The substantial economic, political and technological changes that have taken place at the international level and their direct impact on the Cuban economy have transformed the environment and the conditions in which our organizations operate.
The stability and functioning of organizations is increasingly reduced and situations of change come to the fore, which requires a new mentality in leaders.
In the midst of this situation, the country proposes to maintain the basic achievements of the revolution, and even to grow in the level of investment.
In this battle that Cuban organizations have been waging, to contribute more foreign currency to the country every day, it is very important that each of the organizations count and carry out its Management Strategy.
The present work aims to define the management strategy of the Beverages and Refreshments company, a state organization that must make its contribution to the global development of the country.
In this work, a first chapter on the theoretical framework of the subject is explored, a second with the description of the strategy model and the third chapter that will translate the model in a practical way in the chosen organization.
The general objectives of this work are:
- Develop and deepen on the subject of Management Strategy Prepare and develop the management strategy of the Villa Clara Drinks and Refreshments company Encourage and sensitize all members of the expanded board of directors on the importance of this issue as well as its application, development and systematic use in the management of the center.
CHAPTER I THEORETICAL FOUNDATION
1.1 Introduction to the Chapter.
Today's organizations must be conducted on the basis of four basic ideas that represent the guide for the elaboration of key policies that enable the organization to achieve a highly effective management level. These ideas are:
- Permanent willingness to give flexibility to production systems. Rigid, inflexible programs are incompatible with current concepts and with the constantly changing situation in which organizations are immersed. Systematic attention to reducing expenses, meaning a key element that cannot be absent from the minds of managers and their subordinates for representing the basis for obtaining profits High sense of responsibility and customer service as an essential source for the image and prestige that lead to success in the market for any organization Aggressiveness, broad vision and speed in relation to the introduction systematic and opportunities of technological innovations and changes.
The scope and effectiveness of the aforementioned means that senior management be aware of new approaches and new concepts, as well as the differences and common points between them and be able to transmit this to any organization, conducting it on the basis of the strategies that allow it reach higher stages.
1.2 Basic Aspects of Business Strategy.
How efficiently an organization achieves its objectives and meets the needs of society depends on how well managers do their jobs. If they do their job well, the organization is likely to achieve its objectives. And if the major organizations in a country achieve their goals, the nation as a whole will prosper.
According to Peter Drucker, the performance of a manager can be measured from two concepts: "Efficiency" and "Effectiveness", he says that "Efficiency" is "doing things correctly" and "Efficiency" is "doing the right things."
1.2.1 The strategic organization. Origin of the Strategy.
The concept of strategy is old. The word comes from the Greek "strategeia", which is the art or science of being general. The Greek generals directed their armies both in the conquests and in the defense of the cities. Each type of objective required a different deployment of resources. In the same way, the strategy of an army could also be defined as the pattern of actions that are carried out in order to respond to the enemy. The generals not only had to plan, but also to act. Thus, already in ancient Greek times, the concept of strategy had as many components of planning as of decision making or actions together, these two concepts constitute the basis for the strategy.
1.2.2 Definition and Concept of Strategy
The strategy is the product of a creative, innovative, logical and applicable act that generates a group of coherent actions for the allocation of resources and tactical decisions.
These actions are aimed at ensuring that the company achieves an advantageous competitive position in the socio-economic environment where it operates and to improve management efficiency.
The concept of strategy can be defined, at most, by two perspectives:
- From the perspective of what an organization intends to do, from the perspective of what an organization ultimately does.
In the first perspective, the strategy "is the general program to define and achieve the objectives of the organization and put its mission into practice." In this definition, the word Program implies that the active role (known as strategic planning or strategic administration), rational and well defined, that managers play when formulating the organization's strategy.
In the second perspective the strategy is "The pattern of responses of the organization to its environment over time." By this definition, every organization has a strategy (not necessarily effective), even if it has never been explicitly formulated. This vision of strategy is applicable to organizations whose managers are reactive, those who respond passively and adjust to the environment only when the need arises.
Concepts of various authors that can give an overview about the concept of strategy
KI Hatten, 1987. Strategic Management. Analysis and Action.
Strategic Management is the process through which an organization formulates objectives, is aimed at obtaining them. Strategy is the means, the way to obtain the objectives of an organization. It is the art (skill) of intermingling the internal analysis and the wisdom used by the leaders to create values of the resources and abilities that they control. To design a successful strategy there are two key rules: Do what you do well, and choose the competitors you can defeat. Analysis and action are integrated into the strategic direction.
H. Mintzberg, 1987. Fine Ps for strategy.
The word strategy has been defined in various ways: five definitions with "P".
- Plan Consciously defined course of action, a guide to face a situation.
In this definition, the strategy has two essential characteristics. They are made as "advance" of the action you want to perform and are developed consciously and intentionally directed to a purpose.
- Maneuver (Uses the word "Play") aimed at defeating an opponent or competitor. Pattern of behavior in the course of an organization, consistency in behavior, even if not intentional. Position identifies the position of the organization in the environment in which it is Moves (Type of Business, Market Segment, etc.) Perspective relates the organization to its environment, which fills it in adopting certain courses of action.
David, 1994. Strategic Management.
A strategy has to carry out strategies that derive benefits from its internal strengths, seize internal opportunities, and avoid or lessen the impact of external threats. In this process lies the essence of Business Management.
JB Quinn. 1991. The strategic Process. Concepts. Context. Cases.
A strategy is a pattern or plan that integrates the major goals of an organization, policies and sequential actions towards a cohesive whole. A well-formulated strategy helps the "Marshal" to coordinate the organization's resources toward a "Unique and Viable" position, based on his internal relative competencies, anticipating changes in the environment and contingent movements of intelligent opponents.
H. Koontz, Strategy. Planification and control.
Strategies are general programs of action that carry with them commitments of emphasis and resources to implement a basic mission. They are patterns of objectives which have been conceived and initiated in such a way, with the purpose of giving the organization a planned direction.
CH Besseyre.
The strategy is perceived, above all, as a process of choosing the Company; guiding the evolution of the Company over a period of time following a relatively structured method that goes through two inextricably linked phases, development and application.
Theodore A. Smith.
Strategy is the formula for success in the business world. It is the plan to achieve the best results from the resources, the selection of the type of business in which to engage and the plan to achieve a favorable position in the business field. It is taking steps to cope with an ever-changing external world and understanding the unique characteristics of an industry and the program to cope with it.
A. Chandler J.
The strategy is to determine the fundamental objectives and long-term goals, adopt corresponding policies and secure resources necessary to reach those goals.
Stephenhamill Wheeler, Davis.
The strategy can be defined with a general program that is drawn up to achieve the objectives of an organization and thus execute its mission.
Kenneth, Andrew.
The strategy is the set of missions and main objectives or goals, as well as policies and essential plans to achieve those goals, presented in the form of selection of activities to which the company is or is going to dedicate itself.
GA Steiner 1991 Senior Management Planning.
Strategic planning is the process of determining which are the main objectives of an organization and the criteria that will govern the acquisition, use and disposition of resources regarding the achievement of the aforementioned objectives. These, in the strategic planning process, encompass missions or purposes, previously determined, as well as the specific objectives sought by a company.
As can be seen, different authors propose different conceptual definitions and strategies, however, in all these there are similarities and approaches that allow us to make some general considerations.
The essence of the definitions of strategy concept is focused on:
- It expresses the vision of the desired state to be achieved in the future The systematic focus on the internal relations of the organization and with its environment The direction of resources towards specific purposes An active operational position with a proactive character The definition of terms or deadlines temporary.
- How centralized or decentralized should the decision-making authority be? What kind of department patterns are appropriate? Should matrix organization structures be used? How to design staff positions?
Naturally, the organizational structure provides the system of roles and relationships that help people achieve their goals.
- Personnel: There can be many strategies in the area of human resources and public relations dealing with issues, such as:
- Labor RelationsCompensationSelectionHiringTrainingEvaluation, as well as special areas of job enrichment.
1.2.3 Approaches to strategy formulation
- Upward Approach.
Initiatives in strategy formulation are taken by various units or divisions of the organization and then sent upward for completion at the corporate level. The strategy in the corporate sphere will then be an aggregate of those plans. The weakness of this approach is that corporate strategy can end up being incoherent simply reflecting the objectives of the decisions before planning begins.
- Top-Down Approach.
The initiative is taken by executives at the top level of the organization, who formulate a unitary and coordinated strategy, generally with the advice of managers at the lowest level. This global strategy is then used to set objectives and evaluate the performance of each business unit.
- Interactive approach.
This approach, which is a compromise between the previous two, executives at the corporate level and lower-level managers prepare a strategy, after consulting with each other, thereby establishing a link between the broader objectives of the organization and the knowledge of managers about concrete situations.
- Dual-level approach.
The strategy is formulated independently at the corporate and business level. All units form plans that are appropriate to their particular situations and these plans are usually reviewed by corporate management. At the corporate level, strategic planning is continuous and focuses on the larger goals of the organization:
When to acquire and when to get rid of business?
What properties to assign to the various organizational units?
1.2.4 Strategy Levels
- Corporate-level strategy: This strategy is formulated by senior management in order to oversee the interests and operations of organizations that have more than one line of business. The main questions to be answered at this level are:
What type of business should the company be involved in?
What are the goals and expectations for each business?
How should resources be allocated so that goals can be achieved?
- Business Unit Strategy: This strategy is formulated to achieve specific business goals and deals with managing the interests and operations of a particular business. It deals with questions such as:
How will businesses compete within your market?
What products and services should I offer?
Which customer are you trying to serve?
How should the various functions (Production, Marketing, Finance, etc.) be managed in order to meet market goals?
How will the resources be distributed within the business?
This strategy tries to determine the approach that should be applied to your market and how a business should be conducted, keeping in mind the resources and market conditions.
Many corporations have varied interests in different businesses. Senior management executives find it difficult to organize such complex and diverse activities in their corporation. One way to deal with this problem is to create strategic business units. A strategic business unit (CSU) groups all business activities within the multi-business corporation that produces a particular type of goods or services and treats them as a single business unit.
The corporate level provides a set of guidelines for that unit, which then develops its own strategy at the business unit level. The corporate level then reviews the plans of these units and negotiates the changes if necessary.
Single-business companies resort to formulating strategies at the business unit level, unless they are looking into expanding to other types of businesses. At this time, strategic planning at the corporate level is necessary.
- Strategy at a functional level: This strategy is formulated by a specific functional area as a reinforcement to carry out the strategy of the business unit. This strategy creates the reference framework for the administration of functions (including Finance, Research and Development, Marketing and Human Resources), in such a way that the strategy is supported at the business unit level.
Figure 1.1 Levels of Strategy
Levels of Strategy
Source: Jame Stoner, Administration, 5th Edition.
In a functional organization, different business functions such as marketing and finance are grouped into different departments, each of which will have to develop a strategy that will in turn help in the relationship of strategies at higher levels.
Functional strategies are more detailed than organizational strategies. In addition to that their time horizons are shorter. Its purpose has three aspects:
- The communication of short-term objectives. The description of the actions necessary to achieve short-term objectives. The creation of an environment that favors their achievement.
It is of the utmost importance that the lower-level directives are involved in the development of the functional strategies, so that they adequately understand what needs to be done and feel more committed to the plan.
Functional strategies have to be coordinated with each other in order to minimize unavoidable conflicts, as well as to improve the chances of achieving organizational goals.
1.3 Management Aspects. Planning and Strategic Management
1.3.1 Emergence of the Strategic Direction.
While efficient managers have always hatched great strategies, it wasn't until recently that management scholars recognized strategy as a key factor in organizational success. This late recognition was mainly due to changes in the environment that have occurred since the Second World War.
First, the pace of environmental change has increased rapidly, in part because the greater interdependence of environmental factors has led to more complex demands on administrative operations and a shorter life cycle of innovative ideas.
Second, there has been an obvious growth in the size and complexity of business organizations.
In our day, management scholars support the strategic management approach. This important approach has emerged with the passing of time, based largely on old approaches to policy formation and initial strategy.
The policy formulation approach is nothing more than the implementation of everyday rules that establish the delimitation of what a functional area can or cannot do.
When an individual entrepreneur offers a class of products to a small group of customers, the activities of the company can be formulated informally. But when the product is modified or replaced or when the sales territories expand, the functions of the company increase. The activity of integrating the functions soon requires more formal procedures so that the company can coordinate the activities both within and between the functional areas. This is how the approach to policy-making arises, which ceased to be put into practice in the 1950s and early 1960s.
In 1962, the business historian Alfred D. Chandler proposed an “initial strategy” approach, defining it as the determination of the basic goals and objectives of a long-term company, the actions to be taken, and the allocation of the necessary resources to achieve these. goals.
This initial strategy approach encompasses four key ideas:
- He was as interested in the actions to take to achieve the objectives as in the objectives themselves, emphasizing the process of searching for key ideas, rather than the routine principle of implementing policies based on a single key idea that may or may not need reconsideration. Chandler was interested in how strategy was formulated, not just in what would result from it Chandler abandoned the conventional notion that the relationship between a business and its environment was more or less stable and predictable.
Chandler's definition of strategy was eventually refined by different authors, who introduce the idea of strategy as a process, instead of a fixed formula (policies). In the decade 1965-1975 the term "Strategy" came to replace the term "Policies" in US business schools and the perception that strategic planning had the direction, underwent many changes:
- The causes of stagnation and growth stagnation were understood. Caused by the saturation of demand in the markets and the technological development that allowed new companies to displace traditional competitors It was understood that technological fertility, the improvement of transport and communications, and the higher managerial qualification seduced the life cycles of demand and technology. Experience has shown that when the demand curve moves from one stage to the next, the critical factors that determine success in the market change, thus invalidating previous modifications introduced in strategic planning.
Two factors became apparent:
- That strategic planning was appropriate in the world of business activities, but the role of the manager in implementing strategic planning was not yet very clear.
Faced with these two problems faced by modern organizations, the rapid changes in the interrelationship with the environment and the rapid growth in size and complexity of modern business organizations, the paradigm of strategic direction began to take shape.
The Charles Hofer and Dan Schendel Academies created the following definition of strategic management, based on the principle that the general design of an organization can only be described, if the achievement of the objectives adds to the policies and the strategy as one of the key factors in the strategic management process.
These authors focus on four fundamental aspects of strategic management:
- The establishment of Goals The activity of strategy formulation, a model that creates a strategy based on the goals of the organization Implementation of the strategy and a change in the analysis of the management, the activity of achieving the predetermined goals. The key factors are the “political” processes and individual internal relationships within the organization that can force the revision of the strategy. Strategic control provides workers with feedback on their progress.
1.3.2 Importance of strategic direction.
The development of strategic thinking and its application to managerial activity has brought with it the emergence of different approaches to the subject by innumerable management theorists, who seek a way to organize the process of formulation, application and control of the strategy.
The strategic thinking of companies is the coordination of creative minds within a common perspective that allows a business to move towards the future in a satisfactory way for all. The purpose of strategic thinking is to help explore the many future challenges, both foreseeable and unforeseeable, rather than prepare for a single likely tomorrow.
Strategic thinking is important because:
- Reasoned judgment, although often based on inadequate information, is the most important thing any company expects from its managers.To be effective, collective judgment after important decision makers have a clear vision of what future management should be The vision of the company is based more on the way in which those who decide, see and feel, than on the results of any systematic analysis. Strategic thinking incorporates values, mission, vision and strategies that have to be Intuitive (Feel-Based) rather than Analytical (Information-Based) Elements. Reaching agreement on these elements with your management team members is an essential requirement for effective planning.
Strategic thinking is the foundation for strategic decision making. Without this rationale, subsequent decisions and actions may be fragmented and inconsistent with the long-term health of the company.
The strategic direction is developed around a complete and articulated process in two great basic phases and interrelations: the formulation on the one hand of and the implementation and control on the other.
The business strategy formulation phase basically includes the strategic planning approach. The strategy will guide the behavior and activity of the company in the future; is the result of the conjugation of three elements:
- The aspirations of top management The opportunities and threats presented by the environment and the company.
One of the reasons for failure or less than expected success is the lack of rigorous studies in relation to the implementation of the strategy.
The second phase of the process, whose objective is to enable the implementation of the chosen strategy and ensure control of both the execution and its validity, consists of three main parts.
To enable the implementation of the chosen strategy, it is necessary to translate the lines of action designed in the previous phase into strategic and practical plans, programs and budgets, in which the concrete actions to be undertaken in the different areas and at different levels will be specified. organizational. The planning, here is considered as simple elaboration of plans that allow to make operational the formulated strategies, constituting this one of the three fundamental tasks of this phase of the Strategic Management process.
The open nature of the business system makes the development of the control function essential, the objective of the second phase.
The control function makes it possible to decide on corrective actions, based on the information provided by the analysis of the deviations found between the results obtained and the expected results.
The control of the strategy itself goes beyond the concrete results of budgets and plans. Thus, the control in the strategic direction, aims to ensure not only the fulfillment of the plans and objectives, but also the continuity of the strategic reflection.
Although the planning and control system is at the base of the implementation phase, a set of plans cannot, by themselves, allow the correct execution of the strategy. It is necessary to assign the different tasks and the corresponding responsibility to the members of the company, coordinate and integrate the actions, establish the lines of authority and the information channels through which the information must flow. In addition, it is the members of the organization who are going to implement and execute the plans, so the way in which they are going to be guided, trained and motivated will also influence the success of the strategy.
The existence of an information and communication system that allows responding, on the one hand, to the analysis needs of the first phase, as well as to the requirements posed by the mere performance of planning, control and organization functions, represents another key element that together with the organizational structure, the management and leadership style and the organizational culture, constitute the superstructure of the strategic direction.
The strategic direction developed by different authors, based on the following definitions:
Menguzzate and Renau
Strategic management can be conceived as a theoretical structure for reflection on the great options that are based on a new organizational culture and an attitude of the management, where it is no longer a matter of copying the difficulties brought from a turbulent environment, but of going to meet him where he flees from the improvised in search of the analytical and the formal.
Bartoli, A and P. Hermel
Strategic direction is also an attempt to improve the direction and management of an organization, using strategy to guide its actions but integrating the options for preparation and allocation of resources.
Schendel & Hoffer
The strategic direction is developed around a complex and articulated process in two basic and interrelated phases, which are formulation on the one hand and implementation and control on the other.
When analyzing the previous definitions, the following aspects can be highlighted:
- It constitutes an attitude of the management. It presupposes analysis and formalization. It is an integrated process in which planning, organization, direction and control are present.
The planning constitutes a base that determines the rest of the process that allows to project towards the future.
Since ancient times, man has shown concern in knowing in advance what he will have to face in the days to come. As if that way he could avoid his destiny in the case of omens, or, when it comes to good promises, reassuring himself by enjoying it in advance.
Planning is undoubtedly one of the characteristic activities of the contemporary world, which becomes more necessary in the face of the growing interdependence and rapidity observed in the occurrence of economic, political, social and technological phenomena.
However, planning is still essentially an exercise in common sense, through it is intended to first understand the crucial aspects of a present reality, and then project it, designing scenarios from which the greatest benefit is ultimately sought.
Hence, the strategic nature of planning is not only about foreseeing a path on which we will have to travel, but rather it seeks to anticipate its course and if possible change its destination.
The objective of strategic planning is not only to plan but to carry out in an orderly manner a wide number of activities that, in turn, involve the use of human and material resources.
An important aspect in planning is its updating, because a plan that is not updated does not have the same validity as a lightning bolt in the dark, in its effect, so ephemeral, it would only allow us to momentarily know the way, but finally we will walk it in the dark.
Strategic planning has been developed by several authors based on the following definitions:
Acle Tomasini, Alfredo.
Strategic planning is a set of actions that must be developed to achieve strategic objectives, which implies defining and prioritizing the problems to be solved, proposing solutions, determining those responsible for carrying them out, allocating resources to carry them out and establishing the way and periodicity to measure progress.
Meek, Francisco.
Strategic planning is the process of negotiation between several decisions that present conflicts of objectives.
Menguzzato and Renau
Strategic planning is defined as the rational analysis of the opportunities and threats presented by the environment for the company, of the strengths and weaknesses of the company in this environment and the selection of a strategic compromise between two elements, which best satisfies the aspirations of managers in relation to the company.
Mintzberg and Waters
Strategic planning is nothing more than the process of relating the goals of an organization, determining the policies and programs necessary to achieve specific objectives on the way to those goals, and establishing the necessary methods to ensure that policies and programs are executed, that is,, is a formulated long-term planning process used to define and achieve organizational goals.
In the concepts of strategic planning previously exposed, several aspects in common can be appreciated, such as:
- It is a process that is used to define and achieve organizational goals. The necessary mechanisms must be established to be able to evaluate compliance with the agreed upon. It is a long-term planning process. It is carried out on the basis of an analysis of the environment.
1.3.3 Characteristics of Strategic Planning
It deals with fundamental questions. Strategic planning answers questions such as the following:
- What business are we in and what business should we be in? Who are our clients and who should they be?
It offers a framework for more detailed planning and ordinary decisions. The manager when facing such decisions will ask:
What options will be the most appropriate with our strategies?
It assumes a longer time frame than other types of planning. Helps direct energies and resources toward high-priority features.
It is a high-level activity in the sense that senior management must participate actively since it, from its broader point of view, has the necessary vision to consider all aspects of the organization. Additionally, top management adherence is required to gain and support buy-in at lower levels.
Today, most organizations recognize the importance of strategic planning for their long-term growth and well-being. It has been shown that if managers efficiently define the mission of their organization they will be in a better position to give direction and orientation to their activities. Organizations function better thanks to this and become more sensitive to an environment of constant change.
1.3.4 Advantages of Strategic Planning
Strategic planning offers important points for the activities of the organization. By making use of it, managers give their organization clearly defined objectives and methods to achieve them. This planning process helps them anticipate problems before they arise and deal with them before they become serious. It also helps managers recognize safe and risky opportunities and choose between them.
All this process of planning and strategic direction occurs on the basis of the General Theory of the System, which consists of an organized set of integrated elements and logically ordered among themselves, which tend towards the same end, supposes the existence of a series of interconnected processes, whose overall result is superior to the result of each one of them separately.
Starting from the very expression that strategic planning evokes an old dilemma, planning implies some rigidity and inflexibility and for its strategic part it indicates adaptation, change and flexibility. That is why in these turbulent times of constant change, the world is used to talking about management or strategic management.
Strategic Management is a process that allows organizations to be proactive in projecting the future, in its three stages: formulation, execution and evolution, thereby achieving the organization's objectives.
When talking about management, we must bear in mind that the fundamental tool is in the compass, in the correct determination of the destination where the system must lead. The derived question is on the map, in the adequate selection of the advance options for each situation, guaranteeing that each step leads and approaches the destination, not that it moves away or deviates.
It is fundamentally a question of defining a long-range projection for the development of the systems, based not on the assumption of a suitable future for the management, but on the determination of flexible courses of action, convenient enough for each future that may arise. before the system.
There are many models of strategic management, within them are decision or optimization models, which are useful in planning to determine the best course of action among available alternatives.
The models for the formulation, implementation and control of the strategy require a certain flexibility and a minimum of structuring, allowing the use of different tools that contribute to the intensification of creative thinking in order to offer the appropriate solutions.
1.4 Strategic Planning Models
Below are related different models that have been created for the Strategic Planning and Management of a company, proposed by various authors.
- Latin American Center of Administration for Development.
Stages for the strategic planning process.
- Determination of mission or rationale Determination of strategy Determination of tactics Determination of projects
- Marwin bower
Stages for the strategic planning process.
- Establish objectives Plan strategy Establish goals Develop company philosophy Establish policies Plan the structure of the organization Provide personnel Establish procedures Provide facilities Provide capital Establish standards Establish management programs and organizational plans.Provide controlled information.Motivate people.
- Carlos C. Martínez Martínez
Formal strategic planning process.
- Formulation of Goals Identification of current objectives and strategies Environmental analysis Resource analysis Identification of strategic opportunities Determination
- José R. Castellanos Castillo and Orlando A. García.
Model for the design of the strategy.
- Determination of the mission. SWOT matrix. Key factors. Scenario of action. Determine areas of Development of objectives. Definition of strategies Plan of Action.
- Carlos Gomez Pardo
Strategic planning model
- Specify what are the company's achievements and what are the strengths and weaknesses. Immediate action. Classification of the objectives of the company. Know the environment. Know the expectations. Values of the alternatives. Preparation and implementation.
- Harold koontz
Strategic planning model
- The various organizational inputs The profile of the company Senior Management Orientation Company Objectives The current internal environment The external environment Development of strategies Planning and implementation.
- Fernando Cambranos, Montesinos Hernández and David Bustelo.
Strategic planning model
- General aims and objectives: graduating utopia. Key exponents of action. Organizational structure. Support infrastructure. Better relationship, better information. Financing. Evaluation mechanisms. Strategy time.
- Jorga A. Russian León.
Strategy design model
- Mission determination. SWOT matrix. Vision formulation. Determine Key Result Areas. Development of objectives. Definition of strategies. Action plan. Organizational design. Control system.
- Jorge Enrique
Strategic planning model
- Analysis of the environment (diagnosis of the company). Review of the mission.. The strategic position. Goals and Objectives. Formulation and strategies.
Product innovation.
Market Penetration.
Product development.
Market Development.
Diversification.
Resegmentation.
Differentiation
Reinforcement.
- Program and tactical supports.Execution and Control.Feedback.Analysis of the Environment.Repetition.
- Jaime Toira Guilera.
Stages of the strategic planning process
- Preparation: Previous knowledge of the company and definition of the plan. Mission, purposes and primary objectives. Strengths and weaknesses. Diagnosis. Current and planned environment. Company evaluation summary (iterative process). Establishment of the gap and the assumptions for its resolution. Development and evaluation of alternatives. Adoption and drafting of the plan.
Conclusions
This chapter collects as a whole some of the theoretical considerations and practical experiences of some authors and teachers, we consider that for the use of all this theory it is necessary to adapt it to the conditions of our organization and work for an application according to the need for it.
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