In the article the tasks which solution will contribute to the qualitative strategic planning of the activity of the enterprise are considered. The problems that hamper the qualitative development and implementation of strategic plans of the enterprise are outlined, the ways of their solution are proposed to improve the efficiency of its functioning and ensure its competitiveness

Banzekulivaho Muhizi John

Tolkach, A

Digital Library of Polotsk State University (Репозиторий Полоцкого государственного университета)

ELECTRONIC COLLECTED MATERIALS OF X JUNIOR RESEARCHERS’ CONFERENCE             2018 Economics  27 UDC 658.513.1  STRATEGIC PLANNING AS A BASIS OF INCREASE EFFICIENCY OF ENTERPRISE FUNCTIONING  ANASTASIA TOLKACH, JOHN BANZEKULIVAHO MUHIZI Polotsk State University, Belarus  In the article the tasks which solution will contribute to the qualitative strategic planning of the activity of the enterprise are considered. The problems that hamper the qualitative development and implementation of strategic plans of the enterprise are outlined, the ways of their solution are proposed to improve the efficiency of its functioning and ensure its competitiveness.  Strategic planning is characterized as an actual process in the activity of virtually any business entity, regardless of the form of ownership. The rapid pace of economic transformations in the Republic of Belarus and throughout the world makes business entities look into the future, formulate a clearly defined strategy for their development, determine their main advantages and competitive advantages, and eliminate threats and dangers. Whereas in the past many enterprises could function very successfully, focusing mainly on internal problems related to improving the efficiency of resource use in current activities, today's market economy conditions make it necessary to change the prevailing business stereotypes and the nature of management. First of all, this refers to the activities that determine the prospects for the development of the enterprise. The business entities, whose management is focused on the solution of short-term tasks, do not possess the necessary stock of economic, organizational and production strength, which makes it possible to carry out, if necessary, effective renovation, can not stand in the current rapidly changing market transformations. Severe competition, accelerating changes in the surrounding macro and microenvironment, the dynamism of changes in consumer demand, the sudden emergence of new business opportunities, the unpredictability of many environmental factors - this is far from a complete list of reasons that have led to a sharp increase in the importance of strategic planning. The term "strategic planning" was introduced at the junction of the 60-70s. in order to indicate the difference between the current management at the production level and the management carried out at the highest level. The need to fix this difference was primarily due to changes in business conditions. The leading idea, reflecting the essence of the transition from operational management to strategic, was the idea of transferring the focus of attention of top management to the environment in order to react appropriately and in a timely manner to the changes occurring in it [1, p. 157]. Therefore, strategic planning is the foundation of the company for the long term, which will be guided by staff performing specific actions needed to achieve the objective by which they are authorized. Planning is one of the functions of management, which is a process of selecting the objectives of the enterprise and the ways to achieve them. It is through planning that the management of the enterprise strives to establish the basic directions of efforts and decision-making that will ensure the unity of objectives for all. Strategic planning is aimed at achieving specific strategic objectives of the enterprise. Strategic objectives are meant to ensure long-term competitive advantages of the enterprise. These objectives will include expanding the sales market, maximizing profits, ensuring the financial stability of the enterprise, developing the innovative potential of the enterprise, increasing the efficiency of the use of resources and production capacities, developing effective mechanisms to implement current and long-term interests of the enterprise [2, p. 115]. When implementing strategic objectives, all structural divisions of the enterprise are involved. Objectives should be clearly articulated so as to avoid contradictions in the implementation of the program for their implementation. Before each structural division of the enterprise strategic tasks will be put. Such tasks will include: − competent distribution of the resources of the enterprise; − adaptation to the external environment; − internal coordination and regulation, providing for the coordination of efforts of the structural divisions of the enterprise; − introduction of organizational changes in the direction of carrying out various organizational transformations at the enterprise [2, p. 117]. ELECTRONIC COLLECTED MATERIALS OF X JUNIOR RESEARCHERS’ CONFERENCE             2018 Economics  28 Awareness of the need for strategic planning involves the search for a formalized procedure for its implementation. For this, it is necessary to analyze the structure of the strategic plan, which is a complex of measures, the phased implementation of which leads to the working out and implementation of the enterprise strategy [3, p. 12]. The object of research of strategic planning is the enterprise engaged in the production and sale of bakery and confectionery products. As a result of a detailed analysis of the strategic planning system at the enterprise, a number of problems were identified that hampered the qualitative working out and implementation of its strategic plans to improve the efficiency of its functioning and ensure its competitiveness. The identified problems include: − the lack of a clear development strategy; − the lack of a clear division of functions and responsibilities between the structural divisions of the enterprise in the process of strategic planning; − the weak analytical base of strategic planning. The identified problems in the strategic planning system require solutions to improve the strategic planning system at the enterprise with the subsequent increase in the efficiency of its functioning and ensuring its competitiveness. Therefore, it is necessary to develop logically stated and economically justified measures that will be based on a strategic approach to enterprise management. Such activities are: − introduction of the principle of sliding planning on the enterprise; − introduction to the enterprise of the mechanism of distribution of functions and responsibilities between departments in the working out and implementation of strategic plans; − use of specific tools in the working out of strategic plans for the development of the enterprise. Introduction of the principle of sliding planning on the enterprise. The principle of sliding planning is that long-term and medium-term plans form the basis for preparing production programs for the coming year and half-year. The main organizational and technological elements of the algorithm for linking strategic and annual plans are reduced to the declaration by the top management at the beginning of each year of the enterprise development strategy, the delivery of main planning targets to structural subdivisions in the form of tasks of the top management in terms of production and sales volumes, cost limits, independent determination by heads of structural divisions the planned policy for the implementation of the targets received from above, the preparation of each structural unit and plans based on the attainments received from the top management of the facilities, an especially thorough audit of the financial performance of the enterprise by the accounting department, approval of the plans of the structural subdivisions of the enterprise, implementation of plans of the structural divisions after their approval by the top management of the enterprise in the overall plan. It should be specially noted that the enterprise should give preference only to strictly defined planning strategies that correspond to the value orientations of the top management and the objective organizational and economic conditions of its activities. These strategies include a focus on increasing production, following a leader in terms of investing exclusively in the direction of enterprise development and achieving financial independence (minimizing debts) and focusing on one's own profit. Thus, with the competent introduction of the principle of sliding planning on an enterprise, the enterprise will become more competitive, quickly and adequately able to react to changes that are constantly occurring in the surrounding market environment. Since the principle of sliding planning is that after the planned period the enterprise should develop an updated plan, increasing the planning horizon, for the remaining period the plan will be adjusted and updated in case of unforeseen circumstances caused by changes in the external environment.  Introduction to the enterprise of the mechanism of distribution of functions and responsibilities between departments in the working out and implementation of strategic plans. The clear delineation of the responsibilities of the company's structural divisions plays an important role in the strategic planning system, since with an irrational distribution of functions and responsibilities, the enterprise development strategy may prove to be erroneous. The planning and economic service is engaged in the development of the strategy at the enterprise. Due to this, there is a predominance of financial strategy over other components (marketing, resource, production, etc.). To solve this problem, a clear distribution of functions and responsibilities of strategic planning between the structural units of the enterprise. The introduction of a clear mechanism for the distribution of functions and responsibilities between the structural units in the working out and implementation of strategic plans is necessary, since strategic planning as ELECTRONIC COLLECTED MATERIALS OF X JUNIOR RESEARCHERS’ CONFERENCE             2018 Economics  29 an isolated type of managerial activity requires a clear distribution of functions and responsibilities between structural divisions and individual managers in the process of developing and implementing an enterprise development strategy. Use of specific tools in the working out of strategic plans for the development of the enterprise. Obviously, for the use of specific tools in the working out of the strategy of a development, an enterprise, first of all, needs to solve the problem of information support and choice of methods for processing information. The basis of information support is a deep multilevel study of domestic and foreign markets on a wide range of indicators. An important role in this is played by the analysis of the parameters of the marketing population, which, through information on the price, products, the place of its production and the way it is promoted, significantly influences the decisions made in the development of the enterprise development strategy. As a specific tool to be used in the working out of strategic plans that contribute to improving its efficiency and competitiveness, it is proposed to identify three main blocks of strategic planning tools that need to be implemented at the enterprise, namely: 1) strategic analysis; 2) working out a corporate strategy; 3) working out a strategic plan. These blocks of specific instruments are designed to improve the system of strategic planning and give the enterprise a new impetus in ensuring its sustainable strategic development. Strategic analysis. Strategic analysis is the main element of strategic planning in the enterprise and acts as its tool. In the process of strategic planning of its activities, the enterprise conducts an analysis of the external and internal environment. The analysis of the external environment is carried out at the level of macro- and microenvironment. For the analysis of the macro environment, the most popular is the PEST analysis (PEST - Political, Economic, Social, Technological). It provides an opportunity to determine what impact the environment has on the enterprise. According to the PEST analysis, the external environment is conditionally divided into four segments: political, economic, techno-logical and social. The influence of political factors is because politics regulates the power that determines the enterprise's environment. On the basis of economic factors, the enterprise forms its own system of material and technical support, depending on the state of the economic situation in the country. The objective of the technology research is to analyze the level of technological development, which in most cases is the reason for changing market needs. No less important are consumer preferences, which are determined by the social component of PEST analysis. The link between macro and microenvironment factors is the Porter model of five forces, the essence of which is to determine the level of competition in the industry and, therefore, the attractiveness of doing business in it. Analysis of the five forces of Porter includes the threat of the emergence of substitute products, the threat of the emergence of new players in the market, the level of competition, the market power of suppliers, the market power of consumers. Within the framework of the strategic analysis of the internal environment, enterprises identify a system of management analysis in accordance with the McKinsey 7S model, which is a convenient tool for analyzing the internal organizational structure and operating principles of the enterprise. The McKinsey 7S model is based on seven elements of the company's internal environment: 1) the structure of the enterprise; 2) the environment of the enterprise; 3) the enterprise management system; 4) the value system of the enterprise; 5) the sum of the skills of the enterprise; 6) the staff of the enterprise; 7) the style of relationships within the enterprise. According to the McKinsey 7S model, all elements of the enterprise microenvironment are divided into 2 groups: soft and rigid. The soft elements of the enterprise's microenvironment include the value system, the sum of skills, the composition of the staff and the style of relationships, and the rigid elements are the structure, environment and management system. To apply the McKinsey 7S model in practice, an enterprise must go through six main stages: 1) the collection of information – a detailed and clearly formulated description of each element of the model; ELECTRONIC COLLECTED MATERIALS OF X JUNIOR RESEARCHERS’ CONFERENCE             2018 Economics  30 2) the analysis of contradictions – analysis of the elements of the model and the identification of their contradictions; 3) the ideal model – building a model of the enterprise in which all seven elements will ideally be combined and do not contradict each other; 4) the plan of changes – after determining the ideal image of the enterprise, an analysis of its current state is made and measures for its reorganization are developed; 5) the introduction of changes – implementation of the developed measures is carried out; 6) the control and monitoring – the work performed is monitored and compared with the expected results. Working out a corporate strategy. Based on the analysis of the external and internal environment of the enterprise, a strategy for its development is being developed. There are a lot of methods that allow to optimize the process of working out of the corporate strategy. However, the matrix of the Boston Consulting Group (BKG) most effectively reflects the technique of its formation. The essence of the matrix of the Boston Consulting Group is to analyze the relevance of the enterprise's products, based on its position in the market and the level of demand for its products.  The matrix of the Boston Consulting Group reflects the growth rate of the market and the relative market share. The combination of these criteria allows you to classify the enterprise's products and identify four of its possible roles in the market. The first group of "Stars". This includes products that bring a large income to the enterprise. In order to ensure that this product does not lose its position in the market, it is necessary to constantly improve its properties. The second group is "Wild cats". This includes products that occupy a small market share, but with a high growth rate. This group is promising, so there is a need to increase production volumes. The third group is "Dogs". The products of this group occupy a small market share and have a low demand. This product should be excluded from the portfolio, as it is unpromising for the enterprise. The fourth group is "Dairy Cows". The products of this group are a significant source of the enterprise's income. It makes no sense to promote this group of products, and it is expedient to distribute the received incomes to other groups. Using the matrix of the Boston Consulting Group will allow the enterprise to determine the general directions of optimizing its product portfolio by identifying promising goods and goods that need to be disposed of. Working out a strategic plan. To achieve its objectives, the enterprise needs to develop a strategic plan for its development, as well as a system for its implementation. The proposed specific tools will provide the enterprise with a qualitative analysis of the external environment, the formation of competitive advantages based on a detailed analysis of the micro environment, detailed analysis of the internal environment, product portfolio optimization, mobility and competitiveness. Thus, when implementing the proposed activities in its practical activities on strategic planning, the enterprise will be able to organize its activities more efficiently through a long-term vision of its development. This will help improve the system of strategic planning, which will lead to an increase in the efficiency of the enterprise, while ensuring its competitiveness, and improving its financial position.   REFERENCES  1. Ильин, А.И. Планирование на предприятии: учеб. пособие / А.И. Ильин. – 9-е изд. – М. : Новое знание; ИНФРА-М, 2011. – 667 с.  2. Котлер, Ф. Маркетинг. Менеджмент. Анализ, планирование, внедрение, контроль / Ф. Котлер. – 10-е междунар. изд., перераб. и доп. – СПб. : Питер Ком, 2012. – 1117 с.  3. Поделинская, И.А. Стратегическое планирование : учеб. пособие / И.А. Поделинская, М.В. Бянкин. – Улан-Удэ : Изд-во ВСГТУ, 2005. – 55 с.         

Strategic Planning as a Basis of Increase Efficiency of Enterprise Functioning

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Strategic Planning as a Basis of Increase Efficiency of Enterprise Functioning

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