Analysis of the Characteristics of Enterprise Strategic Management

Analysis of the Characteristics of Enterprise Strategic Management

Introduction: Enterprise strategy is a guiding business strategy designated by an enterprise to achieve long-term business goals and adapt to changes in the business environment. Take a look at the following information about corporate strategic management that I bring to you. I hope it will be helpful to you.

Analysis on the relevant characteristics of enterprise strategic management

The Greek word for strategy is strategos, which means "the art of a general commanding an army". It was originally a military term. In the 1960s, strategic thinking began to be applied in the business field, and together with Darwin's biological evolution thought of natural selection, became the two major sources of thought in the strategic management discipline.

From the perspective of the future development of the enterprise, the strategic management of the enterprise is manifested as a plan (Plan), and from the perspective of the past development process of the enterprise, the strategic management of the enterprise is manifested as a model (Pattern). If viewed from the industry level, strategy appears as a positioning (Position), while from the enterprise level, strategy appears as a concept (Perspective). In addition, strategy is also expressed as a strategy (Ploy) used by enterprises in competition.

The strategic management of an enterprise is not an "empty thing", nor is it "nothingness". It is the most important decision-making reference system that directly affects whether an enterprise can sustain its development and profitability. The strategic management of an enterprise is to supervise, analyze and control the implementation of the enterprise's strategy based on the enterprise's strategic plan, especially to constrain the enterprise's resource allocation and business direction, and ultimately to promote the process management of the enterprise to successfully achieve its corporate goals.

It is the strategic management of the enterprise that guides all activities of the enterprise. The focus of all management activities is the formulation and implementation of strategies. The key to formulating and implementing strategies lies in analyzing changes in the company's external environment, reviewing the company's internal conditions and qualities, and determining the company's strategic goals based on this to achieve a dynamic balance among the three. The task of enterprise strategic management is to achieve the enterprise's strategic goals while maintaining this dynamic balance through strategy formulation, strategy implementation and daily management.

The strategic management of an enterprise has the following characteristics:

1. Strategic management has an overall nature

The strategic management of an enterprise takes the overall situation of the enterprise as the object and is based on the overall situation of the enterprise. formulated to meet the needs of overall development. What it manages is the overall activities of the enterprise, and what it pursues is the overall effect of the enterprise. Although this kind of management also includes partial activities of the enterprise, these partial activities appear in strategic management as an organic component of the overall activities. Strategic management is comprehensive and systematic.

2. The main body of strategic management is the enterprise’s top managers

Since strategic decision-making involves all aspects of an enterprise’s activities, although it also requires the upper and lower managers of the enterprise and all employees participation and support, but it is very important for the top management of the enterprise to be involved in strategic decision-making. This is not only because they can see the overall situation of the enterprise and understand the overall situation of the enterprise, but more importantly, they have the power to allocate resources required for strategy implementation.

3. Strategic management involves the allocation of a large number of enterprise resources

Enterprise resources, including human resources, physical property and funds, are either adjusted within the enterprise or come from outside the enterprise. Raise. In either case, strategic decisions require commitment to a series of activities over a considerable period of time, and the implementation of these activities requires a large amount of resources to guarantee. Therefore, in order to ensure the realization of strategic goals, the company's resources need to be planned and rationally allocated.

4. Strategic management needs to consider many factors in the enterprise's external environment

Today's enterprises exist in an open system, which affects these factors, but more usually Affected by factors beyond the control of the enterprise itself. Therefore, in the strategic management of enterprises, in the future competitive environment, if enterprises want to occupy a favorable position and gain competitive advantages, they must consider factors related to them, including external factors such as competitors, customers, capital suppliers, and governments. , so that the enterprise's behavior can adapt to the changing external forces, so that the enterprise can continue to survive.

Discussion on the strategic management of modern enterprises

[Abstract] Modern enterprise strategic management is a means for enterprises to improve their core capabilities through analysis, prediction, planning and control under macro conditions. and competitive advantages, integrating resources, optimizing management, and improving economic benefits. Therefore, strengthening the management of corporate strategies is particularly important for the development of enterprises. The author of this article discusses the strategic management of modern enterprises.

[Abstract]Enterprise; strategic management; mixed ownership;

CLC classification number: F426 Document identification code: A Article number: 1009-914X(2014)20-0251-01

Introduction

At this stage, with the global integration of market competition, we want to gain more market share and gain greater development space in this war. The strategic management of enterprises is the fundamental countermeasure.

However, at present, my country's corporate management has problems such as imperfect financial management, focusing only on immediate interests, lack of strategic thinking, emphasis on strategic management forms, neglect of strategic management mechanisms, lack of flexibility in strategic management, and poor environmental applicability. The existence of these problems restricts the performance of enterprises. Development, on this basis, the author below discusses the strategic management of modern enterprises.

1. Build a good financial management system

1. Strengthen corporate cost control. Strengthen the cost control of enterprises. In order to achieve good cost control, enterprises should first establish a standardized cost accounting system to determine the principles of cost and expense accounting and the scope of cost and expense expenditures, standardize the general procedures of cost and expense accounting, and formulate clear cost and expense accounting. Accounting business procedures, scientific selection and appointment of cost accountants. Secondly, cost budget control should be implemented, cost and expense plans should be formulated, comprehensive budget management at the project level should be implemented, so that expenditures are limited within the budget, and the implementation of various plans and management systems of the enterprise should be strengthened to achieve the purpose of budget control. Finally, target cost management should be actively adopted to minimize costs. By establishing and improving the four major systems of target, organization, operation and assessment, we should continuously improve the enterprise target management system, clarify the responsibilities of enterprise cost management, and implement cost and expense control. .

2. Improve the corporate financial management system. The financial management system of enterprises should be continuously reformed, the quality of enterprise financial management personnel should be improved, advanced financial management technologies and methods should be adopted, the sovereign capital of enterprises should be well managed, the debt capacity of enterprises should be enhanced, the non-performing assets of enterprises should be eliminated, and scientific and standardized enterprises should be established. accounting system. In this way, the company's financial management level can be continuously improved.

3. Strengthen operating capital management. Compared with the government, enterprises lack external financing capabilities and room for internal fund allocation, so it is particularly important to strengthen operating capital management. For example, based on the principle of purchasing from the nearest location, finished products should also be sold as close as possible to shorten the inventory cycle and reduce backlog. The production arrangement should give full play to its "small ship can turn around" specialty, strictly determine production based on sales, increase discount standards for accounts receivable, shorten the collection period of accounts receivable, and assign payment collection responsibilities to individuals. Optimize capital structure and create good external credit potential. Enterprise development is inseparable from capital investment, of which liabilities account for a considerable proportion. The after-tax profits realized by enterprises should be accumulated as much as possible to enrich their own capital. In this way, a reasonable capital structure is maintained, and it is conducive to establishing a corporate credit image, gaining the trust of banks, establishing a bank-enterprise cooperation mechanism, and ensuring the safety of funds.

4. Steady financial management and scientific investment. Investment decision-making is a major issue faced by enterprises. In practice, enterprises should choose scientific and reasonable investment models and adopt medium and short-term investments as much as possible. Exploit strengths and avoid weaknesses, use more feasibility studies and demonstrations for internal purposes, and continuously optimize investment plans; at the same time, strengthen the evaluation and summary of project investments, and do a good job in project supervision. Strengthen the control and management during the implementation of project investment, summarize the successful experience of project investment, implement an effective internal control management mechanism, and conduct a new round of investment through continuous optimization of multiple plans. The contradiction between the enterprise's strong desire for growth and its lack of technological development capabilities, market development capabilities and management capabilities determines that its financial management ideas are more stable than those of consortia, and it is important to avoid being too hasty and blindly expanding.

5. Expand financing capabilities. Enterprises should actively carry out the reform of joint-stock cooperative systems, and strengthen the ownership status of enterprise employees by promoting innovative enterprise organizational forms such as joint-stock cooperative systems and mixed ownership, improve employees' concern for enterprise assets and risk awareness, and strengthen the cohesion of enterprises. Expand corporate financing channels and form a complete corporate governance structure, so that companies can enter the market and achieve the purpose of transforming operating mechanisms and improving competitiveness. Enterprises should arrange their capital structure rationally. When the enterprise is founded, it should raise necessary capital according to its scale, or when capital is limited, choose the investment scale that can be achieved. At the same time, it should make full use of internal fund-raising by employees to expand the capital scale of the enterprise. Provide a stable and reliable source of funds.

2. Improving the strategic management capabilities of entrepreneurs

Modern enterprises enter the market driven by entrepreneurs, and the quality of business performance depends to a large extent on entrepreneurs. The quality of human capital and its utilization, as well as the behavioral choices of entrepreneurs, play a vital role in the performance and development of enterprises. The behavioral choices of entrepreneurs directly restrict the behavioral choices of enterprises. In a sense, the choice or adjustment of the business field and direction is mainly the business of entrepreneurs; the behavior of entrepreneurs not only affects whether the behavior of employees can be transformed into Effective contributions to the enterprise, and their behavioral tendencies also directly affect employees' choices of behavioral methods and behavioral intensity: Therefore, it is necessary to improve the incentive system, such as the introduction of stock options and other incentive mechanisms, so that the long-term personal interests of operators can be passed through the sustainable development of the enterprise. development and be fully realized, so as to induce operators to closely track changes in the internal and external environment of the enterprise, frequently analyze the external adaptability of the enterprise's operations, and make timely adjustments to the enterprise's development strategy; it is necessary to improve the corporate governance structure and monitor the operators and their behaviors Ability to implement effective controls and constraints.

3. Establish a scientific strategic management decision-making system

To successfully realize the corporate strategy, strategic management decision-making is inseparable, and scientific strategic management decision-making is inseparable from strategic management. Decision-making system, therefore establishing a scientific strategic management decision-making system for enterprises is one of the prerequisites for enterprise strategic management.

In order to strengthen decision-making management, it is necessary to grasp all aspects and links of decision-making and establish a corporate strategic management decision-making system that is in line with the development of modern enterprises. Corresponding work can be done in terms of systems, institutions and methods.

From the perspective of the decision-making system, it mainly includes the collective decision-making system for major issues, the expert consultation system, scientific decision-making procedures, the decision-making responsibility system, and the democratic decision-making supervision system. In the collective decision-making system and expert consultation system for major issues, enterprises must stipulate what kind of decisions require managers with what functions to make decisions, such as what level of leadership must sign off on the amount of financial authority. In terms of establishing a scientific decision-making process, if it is an investment decision, you must first conduct a feasibility study through understanding of industrial policies, industry surveys, market surveys, and market forecasts. Then you can make an investment plan and objectively calculate the return on investment. If it is a business decision, several alternative options should be developed based on market research. In the decision-making responsibility system, enterprises must clearly stipulate what kind of managers should bear what kind of responsibility when making what kind of decisions and what kind of consequences. As for the democratic decision-making and supervision system, enterprises are required to provide specific provisions and explanations on whether to adopt democratic decision-making in which the minority obeys the majority or a leader's personal responsibility system under specific circumstances.

IV. Establish an evaluation system for strategic management performance

Modern enterprises must implement strategies without a pre-evaluation of strategy selection and formulation, control of the strategic process, and control of strategic results. Evaluation tools are also indispensable. Strategic adjustment and improvement also require the support of corresponding strategic evaluation tools. Therefore, the evaluation system is an indispensable component of the complete strategic system. The strategic management performance evaluation index system provides an effective means to comprehensively and systematically evaluate the performance of an enterprise and its business departments. It establishes a business status database of the enterprise and its various business units based on the index system and incorporates it into the enterprise's information system. Make it the baseline for management control. During the operation of the enterprise, through data collection and mining, the senior managers (owners) of the enterprise will be able to understand and analyze the operating status of the enterprise in a timely manner and provide a basis for further decision-making. Modern enterprises can select an indicator system based on changes in internal and external environmental conditions and the characteristics of the enterprise itself, and at the same time revise and improve the indicator system irregularly or regularly based on various changes.

5. Strengthen the construction of material culture and establish the basis of pragmatic corporate strategic management

Corporate material culture is an artifact culture composed of products created by corporate employees and various material facilities. It includes the results of enterprise production and operation, production environment, enterprise architecture, products, packaging, design, etc. First, create a good quality culture. Through technological and cultural innovation, we can improve the technical and cultural content of products, optimize product structure, realize product technical aesthetics, customer pleasure and ethical value principles, and improve the overall quality and core competitiveness of enterprises. Secondly, build and improve the beautiful external environment of the enterprise, shape a good corporate appearance, and provide the enterprise with a beautiful and clean environment. Third, optimize the labor environment. Use color, music adjustment and other methods to provide a good working atmosphere for corporate employees, improve employees' work efficiency and good mood, and realize the human resources upgrade strategy. Therefore, only by establishing a strong material and cultural atmosphere can we provide a solid material foundation for strategic management.

Conclusion

The above author has roughly discussed the strategic management of enterprises. Due to limited time and space, there are still many contents not covered, such as market strategy. In future work, the author will Will continue to work hard.

References

[1] Yan Guanghua, Lin Ming. Analysis of strategic management of foreign small and medium-sized enterprises [J] Foreign Economy and Management. 2004, 04.

[2] Huang Jiefeng. On the strategic positioning and strategic choices of small and medium-sized enterprises [J] Journal of Jiangxi Institute of Education. 2003(04).

[3] Gao Chuanfu, Chen Chuanming. Thoughts on the strategic management model of Guanqian enterprises[J] ] Science and Technology and Economy. 2004, 01.

[4] Li Fuhe. Strategic Management of Sustainable Development [J]. Construction Enterprise Management, 2010, (l).

[5 ] Zhang Jijing. Project Financing. Beijing: CITIC Press, 2003.9.

Reading experience on corporate strategic management

Through the study of corporate strategic management courses and several related books After reading, I have a rough understanding of what strategic management is and how to realize the strategic thoughts and intentions of the enterprise through the preparation and organization of strategic planning. This provides a certain theoretical basis and professional knowledge for the actual implementation of enterprise strategic management in the future. .

I have recently read several famous books on strategy, including "Core Competence Strategy" (Based on Core Competencies) edited by (UK) Andrew Campbell and Catherine Summers Luce Strategy) This book has benefited me a lot. This book focuses specifically on competitiveness approaches that study firm-level strategy and the management of competitiveness within multi-business firms. According to the editors, they hope that this book will help managers develop the skills and competencies across several business units. Currently, I am studying some basic courses in the business administration category of our school. I chose business administration after careful consideration in my previous major diversion.

The business administration major of our school cultivates management talents for small and medium-sized enterprises. According to my understanding, generally small and medium-sized enterprises prefer more comprehensive talents. So I think this book will be of great help to me. Although the title of this article is reading experience, to me it is more like reading notes, because the book not only contains theories, but also has many cases. While reading, I will always think of something else, and after understanding The problem can be extended very far. Here I will first talk about some theories in the book, and then the theory should be combined with practice. Here I will talk about some of my superficial opinions.

This book consists of three parts? Theory, application and practice. Part One: Understanding Competitiveness. The selections in this section cover resource dependence thinking, organizational learning, and core competency management theory. The academic literature in the book quickly led me to key issues and basic concepts. Part II: Competitiveness and Corporate Strategy? Editor-selected readings provide guidance on key issues in corporate strategy. Our readers are guided through the material to learn how to use a competitive analysis approach to evaluate a company's business portfolio, make decisions about resource allocation, and use it for diversification. Part Three, Managing Core Competencies Across Business Units, is the heart of the book.

It provides examples and perspective on how skills sharing and learning can be managed across multiple business units. The material in this section analyzes how various competencies develop and spread across multiple business units, and the experiences and practices in these companies also demonstrate the complexity and rewards gained by sharing skills across multiple business units. They should provide managers with reflections and suggestions on how to improve competency management in their companies.

Michael Porter, a tenured professor at Harvard Business School, once said: "Strategy is the key to the success or failure of an enterprise."

Strategic management is a dynamic process in which senior decision-makers of an enterprise determine the overall goals and development direction of the enterprise based on the characteristics of the enterprise and the analysis of the internal and external environment, and formulate and implement the overall development plan of the enterprise. It includes the overall corporate strategy and product portfolio, market competition, technological innovation, corporate culture, corporate image, human resources, financial and other strategies, and basically covers the entire process of corporate emergence and development.

Mature strategic management theory believes that strategic management is a dynamic process consisting of four different stages: environmental analysis, strategy formulation, strategy implementation, and strategic control. This process is constantly repeated and updated. Theoretically, the strategic management of enterprises is usually studied step by step according to the above sequence. However, in practical applications, these steps often occur at the same time, or are performed differently from the above steps.

This requires enterprise managers to creatively design and apply strategic management systems, and this system should be flexible enough to adapt to the ever-changing external environment faced by the enterprise. This dynamic process is theoretically called the strategic management process. Based on the theory of strategic management process, the research on dynamic enterprise strategic management started not very long at home and abroad, and is currently in the development stage. Chinese enterprises should attach great importance to strategic management theory research and guide them to remain invincible in the fierce competition.

A complete strategy contains at least three aspects. First, it is a plan, that is, it should map out the future path of the company's development. Strategy draws a blueprint for the company's business direction, so it must be forward-looking and must be used to guide the company's business operations, rather than being an accessory to business operations. Secondly, strategy as a kind of planning has a strong strategic nature. Its purpose is to build consumer loyalty to the company and to gain a sustainable competitive advantage over competitors.

Moreover, strategy should also become a strategy that unifies the decisions and actions of the company's various business divisions, functional departments, different managers, and different employees into one coordinated decision-making and action covering the entire company. method. Within the strategic framework, the dispersed actions across departments within the company will form a whole centered on unified goals and strategies, and individual efforts will be condensed into a team effort with the same direction.

Finally, for a successful company, it is not enough to just have a perfect strategic plan. It requires a reasonable allocation of company resources according to the strategy and ensuring that coordinated actions are taken under the guidance of the strategy from beginning to end. It's important. A necessary and sufficient condition for excellence in strategic management is the formulation and excellent execution of an excellent corporate strategy.

Corporate strategy is actually the overall strategic planning of a company with diversified businesses. It includes various measures taken by the company to establish corresponding positions for each business unit involved in their respective industries. Strategies and actions, as well as the strategies and methods used by the company to manage the interrelationships and coordinated development of its diverse businesses. Business strategy refers to the strategic planning of certain businesses of the company. The core question it needs to answer is how to establish and strengthen the company's competitive position in the industry market, especially the long-term competitive position.

A company's business strategy includes various business strategies and action plans formulated by managers to achieve success in a certain business field. In a single-business company, its business strategy is actually its corporate strategy. Functional strategy refers to the strategic plan formulated by managers for specific functional activities, business processes or important departments within the business area that play a key role in business strategy.

The primary task of functional strategy is to support the business strategy and competitive strategy. Each business activity and organizational unit in the company that plays a key role in business strategy should have a functional strategy: such as marketing, customer service, product research and development, production, finance , human resources, information systems, warehousing and logistics, etc. Business operation strategy refers to the front-line organizational units in a certain business (such as production workshops, regional sales centers, industry customer service centers, etc.) and how to carry out daily management tasks of strategic importance (such as raw material procurement, inventory control, advertising placement, staff training, customer management, etc.).

The business operation strategy is at the bottom of the strategy, and it only focuses on a narrow range of strategic actions and business strategies. However, it further refines the functional strategy and business strategy, and also provides functional strategies and business strategies. The implementation of business strategy provides guarantee, so in terms of importance, it is not inferior to the other three levels of strategy.

Strategic decision makers find the best choice from various feasible strategic options. In this decision-making process, some quantitative methods are mainly used, but it is not the comparison of quantitative methods that can achieve the goal, because their decision-making process will be affected by cultural, political, and board of directors factors. Enterprise strategic management is an enterprise's full use of its human, financial, material and other resources at the macro level through analysis, prediction, planning, control and other means to achieve the purpose of optimizing management and improving economic benefits. As a business operator, the first problem you should consider and start to solve is that in recent years, the global economy has undergone tremendous changes, the economic environment has become increasingly complex and unpredictable, and competition is extremely fierce, which not only poses challenges to large enterprises, but also Moreover, it has put forward higher requirements for many small and medium-sized enterprises. Without scale, brand, and characteristics, they are likely to be eliminated. However, possessing these cannot be obtained in a moment. They need to have a strategic vision. From now on, the system , carry out strategic planning for the enterprise, so as to find the best path suitable for its own growth. The famous American futurist Toffler said in the book "Enterprises must face the future":

Strategic planning, no matter how big the enterprise is, how stable its position is, how good the existing situation is, it will all be in the future. This revolutionary technological and economic change has lost its survival conditions. One-third of the top 500 companies in the United States are eliminated every ten years.

Strategic management is a continuous cycle. , a process that never ends, rather than a simple event with both a starting point and an end, whether it is the company's vision and business mission, goal system, specific strategy, or the process of strategy implementation, changes in the external environment or internal operations. In a world where everything has become common sense, the concept of core competencies may seem mundane to the competitiveness of sports or business. The importance of behavior is obvious. The above is my simple experience after reading this book.

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