rational development option.
The implementation stage is the transfer of goals and objectives to lower levels of management and the implementation of the developed programs. At this stage, key indicators are determined that will be analyzed in the operational planning process.
Advantages and disadvantages of the rational model
Strategic management of personnel, production, finances and other components of the organization's activities can be carried out using different approaches. The rational model is one of the most famous and in demand today. She has both advantages and disadvantages.
The positive qualities of the presented model include its orientationon corporate priorities. The goal communication system is developed at the highest level, and then the concept is passed down from the top. The process of strategic planning in this case becomes objective and transparent. In this case, all levels of management become involved in the process of formulating and implementing the strategy.
The disadvantage of the rational model is its lack of flexibility. It takes considerable effort to develop a well-thought-out strategy at all levels. This strategic management system requires a significant investment of time. It may simply not be enough to make adequate decisions in a timely manner.
It is because of these shortcomings that alternative approaches have been developed. They are more flexible. This allows you to quickly respond to all changes in the market environment and within the organization itself.
Alternative models
By choosing among the many options for administrative management methods, management may prefer alternative models for formulating the organization's strategy. Such approaches are based on the fact that the choice of directions of the company's activities is based not only on the careful study of plans.
Alternative strategies are divided into 2 types. The first group includes concepts that are based on strategic analysis data. Based on a certain list of coefficients, it turns out to perform a planning procedure. This group of models is based on a rational approach. Further, after analysis and forecasting, severalstrategic plans. However, only one of them is implemented.
The second type of patterns includes urgent strategies. They are not planned. Therefore, such models are not among the strategic alternatives. In the course of its activities, the company may encounter unforeseen circumstances that significantly affect the achievement of the company's goals.
The second type of models emerge not from directives of the leadership, but from the peculiarities of the behavior of subordinate structures. This allows you to quickly respond to rapidly changing environmental conditions.
In a real production environment, managers use a variety of management tools that they choose based on thoughtful and urgent strategies. Each of the listed methods of developing and implementing plans complements one another. The ratio of the elements of each model is determined by the characteristics of the functioning of the company, the external conditions of its environment.
Stages of model formation
Strategic management of personnel, production or the general direction of the organization's activities is undergoing a certain process of formation. It goes through several stages. At the initial stage of developing a management model, the period for which the goal should be achieved is determined.
After that, a thorough study of the conditions of the external environment, as well as the internal financial capabilities of the organization. Based on the information collected, an assessment of the strengths and weaknesses of the company is carried out. This determines the features of its financial activity. Alsoreserves and opportunities for further development are determined, possible risks are assessed.
After that, the financial position of the organization is assessed. This process is approached comprehensively. Only then can strategic goals be formed. The company seeks to increase its we alth, maximize its market value.
Further, the development of strategic standards is carried out in accordance with the set goals. Among the many alternatives, the most optimal directions are chosen. Next, the effectiveness of the developed strategy is evaluated.
After that, conditions are created for the implementation of the created plan, optimal administrative methods of regulation and reporting of information to lower structures are selected. The fulfillment of the assigned tasks is monitored, their compliance with the main goal.
Having considered the features of the formation and application of strategic management models, one can not only understand the importance of such planning, but also the prospects that the use of such approaches opens up for any organization. Modern methods and technologies for conducting this process allow the organization to quickly respond to the changing state of the environment.
