Elements of business strategic planning

Criteria for Identifying a Company

The company is defined as an economic organization that produces or distributes goods and services for the market, with the purpose of obtaining benefits for its owners. Important entities are:

The owner Collaborators The goods or rights intended for its operation

The companies are divided by their way of operating, into two types: the individual company and the commercial company.

The company covers any human activity that meets the needs of man, they are businesses that contribute to meet material needs and / or dedicated to providing useful services.

Companies are usually divided by their line of business into:

Industrial Extractive Factory or Manufacturing Commercial Financial Commercial Transportation Personal Services

The main criteria for determining the size of the company are:

Production Value. Invested Capital. Employed Personnel. Fixed Capital. Consumption of Raw Materials. Consumption of Electric Power. Lubricants, Containers and Packaging.

The functional characteristics of Small Business

The slow pace with which it grows The technical matters are personally attended by a person The supplies and set of needs are relatively easy to know The manufacturing systems are practically artisan Capital is individually owned

The Family Business

Authority is highly centralized. Most of the time these companies are created out of the need to obtain an income for the survival of the family or to face certain risks or expenses.

The Medium Business

The growth rate is higher than that of the small company and may be even that of the large one. This is where the delegation of authority arises. adequate organizational structure. Marketing (sales) covers not only the local market, but the regional and in some cases the national market. There is full competition with the like. Production has a high degree of mechanization and technification. Finances can be individually or jointly owned.

Small and Medium Business Creation

For the initiation of the company we need first, the manifest need, either due to non-existence or because the established companies do not fully satisfy the current demand; and second, obtaining economic benefits for the owners in the form of profits.

The General Law of Commercial Companies recognizes the following:

Company in Collective Name. It is one that exists under a company name and in which all partners respond in a subsidiary, unlimited and jointly and severally to the social obligations. It exists under a company name consisting of one or more limited partners that respond in a subsidiary, unlimited and jointly and severally to the company's obligations and one or more limited partners that are only obliged to pay their contributions. It is one that exists under a denomination and is made up exclusively of partners whose liability is limited to the payment of their "Shares", the limited liability of all partners means that they are only obliged to answer for the debts of the company until the moment of his actions,without affecting their personal assets. Limited Liability Company. It is the one that is constituted between partners who are only responsible for the payment of their contributions without the social parties being represented by negotiable, nominative or bearer securities, since they will only be transferrable in the cases and with the requirements established by the Law. in Limited by Shares. It is the one that is made up of one or more limited partners obliged to respond until the moment of their actions. Cooperative Society. It is the one whose purpose is to allow its components the maximum remuneration for their workforce, or the maximum of goods and / or services for the money they pay to the cooperative itself, in which profits are distributed in proportion to the services rendered. to society or received from it.Limited Liability Company. It is the one that is constituted between partners who are only responsible for the payment of their contributions without the social parties being represented by negotiable, nominative or bearer securities, since they will only be transferrable in the cases and with the requirements established by the Law. in Limited by Shares. It is the one that is made up of one or more limited partners obliged to respond until the moment of their actions. Cooperative Society. It is the one whose purpose is to allow its components the maximum remuneration for their workforce, or the maximum of goods and / or services for the money they pay to the cooperative itself, in which profits are distributed in proportion to the services rendered. to society or received from it.Limited Liability Company. It is the one that is constituted between partners who are only responsible for the payment of their contributions without the social parties being represented by negotiable, nominative or bearer securities, since they will only be transferrable in the cases and with the requirements established by the Law. in Limited by Shares. It is the one that is made up of one or more limited partners obliged to respond until the moment of their actions. Cooperative Society. It is the one whose purpose is to allow its components the maximum remuneration for their workforce, or the maximum of goods and / or services for the money they pay to the cooperative itself, in which profits are distributed in proportion to the services rendered. to society or received from it.It is the one that is constituted between partners who are only responsible for the payment of their contributions without the social parties being represented by negotiable, nominative or bearer securities, since they will only be transferrable in the cases and with the requirements established by the Law. in Limited by Shares. It is the one that is made up of one or more limited partners obliged to respond until the moment of their actions. Cooperative Society. It is the one whose purpose is to allow its components the maximum remuneration for their workforce, or the maximum of goods and / or services for the money they pay to the cooperative itself, in which profits are distributed in proportion to the services rendered. to society or received from it.It is the one that is constituted between partners who are only responsible for the payment of their contributions without the social parties being represented by negotiable, nominative or bearer securities, since they will only be transferrable in the cases and with the requirements established by the Law. in Limited by Shares. It is the one that is made up of one or more limited partners obliged to respond until the moment of their actions. Cooperative Society. It is the one whose purpose is to allow its components the maximum remuneration for their workforce, or the maximum of goods and / or services for the money they pay to the cooperative itself, in which profits are distributed in proportion to the services rendered. to society or received from it.
1. 1. Production Consumption

Administration, in general terms, is the science that, applied to every social organism, whatever its objective, allows the maximum use and performance of its constituent elements (human, material and economic).

The administration of any company involves a series of activities that must be carried out adequately and in a timely manner, in order to ensure the achievement and achievement of its purposes.

You must plan what to do, the obstacles that can be presented and the different courses of action to reach the goal.

Plan Organize. It is fundamentally, to divide the work, to constitute units, areas or divisions in which we group functions, activities, tasks and homogeneous tasks.
- Organization Manuals
Lead
- Goals. They are the goals, ends or results that are intended to be achieved in a given future by carrying out all the work necessary to achieve it. These are rules of action expressed verbally, in writing or implicitly, by means of which the leaders wish to transmit to all the divisions of the company their criteria to guide decision-making.

Systems and Procedures, procedure is a set of concatenated tasks that constitute the chronological sequence and the way to execute a job. Various procedures form a system.

Plans, Programs and Budgets, a plan is to determine what is going to be done and how it is going to be done; The program contains the chronological sequence of all the activities aimed at achieving the planned, as well as the participating organizational units. Budgets are the quantification of plans.

Basic functions (generally) in a company:

Marketing (Sales) Production (Operations) Procurement (Purchases) Personnel (Human Resources) Finance (Accounting) Administration (Management)

Investments in Small and Medium Enterprises

Limiting factors to plan in this type of companies:

The ideas may be technological, market, administrative or the idea does not necessarily have to be original. The objectives determine the way in which the business should be financed from the beginning. Very general objectives may not lead to differences of opinion among owners, but fairly specific objectives should be discussed and agreed. If multiple people involved in starting a small business support various goals for the operation, serious conflicts can arise. The promoters. The way of running the business. The high cost of capital, the success of the finances of a small business could be summarized as e art of reducing the cost of capital, to decrease the proposed rates of investment productivity. They are concentrated in a single line of activities. They operate in one place.They have only one administrator instead of a team of them

The financial system.

The relationship that exists between the size of the company and the use of commercial credit is explained considerably by the amount of inventories, by its rotation and by the conditions of competition, since commercial credit arises when acquiring inventory It is observed that the greater the proportion of inventory with respect to total assets, the greater the proportion of commercial credit with total assets.

The market.

It is where the medium and small company develops in the face of the impact of technological changes, trends or prices; and that you cannot control. The small business man must be sensitive to these developments and changes, because he must have the ability to see what is out of fashion and to find a way to take advantage of the new in order to survive in the market.

It must be included that in this all the environment in which the company has to live and to which it must adapt: clients, suppliers, competitors and all kinds of technical, political, physical, legal and administrative restrictions.

Market Research is a set of useful techniques to obtain information about the company's environment and forecast future trends, so that it can react to changes in the most efficient way.

Market types

Market Types	Concept	characteristics	Examples
Industrial	Consumers who buy to produce or resell	Few buyers Deep analysis to buy Greater amount of each purchase in volume and money Less marketing activity	The market for steel, wood, paper, etc.
Of consumption	People who buy to satisfy an immediate need	Greater number of buyers Less amount in each purchase, the same in volume as in money Greater activity in marketing	Clothing, footwear, automobile market, etc.

The environment and the development of small and medium-sized companies.

Inflation is a process of general price increase caused by imbalances that arise in the supply and demand of goods and services; inflation affects creditors, those who receive wages and salaries and savers, on the other hand, favors debtors, businessmen, shareholders and farmers. Inflation reduces the possibilities of competitiveness in the international market.

Internal factors in planning

The resources necessary to run a business are divided into four classes:

Money, Facilities and Equipment, Materials, Supplies and Services, Personnel (labor).

Investment planning

The money of a new company means the amount necessary to start the company and have availability to operate until its self-financing.

Fixed Assets Sales Production

Financial planning tools

Budget is a detailed project of the results of an official operations program, based on reasonable efficiency.

The purpose and objective of the budgets can be identified in the administrative processes:

Consider the future Formulate a detailed plan Establish a control

Advantages of budgets

Careful research, studies and statistics. Take advantage of characteristics of the human condition. It allows to relate the activities of the company with the business trend. It facilitates the financial function. It allows to check the course of operations as planned. They coordinate all company functions in a common effort.

Administration in small and medium-sized companies

Basic principles for the administration of a company

Objectives.Planning and feasibilityControl.Division of work.Authority and responsibility.Unit of Management.DelegationAdministrative continuityHuman relationsSubordinates and supervision

The administrative process consists of the following elements:

Planning. Selection of objectives and formation of an administrative policy, as well as the rules and procedures that reflect those objectives.

Planning stages:

Definition and analysis of the problem Determination of the available solutions The study Determination of the possible plans Fixation of the alternative programs Organization. The efficient design of the vertical and horizontal structure of the company with the corresponding descriptions of each position to be performed, including the necessary authority and responsibility assigned to each of these positions. Ensure that the activities carried out in the company are carried out competently. The orders or instructions must be: Clear Reasonable Understandable by the employee Compatible with the objectives of the company Specify the period within which it must be carried out Explain to the employee the reason for the Control command. It is carried out through a constant evaluation of the activities carried out,the results of which are compared with previously designed plans Determination of certain standards Constant supervision and evaluation of the results obtained Corrective action

Executive Development for Small and Medium Businesses

There are many reasons to methodically educate, train, and develop executives. Under conditions of accelerated expansion, the number of unprepared employees increases more rapidly than the number of people who are trained to be placed in middle and upper management positions. The percentage of highly experienced employees falls disproportionately; in this way it is evident that executive development must be accelerated; and find a substitute for experience.

A good executive development program has to be built on a solid foundation.

The best thing a company can do for its employees is to give you an opportunity to learn, expose you to the course, and encourage you to use the program. Management has to provide skillfully directed on-the-job training. But ultimately, the company cannot make the individual grow.

It is recognized that most development takes place on the job.

Methods for developing executives

On-the-job activities Training Job rotation Assignment under study Lateral promotions

Characteristics and common organization problems in Small and Medium Businesses

The organization consists of creating a structure or framework that encloses the necessary activities of a company, within a logical order.

The organization is useful because it identifies the person with the company and the tasks they carry out with the position, managing to establish a better adaptation of the human and material resources available.

Business organization

Objective Activities to be carried out Divide these activities into compatible units Assign trained personnel Grant the activity corresponding to each position

Structure. The basis of the organization is work, staff and the position, to propose an appropriate structure, the activities that will be carried out in each position must be taken into account.

The direction. It is the one that prepares the general action plans, coordinates and controls the general activities of a company and according to its magnitude it can be constituted in one, two or three levels.

The operation. In this part of the organization structure is where activities are carried out by management.

The Production Department. It combines raw materials, techniques, tools, machinery and labor for the production of the products. For the most effective achievement of your objective we can subdivide it into smaller units. Sales. This work unit is responsible for placing the company's products on the market, at an agreed price.

Information.

The accounting. Provides information on the financial situation of the negotiation. This information is used in decision-making on the investment and operation of the company. Statistics. Provides budget information

Support or Advice. It consists of technical assistance to management in some administrative matters.

Personnel department. Its objective is to hire the appropriate personnel for the company, as well as maintain good relations with it and carry out all the operational tasks that correspond to salaries, wages, benefits and valuation, promotions.

Features and Common Problems of Production Function

Location of the Plant. Adequate public and private services.
- EnergyWaterFuel
Community. It is advisable to take into account the conversations and advice of local representatives as a measurement rule to compare the civic awareness of the different communities and know their possible attitudes.
- Security and urbanization Taxes
Workforce. It is very important that the workforce have a regular and permanent supply.
- Cost Availability Availability Stability Productivity
Weather. It has a great effect on human efficiency and behavior. The desire to work and the production capacity are due to the climate. The final step is the selection of the exact place, machinery and equipment. Necessary for the processing of materials and raw materials. Production center. It is the total area occupied by a machine plus that of the floor necessary for the storage of its material to put it on and take it off, including space for the operator to work freely, in the repairs and maintenance of the machine as well as for the safety devices or defense Production. In this activity, we will deal with all the elements involved in production, as well as its planning and organization, not only this one in particular,but also of the activities that surround it and that are essential for it to be carried out.
- Production planning Materials control Purchases Shipments, traffic and receipt Inventory control Materials management Production control Quality control Maintenance in the company, it is a management function and its responsibility begins in the general direction and continues by the departmental managers, teachers and managers, each one of them with the men they are in charge of. Control of waste, will always allow us to be correcting our production systems, that is, quality control and inspection will determine the normal and acceptable percentages in the company's processes. Production
  - Satisfy the sales department with respect to delivery times with the greatest possible opportunity Produce at the lowest possible cost Maintain a high safety index in the plant Obtain the maximum performance from the plant and its facilities Avoid as much as possible of waste
  Production Policies
  - Plan production in advance Establish control systems Delimit authorities and responsibilities Elaboration of work programs outlining general and area objectives Provide security equipment worker Establish maintenance systems

Common Features and Problems of the Purchasing Function

The function of acquiring the services and material goods that are essential for the development of any organization is called supplies or purchases.

The supply is recognized as one of the commercial functions and where its managers have the necessary and competent authority.

Activities that fall within the field of supplies

Supply Needs

Supplies in the industrial company. Provide raw materials with a high degree of advantages in terms of time, price and quality refers to supplies in the commercial company. Know the rotation of products in order to discontinue those that are obsolete or to increase, in combination with the marketing or sales department, the items with the highest turnover or increase their sales lines with new products.

Purchases

Local, National, Foreign

Purchase requisition is a control document by which a department or person from the same company requests the supply department to provide a product or service.

Search and selection of Suppliers, consists in finding a good location and identification of suppliers, who can supply the goods and services in the quality, quantity, opportunity and desired price.

Purchase Order is the document in which the item to be ordered is registered with the conditions agreed with the suppliers.

Inventory control. Strict control of the stock of materials or services necessary for the proper functioning of the company, thus never having to have it for production or any other activity due to lack of raw materials. Control and evaluation of the effectiveness of the department. It is convenient to control the operation of the department in order to avoid as much as possible the abnormalities that cause us unnecessary expenses. External and internal relationships. The purchasing department will always have relations with the internal and external people of the company. Procurement will always maintain close relationships with all departments, thus knowing the needs of each one. As for external relations,The purchasing department is responsible for ensuring that the company's funds for this activity are used wisely. Furthermore, through its contacts and conduct with suppliers, it has in its custody the reputation of the company for its courtesy and fair treatment.

goals

Supply the company with goods and services for the development of its operations, in a continuous and timely manner. Supply the company with the lowest possible final price. Identify with the company's manufacturing processes to know in detail its materials and characteristics of operation, as well as its needs in general. Keep the supply function within the company properly located, to give and receive adequate and timely information for its proper development. Keep the supply function of the company updated, with the general purchase market.

Policies

It is necessary to reach a purchase commitment establishing a defined agreement on the specific price or a basis on which the price can be calculated. No contact should be established for the purchase of goods or services without the knowledge of this department. Maintain adequate records to fulfill the supply function well.The purchasing department will be in charge of preparing the purchasing program in accordance with the sales forecasts and production schedules.Know the factors that influence the cost of manufacturing in terms of materials. Try to have a minimum of a maximum of suppliers for each different item.

Common Features and Problems of the Marketing Function

The constant and growing dynamics of modern business is manifested in an incessant improvement in products and services, in manufacturing techniques and in the strategy to penetrate an increasingly complex, broad and competitive market. One of those techniques is marketing.

Companies that have been able to grow and contribute to the economic development of a country have had to apply active marketing policies consisting of going looking for customers.

Marketing is the function that, through its studies and research, will inform the design engineer and the production man, what the customer wants in a given product, what price he is willing to pay for it and where and when it is sold. will need.

Features

Market Research Sales Promotion

Activities that fall within the field of marketing (market research)

Consumer insight Competitor status Market size Product research

Sales

- Resource OrganizationProductsPricesPhysical DistributionDistribution ChannelsSales AdministrationSales Operation Methods
  - Inspection by customer of the product Description of the product through advertising Verbal description of the product through the personal sale or sales force.

Advertising.

This method consists of establishing a relationship with a large number of potential buyers, all of whom are presented with the same idea for the purpose of informing and influencing them, so that they buy goods or services.

Difference between advertising and publicity.

The first is aimed at the dissemination of ideas, while advertising is about helping to sell a product.

Advertising objectives.

Assist in the sale of a product Assist in a public relations program of the company Let the public know about any information related to the company, its articles or services Combat the competition Assist in a sales promotion Assure the correct use of a Article.Create certain ideas or attitudes regarding the product or service.Launch a new product to the market.

Media used in Advertising.

- CinemaRadioTelevisionPress

Public relations.

They are an administrative function that investigates the opinion of the public affected by the company. They create a good image of our company to attract the understanding and goodwill of those audiences.

Public Relations Benefits.

Create prestige Promote sales Prevent and solve labor problems Dispel prejudices that exist against the company Education of the public about which the company is Research of public opinion Analysis and interpretation of public opinion Establishment of trends in public activity Advice on the formation of public policy company Obtaining the understanding and support of each of the affected publics, in favor of the company

Characteristics and common problems of the Personal function

Finding suitable personnel to fill the different existing positions within the company is a specialized function that must follow certain criteria, rules and general policies, regardless of the specific requirements for each of them.

Administratively controlling the personnel is an extremely valuable activity, since in this way we are able to know the background of each and every one of the members of the company, an aspect that is very important for promoting and obtaining candidates for vacant positions, as well as to satisfy local and other requirements.

Activities that fall within the Personal field

1. Personnel forecast (definition of needs) RecruitmentSelectionHiringIntroductionManagement of wages and salariesManagement of human resources

Personnel Policies.

Recruitment Selection Recruitment Dismissal General Recruitment Short-term Long-term Natural (profit)

Personnel Goals.

1. Achieve the maximum efficiency of the department. Achieve the maximum efficiency of each worker by applying the appropriate policies. For the department and for each of the employees achieve maximum development within the company. That the personnel manager has an adequate image to the position that they carry out. Having highly trained personnel developing within the company to:

Improve production. Increase efficiency. Decrease staff turnover. Increase productivity.

Common Features and Problems of the Finance Function

The objective of the financial function is liquidity and productivity, which in other words means maximizing the present value of wealth, ensuring that sufficient cash is available to pay the bills on time and thus help distribution more profitable than the resources found within the company.

The performance of the financial function is none other than searching for the best way to obtain profits. And that is why any planning depends a lot on the individual participation of those who carry it out. The ideas and activities of the financial planner help to consolidate and modify the initial structure of the administrative process, to face different or changing situations that he can perceive more quickly and easily than a group.

Finance function within the company.

Obtaining profits for owners and employees, with consequent benefits. Satisfaction of the needs of society, to the extent of their participation.

The objective is to efficiently use the funds necessary to operate the company.

Definition: it is the art of gathering the necessary money for a determined purpose and conveniently managing it for the best achievement of that purpose.

Activities that fall within the field of Finance

Study of financial planning: cash and credit. Management of funds. Control of operations with foreign currency. Establish credit and collection policies. Plans on new investments. Acquisition and custody of securities. Formulation of interest and dividend payment projects. Maintain Relations with credit institutions. Development and oversight of the budget system and its control. Internal audit. Registration and valuation of inventories. Development of procedures for payment of wages and salaries. Assurance of company assets. Real estate operations of the company.. Loan management. Tax payment. Design and establishment of depreciation methods and policies. Establish accounting registration and reporting systems.

Objectives of the Finance area

1. 1. Satisfying the organization's financial needs in a timely manner. Getting loans and financing. Not having frozen money. Covering the contingencies to which we are subject. Determining with the greatest accuracy costs and operating expenses. Avoiding all those expenditures that are not justified. Having systems accounting records modern, effective and economical. Monitor the proper management of the funds of the company. Inform timely and in necessary detail, the financial position. Maintain liquidity and relief margins that do not allow bankruptcy. Properly serve the other units of the organization. Comply with tax obligations. Comply with obligations and debts contracted.

Failure and ineffectiveness of Small and Medium-sized companies

Main problems:

Financing (lack of adequate financing). Organization and administration. Technology. Market. Other problems
- Linking input purchases Restrictions on operations Requirements for certain guarantees Restriction of competition in the domestic market Restrictions that limit the dynamic effects of technology transfer

Bibliography