Attempts have been made many times to propose strategic guidelines without attempting to consistently and systematically develop a Strategic Planning, which means in summary "making decisions today and projecting them into the future", having a plan of the most transcendental long-term actions, taking into consideration its weaknesses and strengths, internally and its current and future threats and opportunities externally. One of the factors that has prevented reaching this objective has undoubtedly been the confusion that exists between Institutional Strategic Planning (PEI) and Institutional Operational Planning (POI). While the PEI tries to point out the most relevant or structural guidelines and actions; POI deals with the way or manner in which an organization carries out its strategy.Unfortunately, many companies and institutions confuse the two. The same happens in the case of strategic and operational decisions. In other words, many managers of a company confuse a strategic decision with an operational decision. The management of a company can easily apply an operational treatment, when a strategic treatment must be applied; As for example, when deciding to develop a project that implies an expansion of coverage in the market and in practice the project is not given due importance and its financing is met to the extent of its operational possibilities. Therefore, a strategic decision should not be confused with an operational decision. Since in this case, having considered it only operational,It will not have the required budgetary importance, nor the importance in its evaluation. And senior management is responsible for finding the respective financing for its execution. The danger is obvious; generally an operational decision does not subject the organization to the great risks and commitments to which a strategic decision subjects it. Well, when a decision is made that is really strategic, the risks and consequently its costs are high.the risks and consequently its costs are high.the risks and consequently its costs are high.
It is imperative that an institution that pretends to be competitive formulates its Strategic Planning, to have an explicit directionality and to know where we are going, what resources we have, what resources we lack, what opportunities we have and what dangers we will have.
As already mentioned, the strategy identifies the decisions taken with their main orientations that an institution or company plans to follow. Two of these are the determination and definition of the products or services to be offered, and the identification of the target market. Once the institution has decided what it is going to offer and for whom, it then enters into the “operations” function and determines the best resources for production and methods of producing and selling the products to the target market.
The current scenario and the world context have become demanding in knowledge and information resources; and above all, of an adequate handling and processing of the enormous volume of data from different sources and modalities. Consequently, all the factors in the current scenario are totally different from those of only a few decades ago. Evolution, that is, the speed of scientific and technological change, the computerization of communications and the globalization of the economy are growing processes of transformation that imply economic, social and cultural changes, which any society or entity must internalize and integrate to the extent of their possibilities in their institutional work.
The main purpose of the strategy is to fully satisfy the needs and expectations of our customers in the future, taking into account that customers are changing subjects, very well informed about "who satisfies the best in the market?" And due to gravity, obtain a competitive advantage over our competitors, for which our institution has to appreciate all aspects of its environment and choose the path that gives it the greatest possible advantage over its competitors. Also remembering that the essence of strategy is differentiation; In other words, evaluating the best alternatives that allow us to obtain comparative and competitive advantages over the competition, and not be followers of their strategies.
To fulfill the purpose and achieve the essentials of the strategy, the institution must consider and answer these two fundamental questions:
- What major changes are going to occur in our sector in the coming years? What role can and should our institution or company play in the projected market environment?
The answer to the first question is externally oriented and is expressed in terms of opportunities and threats, which will be presented to the institution during the projection period. Collectively, these opportunities and threats describe the environment in which the institution has to compete. The answer to the second question is mainly internally oriented and expressed in terms of the strengths and weaknesses of the institution. These two categories together summarize the capacity of the institution to compete in the particular environment in which it operates. Precisely what it is about is to mitigate, correct or eliminate these weaknesses and reverse them towards continuous improvement.
Strategic analysis matrix
In order to systematically visualize the strategic options that can be given and thus analyze the development alternatives, the descriptive matrix has been formulated, according to the potentialities and comparative advantages in current conditions and those that would be achieved in future scenarios. It has used the descriptive matrix, which shows the nine vectors of development of the institution: on the horizontal axis the products, services and technologies, current, related and new; and on the vertical axis the current, related and new clients.
1. Bonding Vector:
In the current conditions of development, the administrative and management mechanisms must be strengthened, which in the short term allow a change in positive attitude, based on truthful communication and timely and adequate decision-making. A cost honesty process is essential, allowing the operations of the operating units to be measured in a real and objective manner, without any exception. Only in this way will we be in a position to know the real results of your operations. One of the cases is that the income generated by the rental of real estate is used in operating expenses, when it must invest in its maintenance or expansion of its facilities. Another case is that there are operating units that do not "pay" for the use of the real estate they use, such as underused or abandoned areas,or areas that do not bear their real costs. It is about every operating unit assuming its real costs and benefits, so that no one subsidizes another. And it does not happen that, in certain cases, they benefit more from the subsidy than from their own results.
2. Expansion or Market Development Vector:
In the medium term, an institution must plan to expand its area of influence, on the basis of administrative quality and productive excellence. For this, it will be essential to develop an aggressive technical and administrative training program at their respective levels. The letter of presentation will be the excellent preparation of our products, whose transits through the various markets have been profitable and very demanding, due to the methodology and strategy applied in symbiosis with competing companies, in turbulent and highly complex environments. There are several fronts or sub vectors that should be pointed out, such as Market Development in the cognitive aspect and product development, market research in non-usual areas, assimilation of new technologies with accelerated development capacity, etc.Competing with leading companies as equals. In this sense, it is a consequence of the need to expand our operating capacity in highly demanding conditions of competitiveness, without deteriorating in any way the other actions; if not the opposite, expand and diversify with precise goals and adequate controls for their fulfillment.
3. Horizontal Integration Vector:
Every competitive company urgently requires horizontal integration that implies knowledge, identification and having common objectives in the internal sphere. This means establishing greater communication between the various operating units. That each operating unit has knowledge of the objectives, actions and activities of the rest, so that they can be strengthened on the basis of exchanges of experiences, criticism and self-criticism. The fact that the operating units feel isolated and “hung” from a vertical administration, with no greater communication than that required to fulfill the functional actions, makes the overall operating efficiency deficient and ineffective.
4. Vector Technological Innovation:
In any improvement process, technological innovation is essential. This technological innovation must be carried out starting from the optimization in the use of the installed technological capacity, passing through the determination of the mission, vision and FDOA analysis of the operating unit, as well as the technical economic evaluation of the technological alternatives, reaching the determination the type and level of technology required. It should be understood that all technological innovation is necessarily accompanied by staff training and technical assistance from suppliers, as well as returning the necessary corrections via feedback, to apply continuous improvement.
The selection of technology that involves selection of machines, equipment, production processes, computer packages, communications, laboratory modules, innovative materials, etc.; they must be properly selected. So that underutilized and over-cost capacities are not generated in the future, to the detriment of the institution.
Although within the strategic planning the technological innovations in themselves are not indicated, some scopes can be given on their general characteristics that they must contain; in order to comply with the necessary aspects that contribute to the fulfillment of the proposed vision.
5. Vector Diversification of Products and Services:
As shown in Fig. No. 01, diversification is found as a strategy, in any development action or thought; In other words, we must capitalize and develop internal and external potentialities; and take them to competitive levels. Thus, various alternatives for product diversification in terms of goods and services can be proposed. It is necessary to bear in mind that each step or diversification that is carried out, we must constantly seek quality and excellence, so that the selection of the appropriate personnel to undertake each sub vector of action or activity will be very important. Take into account and be very careful not to be generating diversification without having the strength and security of achieving quality and excellence.
6. Market Expansion Vector:
A company that thinks only of momentary satisfaction or only of a certain area is digging its own grave. It should be taken into account that the market has practically no borders, even the language in a few years will not be limiting to delimit the market, since the English language is projected as a universal language. Currently, companies and institutions have been offering their goods and services products via the INTERNET. It indicates that the globalization of the market is in the process of development. On the other hand, the appearance of new companies at the national and international level, makes the offer expand and the quality of the products is directly or indirectly reduced, at first, which will require changes to stay in the market. And it will be more demanding to target the international market.Only to the extent that a company has strengthened its production, administration and management systems, renewed its technology and perceived the market, will it be able to expand with less risk of failure.
7. Conglomerate Diversification Vector:
It corresponds to the strengthening and diversified development of goods and services, forming groups of different products (conglomerate), but which may have affinity, dependence or complementarity either within our institution or in the market. Such is the case of the Total Quality Production Center, which in the process of growth and development, has to conform a joint operation strategy with a Research Institute, through a Research Program in technology development. This requires a strengthening of both units and promises an expansion of their services in the medium and long term.
8. Congeneric Expansion:
It is the strengthening and expansion in the medium term of the production of goods and services. This is achieved with the required financing and the Development Plans formulated for its execution. It goes without saying that the projected expansion will not be fulfilled, in the event that external contacts are not available, referring to the agreements with leading institutions in the national and international environment, on which medium and long-term development is sustained.
9. Conglomerate Expansion:
In the process of diversification and strengthening, the various operating units, based on the dynamics of their own development, will form conglomerates of internal alliances with common or shared objectives, and these in turn will expand to expand their coverage in the market. It is the long-term destination of the development process that many production units will consider as a necessity for their growth and development.
Product and service development
