The economic strategy of a firm should primarily develop economic means to achieve objectives, that is the means that induce all participants in the production process – from market researchers to service personnel – to play their roles in ensuring the prosperity of a firm.
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The strategy is a detailed, comprehensive, and integrated plan that is developed by the top management and implemented at all levels. It is formed in terms of the development of the whole firm on the basis of research and actual data.
Strategic management relies on human potential as a basis, directs the production activity to the needs of consumers, implements flexible regulation and timely changes that meet the challenge from the environment and allows to gain competitive advantages. As a result, a firm survives and achieves its goal in the long run.
This term was introduced in the late 1960s and early 1970s in order to reflect the difference in top-level management from the current one at the production level. The idea was to shift the focus of attention to the environment in order to react appropriately and in a timely manner to the changes occurring in it, as well as to respond promptly to the challenge.
Usually the reaction was limited to passive observation of the consequences or some illogical and uncoordinated actions, taken to solve the problem. But in the absence of a clear plan of action, all this remained ineffective and, in most cases, only caused damage.
In the case of strategic management, at any moment, it is recorded what a firm should do now to achieve the desired goals in the future, taking into account the fact that the conditions of a firm’s performance will change.
Planning is a mission formulation, selecting specific strategies for identifying and obtaining necessary resources and their distribution in order to ensure effective performance of a firm in the future. This process is a tool that helps in making managerial decisions. Its task is to provide sufficient innovations and changes to adequately respond to changes.
The strategy planning does not end with any immediate action. Usually, it ends with the establishment of common directions, the pursuit of which ensures the growth and strengthening of the position of a firm.
This process requires both formal and informal procedures for its implementation. To understand and properly assess the interrelations, interaction, and interdependence of all business units, types of its activities and a fairly complex system of plans, the planning process is subject to formalization and requires organization of its conduct.
Planning is a managerial process of creating a strategic correspondence between goals of a firm, its potential opportunities, and the chances in the sphere of marketing. It relies on a clearly formulated program statement, an outline of supporting goals and objectives, an economic portfolio, and the adopted strategy.
This process, regardless of the adoption of the strategy as a result of the development of program’s objectives and the analysis of a situation, features the same sequence of actions. The program statement of a firm should clearly indicate the scope of its activities.
In a program statement the sphere of activity and the meaning of the main mission are indicated. Determinants of the boundaries of activity areas can be goods, technology, customer groups, their needs, or a combination of several factors. Enterprises usually characterize the scope of their activities in terms of manufactured goods.
The theory of planning asserts that a firm need to be viewed as a tool for satisfaction of customer's needs and requests, and not as a producer of certain goods. Goods and technologies eventually become obsolete, while basic needs and market demands can remain unchanged forever. A program statement determines a firm considering its activity in servicing specific groups of consumers and meeting specific needs and requests.
For each level of enterprise management the mission is deployed in a detailed list of supporting objectives and tasks. Each task manager must have tasks which he or she is responsible for. This is management of the problem-solving method.
For example, a profit can be raised by increasing the sales of existing goods, reducing current costs, or by both. Sales can be increased by gaining a larger share of the domestic market or entering foreign markets. So, these are the current tasks of a firm in the field of marketing.
To solve marketing problems that become fundamental for the future of a company, appropriate marketing strategies are developed. Each strategy should be described in detail.
For example, strengthening the promotion of the sales of goods will require an increase in the number of sellers and intensification of advertising. That is why some detailed strategies must be developed. This is the sequence of transformation of a program into a list of specific tasks for a current period. The problems themselves, if possible, will be turned into clear and measurable goals.
What Do We Have in the End?
The nomination of the most important tasks in the field of production, pricing, and in a sales policy of an enterprise, determination of general directions, increase in its business activity by using favorable external factors for influencing buyers (consumers) and competitors constitute the essence of an anti-crisis strategy.
It is carried out through planning, which allows to bring the objectives of a firm in line with their achievement. This process consists of developing the program of a firm, formulating its tasks and objectives, analyzing a portfolio, and planning the future growth.
In modern conditions each enterprise is interested in effective management of its marketing activities. In particular, it needs to know how to analyze opportunities, select suitable target markets, develop the effective marketing mix, and successfully manage the implementation of different innovations.
Thus, the essence lies in the search for solutions, based on modern tools, aimed at satisfying needs of consumers and gaining advantages – in comparison with competitors – with the help of special market measures. A competent and reasonable solution will help a company survive in unfavorable conditions.
Programs, both short-term and long-term ones, require the development and application of a strategy that, under given conditions, would maximally meet governmental economic policies and, at the same time, provide commercial structures with required efficiency, profitability, and material interest in the results of labor.
The use of marketing methods makes it possible to closely combine the interests and goals of entrepreneurship and individual economic structures with public goals and interests, as well as to ensure the unity of micro and macro-economic approaches to economic development, which ultimately contributes to reducing the risk of bankruptcy.
The most important strategy to bring a company out of crisis from is 4P. This strategy as a holistic process is a theory and practical tool for managing a market economy at the micro level. It covers such aspects as price, promotion methods, distribution methods, distinctive product features, and the quality of service. Here strategic planning turns directly into planning tactical marketing activities.
In accordance with the modern concept of marketing, the 4P strategy should be defined for each market segment. Given its prevalence, it will not be difficult for you to have an idea of it even without the involvement of third parties. Despite the apparent complexity and some excess theory surrounding this concept, in reality, it is extremely useful and effective if you know how to use it in practice.
So, the most important thing is to approach the writing of a marketing paper wisely. You will not be able to compose such essay if you concentrate solely on your own reasoning, but you cannot do without it either. Observe a reasonable information balance and be successful in your studies.