Introduction
First part
Economic crises have always been present and in different ways, so the phantom of crises runs throughout the world, René Báez states that its center of gravity is located in developed capitalist countries, but its effects are irrigated to the international community through complex economic, technological and financial mechanisms. Let us briefly analyze some of them below:
In 1973, when in the midst of the war between the Arabs and the Jews, OPEC proclaimed a partial embargo on supplies, and promoted the general rise in prices of crude oil, which in a few weeks multiplied almost fourfold; The brutal crisis now had as a prelude the global monetary problems of the early seventies, as mentioned by Ramón Tamames, in his book The Spanish Economy, of the transition to monetary union, the turmoil of the time, disrupted the monetary system international (SMI) of the International Monetary Fund (IMF), which was based on the gold / dollar parity ……
Tequila effect: This started on December 20, 1994 when the Mexican government decided to devalue the currency, this crisis affected other countries including Argentina. For the year of 1995 the situation was under control, but the GDP had regressed, and some 10,000 companies had closed and their inflation exceeded more than fifty percent, there was a restriction of credits, the immediate consequence was a productive paralysis and unemployment.
The Southeast Asian crisis: (1997) between the months of October and November, an abrupt drop in the Hong Kong stock market, which as a domino effect caused havoc in London, Wall Street, Brazil and Argentina (again, the shares fell by 20 %) and also affected neighboring Colombia.
Difficulties appear in Japan, after two decades of sustained growth, this also affected Russia, which took measures to face the crisis (fluctuation of the ruble against the dollar), consequently, this resulted in investors cutting the credits they intended to grant to Russia.
The Asian crisis of 1997 and 1998, together with subsequent ones in Russia or Brazil, added new elements both from the point of view of the characteristics of the crises and the policies to prevent and resolve them. In general, the countries affected by the Asian crisis did not show a deterioration in fundamentals, their economic policies were orthodox and there were no indications that governments wanted a change. However, the fragility of these economies seemed to reside in the balance of incentives derived from economic management and in the weakness of the financial and corporate systems.
Rice effect: The "crisis", popularly called the "rice effect" (in what appears to be a macabre play on words with what was called the "tequila effect" although it acknowledges different causes) involved catastrophic losses in the value of the coins of the emerging countries usually known as "Asian tigers" such as South Korea, Malaysia, Singapore, Indonesia, the Philippines; it forced forced international "bailouts" by IMF directors in an unusual liberalization that involved the surrender of more than $ 110 billion to avoid global default (Thailand - Indonesia - Korea).
The created situation caused falls in all the stock exchanges in the world (affecting to a greater or lesser degree even the G7 countries).
On the other hand, the collapse of Thailand devalues the currency by 18%, (the Bath) this affects its balance of payments producing large deficits, (due to the fall in its exports) and is complemented by the devaluations of Singapore, the Philippines and Malaysia, (crisis for some analysts focused on Asia, to defend against speculation). The effects could not be expected; unemployment, poverty, social violence, stagnant consumption as a result of the recession and the world crisis. (Many savvy people rated it as one of the worst crises since the Second World War.)
Caipirinha effect: The speculative shocks unleashed against the Asian currencies, propagated a series of financial turmoil, which ended up causing significant falls in the prices of the securities in the stock markets, and in a large number of countries, regardless of which were their economic conditions. Of the economies affected by this global speculation process, Brazil was the one that experienced the most severe shock.
In addition to registering a drop in the Sao Paulo Stock Exchange index of more than 30% in a few days, the foreign price of foreign debt securities plummeted (the C-Bond fell by 67%) from its face value) and, finally, the turmoil spread to the currency markets, which registered a net capital outflow of more than 8,000 million dollars, threatening the stability of the currency.
Between 2001 and 2007, Spain experienced what was probably the largest real estate bubble in the world thanks to the fact that around 60% of all loans from a financial system heavily indebted to foreigners were directed towards the brick. Spain, then, oozes debt from all sides after having lived for years well beyond its means. Spain is facing the biggest economic crisis of the last 40 years, with problems in employment, facing growing budgetary imbalances and with an intense economic recession that has just begun and, with the threat of raising taxes and shooting up public debt.
The United States in 2008 was affected by the crisis in the so-called housing bubble, and by the abnormally low value of the dollar, where central banks had to intervene to provide liquidity to the banking system, but the collapse led to the bankruptcy of banks and financial institutions in an unprecedented situation.
The financial crisis leaves several lessons on the limits of self-regulation in financial markets, in a context of high level of international interdependence. The global recession caused by the bursting of the housing bubble in the United States (subprime mortgage crisis) highlighted both the structural imbalances in the world economy and the flaws in national financial systems - particularly those in the United States. and Europe- and its international interconnections. Different types of global structural imbalances have contributed to this crisis, including: i) excess indebtedness in the United States and savings in China; ii) the excessive tendency to accumulate international reserves in developing countries, which causes a recessionary bias in the global economy,given a faulty monetary order that does not ensure stability among the major international reserve currencies; iii) a financial system that has proven ineffective in anticipating and avoiding the increasingly frequent financial crises and providing timely financing necessary to avoid balance of payments crises and the contagion effects towards better-performing economies, and iv) the Lag of financial regulations in the face of globalization and innovation in the sector, resulting in the internationalization of risks and a reduced capacity for monitoring by governments.iii) a financial system that has proven ineffective in anticipating and avoiding the increasingly frequent financial crises and providing timely financing necessary to avoid balance of payments crises and the contagion effects towards better-performing economies, and iv) the Lag of financial regulations in the face of globalization and innovation in the sector, resulting in the internationalization of risks and a reduced capacity for monitoring by governments.iii) a financial system that has proven ineffective in anticipating and avoiding the increasingly frequent financial crises and providing timely financing necessary to avoid balance of payments crises and the contagion effects towards better-performing economies, and iv) the Lag of financial regulations in the face of globalization and innovation in the sector, resulting in the internationalization of risks and a reduced capacity for monitoring by governments.resulting in the internationalization of risks and a reduced monitoring capacity by governments.resulting in the internationalization of risks and a reduced monitoring capacity by governments.
"The international financial and economic crisis has literally hit homes in many emerging countries in Europe and Central Asia," said Philippe Le Houérou, vice president of the World Bank's Europe and Central Asia Regional Office. “What started as a financial crisis has turned into a social and human crisis. The international crisis was triggered immediately after the food and fuel crises, which had already weakened the inhabitants of the region by reducing their purchasing power. Today, the increase in poverty and unemployment is pushing many households into poverty and is aggravating the situation of those who are already poor ”.
As can be seen at all times, companies have had to overcome adversities that the environment has presented them, some with more ingenuity than others but the important thing is to continue in the market, some companies applying administrative tools such as ABC, management by competences, chart of integral control, six sigma, strategic planning, reengineering, benchmarking, The business plan, CRM, Competitive advantage, Economies of scale, The experience curve, Globalization, etc. One of the tools that allows us to monitor the changing environment in globalization is the SWOT analysis, and the one that will help us understand the position of the company in the face of the adversities of crises and exogenous situations that may affect the development of the organization.
Second part
Diagnostic tool
SWOT Analysis
The analysis of the strengths, weaknesses, opportunities and threats of the companies that go through adversities, must concentrate the results of the analysis of the organization (internal), of the analysis of the environment (external).
A SWOT analysis allows you to look at strengths and weaknesses in the context of opportunities and threats.
It is a tool that facilitates the analysis of the environment of the company or organization that is going through economic crises in the different countries where they occur, describing the organization's weaknesses or weaknesses (those functions, activities and processes that are poorly designed or poorly executed) and skills or strengths (functions, activities and processes that are well designed and well executed) are found in the internal environment.
Strengths and weaknesses (limitations) are part of the internal world of the institution, where it can be directly influenced in the future. Opportunities and threats take place in the external world of the institution, which is not controllable but without influence. The subjects listed must be specific to each particular company.
Opportunities
- New way to exploit a company strength more effectively. Sales growth trend. Customer base expansion. Acceptance of company products or services. Sustained increase in market share. New agreements with suppliers that could reduce the costs of raw materials and materials. Advantages of the product or service, compared to the competitors. Changes in the lifestyles of customers. Introduction of new technologies. Possibility of segmenting markets more effectively. Possibility of selling products or services in segments more convenient for the company. Extension of market coverage. New organization or expansion of the sales network. New uses or applications of the product or service. Possibility of launching new products.Improvements in customer service capacity. New possibilities for the use of advertising, promotion, etc. Opening of new markets. Changes in the composition of customers.
Threats
- Changes in lifestyles of Decrease in sales growth trends. A very small customer base. Market of declining products or services. Poor distribution of products or services. Poor advertising messages. Propaganda to improve the institutional image Loss of the image of the company Loss of important clients Very low profitability Shortage in the supply of raw materials, packaging material, etc. Severe limitations on production capacity or customer service Impossibility to penetrate a market dominated by competition. Price war or services Warned price competition in the market Notorious customer dissatisfaction Changes in customer needs, wants and expectations that the company cannot satisfy.Inability of the company to incorporate new technologies to customers.
Strengths
- Market Dominant Position Core Competencies Scale Economics Low Cost Position Management Team Leadership and Skills Financial Resources Manufacturing and Technology Skills Research and Development Brand and Reputation Differentiated Products Patents and Intellectual Property Distribution Network
Weaknesses
- Low market share Few core competencies Old plant High cost base Wealth balance and weak cash flow Little ability to assign roles and responsibilities Undifferentiated product Weak positioning Quality problems Lack of distribution Skill gap
The concept of a good leader is not the one that puts out fires but the one that foresees the consequences
SWOT matrix:
SWOT matrix
| Internal ForcesExternal Forces | Strengths (Maxi) | Weaknesses (Mini) |
| Opportunities (Maxi) | Maxi - Maxi | Mini - Maxi |
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|
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| Threats (Mini) | Maxi - Mini | Mini - Mini |
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Third part
The plan
A business plan as a tool in the face of adversity is a document that serves as the basis for the relaunch of a product or service, which among other things details what is expected to be achieved with that project, what the plan will cost, the time and the resources that will be used to achieve it, and a detailed analysis of all the steps that must be taken to achieve the proposed purposes.
According to Cohen, you can talk about two types of business plans: the plan for a new product or service and the annual plan. The first refers to the product or service to be introduced to the market, the other when the particular product is already in production, we need to make changes in the approach or position in the market.
Regarding the business plan, it is applied to products already located in the market, and to new products which are going to go to market, and which through ID have been studied to satisfy customer needs. (Philip Kotler says that Marketing: "is human activity aimed at satisfying needs and wants through a process of exchange.")
The annual review reveals new problems, opportunities and threats that are overlooked in the daily life of the organization and even more so when there are crises.
Below you can find the answer to the question about what should be the purpose of a business plan:
- Description of the environment of the company: It allows knowing the market, competitors, current legislation, economic conditions, technological situation, expected demand, etc., as well as the resources available to the company. According to Graham Friend and Stefan Zehle, when analyzing the environment it is important to know the pressures in politics, in changes in consumer attitudes and in the development of new technologies. For the authors there are three levels of change: Stable: There is little or no change in the environment. Any change that occurs is slow, easily identifiable and predictable. Dynamic: There are changes in the environment, but the pace of change is moderate. Turbulent: They are characterized by having a large number of unpredictable and rapid changes, they are characterized by a high degree of technological development Management Control:It foresees the possible changes and plans the necessary detours to overcome them, allowing to find new routes that lead to the desired objectives. In this way, you can clearly see the difference between what is planned and what is really happening. Ken Blanchard, in his book, tells the secret, a business story, being able to visualize the future. Scope of objectives: The programming of the project is extremely important and therefore all those involved must understand what their responsibilities are and how they fit together. its activities in the overall strategy. As an example, some financial and non-financial objectives are presented:clearly see the difference between what is planned and what is really happening. Ken Blanchard, in his book, tells the secret, a business story, being able to visualize the future. Scope of objectives: The programming of the project is extremely important and therefore all those involved must understand what their responsibilities are and how they fit together. its activities in the overall strategy. As an example, some financial and non-financial objectives are presented:clearly see the difference between what is planned and what is really happening. Ken Blanchard, in his book, tells the secret, a business story, being able to visualize the future. Scope of objectives: The programming of the project is extremely important and therefore all those involved must understand what their responsibilities are and how they fit together. its activities in the overall strategy. As an example, some financial and non-financial objectives are presented:As an example, some financial and non-financial objectives are presented:As an example, some financial and non-financial objectives are presented:
Financial
- Increase profits Promote the evolution of the organization.
Non-financial
- Integration of all parts of the organization. Review new and existing services. Personnel improvement. Increase administrative efficiency. Resource acquisition: In fact, this is what the business plan is used for most of the time, and do not say when you have to get out of adversity.
As early as 1975 Peter Drucker said: "you have to manufacture what is sold and not try to sell what is manufactured."
Every company, regardless of its size or the sector in which it operates, needs to prepare a business plan. This must meet a series of requirements to be effective and requires from its managers, a realistic approach to the situation of the organization, that its elaboration is detailed and complete, must include and develop all the objectives, must be practical and affordable for all personnel, of a determined periodicity, with its corresponding improvements, and shared with all the personnel of the organization. A great challenge that arises for the management of the organization in this century is the productive factor and that of Management Capacity.
As the trend towards globalization of markets and business activity, arise from impulse or decisions in a changing environment, and that are systematically coupled to functional strategies and operational decisions.
The first stumbling block entrepreneurs face is the challenge of creating a successful company. To respond to this challenge, they must have the capacity to discover a market need and to develop an adequate product or service to satisfy that need.
It is not necessarily possible to think that in order to compete in a fully globalized market you can compete with low prices, the analysis of trends is an indicator of what we can do to continue in the market, and the decisions we can make regarding the turn that must Organize if you want to continue producing and / or selling.
If we respond adequately to these challenges, it is very likely that a company will experience rapid growth, at this point it faces a set of obstacles and challenges typical of survival.
Business decisions should always be made based on the strength of the business idea, but it is much easier to make a decision if the idea is conveyed clearly and concisely through a business plan.
The Manager must recognize all this so that the company does not face difficulties, must know the operating systems in order to be able to launch a product or deliver a service and work on a base.
The organization must take into account that it requires plans, both organizational and formal discipline, since it commits itself to enter into a formal planning that we can associate with a lifestyle, where tasks as well as obligations, roles and responsibilities acquire a special touch which will allow us to address both the objectives, goals, measures, and rewards that the organization intends to achieve.
Graham Friend and Stefan Zehle, in their book How to Design a Business Plan say: no two businesses are identical, and two business plans are never alike, but good business plans have themes in common. They "tell a story" and explain how the business will achieve its goals in a consistent, consistent and cohesive way. The "story" will focus on the customer's needs. The Plan will identify the market, its growth prospects, target customers and main competitors. It should be based on a set of credible estimates, and should identify those estimates to which the profitability of the business is most sensitive. You should also identify the risks the business faces, the potential drawbacks, and the actions that will be taken to mitigate the risks.
When developing plans it is important to consider their effectiveness and profitability, this implies thinking of a global commercial organization in which changes must be planned in key sectors, as this will allow successful progress in the different stages.
Eric G. Flamholtz, in his organization development pyramid, considers six key tasks.
- Discover and define a market gap. A fundamental requirement to create a successful organization, the market is made up of buyers who demand goods and services that the organization tries to produce and sell, the possibilities improve if the organization discovers a need that has not yet been adequately satisfied or has little competition to satisfy it.. This process involves the use of strategic planning to discover the market, create products and services. Basically it consists of analyzing the current and possible customers in order to design products that satisfy needs. Get the resources. In many cases it is very complex to obtain the resources, despite the fact that the market has been identified and products and services have been designed to meet the needs. Create operating systems.To function effectively, an organization must take careful account of accounting systems, billing, collections, advertising, recruiting, staff training, sales, production, in order to facilitate day-to-day operations. of administration. These systems that are required are: planning, organization, management training and control. Management of business culture. Just as all people have their idiosyncrasies, all organizations have a culture, which can be summed up in a set of shared values, beliefs and norms, which governs the way in which personnel are expected to manage the business on a daily basis.recruiting, staff training, sales, production, to facilitate daily operations. Creation of management systems. These systems that are required are: planning, organization, management training and control. Management of business culture. Just as all people have their idiosyncrasies, all organizations have a culture, which can be summed up in a set of shared values, beliefs and norms, which governs the way in which personnel are expected to manage the business on a daily basis.recruiting, staff training, sales, production, to facilitate daily operations. Creation of management systems. These systems that are required are: planning, organization, management training and control. Management of business culture. Just as all people have their idiosyncrasies, all organizations have a culture, which can be summed up in a set of shared values, beliefs and norms, which governs the way in which personnel are expected to manage the business on a daily basis.Management of business culture. Just as all people have their idiosyncrasies, all organizations have a culture, which can be summed up in a set of shared values, beliefs and norms, which governs the way in which personnel are expected to manage the business on a daily basis.Management of business culture. Just as all people have their idiosyncrasies, all organizations have a culture, which can be summed up in a set of shared values, beliefs and norms, which governs the way in which personnel are expected to manage the business on a daily basis.
The main value of the business plan is the creation of a written project that evaluates all aspects of the economic feasibility of the initiative carried out by the organization, as well as an analysis of business prospects.
The business plan is an essential step that a manager must take, regardless of the size of the business, it is for this reason that the businessman who is going through adversity must write the business plan that is ideal for the particular company.
Fourth part
Leadership
As the word management implies control and even more backed by power and authority, it is necessary to remember that its origin has in the administration of the house, some remember it in the mule convoys of the army, perhaps this displeases many professionals In their autonomy and esteem, today they speak of alliances, of teams, of delegation of powers, the key words are commitments, the possible, and lastly, the title of manager is being abandoned for team leader, project coordinator, facilitator, and the recognize that organizations are communities of individuals and not a set of human resources.
The leader's task is to make sure that individuals or groups are competent to exercise the responsibility assigned to them, to understand the objectives of the organization and to commit to them.
That is, leaders must demonstrate competence, this means that leaders must be given time and space to demonstrate their worth.
When organizations are redesigned to become what they are, there are opportunities for leaders to emerge, this builds trust and authority, which is to be deserved, and if necessary tested, as Charles Handy puts it.
Managing a community of individuals where authority must be deserved is an arduous task, Handy says, and requires an unusual combination of attributes:
- Believe in yourself, persuade others to go where no one has gone before, passion for work, energy and focus that drive others, the leader must love people, few will thank the leader when things are going well, but many will blame him if things go wrong.
The need for a leader is evident and real, and it increases as the group's objectives become more complex and broad. Therefore, to organize and act as a unit, the members of a group choose a leader. This individual is an instrument of the group to achieve her objectives and her personal abilities are valued to the extent that they are useful to the group.
The leader is not because of their capacity or ability in themselves, but because these characteristics are perceived by the group as necessary to achieve the objective.
The leader differs from the other members of a group or society by exercising greater influence on activities and their organization. The leader gains status by having the group or community achieve their goals. The leader has to distribute power and responsibility among the members of her group.
Leadership is a crucial issue today where borders have been opened to global trade; where organizations and companies are constantly in a constant struggle to be better and more competitive, which has generated that the people that make them up become more efficient and capable of giving a lot of themselves to achieve the well-being of the organization.
When speaking of organizations and people, it is essential to mention the leaders, the leaders of today, are those who achieve the success of their organizations and who guide their subordinates to achieve it.
The leader like every person has many defects and virtues that he must know; This implies first looking within oneself, getting to know oneself, and then understanding others and reflecting what one wants to achieve, what one seeks to achieve with others to achieve success.
Leadership style: One of the most decisive management functions of organizations is leadership or leadership, a necessary requirement to function efficiently, since leadership influences the behavior of others in a way that gives them more probability of achieving goals. of the organization.
The work of Management is complicated, demanding and has a special touch, which is why managers must exert great influence to achieve an adequate level of efficiency and productivity, while the degree of effectiveness is given by personal effort, to which must have the ability to choose and apply methods or techniques that are appropriate for a given situation.
Managers must fulfill and develop basic functions that affect daily work such as:
Interpersonal Relations: By virtue of being the visible head of the company, and being the representative of formal acts or the liaison of various departments.
It is Informative: Because it constitutes being the disseminator of information, and the valid interlocutor.
It is decisive: since it is the most difficult and delicate role, which it is called upon to fulfill, since it must distribute the resources of the company.
Skills also play a role and these have to do with the intellectual part, in that it has to analyze and interpret and solve problems that are complex.
Interpersonal relationships: have equal importance at all levels because they are related to the operational aspects of the company.
- Computer systems: Tools that support administrative, production, and other processes, with which we can manage efficiency, effectiveness, and effectiveness. Organizational structure: Constitutes the way in which personnel are organized to carry out productive work and facilitate achievement. of the plan, it must be designed in a way that facilitates business operations.
On the other hand, strategic management involves deciding on the "BUSINESS COURSE" and what is required to achieve them. It involves analyzing the environment of the company, in order to assess future opportunities and threats, it consists of formulating objectives and establishing goals as precise plans in order to achieve them.
The plan must be effective and not only cover external opportunities, but also internal ones, the final goal is to formulate the future course, that is, how does the company plan to compete in the market ?, and thus compete effectively and meet its long-term mission. When talking about the strategy, it is necessary to point out the three levels:
Corporate level: This is formulated by senior management to monitor the interests and operations of the company, and are made up of multiple lines.
Business level: Refers to the administration of the interests and operations of a particular line, it aims to determine what position the business should take in its market and how it should act, given its resources and market conditions.
Functional level: In this strategy managers are in charge of a function, for example, production, marketing, in order to put into practice the strategies of the business unit and therefore those of the company.
In other words, strategic management is a logical and systematic process that will allow consensus to be reached on company decisions, and in this way bridge the gap that exists between now and the place we want to go, with the objectives set by the company, as well as the resources it will employ and that will be used, which makes things happen that would not have happened otherwise, such as exploring the environment in order to evaluate where the company expects to compete.
Strategic management is an essential element for the success of your business, but many companies do not use it effectively to guide their activities. Some of the main reasons are to mix the basic or daily aspects of the business with future activities, Vague Missions and Visions, and lack of monitoring and follow up on progress.
The Vision must guide all organizational change and all improvement activities. The best way to do this is to capture the Vision on a long-term goal. Then we must identify three to five key activities that ensure the Vision will be achieved.
This long-term plan is the starting point for the annual planning process. The annual plan identifies the essential things we must accomplish that year to achieve the Vision. All other critical activities and processes must then be deployed in all necessary areas. The owners of these critical activities and processes must be identified and assigned to then develop performance measurements that will allow us to monitor progress.
Based on the foregoing, we can state that the lack of strategic management does not allow for sustainable and sustainable development.
The business foundations are the guiding principles of the organization's actions, elements from which management is structured, also because they express interest in the growth and development of people.
Plan: that is, establish a global objective that brings together the actions of all employees. Example. How many units must they produce, in order to meet a goal or otherwise set longer-term goals which can vary from one to five years.
Organize: be aware of the tasks that must be done, that is, establish the relationships that must exist between the different jobs.
Staffing: filling vacancies in order to develop the jobs required by the organization.
Leading: knowing how to provide adequate motivation and leadership in order to bring encouragement and a spirit of achievement and cooperation.
Control: stay alert and check that things are going according to plan.
In order to expand these concepts a little more, the resources should not be forgotten, which can be tangible as well as intangible, since from which the objectives of the company can be met.
As Eric Flamholtz would put it, managing corporate culture, as all organizations have a culture that is nothing more than a set of shared values, beliefs, and norms that govern the ways in which staff are expected to run the business. daily.
Implementing a strategic management model will allow the company to project itself into the future, control changes, adapt to market conditions, and seek ways to channel continuous improvement in the company.
Management roles and practices are determined to create and maintain competitive qualities in staff, maintaining the Drucker line, which suggests "getting ordinary people to do extraordinary things."
Strategic planning is one of the main resources through which management can create a shared vision of what the company wants to become, and contributes to shaping the corporate culture, and becomes a way of life as it provides the direction for the organization and its staff, as it motivates and guides behavior.
The strategic approach involves the direction the organization is going to take and the capabilities it needs to achieve the goals, it analyzes the organization's environment both to assess future opportunities and threats, and even more so with a globalized and standardized market in which companies that are not prepared are prone to disappear, it is to be emphasized that the objectives as well as the goals must be precise to formulate action plans that we can achieve.
It is worth mentioning that the strategic plans must not only cover the markets and the external commercial opportunities that the organization envisions, but also the internal capacities that the organization requires for its growth.
If people or organizations think about strategic planning, it is important to think that the development that is intended to be achieved is for the organization, since the final goal of the strategic planning process is to formulate the direction from which the organization plans to compete in the market., taking into account the conditions of efficiency in order to fulfill its mission in the term lake.
Strategy is what gives realism to a plan, since it constitutes the art of directing a set of operations aimed at achieving a goal, since the strategy refers to the procedures that must be established to reach the objectives and goals.
Strategic decisions are the options that determine the direction and success of organizations. Although many of those responsible for taking them are CEOs, entrepreneurs and leaders, it is increasingly common to see that middle managers also receive this responsibility. This is why organizations are more horizontal than they were in the past and are more customer-centric than ever, as well as being driven by the forces of change and complexity, which are increasingly intense and accelerated.
Although any organization must comply with a variety of issues that should be addressed, there are some points that must be taken into account, according to Eric G. Flamholtz the key points that must be considered are the following:
- What business are we in? What are our competitive capabilities and limitations? Do we have any exclusive market gap? What do we want to become in the long term? What are the critical factors that will make us succeed or fail in trying to achieve mission? What are our competitive capabilities and what constraints will determine our competitive effectiveness? What goals will we set to improve our competitive effectiveness and the capabilities of the organization in each of these critical fields for success?
Most specialists think that in the turbulent environment in which businesses operate is complex, therefore, the best method today is continuous analysis. This enables the company to act quickly, take advantage of opportunities before competitors, and thus respond to threats from the environment before significant damage has occurred.
Regarding the economy, it should be analyzed for example: inflation, unemployment, income, consumption, profitability, investment, trade balance to mention some indicators that cannot be overlooked, the political climate, laws, taxes, minimum wages legal, unions, labor codes, levels of education, schools, hospitals, in the technological field, latest advances in production processes, and the most important today the ecological aspect, in order to be committed to bioethics and the social.
At the moment we analyze these variables, we are preparing to face the threats and opportunities that the environment can offer us, that is, to anticipate the impact that the organization may suffer.
We cannot forget the microenvironment, which allows us to assess our strengths and weaknesses that we have in the organization in its internal part, understanding strengths as the capacities that are within the organization, and with which we hope to achieve the proposed objectives. Not so the weaknesses, which are constituted in the limitations that are inside the organization and that at the same time are those that slow down the progress towards the achievement of the objectives.
Fifth part
Human resource
The human resource: It takes years to recruit, train and develop the necessary personnel for the formation of competitive work groups, that is why organizations have begun to consider human resources as their most important capital, and the correct administration of them as one of his most decisive tasks.
However, the administration of this resource is not a very simple task. Each person is a phenomenon subject to the influence of many variables, including differences in skills and behavioral patterns that become very diverse.
If the organizations are made up of people, their study constitutes the basic element of the organizations, and particularly of the Administration of Human Resources. (Recruitment and selection of capable personnel, maintenance of the spirit of cooperation of all the personnel, in order to fulfill the mission of the organization and, use of the services of the personnel in an effective way, that is, the rational use of the efforts of the human resource)
The human resource endowment process in the organization occurs because it provides people who will use their muscles and minds, helping to make the mission of the company a reality. Staffing requires planning (current and future evaluation and development of a future program) and the necessary provisions to ensure adequate recruitment, that is, it is neither excessive nor insufficient.
The success of the recruitment is to define with all care and precision what the position demands of the candidate who is going to fill it, along with their remuneration that must be appropriate and competitive.
Taking this as a basis, the next step is to start a process to form a group of candidates from which to select the most or most qualified and integrate them into the organization.
Continuous monitoring of human talent requires conducting training and development programs for all employees in combination with a periodic evaluation of their actions. For this reason, the manager becomes a leader and assumes the human resource endowment.
recommendations
A SWOT analysis is highly recommended for companies, since they can know the position of the company and contributes to the generation of strategic alternatives.
The business plan is useful in several ways and helps us in the face of adversity, since:
- Define and focus the objective making use of the analysis of the collected and adequate information. It constitutes a sales tool and faces important relationships (lenders, investors, banks) It integrates the main normative documents It arises from the conceptual, methodological and management need when specifying The strategies in economic, technical, technological and financial terms. It is a logical, progressive, realistic, coherent document and oriented to future action in order to achieve objectives and goals.
Conclusions
Every company, regardless of its size or the sector in which it operates, needs to prepare a business plan. This must meet a series of requirements to be effective and requires from its managers, a realistic approach to the situation of the organization, that its elaboration is detailed and complete, must include and develop all the objectives, must be practical and affordable for all personnel, of a determined periodicity, with its corresponding improvements, and shared with all the personnel of the organization. A great challenge that arises for the management of the organization in this century is the productive factor and that of Management Capacity.
The business plan is an essential step that a manager must take, regardless of the size of the business, it is for this reason that the businessman who is going through adversity must write the business plan that is ideal for the particular company.
The leader must know the level of relationship with his followers, because in this way he can foresee the fulfillment of his objectives.
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