Goncharenko, I. N.

Electronic Repository Kyiv National University of Technologies and Design

Goncharenko I.N. PhD, Associate Professor of Entrepreneurship and Business, Kyiv National University of Technologies and Design THE IMPORTANCE OF CREATING A BUSINESS STRATEGY IN THE SMALL AND MEDIUM ENTERPRISES The concept «planning» includes definition of the purposes and ways of their achievement. In the planning of activity of the small and medium enterprises is carried out on such important directions, as selling, the finance, manufacture and purchases. Thus, certainly, all private plans are interconnected among themselves. Process of planning passes four stages: I) Development of overall aims; 2) Definition of the concrete, detailed purposes for set, rather short period of time (2, 5, 10 years); 3) Definition of ways and means of their achievement; 4) The control over achievement of objects in view by comparison of planned targets with actual. Planning always is guided by the data of the past, but aspires to define and supervise development of the enterprise in the long term. Therefore reliability of planning depends on accuracy and correctness of accounting calculations of the past. Any planning of the enterprise is based on the incomplete data. Quality of planning in the greater degree depends on an intellectual level of competent employees, managers. Strategic planning represents a set of actions and the decisions undertaken by a management which conduct to development of specific strategy. These strategy areintended to help the organizations to reach the purposes. Process of strategic planning is the tool, assisting to provide a basis for operation of business. His problem will be, that in a sufficient measure to provide innovations and changes in the organization of the enterprise. Strategy represents a detailed all-round comprehensive plan. It should be developed more likely from the point of view of prospect of all corporations, instead of the concrete individual. Seldom when the founder of firm presumes to combine personal plans from strategy of the organization. Strategy assumes development of the proved measures and plans of achievement of the planned purposes in which the scientific and technical potential of firm and its industrial-marketing needs should be taken into account. The strategic plan should be proved by extensive researches and the fact sheet. Therefore it is necessary to be engaged constantly in gathering and the analysis of huge quantity of the information on branches of a national economy, the market, a competition, etc. Besides the strategic plan gives to firm definiteness, individuality which allow it to involve the certain types of workers and help to sell products or services. Strategic plans should be developed so that they remained not only complete during long time, but also kept flexibility. The general strategic plan should be considered as the program directing activity of firm during the long period of time, in view of constant updating in connection with constantly varying business and social conditions. 98 Strategic planning in itself does not guarantee success, and the organization creating strategic plans, can fail because of mistakes in the organization, motivation and the control. Nevertheless formal planning can create a number of essential favorable factors for the organization of activity of the enterprise. The knowledge of that the organization wants to reach, helps to specify the most suitable ways of action. Making of the proved and systematized scheduled decisions, the management reduces risk of acceptance of the wrong decision because of erroneous or a unreliable information about opportunities of the organization or about an external situation. Planning helps to create unity of an overall aim inside the organization. Formation of the strategic plan represents careful, regular preparation for the future, carried out by the top management: I. The choice of mission. Formation of the purposes (long-term, intermediate term, short-term). 2. Development of providing plans (a policy, strategy, procedures, rules and budgets). Creating a strategy plan is a complex task requiring research, strategy development, tactical planning, financial consideration, and much more. For large companies, a strategy plan might span hundreds of pages, though smaller companies can get by with a much shorter plan. Knowing how to put together a strategic plan is the first step toward marketing your business and finding success in the business world. Customer service is an important factor in developing a wide and loyal customer base. A customer service plan deeply examines customers' perceptions and expectations of a company, and guides the company through the process of bringing its customer service activities in line with customers' needs. Knowing how to create a customer service plan can help you to continually offer a highly competitive customer experience. A business strategies can help you create a comprehensive strategic plan and goals to lead your organization to the next level of performance. The plan will provide a three to five year roadmap to guide your organizational development and help eliminate the chaos that can result from poor planning. Use yours proven planning processes to collect input from executives, individual contributors and other key stakeholders to ensure the plan is aligned with corporate objectives. The customer service strategic plan will allow you to prepare for and implement the strategies and tactics necessary to achieve your organizational goals and objectives. Our strategic planning process will take into consideration a number of critical factors associated with the service business. While a business plan helps map the direction for your company, a strategic plan helps your company understand how to get there by detailing important steps on the road to creating customer relationships. «The single most important thing for a small business to include in its strategy is a very clear understanding of its customers and its competitors», - said Robert Thomas, professor at the McDonough School of Business at Georgetown University [I]. Strategic plan describes who your customers are, where they get information, and how you are going to reach them. Develop a very clear and focused insight into why a potential customer would use your business. More specifically, what is the core need that your 99 product or service will meet? Is it to help your customers get through the day moreeasily? Do their job moreefficiently? Be respected and admired by friends? Your offering should be designed to meet customer needs better than the competition. Identify your target customers. There are numerous potential customers in most markets, but to succeed faster and better, a small business must study the market to determine the characteristics of its best target customers. The target customer should be described in detail. In doing so, a business also develops a clearer picture of the expected sales revenues and financials. Identify competitors that would also want your target customers. There is always a competitor - never make the mistake of assuming there isn't. Small businesses seldom take the time to study their competitors in depth. But you must understand who your competitors are, what their core competitive advantage is and how they will respond to your offering (price cuts, increased communication, etc.). Write down your brand-positioning statement for your target customers. Ultimately, your brand and what it symbolizes for customers will be your strongest competitive advantage. You should be able to write down a simple declarative sentence of how you will meet customer needs and beat the competition. The best positioning statements are those that are single-minded and focus on target customer needs. Once strategies have been identified for each channel, you need to figure out your strategy. How much are you willing to spend in each channel? What outcomes do you expect to see? What tasks do you need to accomplish for each step in your process? It is also important to decide in advance how you will measure success. Are you hoping to see increased sales or traffic, or new client contacts? Set six-month milestones for each channel, and compare the results against prior efforts and your expectations. If a channel is underperforming, examine the consequences for both abandoning it and for adding more resources. If your efforts have fallen flat as the result of a failure to understand the medium's audience, go back to basics. Asking your customers to complete an email survey about their social media habits in exchange for a coupon or discount may help you learn surprising relationships between customer demographics and your marketing efforts [2]. Ideally, after writing strategic plans for a few years, you can sit back and review a series of them, year after year, and check the progress of your company. Of course, sometimes this is hard to make time for (there is that annoying real world to deal with), but it can provide an unparalleled objective view of what you've been doing with your business life over a number ofyears. References: I. Field Guide to Nonprofit Strategic Planning and Facilitation by Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC, 2013. 2. Modern management: «Principles and rules» I N.Novgorod, IKCHP, 2012. 100 

The importance of creating a business strategy In the small and medium enterprises

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The importance of creating a business strategy In the small and medium enterprises

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