Introduction
Every company designs strategic plans to achieve its objectives and planned goals, these plans can be short, medium and long term depending on the size of the company. That is, its size, since this implies how many plans and activities must be carried out by each operating unit, either at lower higher levels.
It should be noted that the budget reflects the result obtained from the application of the strategic plans, it is considered that it is essential to know and correctly execute the objectives in order to achieve the goals set by the companies. It is also important to note that the company must accurately and carefully specify the mission that the company will govern. The mission is fundamental since it represents the operational functions that it is going to execute according to the programmed activities.
Components of a business strategy
The leading companies in the market have a business strategy based on four essential foundations: Values, Mission, Vision and Value Proposition for the client, all of them with solid foundations. However, it is surprising how companies today do not take these pillars into account when carrying out a business strategy that is essential for corporate growth.
A strategy is nothing more than the dialectic of the company and its environment. It is a set of decisions that determine the coherence of the company's initiatives and relationships with its environment. Therefore, when making strategic planning, planning must be taken into account, anticipating what to do, when to do, and how to do it. It means the rational analysis of the opportunities and threats that the company's strengths and weaknesses present in the environment for the company and the selection of a strategic commitment between these two elements.
Every company, whether it is of a state, private or mixed nature and whose composition is self-financed or budgeted, must have a business strategy that contains these four basic components in order for it to be successful. These components are:
1.- Business Values: These define and represent the way things have to be done and, consequently, form the basis of the strategic objectives. The actions and decisions of an organization must be aligned with its established basic Business Values.
2.- Business Mission: The business mission defines its reason for being, that is, why it exists. Describe what the business is about and affirm its added value. The duty of a business mission goes beyond communicating only the organization's purpose, but also aligns with its core business values. An organization that has its business mission aligned with its core business values is setting the stage for the development of a more consistent business plan.
3.- Business Vision: It is built on your business values and is an extension of your business vision. It must include a clear deadline (usually a three to five year horizon) and act as a signal on the road to achieving the business mission. It is a clear and measurable picture of what the company wants to achieve in the future. As a result, the business vision provides a tangible way to assess your strategic progress over a specific time period.
4.- Value Proposition: A value proposal is the set of benefits that will be given to the client. In other words, it is the great promise by which an organization's customers recognize it against its competitors. The key to the success of a value proposition is knowing the target customer and the proposals of the competitors, so that they can differentiate themselves.
There are three classic value propositions, which vary slightly by business sector but generally revolve around the same three ideas:
- Operational excellence (offering products and services at a lower price). Product or service leadership (continually updating products and services to stay ahead). Personalization (personalization of products and services to meet the unique needs of each client).
Each company, when devising its strategy, seeks to insert itself into a more competitive plane, with the objective that its economic standards are high, based on a perspective towards an increase in services or products, whether to sell or buy. That is why each company when drawing up those strategies with the components look for the way to put it into practice, having three fundamental elements:
- Evaluation of the strategy: the evaluation process is the moment in which the decision to choose one of the identified options for adoption and implementation is considered. In this stage the possibilities are identified, the reasonableness is established and the strategic options are evaluated, the feasibility criterion (analysis, profitability, risk) is put into practice and the strategy is selected. Selection and implementation: the selection stage involves the process of strategic decision-making, where both rational and emotional approaches are combined. In the implementation stage, the activities and decisions necessary to implement or implement the strategy are considered, to achieve the mission and the strategic objectives previously established. Strategic control: when implementing a control,It is in a permanent process of measuring any activity or benefit, on the objectives and points set in order to correct any possible deviations that may occur with respect to the established criteria or benchmarks. Some stages are presented in this criterion: Establishment of standard objectives Measurement of results Comparison of results and standard objectives Analysis of decisions made Correction of deviations or corrective actionsEstablishment of standard objectives Measurement of results Comparison between results and standard objectives Analysis of decisions made Correction of deviations or corrective actionsEstablishment of standard objectives Measurement of results Comparison between results and standard objectives Analysis of decisions made Correction of deviations or corrective actions
Strategic Map and Productivity
Many companies use Objective Management (DPO) as part of their environment to develop the ability to lead in a coordinated way, stimulating the efforts of human relations. This type of management is considered technology because it can be studied for both companies and their employees. They have several advantages and disadvantages that allow you to develop efficiently within a company:
Advantage:
- They seek to find common objectives for the entire organization The disaggregation of common objectives into particular objectives Participatory character of the worker in the identification of goals Two basic qualities: Focus the use of financial, human, technological resources, etc., on what is important that can bring benefits Assessment of professional returns for your reward and promotion
Disadvantages:
- Did not consider the role of the environment in the company's projections They are made in a relatively short period
According to the strategies used in the Investment Department, it has a lot to do with the result of the \ s activities scheduled within the year. This area is highly dependent on other areas such as the Directorate of Economy and ATM, so there must be total synergy when carrying out any activity.
The Material Technical Supply Directorate (ATM) who provides the logistics for any job on certain occasions delays the supply of materials for various reasons, causing delays in work.
Another of the essential areas for the proper functioning of Investments is the Economic Department, which plays an important role in the payment to contracted companies and self-employed workers, but in certain cases these payments are delayed due to lack of financing, which often Because it has a centralized economy, it is necessary to wait for the Ministry to approve or notify the financing in order to make the payment.
Another factor that affects the operation of our area is not being able to know a certain future of what a known result may have, that is, the result will be unknown. These are some of the subjective causes that affect to a certain extent the correct functioning of our area, which is why in some cases there is a low budget execution in the month or it is not executed.
SWOT Matrix Investment Directorate.
Matrix Dofa University Analysis
CONCLUSIONS
It is evident that our organization and the people who manage it fulfill the essential function by overcoming limitations as individuals where they allow us to achieve goals that would otherwise be much more difficult or even impossible to achieve.
A correct synergy between the different areas can only improve the performance of the activities and make them execute with the best possible quality. Therefore, it can reflect a phenomenon by which a set of factors or various influences can act, thus observing an effect in addition to that which could have been expected to operate independently given the coincidence of the relations between the areas.
Bibliography
es.slideshare.net/neoskan/planemiento-estrategico-y-plan-de-inversiones.
www.vidaprofesional.com.ve/blog/componentes-de-una-estrategia-empresarial.aspx.
es.slideshare.net/gabygonzalez610/componentes-de-la-estrategia.
