In a market economy, solutions to practical issues of constructing a new enterprise, expanding, and reconstructing existing production are determined by a long-term business plan that takes into account the dependence on market demand for products.

The method of economic justification for choosing areas to satisfy product needs is based on marketing research data on the prospects for increasing market demand for products and basic data of the enterprise (Table 6.5).

The economic justification for choosing areas to satisfy market demand for products ends with the preparation of a business plan for the enterprise, including such economic sections as:

• – production of products and enterprise resources;
• – production costs;
• – finances;
• – economic efficiency.

The development of a business plan is carried out in sections:

Section I. Production capacity, products (goods), market demand, ensuring market demand.

Section II. Production resources.

Section III. Production costs (cost estimates).

Section IV. Projected price and profitability of products.

Section V. Economic efficiency.

Let's consider developing a business plan using the data in Table. 6.4.

Table 6.4

Initial data for calculating sections of the enterprise development business plan

	Name of indicators	Indicators
	Production program in the base period, pcs.
	Capacity utilization rate in the base period
	Increasing market demand for products in the future, %	(2 times)
	Coefficient of intra-shift equipment use in the base period
	Coefficient of economic depreciation of fixed assets
	Labor intensity of the product in standard hours in the base period
	Material consumption per unit of production, rub.
	Capital intensity of products in the base period, rub.
	Hourly wage rate of the main worker, rub.
	Hourly wage rate for an auxiliary worker, rub.
	Annual useful time fund of one worker, hour
	Time compliance rate
	Growth of workers' wages in the future, %
	Product profitability in the base period, %
	Product profitability in the future, %
	Income tax, %

Section I . "Production capacity, products (products), market demand, ensuring market demand."

In this section, the “Balance of production capacity (PM) of the enterprise” is developed, taking into account the volume of production and its increase in 5 years.

A shortage of PM is identified, which is eliminated primarily through the use of internal production reserves and increasing the PM utilization rate to the permissible limit - 85% (15% is PM reserve). In the calculations, the remaining shortage of PM is eliminated due to the technical re-equipment of the enterprise.

Products in the base period for the case under consideration are 3600 units. PM utilization coefficient is 0.6, therefore, taking into account this coefficient

Market demand for products in 5 years will double and amount to 7200 units, of which:

• – under concluded contracts (75%) – 5400 units;
• – according to marketing research (25%) – 1800 units.

The production capacity in the future, when it is used up to 85%, will be:

PM deficit in the future: 8470 – 6000 = 2470 units.

Elimination of power shortages can be carried out through the use of internal production reserves by increasing the utilization rate of the current PM to 0.85 (instead of 0.6):

6000 (0.85 – 0.6) = 1500 units.

Unresolved deficit of 970 units. production can be achieved through technical re-equipment (replacement and modernization of existing outdated equipment).

Based on the calculation results, a balance of the enterprise’s production capacity is compiled (Table 6.5).

Table 6.5

Enterprise production capacity balance

Indicator in the base period, taking into account the need for products in the future	Quantity,	Indicator in the future (in 5 years)	Quantity,
Production and sales of products, including:		Demand for products, including:
		demand under concluded contracts
with current PM
increase in demand in the future		according to marketing research
Current PM		Required PM
Increase in PM due to:
internal production reserves
technical re-equipment

Section II. "Production Resources".

Production resources include such elements as: material resources, fixed production assets and labor resources.

In the base period structure of fixed assets (OPF) includes: buildings and structures – 40%, equipment – ​​50%, vehicles – 10%.

The value of OPF in the future is determined taking into account the replacement cost of funds in the base period, taking into account depreciation and an increase in output.

Thus, buildings and structures increase in the future by 10%, the cost of equipment and vehicles doubles in proportion to the increase in production volume. The coefficient of increase in the replacement cost of equipment and vehicles during technical re-equipment is 0.95.

In addition to fixed assets, the authorized capital also includes working capital (CA), in which circulating medium (CO) constitutes 25% of the value of working capital (WF).

ObF includes the current stock of materials (TS), safety stock (SZ), work in progress stock (WIP) and finished goods stock (GP).

The size of the TK depends on the material intensity of the product, the average daily consumption of materials and the frequency of deliveries (10 days), the TK is 50% of the TK. The WIP volume is 0.67.

The stock of finished products is defined as the product of the total cost of production by the average daily output and the time for preparing products for shipment to consumers, equal to 7 days.

In the future, the oblast funds will double in proportion to the growth in production volume. This takes into account a 10% reduction in inventory in the warehouse.

One of the factors of production is work. The number of personnel includes the number of main and auxiliary workers, as well as employees. The number of workers in the base period is determined as the product of the volume of production and its labor intensity, divided by the annual fund of working hours and the rate of fulfillment of standards.

The number of auxiliary workers is 70% of the number of main workers, the number of office workers is 15% of the number of main and auxiliary workers.

We will calculate the enterprise's need for the necessary resources.

Fixed production assets (FPF):

in the base period – 13.66 3600 = 49,176 thousand rubles, including

• – buildings and structures (40%) – 19,670 thousand rubles.
• – equipment (50%) – 24,588 thousand rubles.
• – vehicles (10%) – 4918 thousand rubles;

in the future – 76,764 thousand rubles, including

• – buildings and structures – 19,670 1.1 = 21,637 thousand rubles.
• – equipment – ​​24,588 2 0.95 = 46,717 thousand rubles.
• – vehicles – 4918 2 0.9 0.95 = 8410 thousand rubles. (the coefficient of 0.9 takes into account the growth in the carrying capacity of vehicles in the future).

Working capital (OcR): in the base period – 24,866 thousand rubles, including

– current stock of material resources (TOR)

• – safety stock (SZ): 1221 0.5 = 610 thousand rubles;
• – work-in-process inventory (WIP)

– stock of finished goods (GP):

Total ObF = 1221 + 611 + 13290 + 4771 = 19,893 thousand rubles. The means of circulation (MC) are:

Total ObAv are equal to: 19893 + 4973 = 24,866 thousand rubles. Working capital in the future amounts to 44,758 thousand rubles, including

The total obsr in the future is

Number of personnel. In the base period and in the future, the total number of personnel will be 999 and 1547 people, including

number of main production workers:

number of support workers:

• – in the base period 511 0.7 = 358 people;
• – in the long term 818 0.7 = 573 people. number of employees :
• – in the base period (511 + 358) – 0.15 = 130 people;
• – in the long term 130 1.2 = 156 people.

Section III. Production costs (production cost estimates).

The cost estimate for production consists of several items.

Raw materials and basic materials. Costs are determined based on the material consumption of products in the base period, and in the future, a reduction in material consumption is also taken into account.

Supporting materials. They make up a few percent of the cost of basic materials.

Fuel and energy. Includes the cost of process fuels and energy used for heating and household needs. In the future, it is planned to reduce the consumption of technological and heating fuels and energy.

Remuneration. Salary includes:

• – the basic salary of the main workers. In the base period, it is determined taking into account the hourly tariff rate, the labor intensity of the product and the rate of fulfillment of standards;
• – basic salary of auxiliary workers. It depends on the hourly wage rate and the useful annual fund of worker time. In the future, it is planned to increase the wages of production workers;
• - wages of employees. It is formed on the basis of the staffing table and official salary. In the future, it is planned to increase wages;
• – additional wages for main and auxiliary workers.

Contributions for social needs. They make up 34% of the total payment fund.

Depreciation. The total amount of depreciation of OPF, realized in the cost of production, depends on the depreciation rates.

Other expenses. They include costs for selling products, advertising, and some types of taxes sold as part of the cost of production. Since most of these expenses are semi-fixed, they should decrease in the future.

An example of calculation of production costs (cost estimates) is given in Table. 6.6.

Table 6.6

Production cost estimate

Section IV. Projected price and profitability of products.

In the base period, product profitability is determined by several factors: competitiveness and market price of products, depending on demand; the enterprise's need for profit; level of technical development, etc.

Section V. Economic efficiency.

To provide an economic justification for an effective development option for an enterprise, a system of basic and additional indicators is used.

The main indicators include:

• – capital investments (investments);
• - profit;
• – return on capital investments;
• - break even;
• – margin of financial strength of the project.

Capital investments (investments ). Investments in fixed production assets are defined as the increase in general production assets in the future compared to the base period. The costs of the salvage value of equipment and vehicles are also taken into account in the amount of 10%.

Investments in working capital (including working capital assets) are determined in proportion to the increase in production volume as the difference between operating assets in the future and in the base period.

Profit. Profit from sales of products in the base and perspective periods is calculated as the product of output volumes by the difference in price and cost of production.

Return on capital investment. It is calculated as the ratio of the volume of investment to the increase in profit.

Break even. It is calculated for the prospective period at 40% of fixed costs in the total cost of production.

The financial strength of the project. Determined taking into account the break-even point.

Additional indicators of the economic efficiency of the project include:

• – profitability of products and production assets;
• – capital productivity of the general public fund;
• – labor productivity and average wages.

These known indicators are calculated using accepted methods.

All economic indicators of the business plan are summarized in a table (Table 6.7).

The business plan includes only economic sections. It does not provide a summary, characteristics of the product, results of market research, information about competitors, or a production plan, since the product being manufactured is competitive and in demand. The characteristics of the enterprise are given in Section II of the business plan.

The business plan is the basis for the economic justification for the effectiveness of the project.

Table 6.7

Economic indicators of the enterprise development business plan

Name of sections and indicators	Unit measured	Quantity
		in the base period	in the future
Products
Enterprise resources
Authorized capital, including
– fixed production assets (FPF):
original carrying amount excluding depreciation
replacement cost taking into account wear and tear, including the passive part of the OPF and the active part of the OPF		49 176 19 670 29 506	76 764 21 637 55 127
– working capital, including
working production assets
means of circulation
Number of employees, including white-collar workers
Production
Production capacity
Power Usage
Production costs
Production cost estimate
Product cost
Selling price
Gross profit from sales
Income tax (20%)
Net profit
Economic efficiency
Product profitability
Capital productivity of OPF
Profitability of OPF
Labor productivity of workers,
including workers
Average annual wages of workers,
including workers
Capital investments
Profit growth in the future period
Return on capital investment
Break even
Financial strength margin
Term of bank long-term loan
Bank loan percentage

When economically justifying the choice of directions for meeting market needs for products, a comprehensive comparative analysis of business plan data for a five-year period is provided. The rate of increase in output and sales of products, capital productivity, profitability, labor productivity and average wages, payback period of a bank loan, etc. are compared.

The main criterion for economic efficiency according to the method under consideration is the return of invested funds within the period determined by the return of a long-term bank loan.

If the project analysis gives negative results, then recommendations are developed to improve production efficiency.

From the example of a business plan for the development of an enterprise discussed above, it is clear that in the future, increasing production and sales of products by 2 times through the use of internal production reserves and technical re-equipment of the enterprise is economically justified. Capital investments pay off within the term of a long-term bank loan. The break-even point of the project is much less than the volume of product sales, although the margin of financial strength is relatively small due to a slight increase in the profitability of the product.

Other performance indicators are also positive, which is confirmed by their comparative analysis. Therefore, the cost of production in the future will significantly decrease, which will reduce its market price and, consequently, increase competitiveness. The growth rate of labor productivity is higher than the growth rate of average annual wages.

• consider automating certain stages of interaction between the sales department and internal and external clients (upgrading existing equipment and improving software will help save time and pay more attention directly to working with customers);
• prescribe the stages of fulfillment of tactical and strategic tasks, as well as their performers and controllers (the development plan of the department should be scheduled monthly or quarterly; it is advisable for each stage to indicate the specialists responsible for the implementation of tasks and employees who check the correctness and timeliness of the actions of the performers).

Example of implementation There are many options for improving the work of the sales department.

Individual development plan: example, specific actions and goal

Attention

And if the goal is the implementation of an event, then the expected completion date of this event should be indicated as an indicator of its achievement. Strategic goals are set, as a rule, for a year and subsequently adjusted based on the actual results of the company's work.

Important

An example of a map of strategic goals is in table. 1. Developing a business plan for the development of the organization One of the most important sections of the strategic development of an enterprise is a business plan for the company’s activities for the forecast period. Typically, business plans are drawn up for a period of three to five years; there are options for up to ten years.

The main criteria for choosing a strategic planning period are the current market situation and the position of the company.

An example of developing a strategic development plan for an enterprise

Since development strategies within the company are global in nature and their implementation requires the efforts of all divisions of the company, it is necessary to translate them into the strategies of individual divisions so that the managers and staff of each division clearly know their goals and objectives in implementing the overall strategy of the company. In addition, dividing the company's strategy into divisional strategies ensures that the correct targets for achieving the strategy are set.
Agree, if a company has one target indicator for everyone, which is formed as a result of the work of several departments, in the end it is impossible to understand which of them did not do their part of the work and who exactly is to blame for the fact that the overall target indicator was not achieved. An example of such a broadcast for the Volga company looks like this (Fig.

2).

Development and implementation of an enterprise development plan

This is a big plus in the factory, in terms of product sales, since the client, by and large, prefers classics, and gothic classics are also chic. In turn, the factory is diligently expanding the sales market for its products.
Furniture is such a product that, with current technologies, you can gush with different developments. Every new product is an innovative idea that requires an economic and technological approach.
1.

Competitive analysis 1.1 Analysis of the external environment, SWOT analysis To study the production and economic activities of an enterprise, it is necessary to dwell on such concepts as the internal and external environment of the enterprise. The internal environment of an enterprise is people, means of production, information and money.

Development of a strategic plan for enterprise development

To receive a decent salary, sellers of such organizations have to actively attract new customers all the time, since small companies value every client. In larger companies, at a certain stage of development, a fairly large base of regular customers appears.

A limited circle of clients prevents active promotion of the brand. Optimizing the work of the sales department can eliminate this problem.

Enterprise strategic development plan

The development of a sales department must be planned by every company that is interested in the effective sale of its product. Neither good advertising, nor quality products, nor thoughtful after-sales service will allow a company to occupy the position it needs in the market if the selling department does not do its job correctly.
Standard reasons for developing a development plan are:

• the need to create a sales department from scratch;
• the need to strongly motivate its employees for better results;
• constant lag behind the sales plan with an already formed department;
• transition of the division from the active sales mode to the mode of working with regular customers.

Objectives of the plan The development of a document providing for the development of the sales department is aimed at solving several important tasks.

Company development plan

With it you can:

1. increase sales volumes;
2. get big profits;
3. improve work efficiency;
4. guide sellers to attract strategically important customers;
5. improve business processes and interaction patterns between various departments.

The absence of a development plan for the sales division may not be too critical for a small company. Here, employees are usually forced to perform the functions of several specialists (an example of typical sales-related tasks is schematically shown in the diagram).

Planning and evaluating work is often done by the director or owner. And the sales department not only looks for new clients, but also prepares all documents for the transaction and further services.

Sales department development planning

Managing a sales department is a difficult and responsible task. The correctness of the actions of sellers and the effectiveness of management of this division affects not only profits, but also the image of the company. It is difficult to fulfill the sales plan qualitatively at all stages of the department’s work. At the initial stage, it is difficult to select a good team, then you have to spend time training them, and then it becomes even more difficult to motivate them to look for new clients. In order for salespeople to not only carry out tasks that interest them, but also implement the corporate strategy, a competent plan for the development of the sales department is needed. Prerequisites for creation A plan focused on the development of a selling division is a comprehensive document that defines the main directions, principles and methods of achieving global goals within the framework of the company’s overall strategy.
It has three main workshops: - chairs workshop; - table workshop; -cabinet furniture workshop. The marketing department is in constant contact with its clients and tries as much as possible to take into account the needs of the Russian market. The factory's work is based on the following tasks:

• High level of product quality
• High customer service (constant provision of customers with advertising materials)
• Large range of products (in stock and on order, within the shortest production time)
• Optimal ratio of price and quality of manufactured products
• Providing promotional products (brochures and samples).

The products of the UTA factory are made mainly in the classical style, and in different time classics, and the classics, as we know, are always relevant.

Enterprise development plan for 3-5 years, a brief example

Attach an explanatory note to the curriculum, in which you indicate what program the preschool institution follows, how the content of the variable part of the plan is consistent with the basic one, how the plan reflects the specific focus of the kindergarten’s work, the regional and national components. Please note: For correctional groups in kindergarten (for example, speech therapy), the plan is drawn up separately for the same sections.

Thus, in a combined kindergarten, two plans for teaching children will be required. Helpful Hint For each age group, indicate the duration of one lesson: 15, 20 or 25 minutes.

For a ship that has no course,

no wind will be favorable.

Ancient Roman philosopher

and statesman Seneca

Where to start developing a strategic plan?

What sections must be present in the strategic plan?

What methods can be used to check the correctness of the strategic development plan?

How to analyze the external and internal context of an organization?

How to formulate a mission and develop development strategies for an organization?

How to develop a business plan for the development of an organization?

How to ensure the implementation of the strategic development plan?

How to ensure the relationship between strategies, business development plans and budgets of the organization?

A company that does not have strategic development goals and specific plans to achieve them is doomed to follow current events with very vague prospects for the future. But developing a correct strategic development plan requires management to have high competencies and skills, since it involves not so much calculating business performance indicators as forecasting business dynamics, taking into account the risks and opportunities associated with both the external and internal context of the organization.

You can often come across the opinion that strategic planning is needed by large companies that have already declared themselves as leaders in their market segment and look to the future with confidence.

But, firstly, any company has a specific goal for its activities and at least an approximate business plan. And these are already elements of strategic planning.

Secondly, even novice entrepreneurs assess the size of the market in which they are going to operate, the competitive environment and their ability to enter this market. That is, they engage in strategic analysis, which is also one of the components of strategic planning.

In other words, most small and medium-sized companies in fact also use strategic planning, but, unlike large players in the market, they do it unsystematically and not in full.

And in large companies, it happens that strategic development plans developed with a lot of time and effort remain just plans. This can be caused by many external and internal factors, the most common of which are the lack of integrity in the planning methodology and disruption of the relationships between strategies, business development plans and company budgets.

We offer a methodology for developing the most effective strategic development plan and recommendations that will help avoid possible risks of erroneous forecasts, we will tell you about the sequence of forming a strategic development plan, and we will reveal the relationship between the context, goals and resources of the company, which should be reflected in the strategic development plan.

Of course, the strategic development plans of large, medium and small companies will differ due to the difference in the scale of economic activity, the specifics of the business, the complexity of the organizational structure and business processes.

But in any case, a well-developed strategic development plan is formed on the basis of sequentially implemented stages:

Analysis of the external and internal context of the organization

The performance of any company is influenced by many different factors. Without understanding the extent of their impact, it is impossible to develop the right strategic direction for the company's development.

The company itself also influences the external environment (context) - the product market, suppliers, buyers, partners, regulatory authorities, etc.

Pay attention!

How successfully a company's strategy will be implemented largely depends on its ability to organize the internal environment (context), which includes business processes, organizational resources, personnel, structure and production technologies, as well as corporate culture and principles.

The combination of factors in a company’s internal context largely determines its competitiveness.

Therefore, before developing a mission and strategy, it is necessary to conduct a strategic analysis of the external and internal context of the company, the result of which should be an assessment of the risks and opportunities of a particular enterprise in its surrounding market environment.

The 3 most common methods of strategic analysis:

SWOT analysis;

construction of Probability/Impact matrices;

creating a register of risks and opportunities.

The purpose of SWOT analysis (Strength - strength, Weak - weakness, Opportunity - opportunities and Threat - threats) is to determine the strengths and weaknesses of the company, to establish their connections with external opportunities and threats.

Based on the results of the analysis, company strategies are developed aimed at using opportunities and eliminating threats to development.

“Probability/Impact” matrices are built separately to position the opportunities of the company’s external environment and to position the threats to the company’s external environment.

In each of the matrices, opportunities and threats are distributed according to the likelihood of their occurrence and the strength of their impact on the company.

Matrices help control external factors and develop business development strategies.

Creating a register of risks and opportunities involves a more detailed analysis compared to the two previous methods. First, risks and opportunities in both the external and internal contexts of the company are identified. Next, the identified risks and opportunities are assessed according to the likelihood of their implementation and the degree of impact on the company’s business. Then a matrix of risks and opportunities is formed, which reflects the total degree of influence of the assessed risks and opportunities (“High”, “Medium”, “Low”). The final stage is drawing up a register of risks and opportunities. It records all the risks and opportunities that are significant for the company, ways to minimize and implement them (essentially, these are the company’s strategies), as well as the responsible (owners) of each of the risks and opportunities.

Conclusion

When choosing a development strategy, a company should focus on its strengths (high quality products, customer service, positive business reputation) to take advantage of business expansion opportunities (increasing sales, releasing a new type of product, providing additional services to customers).

At the same time, it is necessary to strengthen its weaknesses (depreciation of funds, insufficient qualifications of personnel, dependence on loans) in order to minimize the risk of external threats (rising prices for raw materials, increasing competition in the market, decreasing consumer demand).

Development of mission and development strategies of the organization

In order to understand in which direction to move and develop, the company should first of all decide on its mission, that is, the main purpose of its existence.

The mission of the organization necessarily reflects the scope of activity and its ultimate goal. Based on the adopted mission, company development strategies are developed that will ensure the fulfillment of the mission.

Development strategies, firstly, should cover all aspects of the company's mission, and secondly, should not deviate from its meaning.

Compliance with the first condition is necessary for the successful implementation of the company's mission, the second - in order not to divert the company's resources and efforts to solve problems that do not serve the fulfillment of the company's mission.

When developing company development strategies, it is necessary to carefully check their relationship with the approved mission.

Since development strategies within the company are global in nature and their implementation requires the efforts of all divisions of the company, it is necessary to translate them into the strategies of individual divisions so that the managers and staff of each division clearly know their goals and objectives in implementing the overall strategy of the company.

In addition, dividing the company's strategy into divisional strategies ensures that the correct targets for achieving the strategy are set. Agree, if a company has one target indicator for everyone, which is formed as a result of the work of several departments, in the end it is impossible to understand which of them did not do their part of the work and who exactly is to blame for the fact that the overall target indicator was not achieved.

An example of such a broadcast for the Volga company looks like this (Fig. 2).

We formulate strategic goals for the company's development

However, the formation of a strategic development plan for a company is not limited to the development of a mission and strategies. In addition to the direction of action itself (i.e. strategy), it is also necessary to develop success criteria (targets) and ways to achieve them (business development plans). Only in this case can you be sure that the company has a clear program for achieving its mission, supported by action plans and calculations of the resources necessary for their implementation.

Strategic goals (or key target indicators) must be specific and measurable, so that at the end of any period it is clear to what extent the strategy has been implemented and what the dynamics of its implementation are.

For example, if such a target strategy indicator as increasing sales volumes can be expressed as a percentage increase compared to the volumes of the previous period or in a specific amount. And if the goal is the implementation of an event, then the expected completion date of this event should be indicated as an indicator of its achievement.

Strategic goals are set, as a rule, for a year and subsequently adjusted based on the actual results of the company's work.

To visualize indicators of the implementation of development strategies, use a map of strategic goals, which indicates:

general company strategies;

division strategies;

key areas for strategy implementation;

target indicator for each strategy;

owner of the target indicator (division responsible for implementing the strategy).

An example of a map of strategic goals is in table. 1.

We develop a business plan for the development of the organization

One of the most important sections of the strategic development of an enterprise is the business plan of the company’s activities for the forecast period.

4 key functions of a business plan:

Transforms strategic development goals into indicators of the company’s financial and economic activities for the forecast period.

Serves as a source for checking the realism of the developed strategies (by comparing forecast indicators with the company’s resource capabilities).

It is the basis for developing budgets for the company as a whole and its divisions for the year.

Acts as a guide for adjusting the company's development strategies for subsequent periods.

Typically, business plans are drawn up for a period of three to five years; there are options for up to ten years.

The main criteria for choosing a strategic planning period are the current market situation and the position of the company. For example, if the market situation is quite stable and the company has been successfully operating in it for a long time, it can afford to predict results for the long term based on a “strategy for success.”

If the market is hectic and the company does not feel stable enough, it is forced to work on a “survival strategy”, in which long-term forecasting is impractical due to the uncertainty of the further development of the situation. In this case, a business plan is drawn up for a period of one to three years.

The business plan of the Volga company for a three-year period is in table. 2.

As evidenced by the business plan data, the company's strategies and their targets are realistic and quite achievable. The Volga company conducts a profitable business, its operating income is sufficiently balanced and allows it to maintain a given rate of profitability while increasing sales volumes.

Due to the growth of net profit, the company can also solve the problem of high dependence on external financing by investing the profits received in replenishing working capital for running the business.

Ensuring the relationship between strategies, business development plans and budgets of the organization

Ideally, when developing a strategic development plan, a company must ensure the relationship between strategies, business development plans and budgets of the company and divisions. This relationship guarantees the successful implementation of the strategic plan, because the target indicators of the company's strategies will be tied to the parameters of the business development plan, on the basis of which all company budgets are planned. Consequently, the implementation of budgetary objectives will lead to the achievement of the company’s strategic goals. Visually, this relationship is presented in Fig. 3.

Using the example of the strategic development plan of the Volga company that we are considering, we will see whether there are connections between the above plans.

In the final part of the enterprise's strategic development plan, include a description of risk management methods, since in long-term planning the level of uncertainty increases simultaneously with the increase in the planning horizon.

While it is quite possible to achieve a high level of data accuracy and ensure the interconnection of all elements of planning when drawing up a forecast for a year, when developing a strategic plan for five years, a significant number of assumptions and assumptions about the development of the situation must be made. Therefore, it would be a good idea for all interested parties (owners, management, management) to understand, when agreeing on a strategic plan, what risks may hinder its implementation and what the company can do to minimize their occurrence.

Conclusion

A full-fledged strategic development plan for an enterprise includes the following sections:

• The results of the analysis of the external and internal context of the organization at the time of development of the plan.
• Description of current activities and long-term development goals of the organization.
• Description of the company's mission and development strategies.
• Functional strategies of company divisions.
• Description of projects for the development of the company.
• Business plans for the implementation of development projects.
• Description of risk management methods for implementing the strategic plan.

Development of a strategic development plan is the basis for choosing long-term goals of the enterprise and ways to achieve them. Strategic planning helps to effectively allocate and use company resources to achieve the main goals and objectives of the chosen mission.

Please note: it is necessary to systematically monitor the approved plan so that it does not lose its relevance, and to audit the company’s strategies, since the market situation and internal processes of the company can change significantly under the influence of factors that did not manifest themselves at the time of development of the strategic plan. It is better to quickly identify the ineffectiveness of the chosen path than to stubbornly continue to waste the company’s time and resources on achieving a goal that has lost relevance.

At its core, strategic planning is an ongoing process in which a company must find the shortest and most effective path to success.

The need to plan the development of an organization is determined primarily by the fact that in modern economic conditions, only organizations that quickly and adequately respond to changes in the external and internal environment survive. This is possible only if the organization has a functional planning system. In addition, planning is the basis of all organizational activities, since without it it is impossible to ensure consistency in work, control business processes, determine the need for resources, and also motivate employees.

Planning as an economic category can be considered from a managerial and general economic point of view.

Planning is one of the central functions of management. Management functions are aimed at achieving the goal, which is formed within the framework of the planning function. In addition, planning is intended to strictly regulate the behavior of an object in the process of achieving its goals. The relationship between planning and other management functions is presented in Fig. 1.1.

Function planning is the basis for making management decisions and includes determining the goals and objectives of managing the organization, developing ways to implement the presented plans to achieve the goals (in other words, developing a development strategy for the organization), as well as calculating the necessary resources and their distribution. In this sense, planning is the anticipation of possible risks that may arise as a result of the organization's activities. It is impossible to completely eliminate risk, but it can be managed through effective planning (foresight).

Planning is often considered as the process of developing a plan for the development of an organization. Development is understood as an irreversible, directed, natural change in systems. It is important to note that as a result of development, the object acquires a new qualitative state, i.e. there is a change in its composition or structure.

It is necessary to distinguish between the concepts " organization development», « functioning of the organization" And " organization growth" Firstly, development is possible only for a functioning organization, and secondly, development, in contrast to growth, which is associated with a quantitative change while maintaining the integrity of what is changed, is always associated with qualitative and structural changes in the organization.

The development of an organization is determined, as a rule, by changes in external and internal factors.

External factors organization development:

• policy;
• economy;
• socioculture;
• technologies;
• consumers;
• suppliers;
• competitors.

Internal factors organization development:

• management of the organization (development strategies, organizational structure, image of the organization, etc.);
• the process of transformation of resources (material, financial, human, temporary, information, energy, etc.).

In addition to the listed factors, one can note changes in the environment, the needs and interests of man and society, the global state of world civilization, etc.

Obviously, when planning the development of an organization, it is necessary to take into account changes in all of the above factors. Here the question may arise: does such planning coincide with the process of developing an organization's development strategy? Of course, it coincides, with the only difference that the phenomenon of development does not arise when creating (for the first time) a strategy, but when it is improved or adjusted. This is precisely the main aspect of planning the development of an organization.

In this regard, planning the development of an organization creates important advantages, in particular it allows:

• make full use of the existing opportunities of the external environment;
• identify emerging problems;
• identify the organization’s strengths and use them to solve existing problems and reduce external threats;
• encourage managers to implement their decisions;
• improve coordination of activities in the organization;
• create prerequisites for improving the qualifications of managers;
• increase employee awareness;
• rationally distribute resources;
• improve control in the organization.

When planning, the stage of development of the organization should be taken into account. The development of an organization on a time scale can be presented in terms of a life cycle, meaning both the processuality of development and its staged nature. A look at an organization through the prism of development cycles allows us to more accurately identify its main value systems and orientations, specify the tasks it faces, as well as the features of management approaches.

The methodological basis for studying the life cycle of an organization is the theory of finding balance between the complex and the environment. We are talking about the economic entity gaining dynamic balance with both the external and internal environment of the organization. It is the dynamic nature of equilibrium that makes an organization stable and gives it the opportunity to exist in time and space. A disequilibrium state may mean the process of destruction of an organization and its subsequent liquidation.

However, we should not forget that the development of any organization is cyclical: a rise is followed by a decline, a depression sets in, after which growth sets in again, and the cycle repeats. Factors influencing the cyclical development of an organization are:

• organization of the national economy (structure of industries and their priority);
• demographic changes;
• innovation and investment processes;
• exchange processes in commodity and money markets;
• changes in prices for material resources;
• agricultural price changes (crop failures, prices for agricultural products);
• specifics of banking organization;
• disruption of production balance (overproduction). It is planning the development of the organization that allows you to achieve balance. There are several stages in the process of planning the development of an organization, the relationship of which is presented in Fig. 1.2.

An integral part of the planning process for the development of an organization is compliance with the principles of planning that determine its nature and content. A. Fayol identified four basic principles of planning: unity, continuity, flexibility and accuracy. Later, A. Ansoff substantiated another key planning principle - the principle of participation. In conditions of free market relations, planning principles such as independence and efficiency are also distinguished. The content of these principles is disclosed in table. 1.1.

The implementation of these principles allows you to plan the production process in accordance with the needs of buyers and manufacturers, evaluate the implementation of plans, and significantly reduce labor costs, material costs, inventories and work in progress.

We should not forget that the planning process is probabilistic in nature. This is explained by the fact that planning is always based on data from past periods of the organization’s activities, i.e. is based on incomplete data even with well-established accounting and management accounting. The problem is that some aspects of the functioning of the organization, for example, economic cycles, political conditions, cannot be assessed.

The procedure for planning the development of an organization is a clear algorithm for preparing decisions, as opposed to spontaneous, situational management decision-making. Although the benefits of planning are obvious, improvisation when making management decisions is not only inevitable, but also necessary. During the development planning process, organizations consider and evaluate alternative options for future actions, from which the best one is selected.

The organization's development plan defines the activities necessary to create new generations of products and services and more clearly outlines the path to new management positions. It serves as a guideline for developing a diversification plan (expanding the range of products and services, and therefore production), a liquidation plan, which shows which divisions and productions the organization should abandon, a research and development plan, including activities for the development of new products and services .

The organization's development plan is detailed down to specific programs, projects and individual events.

Planning object development of an organization are the functions that it performs in the course of its activities. Based on the specifics of their activities, individual organizations perform different functions. The most common ones are:

• research and development of new products and services;
• marketing, which is designed to provide a reliable forecast of demand and sales volumes of goods or services;
• formation and use of all types of resources;
• production, in the process of which initial resources are transformed into finished products;
• sales (sales) of products and services.

It should be noted that planning the development of an organization affects not only the business processes occurring in the organization, but also management processes. Consequently, the objects of organizational development planning are all functional processes, including production and management, that are carried out in specific departments.

The development of an organization is always associated with the use of resources, so resources are the subject of planning. Moreover, when planning the development of an organization, they take into account not only the available resources, but also all the necessary ones. The purpose of resource planning is primarily to optimize their use. The classification of resources in an organization can be different. The most frequently identified are the following types of resources:

• human resources (personnel of the organization);
• material resources;
• financial resources;
• information resources, etc.

In modern literature, along with the above resources, organizations distinguish time resources and entrepreneurial talent - as a type of human resources, represented by the activities of coordinating and combining all other resources. This type of resource is manifested in the ability to carry out production and commercial activities as rationally as possible, based on innovation, responsibility and willingness to take risks.

The presence of an object and subject of planning allows us to form a planning system for the development of an organization. It includes several forms and types of planning, one of which is business planning.

Strategic planning is one of the management functions, which is the process of choosing the goals of the organization and ways to achieve them. Strategic planning provides the basis for all management decisions. Therefore, most enterprises and organizations are focused on developing strategic development plans. The dynamic process of strategic planning is the umbrella under which all management functions are sheltered; without taking advantage of strategic planning, organizations as a whole and individuals will be deprived of a clear way of assessing the purpose and direction of the corporate enterprise. The strategic planning process provides the framework for managing the members of the organization. Projecting everything written above onto the realities of the situation in our country, it can be noted that strategic planning is becoming increasingly relevant for Ukrainian enterprises and organizations that enter into fierce competition both among themselves and with foreign business entities.

Strategic planning is the development of a strategy using a formalized procedure, outlined in stages, methods, execution techniques and aimed at building a model of the future, as well as a program for the transition to this model.

Today, this is the latest achievement in strategic management and the most highly intelligent and expensive element in management in general. Suffice it to say that in large companies it involves department specialists ranging from 20-30 to 50-100 people. A strategic plan is a document of approximately 100 pages, where the future for the manager is painted according to a predetermined stencil with the appropriate level of detail.

This test is aimed at systematizing the knowledge gained in the process of studying the discipline “Enterprise Planning” and supplementing it with thematic literature on strategic planning, management and marketing. It contains the basics of strategic planning, gradually revealed to the extent allowed by the literature.

The first part of the test examines the essence of strategic planning - what constitutes strategic planning, as well as the requirements that must be met when developing a strategic plan for an enterprise or organization. The first part of the work also examines the functions of strategic planning.

The second part of the work is entirely devoted to the features of strategic planning of production and commercial activities of an enterprise at the microeconomic level. Due attention is paid to the tasks of strategic planning in conditions of market competition. The theoretical aspects of the stages of developing a strategic plan, the structural diagram of planning and the features of strategic planning at an enterprise in a market economy are given.

Thus, this test as a whole covers all the main areas of strategic planning for enterprise development and provides general recommendations for strategic planning in practice.

1. The essence and functions of strategic planning

Strategic planning is a set of actions and decisions taken by management that lead to the development of specific strategies designed to help the organization achieve its goals.

The strategic planning process is a tool that helps in making management decisions. Its task is to ensure sufficient innovation and change in the organization. More precisely, the strategic planning process is the umbrella under which all management functions are covered.

The essence of strategy. The word “strategy” comes from the Greek strategos, “the art of the general.”

A strategy is a detailed, comprehensive, comprehensive plan designed to ensure that an organization's mission is achieved and its goals are achieved. It should be developed from the perspective of the entire corporation rather than the individual. It is rare that the founder of a company can afford to combine personal plans with organizational strategies. The strategy involves the development of reasonable measures and plans for achieving the intended goals, which should take into account the scientific and technical potential of the company and its production and sales needs.

The strategic plan must be supported by extensive research and evidence. Therefore, it is necessary to constantly collect and analyze a huge amount of information about sectors of the national economy, the market, competition, etc. In addition, a strategic plan gives a firm a sense of identity that allows it to attract certain types of employees and help it sell products or services.

Strategic plans must be designed in such a way that they not only remain coherent over time, but also remain flexible. The overall strategic plan should be viewed as a program that guides the firm's activities over an extended period of time, subject to constant adjustments due to the constantly changing business and social environment.

Strategic planning by itself does not guarantee success, and an organization making strategic plans may fail due to failures in organization, motivation, and control. Nevertheless, formal planning can create a number of significant favorable factors for organizing the activities of an enterprise. Knowing what the organization wants to achieve helps clarify the most appropriate courses of action. By making informed and systematic planning decisions, management reduces the risk of making the wrong decision due to erroneous or unreliable information about the organization's capabilities or the external situation. Thus, planning helps create unity of common purpose within the organization.

Strategic planning functions:

1. The strategic plan sets the direction for the organization's activities and allows it to better understand the structure of marketing research, the processes of consumer research, product planning, promotion and sales, and pricing.
2. A strategic plan provides each unit in an organization with clear goals that are aligned with the overall goals of the company.
3. The strategic plan stimulates the coordination of efforts among various functional areas.
4. A strategic plan forces an organization to evaluate its strengths and weaknesses in relation to competitors, opportunities and threats in the environment.
5. This plan identifies alternative actions or combinations of actions that the organization can take.
6. The strategic plan provides the basis for resource allocation.
7. The strategic plan demonstrates the importance of implementing performance evaluation procedures.

The formation of a strategic plan is a thorough, systematic preparation for the future, carried out by senior management: 1.) Mission selection– formation of goals (long-term, medium-term, short-term).

2.) Development of supporting plans - policies, strategies, procedures, rules, budgets.

2. Methodology for drawing up, structure and content of the strategic plan

2.1 Stages of drawing up a strategic plan

A. Chandler, the author of one of the pioneering works in the field of strategic planning, believes that strategy is “the determination of the main long-term goals and objectives of the enterprise and the approval of the course of action and allocation of resources necessary to achieve these goals.” Chandler's definition of strategy is complemented by the requirement of economy for the courses of action taken: “A strategic alternative is determined by comparing the capabilities and resources of the corporation, taking into account the acceptable level of risk.” Ultimately, the formation of an enterprise strategy should provide answers to three questions: What areas of economic activity need to be developed? What are the capital investment and cash resource requirements? What are the possible returns in the chosen areas?

A. Ansoff identifies several distinctive features of the strategy:

1. The strategy process does not end with any immediate action. Usually it ends with the establishment of general directions, progress along which will ensure the growth and strengthening of the company's position.
2. The formulated strategy should be used to develop strategic projects and search methods. The role of strategy in search is, firstly, to focus attention on certain areas or opportunities, and secondly, to discard all other opportunities as incompatible with the strategy.
3. The need for this strategy disappears as soon as the real course of events leads the organization to the desired development.
4. When formulating strategies, it is impossible to foresee all the possibilities that will open up when drafting specific activities. Therefore, one has to use highly generalized, incomplete and inaccurate information about various alternatives.
5. As more accurate information becomes available, the validity of the original strategy may be called into question. Therefore, feedback is needed to ensure timely reformulation of the strategy.

The strategy implementation process can be divided into two large stages: a) the strategic planning process - developing a set of strategies, starting from the basic enterprise strategy and ending with functional strategies and individual projects; b) the process of strategic management - the implementation of a certain strategy over time, reformulation of the strategy in the light of new circumstances.

Strategic planning is a systematic and logical process based on rational thinking. At the same time, it is the art of forecasting, research, calculation and selection of alternatives.

Enterprise strategies should be built on a hierarchical principle. At the same time, the levels of strategies, complexity, and their integration are very different depending on the type and size of the enterprise. Thus, a simple organization may have one strategy, while a complex one may have several at different levels of action.

The conceptual model of the strategic plan allows us to determine the following stages of drawing up a strategic plan for an enterprise (see Appendix):

1. Environmental analysis:

a) external environment, b) internal capabilities.

1. Determining enterprise policy (goal setting).

Formulation of strategy and selection of alternatives:

a) marketing strategy, b) financial strategy, c) R&D strategy d) production strategy, e) social strategy, f) organizational change strategy, g) environmental strategy.

The result of activities according to the scheme proposed above for drawing up a strategic plan for an enterprise is a document called the “Strategic Plan of an Enterprise” and usually has the following sections:

1. Goals and objectives of the enterprise
2. Current activities of the enterprise and long-term objectives.
3. Enterprise strategy (basic strategy, main strategic alternatives).
4. Functional strategies.
5. The most significant projects.
6. Description of external operations.
7. Capital investments and resource allocation.
8. Planning for the unexpected.

Attachments: Calculations, certificates, other business documentation, including:

a) Annual sales volume by product groups,

b) Annual profit and loss by division,

c) Annual exports and their relationship to sales volume by division.

d) Changes in product mix and market share.

e) Annual capital expenditure program.

f) Annual cash flows.

g) Balance sheet at the end of the last year of the plan.

h) Policy of takeovers and acquisitions.

An analysis of the literature on strategic planning in Western companies showed that the number and content of the stages of drawing up a strategic plan, as well as its form itself, can vary significantly and depend on many factors, among which the main ones are:

1. Form of ownership of the enterprise.
2. Type of enterprise (specialized or diversified)
3. Industry affiliation of the enterprise.
4. Enterprise size (large, medium or small).

Likewise, there is no single horizon for strategic planning. In Europe, long-term, 10-year plans are common, Americans use 5-year plans, and the Japanese generally use 3-year plans.

2.2 Organizational goals

One of the most significant decisions in planning is choosing the purpose of the organization. The main overall goal of the organization is designated as the mission, and all other goals are developed to achieve it. The significance of the mission cannot be exaggerated. The developed goals serve as criteria for the entire subsequent management decision-making process. If leaders do not know the organization's core purpose, then they will have no logical point of reference for choosing the best alternative. Only the individual values ​​of the leader could serve as a basis, which would lead to scattered efforts and unclear goals. The mission details the status of the company and provides direction and guidelines for defining goals and strategies at various levels of development. Mission formation includes:

• finding out what kind of business activity the company is engaged in;
• determination of the company's operating principles under external pressure;
• identifying the company culture.

The firm's mission also includes the task of identifying the basic needs of consumers and effectively satisfying them to create a clientele that will support the firm in the future.

Often, company managers believe that their main mission is to make a profit. Indeed, by satisfying some internal need, the company will ultimately be able to survive. But in order to earn a profit, the company needs to monitor the environment of its activities, while taking into account value-based approaches to the concept of the market. The mission is of utmost importance to the organization; the values ​​and goals of senior management must not be forgotten. The values ​​shaped by our experiences guide or orient leaders when they are faced with critical decisions. Western scientists have identified six value orientations (see table) that influence management decision-making, and have associated these orientations with specific types of target preferences.

Table: Value orientations

		Types of Preferred Goals
Theoretical	True. Knowledge. Rational thinking.	Long-term research and development
Economic	Practicality. Utility.	Height. Profitability. Results. Accumulation of wealth.
Political	Power. Confession.	Total capital, sales, number of employees.
Social	Good human relations. Attachment. No conflict.	Social responsibility versus profitability. Indirect competition.
Aesthetic	Artistic harmony. Compound. Shape and symmetry.	Product design. Quality. Attractiveness.
Religious	Agreement with the universe.	Ethics. Moral problems.

Overall corporate goals are formed and established based on the overall mission of the organization and the specific values ​​and goals that are oriented by senior management.

• Specific and measurable goals (this allows you to create a clear reference point for subsequent decisions and evaluation of progress).
• Orientation of goals in time (here it is necessary to understand not only what the company wants to accomplish, but also when the result should be achieved).
• Achieving the goal (serves to increase the efficiency of the organization); setting a goal that is difficult to achieve can lead to disastrous results.
• Mutually supporting goals (actions and decisions necessary to achieve one goal should not interfere with the achievement of other goals).

Objectives will only be a meaningful part of the strategic management process if senior management articulates them correctly, effectively institutionalizes them, communicates them, and encourages their implementation throughout the organization.

2.3 Assessment and analysis of the external environment

After establishing its mission and goals, business management begins the diagnostic phase of the strategic planning process. On this path, the first step is to study the external environment:

• assessing changes affecting various aspects of the current strategy;
• identification of factors that pose a threat to the current strategy of the company; control and analysis of competitors’ activities;
• identifying factors that present greater opportunities to achieve company-wide goals by adjusting plans.

Analysis of the external environment helps to control factors external to the company, obtain important results (time to develop an early warning system in case of possible threats, time to forecast opportunities, time to draw up a contingency plan and time to develop strategies). To do this, you need to find out where the organization is, where it should be in the future and what management should do to achieve this. The threats and opportunities that a firm faces can be divided into seven areas:

1. Economic forces. Some factors in the economic environment must be continually diagnosed and assessed because... the state of the economy affects the firm's goals. These are inflation rates, international balance of payments, employment levels, etc. Each of them can represent either a threat or a new opportunity for the enterprise.
2. Political factors. The active participation of business firms in the policy process is an indication of the importance of public policy for the organization; therefore, the state must monitor the regulations of local authorities, state authorities and the federal government.
3. Market factors. The market environment poses a constant threat to the firm. Factors that influence the success and failure of an organization include the distribution of income of the population, the level of competition in the industry, changing demographic conditions, and ease of market penetration.
4. Technological factors. An analysis of the technological environment may, at a minimum, take into account changes in production technology, the use of computers in the design and delivery of goods and services, or advances in communications technology. The head of any company must ensure that he is not subjected to “future shock,” which destroys the organization.
5. Competition factors. Any organization should examine the actions of its competitors: an analysis of future goals and an assessment of the current strategy of competitors, a review of the prerequisites regarding competitors and the industry in which the company operates, an in-depth study of the strengths and weaknesses of competitors.
6. Factors of social behavior. These factors include changing attitudes, expectations and mores of society (the role of entrepreneurship, the role of women and minorities in society, the consumer movement).
7. International factors. Management of firms operating internationally must continually assess and monitor changes in this broader environment.

Thus, analyzing the external environment allows an organization to create an inventory of the threats and opportunities it faces in that environment. For successful planning, management must have a complete understanding not only of significant external problems, but also of the internal potential capabilities and shortcomings of the organization.

2.4 Study of internal factors of the company

Firm management must determine whether the firm has the internal strength to take advantage of external opportunities and whether it has weaknesses that could complicate problems associated with external threats. This process is called a management survey. It is a methodical assessment of a firm's functional areas designed to identify its strategic strengths and weaknesses. The survey includes functions such as marketing, accounting, operations (production), human resources, culture and corporate image. When examining the marketing function, there are seven areas of analysis to consider:

• competitiveness and desired market share as a percentage of its total capacity, which is an essential goal for the company;
• the diversity and quality of the product range, which is constantly monitored and evaluated by senior management;
• market demographic statistics, monitoring changes in markets and in the interests of consumers;
• market research and development of new products and services;
• pre-sales and after-sales customer service, which is one of the weak points in business;
• effective sales, advertising and promotion of goods (an aggressive, competent sales team can be the most valuable asset of a company; creatively directed advertising and promotion of goods is a good addition to the product range);
• profit (nothing, even the best, will be worthwhile if there is no profit as a result), analysis of the financial condition can benefit the company;
• identify existing potential internal weaknesses of the organization in comparison with its competitors.

Continuous review of operations management is essential to a firm's long-term survival. When examining the strengths and weaknesses of the operations management function, consideration should be given to the following questions:

• Can a firm sell goods or services at a lower price than its competitors? If not, why not?
• What access does the firm have to new materials? How many suppliers does it involve?
• What equipment does the company have?
• Are purchases designed to reduce inventory levels and lead times? Are there adequate controls over incoming materials and outgoing products?
• Are the company's products subject to seasonal fluctuations in demand? If so, how can the current situation be corrected?
• Can the firm serve markets that its competitors cannot serve?
• Does the firm have an effective and efficient quality control system? How effectively is the production process planned and designed?

The origins of most problems in an organization lie in human resources. Here it is necessary to take into account: the type of employees, the competence and training of management, the remuneration system, the succession of leadership positions, the training and development of employees, the loss of leading specialists and their reasons, the quality of products and the work of employees. A firm's culture (the atmosphere or climate of an organization) is used to attract certain types of employees and to encourage certain types of behavior. The image of a corporation is created with the help of employees, customers and public opinion. A firm's culture and image are strengthened or weakened by the company's reputation.

Having aligned internal strengths and weaknesses with external threats and opportunities, management is ready to select appropriate strategic alternatives.

2.5 Exploring strategic alternatives and choosing a strategy

Strategy development is carried out at the highest level of management and is based on solving the tasks described above. At this stage of decision-making, the manager needs to evaluate alternative ways of operating the company and select the best options to achieve its goals. Based on the analysis, in the process of developing a strategy, strategic thinking is formed through discussion and agreement with the management line apparatus of the concept of the development of the company as a whole, the recommendation of new development strategies, the formulation of draft goals, the preparation of directives for long-term planning, the development of strategic plans and their control.

A firm faces four major strategic alternatives: limited growth, growth, contraction, and a combination of these strategies. Limited growth is followed by most organizations in developed countries.

Downsizing strategies are most often used when a company's performance continues to deteriorate, during an economic downturn, or simply to save the organization. Strategies for combining all alternatives will be pursued by large firms that are active in several industries.

Having selected a particular strategic alternative, management must turn to a specific strategy. The main goal is to select a strategic alternative that will maximize the long-term effectiveness of the organization. To do this, managers must have a clear, shared vision of the company and its future. One's commitment to a particular choice often limits future strategy, so the decision must be subject to careful examination and evaluation. Strategic choice is influenced by various factors: risk (a factor in the life of the company); knowledge of past strategies; the reaction of shareholders, who often limit management's flexibility in choosing strategy; time factor depending on the choice of the right moment.

The formation of the company's strategy as a whole is becoming increasingly important. This concerns the priority of problems to be solved, the determination of the structure of the company, the justification of investments, the coordination and integration of strategies.

The procedure for formulating a strategy and selecting alternatives consists of the following stages: a) assessment of the existing strategy; b) the formulation phase itself; c) risk planning; d) selection of strategic alternatives.

Let's take a closer look at these points.

A. Assessment of the existing (current) strategy.

The initial assessment of the current strategy is carried out at the previous stage - assessment of internal capabilities.

However, when assessing the existing reserves at the enterprise, which make it possible to increase the efficiency of its functioning, we have not previously assessed the viability of the current strategy and the formulated rules of behavior.

B. The actual formulation phase.

Strategy, as the unified framework for organizational efforts, requires the development of a series of strategic plans both at the enterprise level and at the departmental level. Naturally, each strategic plan is part of the whole, and the enterprise strategy unites them all together. The core of any enterprise strategic plan is its basic strategy. The choice of a basic strategy is the prerogative of the enterprise management. Management, evaluating and analyzing the information obtained in the previous steps, makes the final decision.

B. Risk planning.

Risk planning is one of the important components of the strategic plan. The main goal is to maintain a high level of resistance to environmental disturbances and reduce losses from these disturbances.

Recently, in Western companies it has become increasingly popular not to develop backup strategies, but to create systems of crisis situations, characterized by a very high degree of centralism of decisions made and a quick response to changes in the environment. This follows from the fact that the set of possible disturbances itself becomes so diverse that the company is not able to provide for all possible situations.

D. Selection of strategic alternatives.

Within the framework of the chosen basic strategy, several courses of action are possible, which are usually called strategic alternatives.

Strategy development should affect all levels of enterprise management, since the decisions made during strategic planning are relevant to all employees of the organization. Therefore, it is necessary to harmonize interests when developing a strategy. Group discussion, in addition, allows you to consider a large number of alternatives. But the convergence with group choice is significantly lower than with unity of command. Therefore, there is usually a group discussion and individual decision-making.

Growth strategy

The growth strategy was first developed in detail by Igor Ansoff. He also built a model of the company's growth. It consists of five stages:

1. Planning stage. The company is in a state of readiness to formulate a growth strategy, that is, there is some combination of external conditions and internal opportunities.
2. Initial stage. Usually the company goes through the stage very quickly. During this stage, bottlenecks arise and are eliminated in the processes and structure of the implementation of specific projects that were not included in the plan. Sales volume is also growing, although the company receives virtually no income.
3. Stages of penetration.
4. Accelerated growth.
5. Transitional stage.

Initial strategy

The goal of the initial strategy is moderate growth in order to ensure that the enterprise reaches optimal efficiency. Management is vigilant about accelerating the pace of development, ensuring that bottlenecks are identified and eliminated in order to further establish a strong offensive position in the market. As already noted, management must be prepared for the fact that at the first stage there may be difficulties in production, administrative friction, and a tense financial situation associated with high costs and lack of profitability. However, one of the goals of the initial strategy is to speed up this stage and move on to the next strategy.

Penetration strategy

This strategy directs the enterprise's efforts towards deeper market penetration and additional efforts to increase sales growth rates. If this requires acquisitions and acquisitions, then they are carried out within the framework of this strategy. Long-term programs provide for strengthening and development actions in all areas of the enterprise’s functioning, especially paying attention to strengthening financial positions, modernization of fixed assets, and R&D.

After achieving these goals and having carried out all the necessary internal restructuring, the enterprise can move on to the next strategy.

Accelerated Growth Strategy

The goal of this strategy is to fully exploit internal and external opportunities. This stage of the growth cycle should be carried out as long as possible, since it is at this stage that resources are fully utilized, revenue growth begins to exceed sales growth, and market share approaches the planned one. But at the stage of accelerated growth, negative trends in the enterprise’s activities begin to emerge and accumulate, so one of the goals of this strategy is to identify them as early as possible and attempt to resolve them. If it is not possible to solve the problems that have arisen, then the management of the enterprise, within the framework of this strategy, begins a smooth transition to the implementation of the next strategy.

Transition strategy

The goal of this strategy is to ensure, after a period of accelerated growth, a period of regrouping and restructuring of the enterprise’s activities to enter a new growth cycle as quickly as possible, that is, avoiding prolonged stagnation.

The strategy provides for savings and the abandonment of new production facilities. An in-depth analysis of the current state of affairs at the enterprise is carried out with the aim of reducing costs, increasing the profitability of products, and restructuring the management system.

The growth strategy itself can be applied in various situations:

• starting a business;
• a young company fighting for its survival;
• single-product specialized enterprise;
• a diversified enterprise where the growth strategy of the organization as a whole can be supported by a growth strategy for a particular type of product.

That is why a lot of strategic alternatives to growth in economic practice can be proposed. I will list only a few basic strategic alternatives: market intensification, diversification, inter-firm cooperation and cooperation, foreign economic activity,

Stabilization and survival strategy

In a disrupted economy, business cycles and enterprise development cycles can cause the latter to experience a painful period of instability when sales and profits begin to fall. There is a need to develop special analysis procedures that make it possible to capture the period of transition of an enterprise from the stage of growth to the stage of decline, that is, reorientation from an offensive to an offensive-defensive strategy - a stabilization strategy.

Stabilization strategy.

The stabilization strategy is aimed at achieving early leveling of sales and profits with their subsequent increase, that is, with the transition to the next stage of growth. Depending on the rate of decline, an enterprise can use one of the three most likely approaches:

• saving with the clear intention of quick recovery;
• shifts in the prolonged downturn with less hope for a quick recovery;
• stabilization, when long-term programs are needed to achieve a balanced state of the enterprise in the market.

Survival strategy.

The survival strategy is a purely defensive strategy and is used in cases of complete disruption of the economic activity of an enterprise, in a state close to bankruptcy. The goal of the strategy is to stabilize the situation, that is, the transition to a stabilization strategy and, subsequently, to a growth strategy. It is clear that this strategy cannot be long-term. It requires, on the one hand, quick, decisive, fully coordinated actions, and on the other, prudence and realism in decision-making. That is why, in the context of the implementation of the survival strategy, there is a strict centralization of management, an “anti-crisis committee” is created, which, along with taking quick response measures to environmental disturbances, develops and strictly implements the following programs:

• management restructuring;
• financial restructuring;
• marketing restructuring.

Further, strategic alternatives or long-term programs can be divided into functional strategies, which involve setting specific strategic goals for all functional departments of the enterprise: for the production department, sales department, logistics, etc.

A strategic plan is a plan that allows you to plan from the perspective of tomorrow, an adaptive process that results in constant adjustment of management decisions made and constant monitoring of their implementation. For strategic planning to be effective, a clear understanding of the future state of the company’s external and internal environment is necessary. For this purpose, large companies create information systems, the data of which is assessed using analysis systems.

Strategic planning is the process of carrying out a set of systematized and interrelated works to determine long-term goals and directions of activity of enterprises.

Strategic planning is the link by which you can grasp the entire chain of Ukrainian enterprises, including medium and small enterprises. The main thing is to use it consistently, in accordance with both external circumstances and the internal environment and its characteristics. But we must not forget that enterprises do not exist outside the economy and largely determine its state. In turn, the economy is placing increasingly serious demands on enterprises. The future of any enterprise directly and directly depends on how adequately its actions meet the needs of a market economy. Answering these requests in a timely and correct manner is the main task of enterprises and, at the same time, a guarantee of their success.

This test generally covers all the main areas of strategic planning for enterprise development and provides general recommendations for strategic planning in practice.