Analysis of the environment. Analysis of the external and internal environment of the enterprise
MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION
FEDERAL STATE BUDGET EDUCATIONAL INSTITUTION OF HIGHER PROFESSIONAL EDUCATION
SAINT PETERSBURG STATE UNIVERSITY OF ECONOMY
DEPARTMENT OF MANAGEMENT AND PLANNING OF SOCIO-ECONOMIC PROCESSES NAMED AFTER YU.A. LAVRIKOV
COURSE WORK
Analysis of the external and internal environment of the organization
Discipline: THEORY OF MANAGEMENT
Completed by a student
Selyuzhitskaya Ekaterina Gennadievna
Head Novikova Yulia Andreevna
SAINT PETERSBURG
Introduction
Theoretical foundations of the analysis of the external and internal environment of the organization
1 The concept and meaning of the internal and external environment of the organization
3 Organizational environmental factors
Analysis of the internal and external environment of the organization
1 SWOT analysis
2 Strategic analysis of the internal environment: SNW analysis
3 Strategic analysis of the macro environment: PEST analysis
Conclusion
List of sources used
INTRODUCTION
Every organization is located and operates in the environment. Each action of all organizations without exception is possible if the environment allows its implementation. In order to determine the strategy of the organization's behavior and put this strategy into practice, management must have an in-depth understanding of both the internal environment, its potential and development trends, and the external environment - this is the relevance of this topic.
The internal environment of an organization is the source of its lifeblood. It lies in itself the potential that enables the organization to function.
The external environment is a source that feeds the organization with the resources necessary to maintain its internal potential at the proper level. The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. At the same time, both the internal environment and the external environment are studied by strategic management in the first place in order to reveal those threats and opportunities that the organization must take into account when defining its goals and achieving them.
The purpose of this work is to assess the influence of factors of the external and internal environment on the behavior of the organization.
To achieve this goal, it is necessary to solve the following tasks:
Formulate the concept and determine the meaning of the internal and external environment of the organization;
Determine the direction of analysis of the internal environment of the organization;
Identify the factors of the external environment of the organization;
Explore methods for analyzing the internal and external environment of the organization: SWOT-analysis, SNW-analysis, PEST-analysis;
Conduct a SWOT-analysis of the activities of OJSC "Belacard" and develop recommendations for developing a development strategy for this enterprise.
The subject of the study is the factors and conditions of the external and internal environment of the organization.
The object of the study is the production and economic activity of Belcard OJSC.
In the course of writing the work, such research methods as analysis and synthesis were used to achieve the goals and objectives.
During the study, periodicals, textbooks and works of such authors as: Velesko E.I., Vikhansky O.S., Demchuk O.N. and etc.
This work consists of two chapters. The first chapter reveals the theoretical foundations of the analysis of the external and internal environment of the organization. In the second chapter, methods for analyzing the internal and external environment of an organization are considered and a SWOT analysis of the activities of a particular organization is carried out.
1. THEORETICAL FOUNDATIONS FOR ANALYSIS OF THE EXTERNAL AND INTERNAL ENVIRONMENT OF THE ORGANIZATION
1 The concept and meaning of the internal and external environment of the organization
Every organization is located and operates in the environment. Each action of all organizations without exception is possible only if the environment allows its implementation.
Various definitions of the external and internal environment of an organization can be found in the literature. Let's consider some of them:
Kabushkin understands situational factors within the organization as the internal environment of the organization, such as the goals of the organization, organizational structure, tasks, technology and people.
All internal variables are interconnected. Changing one of them to some extent affects all others. Improvements in one variable, such as technology, may not necessarily lead to productivity improvements if those changes negatively affect another variable, such as people.
Wikhansky gives the following definition: the internal environment of the organization is the source of its vitality. It contains the potential that enables the organization to function, exist and survive in a certain period of time.
The study of the internal environment is aimed at understanding what strengths and weaknesses the organization has. Strengths serve as the basis on which the organization relies in the competitive struggle and which it should strive to expand and strengthen. Weaknesses are the subject of close attention from management, which must do everything possible to get rid of them.
External environment. J. Bell defines it as follows: "The external environment of the organization includes such elements as consumers, competitors, government agencies, suppliers, financial institutions and sources of labor resources."
The external environment in management should be understood as a set of interrelated external factors that change properties that affect the organizational system.
External factors are basically uncontrollable forces that affect the decisions and actions of managers and, ultimately, the internal structure and processes in the organization.
The external environment is a source that feeds the organization with the resources necessary to maintain its internal potential at the proper level. The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. However, the resources of the external environment are not unlimited and are claimed by many organizations located in the same environment. Therefore, there is always the possibility that the organization will not be able to obtain the necessary resources. This can weaken its potential and lead to many negative consequences for the organization.
The external environment is usually divided into the following components:
The microenvironment has a direct impact on the enterprise.
The macro environment affects the enterprise and its micro environment.
The generalized characteristics of the external environment include:
The interconnectedness of factors: the strength with which a change in one factor affects other factors;
Complexity: the number and variety of factors that significantly affect the organization;
Primacy: relative rate of environmental change;
Uncertainty: The Relative Amount of Information about the Environment and the Confidence in its Accuracy.
When considering the influence of the external environment on the management of an organizational system, it is important to understand that the characteristics of the environment are different, but at the same time related to its factors. The characteristics of interconnectedness, complexity, fluidity and uncertainty describe both direct and indirect impact factors.
The success of the functioning of enterprises in conditions of strong competition and constant changes, both in the external and internal environment, largely depends on the professional training of management personnel, their ability to quickly identify ongoing changes and observed trends in order to recognize emerging threats, emerging opportunities and favorable opportunities in a timely manner. situation and take reciprocal action steps to ensure adaptation to the prevailing situation.
Environmental analysis is usually considered the initial process of strategic management, as it provides the basis for defining the mission and goals of the firm and for developing behavioral strategies that allow the firm to fulfill the mission and achieve its goals. The analysis of the environment involves the study of its three parts: the macro-environment, the immediate environment and the internal environment.
Thus, the idea of both the internal environment of the organization, its potential and development trends, and the external environment, its development trends and the place occupied by the organization in it, helps to determine the strategy of the organization's behavior to put this strategy into practice.
The internal environment of an organization is that part of the overall environment that is located within the organization. It has a permanent and most direct impact on the functioning of the organization.
Intra-company strategic analysis is a comprehensive study of the key areas of the enterprise, the definition of its strengths and weaknesses, resources and reserves for further development.
Analysis of the internal environment of the organization is called the management analysis of the enterprise, business diagnostics, problem analysis.
Management analysis is necessary to develop an organization's development strategy, assess the attractiveness of an organization for an investor, and determine a company's rating.
The main purpose of this analysis is to study the internal environment of the enterprise, which contains the sources of its competitive advantages.
The internal environment has several sections, in aggregate, the state of which determines the potential and the opportunities that the organization has.
The personnel profile of the internal environment covers such processes as:
Interaction between managers and workers;
Recruitment, training and promotion practices;
Evaluation of labor results, stimulation and motivation of personnel;
Opportunity to attract additional qualified specialists;
Establishing and maintaining relationships between employees;
Skill level of existing workers;
The main concern of the modern organization has become the selection and support of talented managers. George Steiner in his study asked the leaders of a number of firms to rank 71 factors in terms of importance for them in relation to the last five years. Factors included: general management, finance, marketing, materials, manufacturing, and finished products. In terms of labor resources, two factors were quoted above others: attracting highly qualified senior managers and training capable managers within the firm.
The fact that managerial development has been more important than profits, customer service, and the payment of acceptable dividends to shareholders is a clear sign of the importance of the influx of this category of labor into the organization. Support for talented managers is often a problem of face-to-face negotiations with candidates for a position who are offered fairly high salaries and benefits. For the most part, organizations are also trying to solve the problem of securing the right workforce by training and supporting their own employees.
Organizational cut includes:
Communication processes;
Organizational structures;
Norms, rules, procedures;
Hierarchy of subordination;
Distribution of rights and responsibilities;
Delegation of powers and control system;
The marketing section of the internal environment of the organization covers the following aspects that are associated with the sale of products:
Product strategy, pricing strategy;
Target market segments;
Real market share of the organization;
Marketing strategy for the product;
Practice of sales promotion and product promotion;
Experience in marketing research.
The financial cut includes processes related to ensuring the effective use and movement of funds in the organization:
The level of profitability of sales, equity capital, investments;
Maintaining liquidity, securing profits;
Availability of own financial reserves;
Opportunity to attract additional financial resources;
Investment policy;
Setting up a financial management system;
Ensuring continuous and positive cash flow.
The production line includes:
Product manufacturing;
Supply and storage management;
Technological park maintenance;
Carrying out research and development;
Flexibility of production lines;
The practice of planning and management.
The internal environment of the organization is completely permeated with organizational culture, which should also be subjected to serious study.
Organizational culture is manifested in the way the employees of the organization carry out their work, how they relate to each other and to the organization as a whole. Organizational culture can contribute to the fact that the organization acts as a strong, stable structure surviving in the competitive struggle. However, it may be that the organizational culture weakens the organization, preventing it from successfully developing even if it has a high technical and technological potential. The particular importance of the analysis of organizational culture for strategic management lies in the fact that it determines not only the relationship between people in the organization, but also has a strong influence on how the organization builds its interaction with the external environment, how it treats its customers and what methods it chooses for conducting competition.
In-house strategic analysis is based on systematic and integrated approaches, as well as the dynamic principle and the principle of comparative analysis.
The system approach represents the enterprise as an open complex system.
An integrated approach determines the analysis of all elements of the enterprise in their relationship.
The dynamic principle means considering the indicators and characteristics of the enterprise in dynamics.
The principle of comparative analysis determines the comparison of performance indicators of the enterprise with similar indicators of the best economic entities in the industry.
The strategic analysis of the internal environment of the organization is carried out according to the following scheme:
analysis of business units;
analysis of functional services;
analysis of structural divisions;
business process analysis.
Thus, the internal environment of the enterprise is the source of its vitality and potential, providing the possibility of functioning, and therefore, existence and survival in a certain period of time. However, problems and even the threat of the death of the enterprise can emanate from it if the environment becomes hostile to its main activity. An analysis of the internal environment is necessary to develop an organization's development strategy, assess the organization's attractiveness to an investor, and determine the company's rating.
1.3 Organizational environmental factors
external internal environment
The external environment of the organization is increasingly becoming a source of problems for their leaders, who are forced to focus on the rapidly changing external environment and its impacts, so it is necessary to carefully analyze the environment in which the organization is located.
The external environment is understood as the environment of the firm, on the actions of which it usually cannot influence. The practical meaning of the analysis of the external environment for the company is to identify threats and opportunities for business that may arise from the processes taking place outside of it.
The external environment is not only a supplier of resources for an enterprise, but also a set of active business entities, economic, social and natural conditions, national and interstate institutional structures and other external conditions and factors operating in the environment of an enterprise and affecting various spheres of its life.
Distinguish between the environment of direct influence (microenvironment) and the environment of indirect influence (macroenvironment).
The external environment of direct impact is the specific external environment of a particular organization. It includes those elements of the external environment with which the organization interacts constantly or on a more or less regular basis.
The main environmental factors of the direct impact of a commercial organization include: suppliers, consumers, competitors, laws and government agencies, trade unions.
Let's consider each factor in more detail.
From the point of view of the system approach, the organizational system is a mechanism for transforming inputs and outputs. The main types of inputs are materials, capital, labor resources, etc. The dependence between the organizational system and the network of suppliers that provide the input of these resources is one of the most striking examples of the direct impact of the external environment on the operations and success of the organization. Therefore, when choosing suppliers, it is important to deeply and comprehensively study their activities and their potential. The competitive strength of the supplier depends on such factors as the level of specialization of the supplier, the cost to the supplier of switching to other customers, the degree of specialization of the buyer, the concentration of the supplier on working with specific customers, the importance of sales volume to the supplier.
The relationship with consumers is also important. In a true market economy, consumers, by deciding which goods and services they want and at what price, determine for the organization almost everything related to its performance. Thus, the need to meet the needs of customers affects the interaction of the organization with suppliers of materials and labor resources. Buyer analysis is primarily concerned with profiling who buys the organization's product.
A buyer profile can be compiled according to the following characteristics:
geographic location;
demographic characteristics (age, education, field of activity);
socio-psychological characteristics (position in society, style of behavior, tastes, habits);
the attitude of the buyer to the product (why he buys this product, how he evaluates the product).
Competitors are the most important factor, the influence of which cannot be disputed. The management of each enterprise is well aware that if the needs of consumers are not met as efficiently as competitors do, then the enterprise will not last long. In many cases, it is competitors, not consumers, who determine what kind of performance can be sold and what price can be asked. It is important to understand that consumers are not the only object of competition for organizations. Organizations may also compete for labor, materials, capital, and the right to use certain technical innovations. The reaction to competition depends on such internal factors as working conditions, wages and the nature of the relationship of managers with subordinates.
State influence is carried out through the legislation of the activities of state bodies. Legislation regulates labor relations between employees and employers, tax and customs relations, labor protection, conditions for the production of certain types of products, protection of consumer rights, environmental impact on the environment.
State bodies according to the nature of their functions can be conditionally divided into regulatory and supervisory. At the same time, various methods and methods of influencing organizations are used - setting tax rates and quotas, issuing licenses, regulating prices and tariffs, determining construction sites.
Environment of indirect influence. Many of the core elements of the external environment are common to most organizations at some point in time.
The main environmental factors of indirect impact are shown in Figure 1.1
The study of economic factors allows us to understand how resources are formed and distributed. It involves the analysis of such characteristics as the value of GNP, inflation rate, unemployment rate, interest rate, labor productivity, taxation rates, balance of payments, savings rate, etc. when studying economic factors, it is important to pay attention to the general level of economic development, extracted natural resources, climate, type and level of development of competitive relations, population structure, the level of education of the labor force and wages.
Environmental factors have a remote influence on the decision-making process in management. Concerns about environmental protection lead to the adoption of special legislation on air and water purification, which in turn determines the behavior of enterprises.
Socio-cultural factors are defeated by dynamics. They are constantly changing, as people invariably try to control or adapt their environment to reality in accordance with their desires and needs. Socio-cultural conditions influence manager's decisions. So, they determine how consumers will accept the product, and what product they would like to accept. In the analysis of socio-cultural factors, changing social values, attitudes, attitudes, expectations and mores, cultural values are studied. It should also be taken into account that in each country there are ideas about ethical business practices and the necessary service quality standards.
Political factors determine the general political situation in the country, its level of stability and predictability. A high level of political risk leads to a slowdown in the scientific and technical renewal of production, obsolescence of the structure, and a decrease in the competitiveness of national enterprises. At the same time, such important driving forces as the change in the socio-political system, outbreaks of religious intolerance and the revival of nationalism should be taken into account. We cannot discount the threat of armed conflicts, a sharp reduction in imports or exports, the imposition of embargoes and various trade sanctions designed to economic suppression.
Technology is both an internal variable and an external factor of great importance. As an external factor, it reflects the level of scientific and technological development that affects the organization, for example, in the areas of automation, informatization, etc. Technological innovations affect the efficiency with which products can be made and sold, the rate of product obsolescence, how information can be collected, stored and distributed, as well as what kind of services and new products customers expect from the organization. In order to remain competitive, each organization is forced to use the achievements of scientific and technological progress, at least those on which the effectiveness of its activities depends.
The researchers have described the rate of technology change in recent decades and argue that this trend will continue. One of the reasons for this phenomenon is that there are more scientists on earth today than there were in the world before. Some recent major technological innovations that have deeply affected organizations and society are computer technology, laser technology, microwave technology, semiconductor technology, integrated communication lines, robotics, satellite communications, nuclear power, synthetic fuels and foodstuffs, and genetic engineering.
Environmental factors of indirect impact have a more complex structure, multifaceted nature. They, to a lesser extent than environmental factors of direct impact, are influenced by the organization. Information about the indirect impact environment is often incomplete. In the context of the increasing impact of this environment on the competitiveness of the organization, one has to rely on subjective assessments, and not on analytical data.
Macro-environmental factors differ significantly from country to country. This must be taken into account by organizations involved in international business.
Thus, the external environment can be divided into the environment of direct impact and indirect impact. For the effective functioning of the organization, it is necessary to carefully study the external environment and be prepared for its changes. The value of the analysis of the external environment for the company is to identify threats and opportunities for business that may arise from what is happening outside of its processes.
2. ANALYSIS OF THE INTERNAL AND EXTERNAL ENVIRONMENT OF THE ORGANIZATION
1 SWOT analysis
Any segmentation begins with a comprehensive study of the market situation in which the company operates, and an assessment of the types of opportunities and threats that it may face. The starting point for such a review is the SWOT analysis, which is the most widely used complex method of strategic analysis in foreign and domestic academic circles and among practitioners. In the classical form, the analysis of strengths (Strengts), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) was developed in the second half of the 1960s.
Typically, SWOT analysis is used to identify and assess the degree of impact, to study the directions of influence and the strength of the relationship between various factors in the external and internal environment of the enterprise, as well as to establish the state of affairs in it and develop a development strategy.
When conducting an analysis based on this method, the following steps are carried out:
Step 1: defining the object of the SWOT analysis;
Step 2: analysis of the internal environment and activities of the facility to identify its strengths and weaknesses;
Step 3: analysis of the external micro- and macroenvironment in order to identify opportunities and threats for the object of study;
Step 4: comparative analysis of the object based on qualitative and quantitative assessments;
Step 5: identification of the main strategic directions and development of recommendations for their practical implementation.
In the process of SWOT analysis, lists of external and internal factors are formed with their grouping into positive and negative. The result is four sets of factors:
Positive internal factors are the strengths of the enterprise;
Negative internal factors - weaknesses of the enterprise;
Positive external factors - opportunities for the enterprise;
Negative external factors are threats to the enterprise.
The set of factors can be represented as a SWOT analysis matrix in Figure 2.1
Source: .
Thompson and Strickland proposed the following rough set of characteristics, the conclusion of which should allow a list of the organization's weaknesses and strengths, as well as a list of threats and opportunities for it, concluded in the external environment.
Strengths:
Outstanding Competence;
Adequate financial resources;
High qualification;
Good reputation among buyers;
Renowned market leader;
Inventive strategist in the functional areas of the organization;
Time-tested management;
Availability of innovative abilities and opportunities for their implementation;
Advantages in the field of competition;
Cost advantages;
Suitable technology;
The possibility of obtaining savings from the growth of production volume.
Weak sides:
Lack of a clear strategic direction for development;
Poor distribution network;
Poor organization of marketing;
Insufficiently positive image in the market;
Too narrow range on the market;
Backlog in research and development;
Internal production problems4
Lack of managerial talent and skill.
Opportunities:
Entering new markets or market segments;
Expansion of the production line;
Increasing diversity in related products;
Acceleration of market growth;
Complacency among competing firms;
Vertical integration;
The emergence of new technologies.
Adverse demographic changes;
Changing needs and tastes of customers;
Unfavorable government policy;
Increasing competitive pressure;
Recession and business cycle fading.
After studying each group of factors and checking the synergy effect from the mutual influences of factors, the corresponding enterprise strategy is entered into the cells of the matrix.
Analysis of the cells of the matrix and combining factors from a subset of opportunities and threats with elements of a subset of weaknesses and strengths of the enterprise allows you to form four general strategies for the enterprise, presented in table 2.1.
Table 2.1
Enterprise strategies
Let's look at the table in more detail. If an enterprise has more strengths than weaknesses, and the market opens up a number of new opportunities for it in the absence of threats, then in such a situation the “max-max” strategy is applied. The "max-max" strategy implies that in such a position, the company must take actions to strengthen its position in the market by increasing market share, diversifying products and offering all kinds of new products.
With the predominance of weaknesses and the organization's action in a favorable external environment, the "mini-max" strategy is applied. The essence of this strategy is that the company should strive to selectively improve its competitive position, increase market share and at the same time get rid of weaknesses, seeking to improve the financial situation, reduce costs and increase the competitiveness of their products.
If the enterprise is characterized by a predominance of strengths, but there is an instability of the environment, then the “maxi-mini” strategy is applied. The essence of the strategy lies in the fact that the instability of the external environment involves the active use of advantages to overcome threats coming from outside, the search for favorable niches in the market and the subsequent increase in its share in them, cost reduction and product modernization.
Internal instability and inability to effectively counter external threats suggests the use of a "mini-mini" strategy: a gradual decrease in activity and a smooth transition from this area of activity. This allows the company to avoid possible losses and losses.
In addition to determining the strategy of the organization, SWOT analysis suggests answers to strategic questions:
What strengths should be developed and maintained to increase the competitiveness of the organization in the market;
What weaknesses should be eliminated first;
What threats should be protected from immediately;
What opportunities can be beneficial?
To obtain effective results, it is necessary to take into account all the features of this analysis:
Primary information must be complete, up-to-date, relevant and reliable;
In expert assessments, it is important to avoid subjectivity and lack of competence;
The emphasis on integral assessments can distract from particular parameters and factors, without which a detailed analysis of the enterprise and its environment is impossible;
Excessive enthusiasm for formal methods can interfere with qualitative analysis.
Consider an example of a SWOT analysis based on Belcard OJSC.
During the analysis, we carried out the following steps:
Step 1: the object of analysis is determined - Belcard OJSC.
Step 2: analysis of the internal environment of the organization, identified strengths and weaknesses. The strengths of the object of analysis are a high share in the CIS market, a gradual increase in the range of products, good relations with creditors, and the introduction of new technologies at the enterprise.
Weaknesses - a decrease in the number of employees (217 people decreased in 2010, mainly due to a reduction in the number of key workers), most of the equipment at the enterprise is obsolete, a decrease in profitability.
Step 3: analysis of the external environment of Belcard OJSC, opportunities and threats were identified. Opportunities: entering new markets, expanding the dealer network. Threats: deterioration of the economic situation in the country, tougher competition.
Step 4: comparative analysis of the object.
We will present the SWOT analysis of Belcard OJSC in the most detailed way in the form of table 2.2.
Table 2.2 analysis of Belcard OJSC
FactorsInternal environmentExternal environmentInfluence on the activity of the enterprise is positiveStrengths: -High qualification of management personnel (according to the qualitative composition of management employees with higher education 61%, with secondary specialized 39%.) -The share of Grodno Belcard OJSC in the CIS market is over 50%. -Good relations with creditors: absence of overdue debts on formalized obligations to banks. - In 2013, the production of over 40 new items was mastered. - A set of works is being carried out to introduce "CALS" technologies at the enterprise. - The main attention during research work in the last decade has been paid to improving the technical level of serial cardan shafts: reducing material consumption, improving the quality of components, introducing new materials and advanced technologies. - Extensive experience, the plant has been operating for about 60 years. Possibilities: - expanding the boundaries of the market in the CIS countries; - development of new types and standard sizes of products of far-abroad countries. - creation of dealer centers in the CIS countries; - preparation of justifications and proposals for the creation of new and improvement of products; - definition of measures to stimulate sales. - the presence of strategic interests among investors - for the development of the enterprise, opportunities are used to raise funds from various sources (targeted budget financing, own funds, an innovation fund); or the absence of a distribution network in the intended markets; lack of own funds necessary to ensure the normal operation of the enterprise; - a decrease in the efficiency of Belcard OJSC, as evidenced by a decrease in product profitability and sales profitability. Threats: - tightening of the competitive situation in international markets. - Appearance on the market of cheaper products of foreign manufacturers (China) - High investment risks - Risk of using modern technologies by competitors - Rising prices for energy resources, for transportation - Deterioration of the economic situation in the country
Organization planning
annotation
This topic discusses one of the main functions of management - planning. You will learn what strategic planning, tactical and current (operational) planning is, get acquainted with the rules of effective planning.
| Keywords: | planning, strategic planning, strategic management, external environment of the organization, internal environment, PEST analysis, threat matrix, opportunity matrix, benchmarking, SWOT analysis, goal, mission, strategy, corporate strategy, business strategy, functional strategy, tactical planning, current (operational) planning, business plan. |
| Issues under consideration: | 1. The concept of planning. 2. Strategic planning and strategic management. 2.1. Analysis of the external and internal environment of the organization. 2.2. Definition of the mission and goals of the organization. 2.3. Selection, implementation and evaluation of the strategy. 3. Tactical and current (operational) planning. 4. The concept, goals and structure of the business plan. |
The concept of planning
Planning- a type of management activity aimed at setting goals for the development of an object and developing a program to achieve them. The planning process is aimed at achieving a state that is desirable for the organization, and cannot be expected to arise by itself. This function is considered leading in the management cycle, since the implementation of others is subject to the task of achieving common goals.
Target selection is one of the most crucial moments in the process of planning the activities of the organization. It is in accordance with the chosen goal that the strategy and tactics of the organization's development are formed, forecasts and action plans are developed, and the results of decisions and actions taken are evaluated. Target- the basis, axis, core around which all management activities are formed. Target- this is a specific state of individual characteristics of the organization, the achievement of which is desirable for it and the achievement of which its activities are aimed at.
Planning is the process by which a system adjusts its resources to changes in internal and external conditions.
With the increase in the rate of changes in the external environment (increase in uncertainty), the evolution of intra-company planning developed as follows:
§ 1900-1930 - management based on control (for example, financial) over the execution of: "the future is a repetition of the past";
§ 1950s - management based on extrapolations, when the pace of change is accelerating, but the future can still be predicted: "the future is a continuation of past trends";
§ 1960s - mid-1980s - management based on the foresight of change, when unexpected phenomena began to appear, the pace of change accelerated, but not so much that it was impossible to foresee future trends in time and determine the reaction to them: “only new problems and new opportunities are predictable”;
§ present - management based on emergency decisions in conditions where many important tasks arise so rapidly that they cannot be foreseen in time.
In modern conditions, for the effective implementation of business processes, it is necessary to comply with planning principles.
Unity principle assumes that intra-company planning is a system consisting of elements - objects and subjects of planning that implement the function of planning the activities of both the organization as a whole and individual departments.
Continuity principle is based on the fact that the process of developing plans should be regularly repeated at regular intervals and adjusted based on the results of the implementation of previous plans, taking into account changes in the external environment.
Principle of Flexibility provides for the need for each plan to have reserves that can reduce possible risks due to unforeseen circumstances.
Justification principle plans are implemented through the use of certain methods or their combination, depending on the object of planning. To implement this principle, high-quality information support for the planning process, a professional approach to the development of planning documents are relevant. It is also necessary to focus on predictive calculations of market needs, trends in its development, taking into account internal capabilities and resources, and balancing all sections and indicators of the plan.
The planning process consists of at least five steps.
First stage - forecasting. Forecasting refers to the work done by a manager trying to look into the future. This includes a systematic analysis of a certain range of factors in order to anticipate the opportunities available. At this stage, a risk assessment is given. If the manager systematically engages in forecasting, then such a forecast will help develop a reasonable approach to all plans for the enterprise. Three dimensions are traditionally used in forecasting: time(how far ahead are we trying to look?); direction(what are the trends of the future?); magnitude(how big will the change be?).
Second phase - clarification and selection of development options. In management practice, situations that require the only correct approach are very rare. Therefore, the manager must make a qualitative assessment of the alternatives, compare them in terms of profitability, as well as in terms of the required resources, and choose the most suitable option.
Third stage - goal setting. At all levels of management, the general rule “works”: when a decision is made on a certain course of action, a clear goal and a deadline for achieving it must be outlined.
Fourth stage - development of an action program and scheduling of work. A program of action is a planned and ordered series of forthcoming actions that are necessary to achieve a set common goal. The preparation of such a program begins with an analysis of certain tasks without excessive detail. For the program to be effective, it is necessary to prioritize the implementation of these tasks. Moreover, it is necessary to single out from them those that should receive temporary priority in financing. The main thing is the time sequence of the development and implementation of the program. The first step is to identify the amount of time available to the manager. The next steps include determining the duration of each stage.
Fifth stage - budgeting (budgeting). This is a very important stage, since it includes the cost estimate of the program and the allocation of all resources, primarily financial ones. The budget can be used to control the implementation of the plan and the quality of the management of the enterprise.
General rules for effective planning:
1. Effective planning must necessarily start at the top. All plans must be coordinated and agreed upon at the senior management level. But success will not be possible without the involvement of lower levels of management personnel.
2. Planning cannot be left to chance. The value of planning lies in having a systematic approach to solving problems, in anticipating the difficulties of tomorrow, and in identifying and seizing long-term opportunities.
3. Effective planning requires reliable information. Often the quality of the plan is directly predetermined by the quality of the analytical premises. Planning and information gathering are closely related. Comparison of actual results with plans of previous years serves as the basis for developing plans for the next year, since without taking into account such results, any plans will be useless. The implementation of plans requires constant monitoring, if necessary, revision and adjustment.
4. Psychological factors are essential for effective planning. Contacts between managers of various levels, between management and employees of the organization are very important and significant. It is necessary to strive for communication and mutual understanding between people as a guarantee of successful planning.
The hierarchy of the formation of the planning system of an economic entity determines the dominance of the higher planning process and the formation of the lower plan based on the higher one, as a result of which the following are distinguished types of planning:
Ø strategic planning;
Ø tactical planning;
Ø operational (current) planning.
The main distinguishing features of the various levels of planning are shown in table 10.1.
Table 10.1. – Main features of hierarchical planning levels
| comparative sign | Strategic planning | tactical planning | operational planning |
| Purpose | Long-term existence of the organization in the market and the fulfillment of the main goal | Implementation of strategic plans (primarily in the field of financing, investments, sales, personnel) | Ensuring relative reliability and relative structuring of the organization's activities |
| Subject | Top levels of management | Top and middle levels of management | Middle and lower levels of management |
| planning horizon | Long term (a year or more) | Average (quarter, year) | Short (month) |
| planning range | Wide range of development and diversification options | Alternatives within the selected option | Limited number of ways to act |
| Information sources | Changes in the external environment | Changes in internal conditions under the influence of external changes | Internal conditions (capacities, supply contracts, etc.) |
In general, strategic, tactical and operational planning are interrelated and represent a system of intra-company planning, covering all areas and areas of activity of an economic entity.
Strategic planning and strategic management
Strategic planning is an integral element of strategic management. I. Ansoff determined strategic management as "an activity concerned with setting the organization's goals and objectives and maintaining a set of relationships between the organization and the environment that enable it to achieve its goals, correspond to its internal capabilities and allow it to remain receptive to external requirements."
In strategic management, it is fixed at every moment what the organization must do now in order to achieve the desired goals in the future, while proceeding from the fact that the conditions for its activities will change.
In general, strategic management is a symbiosis of intuition and the art of top management to lead the organization to strategic goals, high professionalism and creativity of employees who ensure the connection between the organization and its products, as well as the implementation of current plans and, finally, the active involvement of all employees in the implementation of the organization's tasks, search for the best ways to achieve goals.
The strategic management process includes strategic analysis, goal setting, strategy selection, strategy implementation, strategy evaluation and control, those. begins with the strategic planning process.
The meaning of strategic planning is the process of modeling the future, in relation to which goals must be defined and the concept of long-term development formulated.
Purpose of the strategic planning process- achieve growth in profits and business as a whole by acquiring a larger number of consumers, customers, buyers. This requires a comprehensive scientific study of the opportunities and threats of the external environment, as well as the strengths and weaknesses of the organization, the problems that the organization may face in the coming period, and on this basis, the development of indicators of its development for the planned period.
In various areas and levels of activity, the following questions should be answered.
ü What are we doing now?
What will we achieve by these actions?
o Why are we doing this?
ü Does what we do meet the requirements of consumers?
o How do we know this?
ü How does what we do compare with our competitors?
To what extent are we able to draw such a conclusion?
ü Are there other ways to achieve the same benefits?
o Should I use them?
How does this contribute to the success of the organization?
ü How does it help to get closer to the main goal of the organization?
Strategic planning is carried out by implementing the following procedures:
Ø analysis of the prospects for the development of the organization;
Ø analysis of the organization's position in the competitive struggle, determination of goals and corporate strategy;
Ø choice of strategy in various activities (functional strategies), selection of priorities and allocation of resources (business strategies);
Ø analysis of diversification directions (assessment of the existing set of activities and identification of new directions).
Analysis of the external and internal environment of the organization
The first step of the diagnostic phase of the strategic planning process is study of the external and internal environment. External environment surrounding the organization is very diverse. It distinguishes macro- and microenvironment of the organization.
Macroenvironment creates conditions common to all organizations. In relation to a single organization, the macro environment usually does not have a specific character. The degree of its influence on different organizations can be different (stronger or weaker) depending on the specifics of the organization and the state of its internal potential. The macroenvironment has the following components: economic, political, legislative, social, technological, environmental.
Microenvironment- this is the immediate environment, which, in turn, consists of many factors: consumers, suppliers, competitors, labor resources, the system of state institutions, etc.
Characteristics of the external environment:
§ complexity, which refers to the number of factors to which the organization is required to respond, as well as the level of variability of each factor. Since different organizations (operating in complex or non-complex environments) operate in different environments, there is no best organizational structure;
§ interconnectedness of factors - the level of force with which a change in one factor affects others. In the 1980s specialists introduced the concept of “chaotic changes” to describe the external environment, characterizing even faster changes and very strong interconnectedness. Survival becomes crucially related to the organization's level of knowledge of its environment;
§ mobility - the speed with which changes occur in the organization's environment. With the general trend of changes in the external environment with increasing speed, there are organizations around which the external environment is the most mobile (for example, in the pharmaceutical, electronic, chemical industries, the rate of change is higher than in the confectionery, furniture industry). In addition, the mobility of the external environment may be higher for some departments of the organization and lower for others (for example, the research and development department - the production department);
§ uncertainty - a function of the amount of information that the organization has about a particular factor, as well as a function of confidence in its reliability.
Analysis of the external environment is an assessment of the state and development prospects of the most important subjects and environmental factors from the point of view of the organization: industries, markets, suppliers and a combination of global environmental factors that the organization cannot directly influence.
The purpose of macro-environment analysis is to track and analyze trends or events beyond the control of the organization that may affect the effectiveness of its activities. Therefore, when analyzing the external environment of a particular enterprise, it is necessary to clearly formulate the goals of the analysis in order to designate the boundaries of information collection, which can be wide (collection of information about all factors of the macro environment of a country, industry), or narrower (factors influencing within a particular region, geographical market etc.).
After analyzing the external environment and obtaining data on hazards or opportunities, management should assess whether the firm has the internal strength to take advantage of opportunities, and what internal weaknesses can complicate future problems associated with external hazards, i.e. analyze the internal environment.
The internal environment is the situational variables within the organization that require the attention of management. These are goals, structure, tasks, technology and people.
There are a large number of methods for analyzing the external and internal environment of an organization: PEST analysis of the macro environment, analysis of the micro environment based on the five forces of competition model by M. Porter, matrix of threats and opportunities, environment profile, benchmarking, SNW analysis, SWOT analysis, Method 5 5 and others.
STER analysis(from the English Society - society (society), Technology - technology, Esonomy - economics, Rolisu - politics). Strategically, the analysis of each of these components should be quite systematic, since all of them are closely and intricately interconnected. A significant change in any of the components, as a rule, affects the entire chain. And such changes for a specific organization in each specific situation can become either a threat, or, conversely, a new strategic opportunity for its future business success ( table 10.2).
Table 10.2 . – RE ST - analysis
| Political and legal environment | P | Economy | E |
| Elections of the President of the Russian Federation Elections of the State Duma of the Russian Federation Stability of the Government Changes in the legislation of the Russian Federation Implementation of federal and regional programs and projects State influence in the industry (including the share of state property) Antimonopoly regulation Tax regulation Legislation on environmental protection Regulation of export-import activities and foreign investment Presence of pressure groups (lobby ) Registration procedures System of control prices and their regulation, etc. | GDP dynamics General characteristics of the economic situation (rise, stabilization, decline) in the country, industry, related industries Forecasted inflation rate Dynamics of the Russian ruble against the US dollar and euro Dynamics of the refinancing rate of the Central Bank of the Russian Federation Export-import policy Unemployment rate Investment activity The main external costs of the organization, including: energy costs; communication services; public utilities; costs for raw materials and materials, etc. | ||
| Scenarios: politics (realistic, optimistic, pessimistic) | Scenarios: economics (realistic, optimistic, pessimistic) | ||
| society | S | Technology | T |
| Changes in basic values Changes in the level and style of life, attitudes towards work and leisure Public attitudes towards business Environmental factor Attitudes towards education Demographic changes (age structure of the population, natural birth and death rates, etc.) Changes in the structure of expenditures Structure of employment Family structure Religious moods in society | State technology policy State and non-state spending on science and technology Significant trends in R&D New patents, new trends in technology transfer Technological changes in the industry, assessment of the rate of change and adaptation of new technologies New products, rates of new product development | ||
| Scenarios: society (realistic, optimistic, pessimistic) | Scenarios: technology (realistic, optimistic, pessimistic) |
PEST analysis is a tool for the historically established four-element strategic analysis of the external environment. But real life, firstly, is wider and more diverse than the four elements that make it up. Secondly, for each specific organization in its external environment there is a special set of key factors that directly and most significantly affect its specific business.
The Five Forces of Competition Model(M. Porter) includes a study of the following factors:
- competition between sellers within the industry;
- attempts by companies from other industries to win over customers with their substitute products;
- opportunities for new competitors to emerge within the industry;
- the ability of suppliers of raw materials and materials used by the organization to dictate their terms;
- the ability of consumers of the organization's products to dictate their terms.
Environment Capabilities Matrix is built as follows: on the left, the vertical is the probability of using the opportunities by the organization, and horizontally, the impact of the opportunity on the organization's activities ( table 10.3).
Table 10.3. – Opportunity Matrix
At the intersection of columns and rows, nine fields are obtained that have different meanings for the organization. Thus, the opportunities that have fallen into the fields of the VS, SS and VU have a significant impact on the activities of the organization, and it must necessarily use them. Opportunities that have fallen into the fields of NU, SM and NM practically do not deserve attention. The remaining opportunities can be used by the organization if sufficient resources are available.
Threat Matrix is compiled to assess the possible consequences that the implementation of the threat may lead to, and the probability of the implementation itself ( table 10.4).
Table 10.4. – Threat Matrix
Threats that have fallen on the fields of BP, SR and VC pose a great danger to the organization and require immediate elimination. Threats located on the fields of BT, SC and HP must also be eliminated as a matter of priority. The threats reflected in the fields of NK, ST and VL require a careful approach to their elimination, but they can be eliminated at a later date. Other threats require careful monitoring of their development.
An alternative method for identifying threats and opportunities in the external environment is environment profile. This method consists in the following: individual environmental factors are entered into the environment profile table ( table 10.5).
Table 10.5. – Environment profile
Each of the factors is assessed on the basis of an expert approach. Grades are defined as follows:
§ importance for the industry: 3 – strong, 2 – moderate, 1 – weak;
§ impact on the organization: 3 - significant, 2 - moderate, 1 - weak, 0 - absent;
§ orientation: +1 – positive, -1 – negative.
According to the integral assessment D(importance) management draws conclusions about which of the environmental factors are more important to the organization.
Benchmarking- an analytical process for accurately measuring and comparing all world-class product development and manufacturing operations, both within your own organization and those of competitors. The object of this analysis are products and their components, as well as functions and processes in the organization associated with the development, production and marketing of products. The focus of the analysis is most often a comparison of the same functions performed by different organizations in the industry to identify "best in class". The purpose of such an analysis is to detect the lack of efficiency in the performance of certain functions and the causes of these phenomena in comparison with the "best in class" and the adoption of appropriate measures to eliminate them.
used to identify the strengths and weaknesses of an organization SNW analysis. SNW is an abbreviation of three English words that mean: S - strong position (side) of the organization, N - neutral position, W - weak position (side) ( see practice 1).
SWOT analysis is a generalizing method of strategic study of the external environment of the organization (eng. Strengths - strengths, Weaknesses - weaknesses, Opportunities - opportunities, Threats - threats). Based on this method, it is possible to establish links between the strengths and weaknesses that are inherent in the organization, and external threats and opportunities.
For example, internal factors:
Ø strengths: competence, availability of sufficient financial resources, availability of good competitive skills, good reputation with consumers, recognized leadership of the enterprise in the market, the presence of well-thought-out strategies in the enterprise in this field of activity, the presence of high-quality own technologies, the presence of advantages in the cost of products and services, the presence of advantages over competitors, the ability to innovate, etc.
Ø weak sides: lack of strategic direction, obsolete technology, low profitability, poor management, poor control, weakness compared to competitors, backwardness in innovation processes, narrow product range, unsatisfactory market image, low marketing skills of staff, lack of sufficient project funding etc.
External factors:
Ø favorable opportunities: Dealing with additional customer groups, entering new markets or market segments, expanding product range to meet a wider customer base, product differentiation, organization's ability to quickly move to more profitable strategic groups, confidence in competing firms, rapid market growth, etc. . P.
Ø threat factors: the arrival of new competitors, increasing sales of similar products, slow market growth, unfavorable tax policy of the state, changing needs and tastes of buyers, etc.
The SWOT methodology involves, based on the analysis of the situation, compiling a list of strengths and weaknesses of the organization, as well as a list of threats and opportunities. At the intersection of sections, four fields are formed:
1) SIV - strength and capabilities;
2) SIS - force and threats;
3) SLV - weakness and opportunities;
4) SLN - weakness and threats ( table 10.6).
Table 10.6. – SWOT matrix
On each of these fields, it is necessary to consider all possible pair combinations and highlight those that need to be taken into account when developing an organization's development strategy. For couples selected from the SIV field, a strategy should be developed to use the strengths of the organization in order to capitalize on the opportunities identified in the external environment.
For couples who find themselves in the field of "SLV", the strategy should be designed in such a way as to try to overcome the weaknesses in the organization due to the emerging opportunities.
If the couple is in the SIS field, the strategy should involve the use of the strength of the organization to eliminate threats from the external environment.
For couples in the SLU field, the organization must develop a strategy that allows it to get rid of the weakness and try to prevent the threat looming over it from the external environment.
When developing a strategy, it should be remembered that opportunities and threats can turn into their opposite. Thus, an untapped opportunity can turn into a threat if it is exploited by a competitor.
An example of a SWOT analysis is presented in Table 10.7.
Method 5 5 analysis of the external and internal environment was proposed in 1984 by M. Meskon. This method includes five questions about environmental factors in comparison with the potential of the organization.
1. What five factors of the organization's external environment do you know?
2. What are the five environmental factors that pose the greatest danger to the organization?
3. What are the five actions of competitors that can lead to a change in the balance of power in the market, the organization is aware of?
4. If the organization has determined the direction of the strategy, what five environmental factors are most important in achieving the goals?
5. What five external spaces, including the possibility of change, could become favorable for the organization?
In order to provide valid answers to each of the five questions, it is necessary to collect existing information about the environment of the organization and try to make predictions about its future state.
Table 10.7. – SWOT analysis
| Potential internal strengths | Potential External Opportunities | ||||||||||||||||||||
| - full competence in key issues; - a good impression of the organization from buyers; - a recognized market leader; - Well developed functional strategy; - the possibility of saving from the growth of production volume; - own technology; - lower costs (cost advantage); - Experience in developing new products, etc. | - entering new markets or market segments; - the possibility of expanding the range of products; - weakening of the positions of firms - competitors; - the possibility of rapid development due to a sharp increase in demand in the market, etc. | ||||||||||||||||||||
| Potential internal weaknesses | Potential external threats | ||||||||||||||||||||
| - there is no clear strategic direction of development; - obsolete equipment; - low profitability; - lack of managerial talent and skills; - unsatisfactory organization of marketing activities; - inability to finance changes in strategy; - high cost of production in comparison with competitors, etc. | - entering the market of foreign competitors with lower costs; - growth in sales of substitute goods; - slow market growth; - unfavorable change in exchange rates; - changing needs and tastes of customers; - unfavorable demographic changes, etc. | Federal Agency for Education Sarapul Polytechnic Institute (branch) State educational institution Higher professional education "Izhevsk State Technical University" COURSE WORK discipline: "Fundamentals of Management" topic: "Analysis of the internal and external environment of the organization" Performed by student gr. Checked by teacher Sarapul, 2010 Introduction …………………………………………………………………………….. 3 Chapter 1. The external environment of the organization …………………………………………….. 5 1.1. Environmental factors ……………………………………………. 5 1.2. External environment tracking system ……………………………. eight 1.3. Analysis of the immediate environment …………………………….. 9 Chapter 2. The internal environment of the organization ……………………………………… 12 2.1. The main elements of the internal environment …………………………... 12 2.2. Internal variables …………..………………………………... 14 2.3. Relationship of internal variables ………..……………………. nineteen Chapter 3. Analysis of the internal and external environment ……………….………………. 20 3.1. Analysis of the internal environment …………………………………………… 21 3.2. Analysis of the external environment ………………………………………………… 22 Conclusion …………………………………………………………………….. .24 List of used literature ……………………………………….. 25 INTRODUCTION Organization is the most important concept in management. Any organization is located and operates in the environment. Each action of all organizations without exception is possible only if the environment allows its implementation. Internal environment is the source of her life force. It contains the potential necessary for the functioning of the organization, but at the same time it can be a source of problems and even its death. External environment is the source of resources for the organization. The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. Naturally, these moments should be the subject of constant attention from the manager. Therefore, the main objective of this course work will be to consider the elements of the internal and external environment of the organization that are in constant interaction. As well as the assessment and analysis of these factors using various methods. The first chapter will describe the internal environment of the organization, characterize the main components of the organization, such as personnel, technology, structure, goals and objectives. The interconnectedness of all elements of the organization and the influence of environmental factors on them will be emphasized. As already emphasized, the organization is influenced by numerous environmental factors. The second chapter will reveal the main factors of the environment of direct and indirect impact and the international environment. As well as elements of the internal environment, external factors are closely interrelated and have a number of characteristics that will be disclosed in this chapter. In the last chapter, such an important element of strategic planning as an analysis of the external and internal environment will be analyzed. An analysis of the environment is needed to determine the strategy for the behavior of the enterprise and to implement this strategy. Thus, the purpose of this work is to study the external environment and the internal environment of the organization for more effective management decision-making necessary for the successful operation of the company. This topic is relevant, like the whole theory of management. In the new millennium, our country must learn to live in a market economy, the most important condition for this is highly qualified managers. The ability to identify and analyze the elements of the organization and external factors is the key to the success of the company. Chapter 1. EXTERNAL ENVIRONMENT OF THE ORGANIZATION All organizations differ from each other in various aspects. However, they have characteristics common to all organizations. One of the most significant characteristics of the organization is the dependence on the external and internal environment. No organization can function in isolation, regardless of external guidelines. They are largely dependent on the external environment. These are conditions and factors that arise in the environment, regardless of the activities of the organization, one way or another affecting it. There are factors of external and internal environment. 1.1. Environmental factors External environment of the organization - these are conditions and factors that arise independently of its (organization) activities and have a significant impact on it. In addition, they contribute to the functioning, survival and efficiency of its work. External factors are divided into factors of direct and indirect impact. To the factors of direct influence
include resource providers, consumers, competitors, labor resources, the state, trade unions, shareholders (if the enterprise is a joint-stock company), which have a direct impact on the organization's activities; 1) political factors- main directions of state policy and methods of its implementation; possible changes in the legislative and regulatory framework; international agreements concluded by the government in the field of tariffs and trade. |
|||||||||||||||||||
Rice. 1. Main environmental factors of indirect impact
Table 1. The external environment of the organization
The external environment is a source that feeds the organization with the resources necessary to maintain its internal potential at the proper level.
The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. But the resources of the external environment are not unlimited. And they are claimed by many other organizations that are in the same environment. Therefore, there is always the possibility that the organization will not be able to obtain the necessary resources from the external environment. This can weaken its potential and lead to many negative consequences for the organization. Therefore, the organization's interaction with the environment should maintain its potential at the level necessary to achieve its goals, and thus enable it to survive in the long term.
1.2. Environmental Tracking System
For the effective study of the state of the macro-environment components in the organization, a special system for tracking the external environment is created.
This system should carry out both special observations related to some special events, and regular (usually once a year) observations of the state of external factors important for the organization.
Observations can be made in many different ways.
The most common methods of observation are:
analysis of materials published in periodicals, books,
other information publications;
Participation in professional conferences;
Analysis of the experience of the organization;
Studying the opinions of employees of the organization;
Conducting meetings and discussions within the organization.
The study of the components of the macro environment should not end only with a statement of the state in which they were before or are now.
It is also important to uncover the trends that are characteristic of the change in the state of certain important factors, and try to predict the development trends of these factors in order to foresee what threats the organization can expect and what opportunities may open up for it in the future.
The macro-environment analysis system gives the desired effect if it is supported by top management and provides it with the necessary information, if it is closely connected with the planning system in the organization.
And finally, if the work of analysts working in this system is combined with the work of strategic specialists who are able to trace the relationship between data on the state of the macro environment and the strategic objectives of the organization and evaluate this information in terms of threats and additional opportunities for implementing the organization's strategy.
1.3. Analysis of the immediate environment
The study of the immediate environment of the organization is aimed at analyzing the state of those components of the external environment with which the organization is in direct interaction.
At the same time, it is important to emphasize that the organization can have a significant impact on the nature and content of this interaction and thus actively participate in the formation of additional opportunities and in the prevention of threats to its further existence.
Clients / Customers / Buyers
Analyzing customers as components of the organization's immediate environment is primarily concerned with profiling who buys the product sold by the organization.
Studying buyers allows an organization to better understand which product will be most accepted by customers, how much sales the organization can expect, how much buyers are committed to the product of this particular organization, how much it can expand the circle of potential buyers, what the product expects in the future, and much more. .
By studying the client, the company understands for itself how strong his position is in relation to it in the bargaining process. If, for example, a customer has limited ability to choose the supplier of the product he needs, then his bargaining power is significantly lower.
The trading strength of a customer also depends, for example, on how important the quality of the purchased product is to him.
There are a number of factors that determine the client's trading strength, which must be uncovered and studied in the analysis process.
These factors include: the ratio of the degree of dependence of the client on the supplier with the degree of dependence of the seller on the buyer;
volume of purchases made by the client;
Level of customer awareness;
Availability of replacement products/products/services;
The cost to the customer of switching to another seller;
The sensitivity of the client to price, depending on the total cost of his purchases, on his orientation towards a certain brand, on the presence of certain requirements for the quality of the product, on the amount of his income.
When measuring the indicator, it is important to pay attention to who pays, who buys and who consumes, since not all three functions are necessarily performed by the same person.
Suppliers
The analysis of suppliers is aimed at identifying those aspects in the activities of entities that supply the organization with various raw materials, semi-finished products, energy and information resources, finances, on which the efficiency of the organization, the cost and quality of the product produced by the organization depend.
Suppliers of materials and components, if they have great competitive power, can make the organization very dependent on themselves. Therefore, when choosing suppliers, it is important to deeply and comprehensively study their activities and their potential in order to be able to build relationships with them that would provide the organization with maximum strength in interaction with suppliers.
The competitive strength of a supplier depends on the following factors:
supplier's level of specialization;
The cost value for the switching provider to others
clients;
The degree of specialization of the buyer in the acquisition of certain resources;
the supplier's concentration on working with specific customers;
importance for the supplier of sales volume.
When studying suppliers of materials and components, first of all, you should pay attention to the following characteristics of their activities:
the cost of the goods supplied;
Quality assurance of the supplied goods;
Time schedule for the delivery of goods;
Punctuality and obligatory fulfillment of the terms of delivery of goods.
Chapter 2. INTERNAL ENVIRONMENT OF THE ORGANIZATION
Internal environment of the organization - it is an environment that determines the technical and organizational conditions of the organization and is the result of management decisions.
The organization analyzes the internal environment in order to identify the strengths and weaknesses of its activities. This is necessary because an organization cannot take advantage of external opportunities without having some internal capacity. At the same time, she needs to know her weak points, which can aggravate external threat and danger.
2.1. The main elements of the internal environment
The internal environment of organizations includes the following main elements:
Production : volume, structure, production rates; product range; availability of raw materials and materials, the level of stocks, the speed of their use; the available fleet of equipment and the degree of its use, reserve capacities; production ecology; quality control; patents, trademarks and so on.
Staff: structure, qualifications, number of employees, labor productivity, staff turnover, labor costs, interests and needs of employees.
Management organization: organizational structure, management methods, level of management, qualifications, abilities and interests of top management, prestige and image of the enterprise.
Marketing: covers all processes related to production planning and product sales, such as: manufactured goods, market share, distribution and marketing channels, marketing budget and its execution, marketing plans and programs, sales promotion, advertising, pricing.
Finance - This is an indicator that allows you to see the entire production and economic activity of the enterprise. Financial analysis allows you to reveal and evaluate the sources of problems at a qualitative and quantitative level.
Culture and image of the enterprise:
factors that create the image of the enterprise; a high image of an enterprise allows attracting highly qualified employees, encouraging consumers to buy goods, etc.
Everyone involved in the production process has their own interests:
Table 2. The internal environment of the organization
Thus, internal environment of the organization is the source of her life force. It contains the potential that enables the organization to function, and, consequently, to exist and survive in a certain period of time.
But the internal environment can also be a source of problems and even the death of the organization if it does not provide the necessary functioning of the organization.
2.2. Internal variables
The manager creates and changes, when necessary, the internal environment of the organization, which is an organic combination of its internal variables. But for this he must be able to distinguish and know them.
Internal variables These are situational factors within the organization.
Since organizations are systems created by people, internal variables are mainly the result of managerial decisions. This, however, does not mean that all internal variables are fully controlled by management. Often the internal factor is something "given" that management must overcome in their work.
Rice. 2. Key organizational variables requiring management attention
Goals:
An organization, by definition, is at least 2 people with conscious common goals. Organization can be seen as a means to an end that enables people to do collectively what they could not do individually.
Goals are specific end states or desired outcomes that a group seeks to achieve by working together. Experts say that the correct formulation of goals and setting tasks for 50% predetermine the success of the solution.
The main purpose of most organizations is to make a profit. Profit is a key indicator of an organization.
Non-profit organizations also have a variety of goals, but are likely to focus more on social responsibility.
Goal-driven orientation pervades all subsequent management decisions.
In departments, as well as in the whole organization, it is necessary to develop goals.
The goals of departments in different organizations that have similar activities will be closer to each other than the goals of departments in the same organization engaged in different activities.
Structure
The structure of the organization reflects the allocation of individual divisions that has developed in the organization, the connections between these divisions and the unification of divisions into a single whole.
Organization structure - this is a logical relationship between levels of management and functional areas, built in such a form that allows you to most effectively achieve the goals of the organization.
One of the main concepts related to structure is the specialized division of labor. In most modern organizations, the division of labor does not mean a random division of work between available people.
A characteristic feature is the specialized division of labor - the assignment of this work to specialists, i.e. those who are able to perform it best from the point of view of the organization as a whole.
At the moment, in all organizations, with the exception of the smallest, there is a horizontal division of labor along specialized lines. If the organization is large enough in size, specialists are usually grouped together within a functional area.
A vertical division of labor is necessary for successful group work. The central characteristic of a vertical hierarchy is the formal subordination of persons at each level.
There is no perfect sphere of control. Many variables inside and outside an organization can influence it. In addition, neither the scope of control nor the “height” of the structure is an indicator of the size of the organization itself.
The formulation and communication of the goals of the organization as a whole and of each of its divisions is only one of the many coordination mechanisms. Each management function plays a specific role in coordinating the specialized division of labor.
Tasks.
Another direction of the division of labor in the organization is the formulation of tasks.
Task is a prescribed job, a series of jobs, or a piece of work that must be done in a predetermined manner within a predetermined timeframe.
From a technical point of view, tasks are assigned not to the employee, but to his position. Based on the decision of management on the structure, each position includes a number of tasks that are considered as a necessary contribution to the achievement of the objectives of the organization. It is believed that if the task is completed in such a way and in such time as prescribed, the organization will operate successfully.
The tasks of the organization are traditionally divided into three categories.
1. work with people,
2. items
3. information.
Technology
Technology as a factor in the internal environment is much more important than many think. Most people view technology as something to do with inventions and machines.
Technology, as a factor that strongly affects organizational effectiveness, requires careful study and classification.
1. Single, small-scale or individual production, where only one product is manufactured at a time.
2. Mass or large-scale production is used in the manufacture of a large number of products that are identical to each other or very similar.
3. Continuous production uses automated equipment that runs around the clock to continuously produce the same product in large volumes.
People.
People are the backbone of any organization. Without people, there is no organization. People in an organization create its product, they shape the culture of the organization, its internal climate, they determine what the organization is.
Because of this situation, people are the "number one subject" for the manager. The manager forms personnel, establishes a system of relations between them, includes them in the creative process of joint work, promotes their development, training and promotion at work.
People working in an organization differ greatly from each other in many ways: gender, age, education, nationality, marital status, abilities, etc. All of these differences can have a significant impact on both the performance and behavior of the individual employee and the actions and behavior of other members of the organization.
In this regard, management should build its work with personnel in such a way as to contribute to the development of positive results of the behavior and activities of each individual and try to eliminate the negative consequences of his actions.
However, despite the huge variety of actions and processes, there are five groups of functional processes that cover the activities of any organization and which are the object of management by management.
Functional groups
|
|
|||||
|
||||||
|
|
|||||
Rice. 3. Groups of functional processes
Accounting - accounting and analysis of economic activity.
Management performs the following operations:
Product development and design management;
The choice of technological process,
Allocation of personnel and equipment for the process in order to optimize the cost of manufacturing and choosing methods for manufacturing the product;
Management of the purchase of raw materials, materials and semi-finished products;
Inventory management in warehouses, including the management of the storage of purchased goods, semi-finished products of own manufacture for internal use and final products;
Quality control.
Marketing management is called upon, through marketing activities for the implementation of the product created by the organization, to link into a single consistent process the satisfaction of the needs of the organization's customers and the achievement of the organization's goals.
To do this, the management of such processes and actions as:
3. pricing;
4. creation of sales systems;
5. distribution of created products;
Financial management is that management manages the process of movement of funds in the organization.
For this, the following is carried out:
a) preparation of the budget and financial plan;
b) formation of monetary resources;
c) the distribution of money between the various parties that determine the life of the organization;
d) assessment of the financial potential of the organization.
2.3. Relationship of internal variables
In the previous chapter, the main internal variables were considered. But it should be remembered that in management these variables should never be considered separately. No one will deny that the objectives of the organization influence the development of goals. Similarly, all other internal variables are interconnected and influence each other.
Internal variables are usually called sociotechnical subsystems because they have a social component (people) and a technical component (other internal variables).
Chapter 3. ANALYSIS OF THE INTERNAL AND EXTERNAL ENVIRONMENT
In order to determine the strategy of the organization's behavior and implement this strategy, management must have an in-depth understanding of the internal environment of the organization, its potential and development trends, as well as the external environment, development trends and the place occupied by the organization in it. At the same time, the internal environment and the external environment are studied by strategic management in the first place in order to reveal those threats and opportunities that the organization must take into account when determining its goals in achieving them.
3.1 Analysis of the internal environment
The internal environment of the organization has a constant and most direct impact on the functioning of the organization.
The internal environment has several sections, each of which includes a set of key processes and elements of the organization, the state of which together determines the potential and the opportunities that the organization has.
The personnel profile of the internal environment covers such processes as: interaction between managers and workers; hiring; training and promotion of personnel; evaluation of labor results and stimulation; creating and maintaining relationships between employees.
Organizational cut includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; dominance hierarchy.
In production cut includes product manufacturing, supply and warehousing; technological park maintenance; implementation of research and development.
Marketing cut The internal environment of the organization covers all those processes that are associated with the sale of products. This is a product strategy, a pricing strategy; strategy for promoting the product on the market; choice of markets and distribution systems.
Financial cut includes the processes involved in ensuring the efficient use and flow of cash in an organization. In particular, this is maintaining liquidity and ensuring profitability, creating investment opportunities.
The internal environment, as it were, is completely permeated with the organizational culture, which, like the above sections, should be subjected to the most serious study in the process of analyzing the internal environment of the organization.
In order to successfully survive in the long term, an organization must be able to predict what difficulties it may encounter in the future, and what new opportunities may open up for it. Therefore, strategic management, studying the external environment, focuses on finding out what threats and what opportunities the external environment is fraught with.
Knowing about them is not enough to successfully manage threats and effectively exploit opportunities. You can be aware of the threat, but not be able to confront it and thus be defeated.
It is also possible to be aware of new opportunities that are opening up, but not have the potential to exploit them and therefore fail to exploit them.
The strengths and weaknesses of the internal environment of the organization to the same extent as the threats and opportunities determine the conditions for the successful existence of the organization. Therefore, when analyzing the internal environment, strategic management is interested in identifying exactly what strengths and weaknesses the individual components of the organization and the organization as a whole have.
Summarizing the above, we can state that the analysis of the environment, as it is carried out in strategic management, is aimed at identifying the threats and opportunities that may arise in the external environment in relation to the organization, as well as the strengths and weaknesses that the organization has.
3.2 Analysis of the external environment
Threats and opportunities faced by an organization can usually be divided into seven components.
These components are economics, politics, the market, technology, competition, and social behavior.
The study of the economic component of the macro environment allows us to understand how resources are formed and distributed. It involves the analysis of such characteristics as the value of the gross national product, inflation rates, unemployment rates, etc.
Each of these factors can represent either a threat or a new opportunity for the firm. What one organization sees as an economic threat, another sees as an opportunity.
Analysis of technology makes it possible to timely discover the opportunities that the development of science and technology opens up for the production of new products, for the improvement of manufactured products and for the modernization of manufacturing technology and marketing of products.
Many organizations fail to see the new perspectives that are opening up because the technical capacity to make fundamental changes is largely created outside the industry in which they operate. Being late with modernization, they lose their market share, which can lead to extremely negative consequences.
The political component of the external environment must be studied first of all in order to have a clear idea of the intentions of the state authorities regarding the development of society and the means by which the state intends to implement its policy. The study of the political situation includes finding out what programs are put into practice by various parties, what attitude the government has in relation to various sectors of the economy and regions of the country.
Studying competitors, i.e. those with whom the organization has to fight for the resources that it seeks to obtain from the external environment in order to ensure its existence, occupies a special and very important place in strategic management. This study is aimed at identifying the strengths and weaknesses of competitors and, on the basis of this, build your competitive strategy.
Competition is formed not only by intra-industry competitors producing similar products and selling them in the same market.
The subjects of the competitive environment are also those firms that can enter the market, as well as those firms that produce a replacement product.
In addition to them, the organization's competitive environment is significantly influenced by its buyers and suppliers, who, having the power to bargain, can significantly weaken the organization's position in the competition field.
The volatile market environment is an area of ongoing concern for organizations. The analysis of the market environment includes numerous factors that can have a direct impact on the success or failure of the organization.
These factors include changing demographics, the life cycles of various products or services, ease of entry into the market, income distribution of the population, and the level of competition in the industry.
Conclusion
Having considered and analyzed the external and internal environment of the organization, it is necessary to draw the main conclusions on this topic.
Internal variables are situational factors within an organization that are largely controllable and manageable.
The main variables of the internal environment of the organization that require the attention of management are: goals, structure, tasks, technology and people. All internal variables are interconnected.
Changing one of them affects the others to some extent. Improvements in one variable, such as technology, may not necessarily lead to productivity improvements if those changes negatively affect another variable, such as people.
From internal variables on which the internal well-being of the organization depends, and their interaction contributes to the achievement of the overall goals of the organization.
However, the success of the organization also depends on the external environment of the organization, without which the life cycle of any organization is not possible.
The leader must take into account the external environment.
Factors that have an immediate impact on the organization belong to the direct impact environment, the rest of the factors - to the indirect impact environment.
Just like internal variables, environmental factors are interconnected and interact with each other.
The external environment has properties of complexity and uncertainty.
Thus, the main thing that needs to be learned is that external factors, together with factors of the internal environment, have a decisive impact on the functioning of the organization. All variables are closely intertwined and affect each other.
The manager must be able to analyze all these factors together, without losing sight of any, and make the right decision.
Bibliography
1. Akberdin R.Z., Kibanov A.Ya. "Improvement of the structure, functions and economic relations of the management units of enterprises under the forms of management". Tutorial. - M.: GAU, 1993. 2. "Organisation management". Textbook/Edited by Z.P. Rumyantseva and N.A. Salomatina. - M.: Infa-M, 1995. 3. Reiss M. "Optimal complexity of management structures" // Problems of Theory and Practice of Management. - 1994. - No. 5. 4. Gerchikova I.N. Management.-M.: Banks and exchanges. UNITY, 1995. 5. Management: Textbook for universities / M.M. Maksimtsov, A.V. Ignatieva, etc. - M.: Banks and Exchanges, UNITY, 1998 6. Mascon M., Albert M., Hedouri F. Fundamentals of Management: Translated from English. - M.: Audit, UNITI, 1997. 7. History of management: Proc. manual for universities.-M.: UNITI-DANA, 1999. 8. History of management: Proc. allowance / Ed. D.V. Valovsky.- M.: INFRA-M, 1997.
