Formal strategic planning with its modern features was first introduced in some commercial companies in the mid-1950s. At that time, the most important companies were mainly those that developed formal strategic planning systems, called long-term planning systems. Since then, formal strategic planning has been refined to the extent that all major companies in the world today have some form of this system, and an increasing number of small companies are following this example.
As a result of this experience, a great wealth of knowledge on this subject has been produced. The purpose of this research work carried out by UPIICSA students of industrial engineering is to collect the essence of this knowledge; In other words, it tries to discover in a simple and concise language the fundamental concepts, facts, ideas, processes and procedures about strategic planning, which all direct at any level should know.
strategic-planning-applied-to-the-company-bisnes-electronics-1The idea that every manager should have a basic understanding of both the concept and the practice of formal strategic planning is based on a number of observations made about direction and success in business. Strategic planning is inseparably intertwined with the entire management process; therefore, every manager must understand its nature and performance. Furthermore, with the exception of some companies, whose examples will be covered in this book, any company that does not have some kind of formality in its strategic planning system is exposed to an inevitable disaster. Some directors have very distorted concepts of it and reject the idea of trying to apply it; others are so confused about this topic that they consider it without any benefit,and some more ignore the potentialities of the process both for themselves and for their companies. There are those who have some knowledge, although not enough to be convinced that you should use it. This paper aims to provide all of these people with a clear, concrete, pragmatic and complete reasonable understanding of strategic planning itself, of how to organize its implementation, and how to implement it.
Justification of the application of strategic planning
The competitive environment that exists today, and the constant use of Internet-based Information Technologies has led companies to develop new business strategies to achieve a competitive advantage. The combination of Internet-based information technologies and business processes have originated new business concepts with an electronic focus, that is, "Bisnes Electronics". Then, new Internet-based services emerge that companies use both inside and outside their business to achieve differentiation in the market. The implementation of these services have had a strong impact on companies because they modify business processes.It is therefore important to carry out a strategic planning of companies such as Bisnes Electronics that will support a company to achieve the desired competitive advantage.
Within a Strategic Planning of "e-service", it must be determined what should be done, how it will be done and how a company can realize, if the "e-services" meets or not with the desired and established objectives.
Where a genuine "e-service" strategy implies the involvement of all business processes, as well as their readjustment (reengineering). This process begins with an analysis of the current situation of the company, evaluating the understanding of the strategy, the operational processes and the acceptance of "e-service" within the organization, continuing with the necessary modifications to adapt to the "e-service", and the infrastructure of "e-technology" required, this in order to improve the efficiency and productivity of the company. And this is how companies begin to devise a way to improve their services that will give them a differentiation from their competitors.
General Information of the Company Bisnes Electronics
GIRO: Commercial (Electronic)
LOCATION: Chicharrón de Pasatiempo Nº 615 Colonia: Pay attention to me
SIZE: Girl, with 20 people paying attention
MAIN PRODUCTS and PROCESSES:
- Evaluation of emerging technology projects, from a commercial, logistical and financial perspective. Design and development of Interactive WEB and Portals, with the option of electronic commerce. Selection and Start-up of "Electronic Communities" B2B. Evaluation and Design CMR and Contact Center. Model of electronic billing and payments (Electronic Payment System).
In the Logistics Area
- Econometric Transport Pricing Model Delivery Model (Home Delivery and Direct Delivery) Method of Balancing Routes and Territories Transport Operations Optimization Systems Stock Management Measurement Systems Merchandising Model Applied to Logistic chain.
In the Area of Process Reengineering
- Redesign Methodology for Management Processes Redesign Methodology for Business Processes Model of Time Survey and Quantification of Banking Activities.
In the Quality Assurance Area
- Operational Quality Model associated with Logistics A Quality Approach in Business Processes through the ISO 9000 Standard Identification Model for Critical Quality Processes Management Training Workshop on Quality Assurance.
Development of Strategic Planning
Due to the growth that the company is having, the following Strategic Planning scheme is considered.
1.Creation of a planning committee.
2. Selection of members based on their knowledge and experiences.
3. Analysis of the internal and external factors that are involved in this process.
4. Increased support to members of the planning committee, reducing dependence on the steering committee.
- The objectives of the planning committee are:
Prepare general strategies that give focus and direction to all efforts and interactions of BISNES ELECTRONICS
Markets / Products Matrix.
Electronic business strategy.
Technological strategy.
Operational strategy.
Human strategy.
Financial strategy.
- Establish a permanent strategic planning process that contains budget, functional objectives, communication and management strategy, and monitoring and control process.
Mission
Our mission consists of identifying, selecting and implementing the technologies that best suit the reality and commercial objectives of our clients, always from an economic profitability perspective.
This means that our approach is not only technical, but eminently business, and covers all aspects that involve the incorporation of information technologies, including support logistics systems, business and process reengineering, training the users, the internal or external marketing of the adopted solution, and the market of the same solutions, when these are related to new products or services outside the company.
In particular, our specialty is the management of Electronic Commerce projects, in which we advise our clients in the design of business models that take into account the particularities of the company, the strategic objectives of business development, and the way in which Electronic Commerce can be incorporated into business strategy. This also includes the selection of strategic partners to accompany the project throughout its development and exploitation, and the responsibility to ensure that the objectives set with the company are met.
Our company BISNES ELECTRONICS includes experts in each of the project areas that it advises: Electronic Commerce, Process Reengineering, Strategic Logistics and Quality Systems, forming ad-hoc work teams, which allows us to get maximum creativity, and to time, efficiency in the genesis and development of the works we lead.
Aware that technology projects, in general, and electronic commerce, in particular, are great time-consuming projects within companies, and therefore divert the necessary resources to meet the operational needs of the company.
We can say that the mission of the company has the following elements:
Element
- Customer Yes Products or Services Yes Markets Yes Technology Yes Interest in survival, growth and profitability Yes Philosophy Yes Self-concept Yes Interest in public image Yes Interest in employees Yes Integration of work teams Yes Internal and external training No
Identification of Objectives and Strategies
After defining the organization's mission and translating it into concrete objectives, managers are ready to begin the next stage of the process. This is to identify the current objectives of the organization and its strategy. Sometimes the newly defined mission and objectives will closely resemble what this strategy is founded on. But other times the strategy formulation process causes a substantial change in them, this mainly happens when the organization has not been achieving the key or most important objectives.
To determine the current strategy of their organization, many managers ask questions such as: What is our business and what should it be? Who are our clients and who should they be? Where are we headed? What are the main competitive advantages we have? In what areas of competence do we excel?
The main indicators with which they are being measured with the closest competitors have been identified.
OBJECTIVE INDICATORS
SUPPLIER OF EXCELLENCE
HIGH VALUE ADDED TO OUR SERVICES
DEVELOPMENT OF THE SUPERIOR VALUE OF SERVICE TO OUR POTENTIAL CUSTOMERS Percentage of performance in the market.
Productivity as a percentage of revenue.
Sales growth.
Total sales margin
Productivity / resources
Productivity / sales
Working capital
Investigation and development
Unmet Potential Demand
Level of Service and Quality
Net returns / sales
Number of complaints
Deliveries (quantity and time)
Analysis of customer satisfaction - 100% quantitative analysis to be a leader.
50% to be the leader.
more than our most sought-after competitors
60%
55%
$ 5.5 USD
100%
twenty-one %
= 100%
95% efficiency
> One innovation per product per year
Bisnes Electronics strategies
View
To be the most profitable company in the flexible packaging industry.
Maintain a 15% annual growth.
To be leaders in the industry worldwide.
To be recognized for the quality of the products and the best service with competitive costs.
Values
LOYALTY:
Commitment, trust and fidelity towards the Institution, its mission, principles and purposes, offering the best personal effort for the benefit of society.
SERVICE:
Willingness of the Institution to respond to the needs of society with an attitude of dedication, collaboration and a spirit of care.
RESPONSIBILITY:
Full compliance with the commitments acquired by and for the Institution, correctly carrying out the assigned activities.
HONESTY:
Think, speak and act in accordance with moral principles and values.
QUALITY:
Achieve excellence in our educational services to achieve the Vision and Mission.
PEOPLE:
We consider students and employees as the most valuable resource and the driving force of our Institution. We respect their human integrity and we fairly recognize their performance and contribution to achieving a better Institution.
Bisnes Electrinics Quality Policy
All the staff of BISNES ELECTRONICS are here to provide products and services of the best quality that go beyond the impossible, fulfilling the slice of the cake of the potential unsatisfied demand made by our market study, according to our projections made to 5 years.
Our Quality is unsurpassed, so we are certified under ISO, and this commits us to provide services with a service level of 100%
External analysis
The process for conducting an external audit should include the participation of as many managers and employees as possible. To perform an external audit, competitive intelligence information must first be gathered, as well as information on social, cultural, demographic, environmental, economic, political, legal, governmental, and technological trends.
THE ECONOMIC FORCES:
The perspective of our company is that our products are sold to legal entities and not to individuals, so it is good to take advantage of the opportunity that companies need to improve the packaging of their products with plastic film; Another factor is that there is an oligopoly here in Mexico regarding feminine pads and diapers. By monitoring the economic variables of Mexico we can realize the increase in the availability of credits in banks and supermarkets with an interest rate of 20%, inflation so far is 5.8% which is low inflation, the level people's income is low plus the propensity to spend in the last quarter of the year is high, the plastics industry is growing by 40% per year, the trend of GNP is to grow compared to 2005,the dollar parity is $ 10.70 per dollar.
THE SOCIAL, CULTURAL, DEMOGRAPHIC AND ENVIRONMENTAL FORCES:
The quality of the products increases, as well as the attitude towards foreign products, the country is in a restructuring of energy conservation where it is most possible that it is privatized, social interest programs increase, there is negligence in the authority, there is poor waste management, air and water pollution increases, the depletion of the ozone layer increases as well as species in danger of extinction.
THE POLITICAL, GOVERNMENTAL AND LEGAL FORCES:
The regulation of taxes remains stable, maintaining stable rates for imports and exports of machinery and products. Relations in the world are involved by the military decisions exercised by the US in the Middle East. Due to the decisions of the US for the fight against terrorism, governments are waiting to offer their support or remain neutral. In Mexico as well as in Latin America they are regulated by the conditions imposed by the International Monetary Fund.
THE TECHNOLOGICAL FORCES:
Project areas that he advises: Electronic Commerce, Process Reengineering, Strategic Logistics and Quality Systems, forming ad-hoc work teams, which allows us to get maximum creativity, and at the same time, efficiency in the genesis and development of the work that we lead.
Aware that technology projects, in general, and electronic commerce, in particular, are great time-consuming projects within companies, and therefore divert the necessary resources to meet the operational needs of the company. Whoever has the right information at the right time has a competitive advantage that can make a difference. Timely information combined with product life cycles, production flexibility, and increased speed of distribution allow you to seize opportunities and anticipate threats.
THE COMPETITIVE FORCES
The position of our products in the market is that we are consolidated with our most important clients, but low quality and delays in deliveries can create a loss of prestige for our products. We must make Changes in external forces, produce changes in the demand for products and services. Being able to respond offensively or defensively to external factors through strategies that minimize threats and maximize opportunities.
Identification of External Threats and Opportunities
Opportunities
Possession of points of sale
Existence of the safe market
High Technology over the Internet
Better after-sales service than the competition
Began to provide logistics services
Threats
Constant reevaluations
Constant extensions of with other stores
Little training time
Instability and lack of some goods
They do not have exclusive offers
External Factors Assessment Matrix (MEFE)
Preparation procedure:
- Make a list of the success factors identified through the external audit process. Use ten to twenty internal factors in total, including both opportunities and threats. Write down the opportunities first, then the threats. Be as specific as possible and use comparative figures, ratios, and percentages. Assign a weight between 0.0 (not important) to 1.0 (absolutely important) to each of the factors. The weight indicates how important that factor is to the company's success in the industry. Opportunities often carry the highest weights than threats, but threats, in turn, can carry high weights if they are especially serious or threatening.Appropriate weights can be determined by comparing competitors who are successful with those who are not, or by looking at the factor as a group and reaching a consensus. The sum of all the weights assigned to the factors must add up to 1.0. Assign a score between 1 and 4 to each of the factors in order to indicate if the factor represents, where 4 = a higher response, 3 = a higher response than the average, 2 = a medium response and 1 = a bad response. Ratings are based on the effectiveness of the company's strategies. Thus, the ratings refer to the company, while the weights in step 2 refer to the industry.Multiply the weight of each factor by its corresponding score to determine a weighted score for each variable and Add the weighted scores of each variable to determine the weighted total for the entire organization, regardless of the number of factors that are included in a MEFE matrix, the weighted total can go from a minimum of 1.0 to a maximum of 4.0, with the average score being 2.5. A weighted average of 4.0 indicates that the organization is responding excellently to opportunities and threats in its industry. In other words, the company's strategies are effectively taking advantage of existing opportunities and minimizing the possible negative effects of external threats. A weighted average of 1.0 indicates that the company's strategies are not capitalizing on opportunities or avoiding external threats.
MEFE table of Bisnes Electronics
MEFE Weight Rating Total Weighted
Opportunities
Possession of points of sale 0.12 4 0.48
Existence of the safe market 0.12 4 0.48
High Technology by Internet 0.1 3 0.3
Better after-sales service than the competition 0.06 3 0.18
Began to provide logistics services 0.18 4 0.72
Threats
Constant re-evaluations 0.08 1 0.08
Constant expansion of with other stores 0.06 1 0.06
Short training time 0.06 2 0.12
Instability and lack of some goods 0.06 2 0.12
They do not have exclusive offers 0.16 2 0.32
1 2.86
The sum of the weighted results of the MEFE Matrix is above 2.5, which indicates that the external situation is favorable, since opportunities predominate, such as: having fixed points of sale in different points of sale, existence of a secure market, all electronic service companies in providing logistics services, making it the pioneer with an efficient level of service.
Competitive Environment at Bisnes Electronics
Today the purchasing decision process is basically based on stimuli regarding the customer's reaction and in turn on the characteristics of the customer, the environment that surrounds him, the technology, and the logistics that exist so that he can carry out your purchase. On the other hand, it is also important for companies not only to evaluate the behavior of their customers, but also the competitive environment in which they surround themselves, that is, to know their competitors in order to be successful in their strategy based on "e-technology".
Industrial competitive environment: This point refers to the traditional model of Porter (1998), for analysis of the competitors. The threat to new competitors, the bargaining power of suppliers, the bargaining power of buyers, and the threats of substitute products.
Competitive Profile Matrix (MPC)
The competitive profile matrix identifies the main competitors of the company, as well as their particular strengths and weaknesses, relative to a sample of the strategic position of the company. The weights and weighted totals of a MPC or an EFE have the same meaning. However, the factors of an MPC include internal and external issues; Ratings refer to strengths and weaknesses. There are some important differences between an EFE and a MPC. First of all, the critical or determining factors for success in an MPC are broader, do not include specific or concrete data, and may even focus on internal issues.
Elaboration procedure
The competitive profile matrix identifies the company's main competitors, as well as their particular strengths and weaknesses, in relation to a sample of the company's strategic position. The factors of an MPC include internal and external issues; Ratings refer to strengths and weaknesses. The critical or determining factors for success in an MPC are broader, do not include specific or concrete data, and can even focus on internal issues.
2.Select two competitors.
3. Make a note of critical success factors in which companies will be compared.
4. Assign a weight between 0.0 (not important) to 1.0 (absolutely important) to each of the factors. The weight indicates how important that factor is to the company's success in the industry. Opportunities often carry the highest weights than threats, but threats, in turn, can carry high weights if they are especially serious or threatening. Appropriate weights can be determined by comparing competitors who are successful with those who are not, or by looking at the factor as a group and reaching a consensus. The sum of all the weights assigned to the factors must add up to 1.0.
5.Assign a rating between 1 and 4 to each of the factors to indicate whether the factor represents, where 4 = greater strength, 3 = less strength, 2 = less weakness and 1 = greater weakness. Ratings are based on the effectiveness of the company's strategies.
Bisnes Electronics competitive profile matrix table
BISNES ELECTRONICS NAVIGATOR E-MECATRONICS
Critical Success Factors Weight Rating Weight Weighted Rating Weight Weighted Rating Weight Weighted
Market share 0.20 3 0.6 2 0.4 2 0.4
Price competitiveness 0.02 1 0.2 4 0.8 1 0.2
Financial position 0.40 2 0.8 1 0.4 4 1.6
Product quality 0.10 4 0.4 3 0.3 3 0.3
Customer loyalty 0.10 3 0.3 3 0.3 3 0.3
Total 1.00 2.3 2.2 2.8
Note: (1) the values of the qualifications are as follows: 1- less weakness, 3- less strength, 4 - greater strength. (2) As the weighted total of 2.8 points out, competitor 2 is the strongest. (3) For the sake of simplicity, only five critical success factors are included; but, when it comes to reality, they would be very few.
The table above contains a sample competitive profile matrix. In this example, "financial position" is the critical factor most important to success, as indicated by the weight of o.40. The "product quality" of the sample company is superior, as highlighted by the rating of 4; Competitor 1's "financial position" is poor, as indicated by the rating of 1; Competitor 2 is the strongest firm overall, as indicated by the weighted total of 2.8.
A clarification regarding the interpretation: just because a company obtains a score of 2.3 and another of 2.8 in a matrix of the competitive profile, it does not mean that the first company is 20% better than the second. The numbers reveal the relative strength of the company, but the implied precision is just wishful thinking. The figures are not magic. The purpose is not to obtain a single magic number, but rather to assimilate and evaluate the information in a sensible way that can be used to make decisions.
Due to increased turbulence in markets and industries around the world, external auditing has become a vital and explicit part of the strategic management process. This chapter provides a framework for gathering and evaluating economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.
Companies that fail to mobilize and empower managers and employees to identify, monitor, forecast, and assess key external forces may not anticipate recent opportunities and threats and, as a result, may pursue ineffective strategies, miss opportunities, and drive development. organization case.
A fundamental responsibility of strategists is to ensure that an effective external audit system is developed. This includes using information technology to build a well-functioning competitive intelligence system. This external audit system that is written in this chapter can be used by an organization of any size or type. Typically the external audit process is more formal in small businesses, but the need to understand key trends and insights is also of utmost importance to these businesses.
Internal analisis
No company is equally strong or weak in all areas.
- Strengths and weaknesses coupled with opportunities and threats and a clear mission statement provide the basis for establishing objectives and strategies. Distinctive competencies are the strengths of a firm that cannot be easily compared or imitated by competitors. they are partly to enhance the firm's weaknesses, transform them into strengths and perhaps distinctive competencies.
The process for conducting an audit is very similar to that of conducting an external audit. Representative managers and employees from across the business need to be involved in determining the strengths and weaknesses of the business. Internal auditing requires the gathering and assimilation of information about the company's management, marketing, finance / accounting, production / operations, research and development, and computerized information systems operations. Strategic management is a highly interactive process that requires effective coordination of managers in administration, marketing, finance / accounting, production / operations, R&D, and computerized information systems. Even when the strategic management process is supervised by strategists,Success requires that managers and employees from all functional areas work together to present ideas and information.
Internal audit verification is presented to determine the strengths and weaknesses of BISNES ELECTRONICS
ADMINISTRATION.
Does the company use strategic management concepts? YES
Are the objectives and goals of the company achievable and does everyone know? YES
Do managers at all levels of the hierarchy plan effectively? NO
Are managers good in their authority? YES
Is the organizational structure appropriate? YES
Are job descriptions and job specifications clear? YES
Is general employee morale high? YES
Is employee turnover and absenteeism high? NO
Are the control mechanisms effective? YES
Do they correctly apply the administrative process in the maintenance area? NO
MARKETING
Was a market study conducted with primary sources to determine IPR? YES
Was a market study conducted with secondary sources to determine IPR? YES
Is there a Potential Unmet Demand (IPR)? YES
Is the organization in good position to stop its competitors? YES
Has the company's share of the market been increasing? YES
Are the current distribution channels reliable and cost effective? YES
Does the company have an effective organization for sales? YES
Is product quality and customer service good? YES
Are the products and services priced well for the clientele? YES
Does the company have an effective strategy for promotions and advertising? NO
FINANCE
In the liquidity for your debts and growth of your facilities are tables? NO
Can the company raise the capital it needs in the short term? YES
Can the company raise the capital it needs in the long term? YES
Do you take into account the macroeconomic variables taken from the IPR? YES
Does the company have sufficient and necessary working capital? YES
Are the procedures for budgeting capital effective? YES
Are the policies for paying dividends reasonable? YES
Have you made your financial projections correctly? YES
Does the company have good relations with its investors and shareholders? YES
Have they done the acid test? NO
PRODUCTION
Have you determined the breakeven point, to determine your productivity? NO
Did your LANs have a project evaluation done for your installation? NO
Are the outsorcingues and other sheath reliable? YES
Are the facilities and computer equipment in the offices in good condition? YES
Are inventory control policies and procedures effective? YES
Are the procedures and policies for quality control effective? YES
Does the company have technological skills? YES
Does your service level exceed 50% production efficiency? YES
Do they produce what is necessary to satisfy the Unmet Potential Demand? YES
INVESTIGATION AND DEVELOPMENT
Are you experts in Operations Research to determine your variables? NO
Does the company have facilities for R&D? YES
If external R&D companies are used, do they have effective costs? NO
Is the organization's R&D staff well-trained? YES
Are resources for R&D well allocated? YES
Are the computer and information management systems adequate? NO
Is communication between R&D and other units in the organization effective? NO
Are the present products technologically competitive? YES
Do you use Operations Research as a Research tool? NO
Do you use Market Research as a Research tool? YES
COMPUTERIZED INFORMATION SYSTEMS
Do company managers use the information system to make decisions? YES
Is there an information manager position in the company? YES
Is the information system data updated regularly? YES
Do all the managers of the functional areas of the company contribute? NO
Are there effective keys to enter the information system of the company? YES
Are the company's strategists aware of the information systems of rival companies? YES
Is the information system easy to use? YES
Are the users of the information system aware of the competitive advantages? YES
Are computer training workshops offered to workers? NO
Is the information content constantly improving even if it is stuffed? YES
Internal Factor Evaluation Matrix (MEFI)
Elaboration procedure:
1. Make a list of the success factors identified through the internal audit process. Use between ten and twenty internal factors in total, including both strengths and weaknesses. Write down the strengths first, then the weaknesses. Be as specific as possible and use percentages, ratios, and comparative numbers.
2. Assign a weight between 0.0 (not important) to 1.0 (absolutely important) to each of the factors. The weight assigned to a given factor indicates its relative importance to the company's success in the industry. Regardless of whether the key factor represents an internal strength or weakness, the factors that are considered to have the greatest impact on the performance of the organization should carry the highest weights. The total of all weights must add up to 1.0
3.Assign a rating between 1 and 4 to each of the factors to indicate whether the factor represents a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3) or a force majeure (rating = 4). Thus, the ratings refer to the company, while the weights in step 2 refer to the industry.
4. Multiply the weight of each factor by its corresponding score to determine a weighted score for each variable.
5. Add the weighted scores for each variable to determine the weighted total for the entire organization.
Regardless of the number of factors that are included in a MEFI matrix, the weighted total can range from a minimum of 1.0 to a maximum of 4.0, with the average rating being 2.5. Weighted totals well below 2.5 characterize organizations as weak internally, while scores well above 2.5 indicate a strong internal position. The MEFI matrix should include between ten and twenty key factors. The number of factors does not include in the scale of the weighted totals because the weights always add up to 1.0
The sum of the weighted results of the MEFI Matrix is above 2.5, with an exact value of 2.88, which indicates that the organization has a favorable internal situation where strengths predominate such as: superior image to the competition, favorable socio-psychological climate, positioning in the mind of the customer, superior quality of the merchandise in relation to the competition.
Adequacy Stage
Strategy is sometimes defined as the organization's "match" between its internal resources and capabilities… and the opportunities and risks created by its external factors. The stage of adequacy of the framework for formulating strategies consists of five techniques that can be used in any sequence:
- The AODF matrix, The PEYEA matrix, The BCG matrix, The IE matrix and The grand strategy matrix.
These instruments rely on information derived from the input stage to match external opportunities and threats with internal strengths and weaknesses. Adjusting the external and internal factors, critical determinants for success, is essential to generate good viable alternative strategies. For example, a company that has too much working capital (an internal force) could take advantage of the 40 percent annual growth rate recorded by the aerospace industry (an external opportunity) to acquire an aerospace company. This example demonstrates a simple one-to-one matching. In most cases, the internal and external relationships are more complicated and their adaptation requires infinite alignments for each of the generated strategies.The table below illustrates the basic concept of adequacy.
Any organization, be it military, product-oriented, service-oriented, government, or even sports, must develop and apply good strategies in order to win. A good offense without a good defense, or vice versa, usually leads to defeat. It can be said that developing strategies that harness strength to capitalize on opportunities is offensive, while strategies designed to overcome weaknesses while avoiding threats can be considered defensive. Every organization has certain external opportunities and threats and internal strengths and weaknesses that can be aligned to formulate viable alternative strategies.
The matrix of Weaknesses, Opportunities, Strengths and Threats (SWOT)
The Threats-Opportunities-Weaknesses-Strengths (SWOT) matrix is an important adjustment instrument that helps managers develop four types of strategies: strengths and weaknesses strategies, weaknesses and opportunities strategies, strengths and threats strategies, and weaknesses and threats. Looking at key internal and external factors is the hardest part of developing a SWOT matrix and requires sound judgment, plus there is no one best set of adaptations. The SWOT matrix is carried out in the following eight steps:
1. Make a list of the company's key external opportunities.
2. Make a list of key external threats to the business.
3. Make a list of the company's key internal forces.
4. Make a list of the company's key internal weaknesses.
5. Match internal forces to external opportunities and record the resulting FO strategies in the appropriate cell.
6Adign internal weaknesses to external opportunities and record the resulting DO strategies in the appropriate cell.
7. Adapt internal forces to external threats and record the resulting FA strategies in the appropriate cell.
8. Adapt internal weaknesses to external threats and record the resulting DA strategies in the appropriate cell.
When an organization has the capital and human resources to distribute its own products (internal force) and distributors are unreliable, expensive, or unable to meet the needs of the company (external threat), then forward integration can be an attractive FO strategy. When a company has too much production capacity (internal weakness) and its core industry is seeing a decline in annual sales and profits (external threat), then concentric diversification can be an effective DA strategy.
Matrix of the Strategic Position and the Evaluation of the Action (PEYEA)
The Strategic Position and Action Assessment (PEYEA) matrix, illustrated below, is another important instrument for stage 2 adequacy. Its four-quadrant framework indicates whether a strategy is aggressive, conservative, defensive, or competitive is the most suitable for a given organization. The axes of the PEYEA matrix represent two internal dimensions (financial forces and competitive advantage and two external dimensions (stability of the environment and strength of the industry. These four factors are the four most important determinants of the strategic position of the organization.
Depending on the type of organization, numerous variables could constitute each of the dimensions represented in the axes of the PEYEA matrix. Table 6-3 contains some of the variables generally included. For example, return on investment, leverage, liquidity, working capital, and cash flow are often considered determinants of the organization's financial strength. The PEYEA matrix, like the SWOT, should be prepared for the particular organization under consideration and should be based, to the extent possible, on database information.
Steps to prepare a PEYEA matrix
1.Select a series of variables that include financial strength (FF), competitive advantage (CV), environmental stability (EA) and industry strength (FI).
2.Assign a numerical value from +1 (worst) to +6 (best) to each of the variables that make up the dimensions FF and FI. Assign a numerical value of –1 (best) –6 (worst) to each of the variables that make up the dimensions VC, EA.
3. Calculate the average score of FF, VC, EA, and FI by adding the values given to the variables of each dimension dividing them by the number of variables included in the respective dimension.
4. Enter the average scores of FF, VC, EA, and FI on the corresponding axis of the PEYEA matrix.
5. Add the two x-axis ratings and record the resulting point at X. Add the two y-axis ratings. Enter the intersection of the new xy point.
6. Draw a directional vector from the origin of the PEYEA matrix through the new point of intersection. This vector will reveal the type of strategy recommended for the aggressive, competitive, defensive or conservative organization.
The directional vector can appear in the conservative quadrant (upper left quadrant) of the PEYEA matrix, which implies staying close to the core competencies of the company and not taking too many risks.
Conservative strategies most often include market penetration, market development, product development, and concentric diversification. The directional vector may be in the lower left or defensive quadrant of the PEYEA matrix, suggesting that the company should focus on overcoming internal weaknesses and avoiding external threats.
Defensive strategies include entrenchment, divestment, liquidation, and concentric diversification. Finally, the directional vector can be located in the lower right or competitive quadrant of the PEYEA matrix, which indicates competitive strategies. Competitive strategies include backward, forward and horizontal integration, market penetration, market development, product development, and joint ventures.
The parent company of the Boston Consulting Group. This model classifies SBUs according to two factors: Their participation in markets relative to competitors and the industry's growth rate; When the factors are divided into high and low categories, four quadrants arise, represented in the categories of the important units or products. In addition, two additional factors are taken into account, such as cash needs and appropriate strategies, these four quadrants are:
Star
Large market shares and high growth rates characterize the SBUs. These require a lot of cash to stay competitive. Very aggressive marketing strategies are needed if you want to retain yourself and gain market share.
Cash Cows
They have a large market share, and do business in industries with low growth rates. They are important because they support the other units that need more resources. Their marketing strategies try to differentiate their participation in the market, reinforcing customer loyalty.
Interrogations (Problem Children)
It includes the SBUs that are characterized by having little market share, but high growth rates in the industry. The strategies seek to create an impact on the market by showing a great differential advantage, to obtain the support of customers, Dogs
These SBUs have little market share and operate in industries with low growth rates. Marketing strategies seek to maximize profits by reducing expenses or promoting a differential advantage. Another option is to reduce the investment or cancel it.
The autonomous divisions (or profit centers) of an organization constitute what has been given to fill a portfolio of businesses. When a company's divisions compete in different industries, it is often necessary to develop a unique strategy for each business. The Boston Consulting Group (BCG) matrix and internal-external (YE) matrix have been specifically designed to support the efforts of multidivisional companies when formulating strategies.
The BCG matrix graphically shows the differences between the divisions, in terms of the relative part of the market they are occupying and the growth rate of the industry. The BCG matrix allows a multidivisional organization to manage its business portfolio by analyzing the relative part of the market it is occupying and the growth rate of the industry of each of the divisions in relation to all other divisions of the organization. The relative part of the market it is occupying can be defined as the ratio between the part of the market that corresponds to a division in a particular industry and the part of the market that is occupying the largest rival firm in that industry.
In a BCG matrix, the position of the relative share of the market appears on the x-axis. The midpoint of the x-axis is usually set at.50, which would correspond to a division that has half the market that belongs to the leading company in the industry. The y-axis represents the growth rate of industry sales, measured as a percentage. Y-axis growth rate percentages can range from –20 to + 20%, where 0.0 is the midpoint. These represent the numerical scale commonly used for the x and y axes, but any organization could set the numerical values it sees fit.
The BCG matrix, like all analytical techniques, has its limitations. For example, considering every business to be a star, money cow, dog, or question mark is an oversimplification; many businesses fall right in the middle of the BCG matrix and therefore cannot be easily classified. Furthermore, the BCG matrix does not reflect whether or not various divisions are growing, or whether their industries are growing over time; In other words, the matrix has no temporal qualities, but rather is a still photo of an organization at a given moment. Finally, there are other variables, apart from the relative position in the market and the rate of growth of the industry sales, for example, the size of the market and competitive advantages,that are important for making strategic decisions about different divisions.
From the matrix we deduce that divisions 1 remain as stars, our division 2 and 3 is a question, what would be good for this division, we can say that it would be efficient in creating strategic techniques so that our product becomes a star and our division 5 is a dog and it would be better to invest in other projects than in this one, another positive aspect that we obtained was that of division 4 which falls in the cow quadrant, since there is a large market share, and they do business in industries with low growth rates.
Internal-External Matrix (IE)
The IE matrix is similar to the BCG matrix in that the two instruments require the divisions of the organization to be placed within a schematic diagram; that explains why both are called portfolio matrices. In addition, the size of each circle represents the percentage of sales that corresponds to each division and the slices reveal the percentage of profits that corresponds to each division, both in the BCG matrix and in the EI.
However, there are some important differences between the BCG matrix and the IE matrix. First of all, the axes are different. Furthermore, the IE matrix requires more information about the divisions than the BCG matrix. Also, the strategic implications of the two matrices are different. Consequently, strategists of multi-divisional companies often construct both the BCG matrix and the IE matrix to formulate alternative strategies. A common practice is to prepare a BCG matrix and an IE matrix for the present and then prepare projected matrices that reflect the future. This "before and after" analysis predicts the impact strategic decisions are expected to have on the portfolio of the organization's divisions.
The IE matrix is based on two key dimensions: the EFI weighted totals on the x-axis and the EFE weighted totals on the y-axis. Remember that each division of the organization must prepare an EFI matrix and an EFE matrix for its corresponding part of the organization. The weighted totals derived from the divisions allow the construction of an IE matrix at the corporate level. On the x-axis of the IE matrix, a weighted total of between 1.0 and 1.99 of the EFI represents a weak internal position, a rating between 2.0 and 2.99 can be considered average and a rating between 3.0 and 4.0 is strong. Similarly, in the EFE, a weighted total of between 1.0 and 1.99 on the y axis is considered low, a score of between 2.0 and 2.99 is intermediate, and a score of 3.0 to 4.0 is high.
The IE matrix can be divided into three large spaces that have different strategic implications. In the first place, it can be said that the recommendation for the divisions that fall into cells I, II or IV would be “Grow and build”. Intensive strategies (market penetration, market development, or product development) or integrative strategies (backward integration, forward integration, and horizontal integration) may be the most suitable for these divisions.
Second, divisions that fall into cells III, V, or VII can best be managed with “hold and hold” strategies; Market penetration and product development are two commonly used strategies for these types of divisions. Third, a common recommendation for divisions that fall into cells VI, VIII, or IX is "Harvest or divest." Successful organizations are able to achieve a portfolio of businesses placed in or around cell I in the IE matrix.
Grand Strategy Matrix
In addition to the AODF matrix, the PEYEA matrix, the BCG matrix, and the IE matrix, the grand strategy matrix has become a popular instrument for formulating alternative strategies. All organizations can be placed in one of the four strategic quadrants of the grand strategy matrix. The divisions of the company can also be placed in it.
Companies in Quadrant I of the Grand Strategy Matrix are in an excellent strategic position. In the case of these companies, the appropriate strategies would be to continue to focus on the markets (market penetration and market development) and the products present (product development). It is not advisable for a company in Quadrant 1 to significantly deviate from its established competitive advantages. When an organization in Quadrant I has too many resources, then backward, forward, or horizontal integration strategies might be appropriate. When a company in Quadrant I is too committed to a single product,then concentric diversification could reduce the risks associated with a very narrow product line. Companies in Quadrant I can afford to take advantage of external opportunities in many areas; they can take risks aggressively when necessary.
Companies located in Quadrant II have to thoroughly evaluate their current approach to the market. Even though their industry is growing, they are not able to compete effectively and must determine why the current approach of the company is ineffective and what is the best way for the company to change, in order to improve its competitiveness. Since companies in Quadrant II are in an industry with a rapidly growing market, the first option they should consider is an intensive (and not integrative or diversification) strategy. Organizations in Quadrant III compete in slow growing industries and have very weak competitive positions. These companies must apply drastic changes without delay in order to avoid their greater fall and possible liquidation. First,a considerable reduction of costs and assets must be pursued (entrenchment). An alternative strategy would be to draw resources from current businesses to direct them to other areas. When all else has failed, the last option for businesses in Quadrant III is divestment or liquidation.
Finally, businesses in Quadrant IV have a strong competitive position, but are in a slow-growing industry. These companies are strong enough to start diversified programs in areas with the most promising growth. Typically, companies in Quadrant IV have large cash flows and little need for internal growth, and can often successfully pursue concentric, horizontal, or conglomerate diversification. Companies located in Quadrant IV can also form joint ventures.
From the above we can affirm that BISNES ELECTRONICS. It is in a strong competitive position and in a rapid growth in the market, for which the development in the plastics industry is highly competitive due to the number of products that exist and the technology that is constantly being developed, one of the strategies for growth would be enter a new service market.
The forward, backward and horizontal integration is already done by the union with E-Commercial from USA, it opens the doors to other markets of Services that can improve your Outsourcing worldwide
Decision Stage
Analysis and intuition lay the foundation for making strategy-making decisions. The adjustment techniques just explained reveal viable alternative strategies. Many of these strategies will probably have been proposed by managers and employees who participate in the activities of the analysis and the choice of strategies. Any others that result from the fit analysis can also be discussed and added to the list of viable alternative options. As stated earlier, in this chapter, participants can rate these strategies on a scale of 1 to 4, so that a list of the "best" strategies is obtained in order of importance.
Quantitative Matrix of Strategic Planning (MCPE)
In addition to ranking strategies to obtain a priority list, there is only one analytical technique in the literature designed to determine the relative attractiveness of viable alternative actions. This technique is the Quantitative Strategic Planning Matrix (MCPE) that represents step 3 of the analytical framework for formulating strategies. This technique indicates, objectively, which are the best alternative strategies. The MCPE uses the information obtained from the Stage 1 analyzes and the results of the Stage 2 adequacy analyzes to objectively "decide" on the best alternative strategies. That is, the EFE matrix, the EFI matrix, the competitive profile matrix that comprise step 1, added to the AODF matrix, the PEYEA analysis, the BCG matrix,the IE matrix and the grand strategy matrix that make up Step 2 provide the information needed to build an MCPE (Step 3). The MCPE is an instrument that allows strategists to evaluate alternative strategies objectively, based on the critical factors for success, internal and external, previously identified. Like the other analytical tools for formulating strategies, MCPE requires good intuitive judgments to be made.MCPE requires good intuitive judgments to be made.MCPE requires good intuitive judgments to be made.
Procedure for preparing the MCPE
1. Make a list of the company's external opportunities / threats and key internal strengths / weaknesses in the left column of the MCPE. This information must be obtained directly from the EFE matrix and the EFI matrix. The MCPE must include at least ten external factors critical to success and ten internal factors critical to success.
2. Assign weights to each of the critical factors for success, internal and external. These weights are identical to those of the EFE matrix and the EFI matrix. The weights are presented in a contiguous column, to the right, of the internal and external factors critical to success.
3. Study the matrices (of adequacy) from stage 2 and then identify alternative strategies whose application the organization should consider. Record these strategies on the top row of the MCPE. If possible, group strategies into exclusive series.
4. Determine attractiveness ratings (AC) defined as numerical values indicating the relative attractiveness of each strategy within a given series of alternatives. Attractiveness scores are determined by analyzing each critical success factor, internal or external, one at a time, asking the question, "Does this factor affect your choice of strategy?" If the answer to this question is Yes, then the strategies should be compared in relation to that key factor. Specifically, an attractiveness rating should be assigned to each strategy to indicate its relative attractiveness compared to others, considering that particular factor.
The attractiveness rating scale is 1 = not attractive, 2 = somewhat attractive, 3 = fairly attractive, and 4 = very attractive. If the answer to the previous question is NO, indicating that the respective critical success factor has no implications for the particular choice being considered, then attractiveness ratings are not assigned to the strategies in that series.
5. Calculate the overall attractiveness ratings. The overall attractiveness ratings are defined as the result of multiplying the weights (Step 2) by the attractiveness ratings (Step 4) for each row. The overall attractiveness ratings indicate the relative attractiveness of each of the alternative strategies, considering only the impact of the adjacent critical factor for success, internal or external.
The higher the overall attractiveness rating, the more attractive the strategic alternative will be (considering only the adjacent factor critical to success).
6. Find the total sum of appeal ratings. Add the total attractiveness scores for each strategy column on the MCPE. The sum of the total attractiveness scores reveals which strategy is the most attractive of each of the series of alternatives. Higher ratings indicate more attractive strategies, considering all relevant internal and external factors that could affect those strategic decisions.
The magnitude of the difference between the total sum of attractiveness ratings on a given series of strategic alternatives indicates the relative suitability of one strategy compared to another.
You must choose Alternative 1: Create new Virtual Logistics services for Latin America
(-). Some other factors also do not affect the choice being considered, so dashes also appear in those rows. If a specific factor affects one strategy, but not another, it will affect the choice made, such that attractiveness ratings must be recorded. The total of 5.30 of the sum of the attractions of the table. The CA ratings are not guesses, they must be rational, defensible, and reasonable.
Positive characteristics and limitations of the MCPE
A positive feature of MCPE is that it allows you to analyze series of strategies in sequence or simultaneously. For example, strategies at the corporate level could be evaluated first, then divisional-level strategies, and finally function-level strategies. The number of strategies that can be evaluated at one time using an MCPE is limitless, and neither is the number of strategy series.
Another positive feature of MCPE is that it requires strategists to integrate relevant internal and external factors into the decision process. When building an MCPE, key factors are less likely to be overlooked or improperly weighted. An MCPE focuses attention on important relationships that affect strategic decisions. Although building an MCPE requires a series of subjective decisions, making minor decisions along the way increases the likelihood that the strategies that are ultimately chosen will be the most convenient for the organization. The MCPE can be tailored to the needs of large or small, profit and non-profit organizations and can be applied to virtually any type of organization. In the case of multinational companies,MCPE can greatly improve your strategies because it allows you to consider many key factors and strategies at the same time. It has also been applied with great success in a number of small businesses.
Cost / benefit analysis
The proposed model adds complementary factors to these priorities for a more complete analysis of the feasibility of implementing an e-service. Such factors are:
Specification of the infrastructure of the «e-concept»: This point refers to the technical feasibility surrounding the «e-concept». Hardware and software specifications are analyzed at this point, listing all the necessary requirements to cover what is described in phase 3.
Necessary work equipment. The implementation always requires a group of people who make the realization of a project possible. This group involves both the company itself and a consulting group and information managers. Sometimes, companies choose a specialist in some areas, and carry out outsourcing.
Legal aspects. The Internet has caused changes within the legal framework, thus creating issues that are impossible to regulate. When buyers and sellers do not see each other, there can be illicit actions, such as fraud, theft, etc., through the Internet. Some countries have succeeded in establishing regulations and policies for the use, action and implementation of services and technologies on the Internet. It is essential for any company that wants to implement an e-service to know the regulations and the legal status that such implementation involves.
Financial planning. The feasibility analysis is accompanied by a financing plan for said implementation, taking into account the 3 previous points. Financial planning establishes the cost of the investment in its entirety and the return on the investment. Business plan. When the company determines that it is feasible to carry out an e-service implementation project, the final result of a strategic planning is a business plan. In the business plan all the points to follow are mentioned to make the implementation of the «e-concept» possible.
Strategy Evaluation Process
In order to actually fulfill the mission of the implemented Strategies, it is necessary to review, evaluate and control them. We know that Organizations are immersed in an external and internal environment of continuous transformation that generally makes the strategies adopted become obsolete.
The process leads us to evaluate the bases where the Strategy affects them, comparing the results with the proposed goals and if not, take the pertinent actions in such a way that what is expected with the plan is achieved. These actions can include rethinking the strategies, objectives, goals and policies or even the mission of the company.
The process of Strategic Evaluation is complex since by exerting too much emphasis the effect is opposite, because as we know, nobody likes to be evaluated in a strict way. But on the contrary, the lack of evaluation causes worse problems, concluding we can say that the adequate application of the Strategic Evaluation guarantees the fulfillment of the proposed goals and objectives.
The Strategy Evaluation process is composed of 3 steps:
a.- Analysis of the internal and external factors that support the strategies taken
b.- Measurement of organizational performance
c.- Carrying out corrective actions
These three steps of the Evaluation of the Strategies are intended to reflect on the goals and values, generation of alternatives and the formulation of evaluation criteria. The evaluation must be continuous and not at the end in order to correct the deviations, because otherwise it could be too late.
There are tools that allow us to obtain feedback on time and act quickly, among them we find the strategic audit by the board of directors, evaluation of the environment and internal audit. These tools will tell us if the Strategy taken initially is correct or if it is necessary to change to a new Strategy or contingency plan.
Strategy Evaluation Assessment Matrix
Have important changes occurred in the internal strategic position of the Company? Have important changes occurred in the external strategic position of the Company? Has the Company made progress toward achieving its projected goals and objectives?
Outcome
No No No Take corrective action
Yes Yes Yes Take corrective action
Yes Yes No Take corrective action
Yes No Yes Take corrective action
Yes No No Take corrective action
No Yes Yes Take corrective action
No Yes No Take corrective action
No No Yes Follow the current course of the Strategy
We can conclude by saying that strategic evaluation is important due to the changing environment (external and internal) that happens today. Today's Success does not guarantee tomorrow's Success.
Role of the Board of Directors of Bisnes Electronics
The general lack of involvement of boards of directors in the strategic management process is changing. By tradition, boards of directors have been primarily "insiders" who did not dare to doubt the word of senior executives on strategic issues. It has generally been understood that strategists are responsible for implementing strategy, and its results, in such a way that it is they, and not board members, who must formulate the strategy. Consequently, senior executives typically avoided discussing overall strategy with directors because the result of such discussions only restricted their freedom of action. The opinions of board members were rarely considered for acquisitions, divestitures,large capital investments and other strategic issues. Often the council only met once a year to meet the minimum legal requirement. In many organizations, councils served only a traditional legitimizing role.
A direct response to the increased pressure on directors to stay informed and fulfill their responsibilities is that audit committees are now commonplace. Companies can develop more powerful boards by regularly reviewing the activities of board committees, evaluating boards of directors, and getting the board more involved with strategic issues. An increasing number of companies are paying their board members, partially or fully, with shares, giving outside directors more reason to identify with the stakeholders they represent rather than with the CEO they represent. supervise.
Conclusions
The strategic planning taught in UPIICSA allows the organization to take an active, rather than reactive, part in shaping its future, that is, the organization can undertake and influence activities and, consequently, can control its destiny. The strategic planning process is more important than the resulting documents, because thanks to their participation in the process, both managers and workers commit to providing their support to the organization. Regular reassessment of strategy helps management avoid complacency. Goals and strategies must be consciously developed and coordinated and must not simply evolve with day-to-day operations decisions.
Modern tools and concepts for formulating strategies have been described and integrated into a practical three-stage framework. Instruments such as the SWOT matrix, PEYEA matrix, BCG matrix, IE matrix, and MCPE can greatly improve the quality of strategic decisions, but they should never be used to dictate the choice of strategies. The behavioral, cultural, and political aspects of strategy generation and selection must always be considered and managed. The weighted results of the MEFE Matrix are above 2.5, which indicates that the external situation is favorable.
Regarding the interpretation of the studied Competitive Profile Matrix, not only because a company obtains a rating of 2.3 and another of 2.8 in a matrix of the competitive profile, it does not mean that the first company is 20% better than the second. The numbers reveal the relative strength of the company, but the implied precision is just wishful thinking. The figures are not magic. The purpose is not to obtain a single magic number, but rather to assimilate and evaluate the information in a sensible way that can be used to make decisions.
The weighted results of the MEFI Matrix are above 2.5, with an exact value of 2.88, which indicates that the organization has a favorable internal situation where strengths predominate such as: superior image to the competition, favorable socio-psychological climate, positioning in the mind of the customer, superior quality of the merchandise in relation to the competition. It is important to use specific, not general, strategic terms when constructing a SWOT matrix. In the Peyea Matrix, we conclude that Bisnes Electronics must follow competitive strategies.
In our study of the BCG matrix we deduce that divisions 1 remain as stars, our division 2 and 3 is a question, what would be good for this division, we can say that it would be efficient in creating strategic techniques for our product to become a star and our division 5 is a dog and it would be better to invest in other projects than in this one, another positive aspect we obtained was that of division 4 which falls in the cow quadrant, since it has a large market share, and do business in industries with low growth rates.
Creating a new Virtual Logistics service for the BISNES ELECTRONICS company is a very good alternative, since that reason has been proven. Another point to conclude by saying that strategic evaluation is important due to the changing environment (external and internal) that happens today. Today's Success does not guarantee tomorrow's Success and more for Bisnes Electronics.
Every organization must pursue adaptation to changes, whether structural, technological, managerial, administrative or others; The idea is to project with effective controls and predictions that achieve accuracy, reducing the probability of error and therefore competitiveness in a market that becomes more demanding every day. Likewise, it must plan and, if required, execute corrective measures that reorient the policy and mission of the company.
Finally, broad evaluation criteria must be kept in mind, highlighting financial reasons such as the rate of return on investment and capital, profit margin, market share and growth, among others; where the quantitative essence is usually a vital part of the process, covered by contingent plans and periodic audits.
Bibliography
DAVID, Fred. CONCEPT OF STRATEGIC MANAGEMENT. Pearson Education, Mexico
JONES, Gareth and HILL, Charles. STRATEGIC MANAGEMENT. McGraw Hill, Third Edition
STONER, James and FREEMAN, Edward. ADMINISTRATION. Mexico, Prentice Hall Hispanoamericana SA 1992
Other Publications of the Author
The following table shows the works published by the engineer Iván Escalona for those who are interested in consulting the various topics and downloading the works, comments to the email: [email protected], TOPIC Link
Administration - Code of Ethics
Administration - Theory of the Company
Biology
Biology
Quality - Preparation of a Manual
Quality - Shewhart Control Charts
Quality - Its origins
Law - Article 14 and 16
Law - Individual employment contract
Law - Property crimes
Law - Civil Family
Law - Family in Mexican law
Law - Family in Positive Law
Law - Individual Guarantees
Law - Amparo trial
Law - Legislation and Mechanisms
www.monografias.com/trabajos13/legislac/legislac.shtml
Law - Notions of Mexican Law
Law - Notions of positive law
Economics - Fundamentals of Economics
Market Study - A Product
Market Study - Application
Project evaluation - Feasibility analysis
Project evaluation - Economic Study
Project Evaluation - Economic Study
www.monografias.com/trabajos16/evaluacion-ferrioni/evaluacion-ferrioni.shtml
Philosophy - Philosophical Anthropology
Philosophy - Philosophical Anthropology
Philosophy - Anthropological Questions
Philosophy - Definition of Philosophy
Philosophy - Man and the Limits of Science
www.monografias.com/trabajos12/quienes/quienes.shtml
Philosophy - The Profile of Man
Philosophy - Fraud of the Century
Philosophy - Giovanni Sartori, Homo videns
Philosophy - Life
Philosophy - Mexico: Adopting New Culture?
www.monografias.com/trabajos12/nucul/nucul.shtml
Philosophy - Sense of Humor in Education
Physics - Classical Mechanics
Physics - One-dimensional motion
Physics - Oscillations and Harmonic Movement
Physics - Resnick Problems
www.monografias.com/trabajos12/resni/resni.shtml
History - Museum of Cultures
History of Mexico - 1928 to 1934
History of Mexico - El Maximato
History of Mexico - General Manuel González
History of Mexico - War with the US
History of Mexico - Independence
History of Mexico - Inquisition
History of Mexico - French Intervention
History of Mexico - José López Portillo
History of Mexico - The Reform Laws
History of Mexico - First Centralist Government
History of Mexico - Vicente Fox
Languages - English Course
Engineering - Energy Saving
Engineering - Compressed air
Engineering - Determine the reliability
Engineering - The world of plastics
www.monografias.com/trabajos13/plasti/plasti.shtml
Engineering - Teaching against privatization
Engineering - Structure of Hydraulic Circuits
Engineering - Plastics and Applications
Engineering - UP Chemistry Internship
www.monografias.com/trabajos12/prala/prala.shtml
Engineering - Industrial Safety
Engineering - Vocabulary for Students
www.monografias.com/trabajos13/spanglish/spanglish.shtml
Measurement Engineering - Introduction
Measurement Engineering - Standard Time Manual
www.gestiopolis.com/recursos/documentos/fulldocs/ger/mantiemesivan.htm
Measurement Engineering - Standard time
Methods Engineering - Production Analysis I
www.monografias.com/trabajos12/andeprod/andeprod.shtml
Methods Engineering - Systematic Analysis
Methods Engineering - Line balancing
www.monografias.com/trabajos14/balanceo/balanceo.shtml
Methods Engineering - Frederick Winslow Taylor
Methods Engineering - Calculation memory
Methods Engineering - Technical report
Methods Engineering - Work Sampling
Methods Engineering - Incentive Plan
Methods Engineering - Therbligs
Industrial Engineering - Introduction to JIT
Industrial Engineering - Linear Algebra
www.monografias.com/trabajos12/exal/exal.shtml
Industrial Engineering - Plant Distribution
Industrial Engineering - Introduction
www.gestiopolis.com/recursos/documentos/fulldocs/ger1/introalaii.htm
Industrial Engineering - Industrial Logistics
www.monografias.com/trabajos16/logistica-industrial/logistica-industrial.shtml
Industrial Engineering - Integral Marketing
www.monografias.com/trabajos16/ingenieria-mercadotecnia/ingenieria-mercadotecnia.shtml
Industrial Engineering - Pareto and Ishikawa
Industrial Engineering - Strategic Planning
Industrial Engineering - Electricity Practices
Industrial Engineering - Destructive Testing
Industrial Engineering - Industrial Psychosociology
Industrial Engineering - Theory of Restrictions http://www.gestiopolis.com/recursos/ documents / fulldocs / ger1 / tociem.htm
Market Research
Market research
Operations Research - Simplex Method
Operations Research - Linear Prog
IO - Networks and Project Management
Jean Michelle Basquiat
Family II
Literature - Don Quixote de la Mancha
Manufacturing - Making a swivel nut
www.monografias.com/trabajos17/tuerca-giratoria/tuerca-giratoria.shtml
Manufacturing - CAM
www.monografias.com/trabajos14/manufaccomput/manufaccomput.shtml
Manufacturing - Computer Aided Design
Manufacturing - Machine Tools
Manufacturing - Chip startup processes
www.monografias.com/trabajos14/manufact-industr/manufact-industr.shtml
Manufacturing -Elaboration of a Pinion
www.monografias.com/trabajos16/pinion/pinion.shtml
Industrial Manufacturing II - Final Project http://www.gestiopolis.com/recursos/ documents / fulldocs / ger1 / tfinman2.htm
Moral - Religions
Moral - Salvifichi Doloris
Pneumatics - Electrovalves
Pneumatics - Air Generation and Distribution
Pneumatics - Pneumatics Engineering
Pneumatics - Hydraulic Systems
Pneumatics - Auxiliary Valves
Pneumatics - Hydraulic Valves
Pneumatics - Pneumatic Valves
PCP - Balancing of Assembly Lines
PCP - Balancing of Assembly Lines 2
PCP - MRP
PCP - Forecasts
Pedagogy - Comparison of authors
Pedagogy - Sensitive knowledge
Pedagogy - Business and family
Pedagogy - Philosophy of education
Pedagogy - Man's education
www.monografias.com/trabajos12/introped/introped.shtml
Pedagogy - Psychopathology of memory
Pedagogy - Review of the Didactic Book
Non-Destructive Testing - Ultrasound
Psychology - The Power of Self-Esteem
Psychology - Understanding Today's World
Chemistry - Physicochemical course
Chemistry - The Atom
Ranma Manga
UPIICSA
Author Ing. Iván Escalona
Logistics Consultant, Mobile Phone: 044 55 18 25 40 61 (Mexico)
Industrial Engineer
[email protected], [email protected]
Note: If you want to add a comment or if you have any questions or complaints about any published work (s), you can write to me at the emails indicated, indicating which work was the one you reviewed by writing the title of the work (s), also where are you from since you work (if you study or work) Being specific, also your age, if you do not indicate them in the email, I will delete the email and I will not be able to help you, thank you.
- University Studies: Interdisciplinary Professional Unit of Engineering and Social and Administrative Sciences (UPIICSA) of the National Polytechnic Institute (IPN)
- Patoyac School Center, (Incorporated to UNAM)
Origin: Mexico
Annex: Effective Evaluation Systems
First, your activities must be economic. An excess of information can be as harmful as a lack of it, and an excess of controls can do more harm than good.
Second, evaluation activities must be meaningful and related to the goals and objectives of the company. Likewise, they must provide management with useful information about the tasks in which it exercises control and influence.
Third, they should provide timely information. A key question is provides the strategy evaluation activities timely information for the use of management. In certain areas and occasions information on a daily basis is sometimes required.
Fourth, activities must be designed to show the truth of what is happening. For example, in cases of serious economic setbacks.
Fifth, the information from the evaluation process should facilitate action. The evaluative information should be directed to the people in the company who need to take actions based on it. All managers do not have to receive consistent information.
Sixth, the strategy evaluation process should not dominate decisions, it should foster mutual understanding and trust and common sense. No department should stop cooperating with another only for evaluative reasons.
Seventh, the strategy reports should be simple, uncomplicated and exclusive. The effective evaluation system must be characterized by its usefulness, not by its complexity.
Eighth, it is necessary to take into account the differences in strategic evaluation between large and small companies. For large companies, a more detailed and elaborate type of evaluation is required, due to the greater difficulties in coordinating efforts between the different divisions and functional areas.
Ninth, the key to an effective strategy evaluation system may be to convince participants that meeting certain goals and objectives within a given period is not necessarily a reflection of their performance. This guideline is especially important during the early stages of the strategy evaluation process.
Download the original file
