1. Development-oriented strategies include integration strategy, diversification strategy, and intensive growth strategy.
Integration strategies include vertical integration strategies and horizontal integration strategies. For example, if Anta sets up its own flagship store, it is a forward integration in vertical integration, and if it sets up a garment factory, it is backward integration. If it controls other brands of clothing, it is horizontal integration.
Types of diversification strategies include: concentric diversification and centrifugal diversification. For example, Gree Electric Appliances now produces other electrical appliances in addition to air conditioners, which belongs to concentric integration, it borrows the original sales channels, and if it devotes itself to real estate, it is centrifugal diversification.
Intensive growth strategies, also known as enhanced growth strategies, include three types: market penetration strategies, market development strategies, and product development strategies.
2. Stable strategy, also known as defensive strategy and maintenance strategy, includes four types: suspension strategy, no change strategy, profit maintenance strategy, and cautious forward strategy.
3. Contraction strategy, also known as retreat strategy, includes three types: transformation strategy, abandonment strategy, and liquidation strategy.
The advantages of a cost leadership strategy include the ability to resist the attacks of competitors, the ability to negotiate with suppliers, and the formation of barriers to entry.
4. The applicable conditions of the cost leadership strategy: the market demand has a large price elasticity; most of the enterprises in the industry produce standardized products, and the price factor determines the market position of the enterprise; there are few ways to achieve product differentiation; most customers use the products in the same way; when the user buys from one seller to another seller, the conversion cost is very small, so they tend to buy the most favorable price products.
5. The risks of adopting a differentiation strategy include: competitors may imitate the market penetration strategy of the enterprise, so that the difference disappears; maintaining product differentiation is often at the cost of high costs; product and service differentiation loses meaning to consumers; the cost gap with competitors is too large; and enterprises sometimes have to give up the goal of obtaining a higher market share if they want to obtain product differences.
6. Centralized strategy can be divided into: centralized cost leadership strategy and centralized differentiation strategy. The conditions of the concentration strategy include: the enterprise has limited resources and capabilities, it is difficult to achieve cost leadership or differentiation in the whole industry, and only individual market segments can be selected; the target market has a large demand space or growth potential; and the competitors in the target market have not yet adopted a unified strategy. The risks of implementing a concentration strategy include the possibility of imitation by competitors, a decline in demand in the target market due to technological innovations, the emergence of substitutes, etc., an influx of competitors into the target market segment due to too little differentiation from other market segments, and re-segmentation by new entrants.
The steps of enterprise planning overall strategy, how to do strategic planning? Talk about the tasks that need to be completed by strategic planning positions or departmentsWhat is the development strategy? Development strategy refers to the long-term development goals and strategic plans formulated and implemented by enterprises on the basis of combined analysis and scientific prediction of the actual situation and future trends. To put it simply, strategic management is to plan the overall development goals of the enterprise, the ways and means to achieve the goals of the enterprise in view of the internal and external changes in the business environment, and the survival and development of the enterprise.
Strategic management can be said to be the overall management of the enterprise, in general, strategic management can be divided into three parts: strategic research, strategic planning, strategic implementation. Don't talk about the theory of management tools, the industry is already very mature, you just need to implement it and use it in combination with the company's own situation.
1. Strategic research
Strategic research is about figuring out what I'm doing, what others are doing, what I can do, and how I should do it. The macro environment, the meso industry, the micro competitors and themselves.
2. Strategic planning
This module undertakes the research results and uses them to formulate the company's strategy, and then guide the implementation of the strategy. Enterprise strategic planning generally sets up three levels:
1) Overall strategy;
2) business strategy;
3) Functional strategy.
Their respective concerns are different. The overall strategy refers to what the group company wants to do, focusing on the vision, mission, goals, values, development strategy, etc. Through comprehensive and systematic analysis, the overall strategy is formulated, which provides overall decision-making support for the development of the group and guides the overall development of the group.
Business strategy refers to the strategy of a specific product (product group). Focus on business patterns, business areas, key businesses, critical paths, etc. Based on the overall strategic direction and objectives of the Group, determine the basic business pattern areas, focus on key businesses, and establish key path initiatives.
Functional strategy refers to the strategy of a functional system (department). Focus on functional system support: R&D, production, quality, marketing, human resources, finance, etc. Based on the overall strategy and business strategy, formulate the plans of each system functional department, regularly review the achievement of indicators, measures and action plans, and continuously analyze, follow-up, optimize and rectify.
After talking about the levels, talking about the steps, in general, there are several big steps:
a) Strategic direction (used to set vision, mission, goals, and priorities);
b) Business portfolio (used to integrate my own business structure, business areas, and customer focus);
c) Capacity building (to understand the status of resources, such as existing, self-built, cooperative, M&A, etc.);
d) Business areas (focus on key business areas, market performance, list of key customers, business objectives, business strategy, key strategic paths, product planning, competitor analysis, etc.);
e) Business indicators (pay attention to some human resources and financial data indicators, such as KPI indicators, revenue, income statement, product income statement, resource cost, own cost, fixed assets, etc.);
f) Strategic initiatives (key strategic paths, strategic initiatives, such as major projects, key action plans, key tasks);
g) Conduct appraisal (i.e., follow-up management, monthly analysis, quarterly review, annual evaluation, etc.).
That's basically all there is to strategic planning.
Under normal circumstances, large and medium-sized enterprises can do strategic planning, and small enterprises can mix it with business planning, and there is no need to make it too complicated. Enterprises with diversified businesses can propose strategies, and single businesses can be simplified. Generally, it starts in October every year, and then it is set at the beginning of the year.
3. Strategy implementation
It can also be called strategy execution, which doesn't matter, this has always been a difficult problem, and after years of experience, I feel that the implementation of monitoring is still relatively weak, because this involves many people to complete together. Common methods: process opening, performance contract, index hanging, meeting system.
Knowing the three broad frameworks of strategic management is much easier to do, what are the specific tasks that need to be completed at each stage?
Zero, the strategic system
When a large army goes out, it must first establish military law, otherwise it will be chaotic.
1. Analyze and identify the risks that may arise in the process of formulating and implementing the development strategy, and establish a key point control plan for the risks existing in the process of development strategy management.
2. Build a strategic management system, formulate strategic management processes, operation specifications, management methods, authorization systems and monitoring systems, and continuously improve, maintain and optimize.
1. Strategic intelligence
Intelligence gathering is the first step in starting strategic research.
3. Collect, collate and analyze the macro economy and policies, industries, customers, competitors, suppliers, benchmarking enterprises, products and technologies, people, internal and comprehensive information and other information related to the enterprise, dig deep into the information, gain insight into the changes in the internal and external environment of the enterprise, and provide reliable information basis for the company's decision-making.
4. Study the development strategy and management mode of benchmarking enterprises, and summarize the experience that can be used for reference.
5. Connect with external think tanks (such as universities, research institutes, etc.), collect and study information closely related to the company's development, carry out targeted research, form research reports, and provide support for the company's decision-making.
2. Strategic analysis
Strategic analysis is the second step in completing strategic research.
6. Analyze the external environment such as macro, industry, competition, and competitive advantages of the country and region of the enterprise, and provide external information support for the formulation of the company's strategy.
7. Analyze the internal environment of the company's resources and capabilities, value chain, business portfolio, etc., and provide internal information support for the formulation of the company's strategy.
8. Comprehensively consider the internal conditions and various factors of the external environment, conduct a systematic and comprehensive evaluation of the enterprise, and provide information analysis support for the formulation of the company's strategy.
3. Strategic choices
Strategic choice is the first step to start strategic planning.
9. Study the main types of the overall strategy of the enterprise and the main ways of the development strategy, and select the best overall strategy type and development strategy approach for the enterprise in combination with the actual situation.
10. Study the basic competitive strategy of the business unit of the enterprise, the competitive strategy of the enterprise of the same scale and the blue ocean strategy, and select the best business unit strategy for the enterprise based on the actual situation.
11. Study the steps of the overall strategy of strategic enterprise planning in terms of marketing, research and development, production and operation, procurement, human resources and finance, and select the best functional strategy for the enterprise according to the actual situation.
12. Study the motivation of enterprise internationalization, the mode of international market entry, the strategic type of international operation and the enterprise strategy of emerging markets, and choose the best international business strategy for the enterprise according to the actual situation.
Fourth, strategy formulation
Strategy formulation is the second step in strategic planning.
13. Formulate enterprise development goals, formulate strategic plans according to enterprise development goals, organize relevant departments to conduct feasibility studies and scientific demonstrations on development goals and strategic planning, form development strategy construction plans, listen to the advice of external experts, and submit enterprise development strategy plans to the president and the board of directors.
14. Adjust and improve the development strategy plan according to the deliberation opinions of the board of directors, form an official document of the enterprise development strategic planning plan after submitting it for approval, and release the enterprise development strategy plan.
Fifth, the business plan
The business plan is the third step to complete the strategic plan.
15. Decompose and implement the development strategy of the enterprise, do a good job in the publicity of the development strategy of the enterprise, do a good job in the construction of software and hardware supporting facilities of the enterprise, and formulate the annual business plan according to the development strategy of the enterprise.
16. Prepare a comprehensive budget and submit it for approval.
Sixth, the implementation of the strategy
Strategy implementation is the first step to start strategy implementation.
17. Decompose and implement the annual business plan and objectives of the subordinate units or departments, supervise relevant departments, carry out work according to the enterprise development strategy, and strategically control the implementation of the enterprise development strategy through budget control, performance measurement, statistical analysis and special reports and other management means.
18. By promoting the optimization of the organizational structure of the enterprise, the construction of the corporate culture, and the reasonable resolution of the contradictions and balances of the interests of the stakeholders of the enterprise in order to effectively use power, improve corporate governance and give full play to the role of information technology in strategic management, it provides a strong measure guarantee for the implementation of the enterprise strategy.