2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
In the process of work, the management of the enterprise makes various decisions. They relate, in particular, to the range of products, the markets to which it is supposed to enter, the issues of strengthening one's position in the competition, the choice of the optimal technology, materials, etc. Activities aimed at solving these problems are called the business policy of the enterprise.
Firm Goal System
As you know, any enterprise is created for profit. However, this is not the only desire of the owner of the company. In addition to the desire to generate income, there must be strategic goals for the company. These include:
- Conquest or retention of the largest possible sales sector for your product.
- Improve product quality.
- Become a leader in technology support.
- Maximum use of financial, raw materials and labor resources.
- Increase the profitability of operations.
- Achieve maximum possible employment.
Project implementation plan
The main goals of the company are achieved in stages. The work plan of the enterprise includes the following stages:
- Establishing clear quantitative parameters that the enterprise intends to achieve in the process of solving the tasks set.
- Identification of key areas and activities. At this stage, it is necessary to establish the degree and nature of the influence of external factors on the work of the enterprise, to identify weaknesses and the internal potential of the company.
- Developing a flexible long-term planning system. It should be consistent with the structure of the company.
Mission Statement
An enterprise must clearly understand the tasks that will be solved in the course of work. The goals of the company's activity should correspond to the goods (services) supplied to consumers, existing technologies. This takes into account the influence of external factors. The mission statement should contain a description of the company's culture, a characteristic of the working atmosphere.
Importance of the mission
Individual executives don't bother choosing and formulating it. If you ask some of them what the goals of organizing a firm are, the answer will be obvious - to maximize income. Meanwhile, the choice of making profit as the mission of the enterprise is unsuccessful. Of course, income is important for any company. However, its receipt is exclusively an internal task of the enterprise. The firm is, in its own wayessentially an open structure. It can only survive if it satisfies specific external needs. To make a profit, a company needs to analyze the state of the environment in which it operates. That is why the company's goals are determined by external factors. To select an appropriate mission, management needs to answer 2 questions: "Who are the company's customers?" and "What customer needs is the company able to meet?". Any entity that uses the benefits created by the firm will act as a consumer.
Nuances
The need to formulate firm goals has been recognized for a long time. G. Ford, creating the enterprise, chose as a mission to provide cheap transport to people. Making profit is a rather narrow goal of the firm. Its choice limits the manager's ability to consider acceptable alternatives in the decision-making process. This, in turn, can lead to key factors being ignored. Accordingly, subsequent decisions may contribute to lower performance.
Difficulty of choice
Many non-profit structures have a fairly large client base. In this regard, it is quite difficult for them to formulate their mission. In this case, you can pay attention to the institutions under the Government. Thus, it is believed that the Ministry of Commerce provides assistance to entities involved in the field of sales. In practice, in addition to solving the tasks of supporting entrepreneurship, this institution should alsomeet the needs of the public and the Government itself. Despite the difficulties, a non-profit organization needs to formulate an appropriate mission for itself, taking into account the needs of clients. Leaders of small companies should clearly represent the goals of the company in the market. Here the danger lies in choosing too difficult a mission. For example, a giant like IBM not only can, but should strive to meet the needs of a large information community. However, a newcomer to the industry will be limited to providing software or hardware to process a small amount of data.
Tasks
They fit the purpose of the firm. The tasks are to achieve the indicators that are planned for a specific period. Their volume will be determined taking into account the interests of the owner of the company, the amount of capital, external and internal factors. The owner of the enterprise has the right to set tasks for the personnel. It doesn't matter what his status is. It can be an individual, a shareholder or a government agency.
To Do List
It may include various items, depending on the specifics of the enterprise. The objectives of the company include:
- Making profits.
- Providing consumers with products, according to the dispute and the terms of contracts.
- Creating jobs for citizens.
- Providing employees at the enterprise with wages, appropriate working conditions, and the opportunity to develop in the professional field.
- Prevention of downtime, disruptions,production of defects, supply disruptions, reduction in production volumes, decrease in profitability.
- Ensuring the protection of nature, water bodies, air.
As you can see, making a profit is included in the list of tasks of the enterprise, not goals. This once again proves that income generation cannot be a key area of work.
Shaping the purpose of the firm
It is carried out in compliance with a number of principles. The firm's objectives should:
- Be realistic and achievable.
- Be clear and unambiguous.
- Have specific deadlines.
- Motivate work in the right direction.
- Effect-oriented.
- Be available for correction and review.
When developing its business policy, any enterprise performs an analysis of the living environment. It identifies critical elements that can affect the company's ability to implement tasks and achieve planned goals.
External factors
They are consumers, suppliers, population and government agencies. The state of the external environment has a direct impact on the efficiency of the company. For example, consumer demand will affect production volumes. The higher it is, the greater the number of products produced. The external environment includes the work and general areas. The first consists of elements with which the enterprise has direct contact. For each company, the work environment may into varying degrees be the same depending on the general direction of business policy and industry affiliation. Consumers, competitors, suppliers form the immediate environment. Everything else belongs to the general environment. It is formed from political, social, technological, economic factors. The general environment affects the company's strategy, the choice of development directions. At the same time, the enterprise considers the impact of the work environment on its capabilities.
Internal factors
They are personnel, production facilities, financial and information resources. The result of the interaction of these factors is expressed in finished products (services provided, work performed). The internal environment includes departments, elements, services directly involved in production activities. Changing the composition of these components affects the direction of the enterprise. Together, internal and external factors form the organizational environment of the company.
Conclusion
For the implementation of the tasks at the enterprise, a strategy is formulated. It includes various means or ways to achieve goals. The development of a set of alternative options is carried out based on the results of a comprehensive analysis of the work of the enterprise, competitors, and customer needs. Strategic planning is an integral element of management activities. The development of tasks can be carried out for different periods. They can beshort term or long term. The strategy must be flexible. This is especially true in modern conditions. When setting goals, an enterprise should soberly assess its resources and capabilities. Companies often take on more than they can handle. As a result, not only the reputation of the enterprise suffers. Ill-considered steps that do not correspond to the specifics and capabilities of the target company often lead to large debts to counterparties, bankruptcy. In order to avoid such problems, it is necessary to approach the choice of your mission with all responsibility.
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