Hello everyone, it's a holiday soon, today when I was alone in the office, thinking about and reviewing this year's work in strategy & organizational performance management, I suddenly found a very basic, very basic, about the definition and concept of the problem, in fact, many management cadres are not particularly clear or clear; So today I will summarize and share this problem, and I should review the old and learn the new.In a previous article, I mentioned that once a company incorporates the work of "strategy" into the company's high-level management and promotion, the company has generally passed the initial stage of the enterprise life cycle, at least through a stage of rapid growth and expansion, and the enterprise scale and market have accumulated to a certain extent.
With the rapid development of enterprises and markets, it is gradually found that the growth rate of enterprises (including management capabilities, cadre capabilities, resources, etc.) cannot keep up with the pace of enterprise development, because of various reasons of the enterprise itself, it quickly loses more and more market opportunities or key strategic control points.
In this process, although the company has been pushed by the business and the company has introduced more and more professional business personnel, we have not produced the effect of 1+1 greater than 2 that we expect to see because of culture, role, background and other issues. Often, every time we introduce a person, we solve an urgent business problem in front of us;
In the face of these increasingly prominent problems, "strategic" management has been put on the agenda; Therefore, from this point of view, the fundamental reason why "strategy" is valued by enterprises at present is because of the matching difference between external market demand and internal capability satisfaction; He also solves the problem of resource scarcity and resource allocation of the enterprise itself.
Today we're going to refresh the old and learn a little bit about it"Strategy".
[Strategic Definition].
Encyclopedia.Strategy: The earliest concept of military affairs. It later evolved into a military term to refer to the strategy of a military general to direct an army into battle.
In China, the word strategy has a long history, "war" means war, and "strategy" means "strategy". Sun Wu's Art of War during the Spring and Autumn Period is considered to be China's earliest work on overall strategic planning.
It is a metaphor for the strategy that guides the overall situation in a certain historical period. * Chairman, "Speech at the Meeting of Secretaries of Party Committees of Provinces, Municipalities and Autonomous Regions": "Mobilize all positive forces for the construction of socialism. This is a strategic approach. Chief designer "Senior cadres should take the lead in carrying forward the party's fine traditions": "We must realize that it is a strategic issue to conscientiously select the best people. ”
[Strategic Classification].
From the perspective of strategic level: the general strategic level is divided into three layers, corporate strategy, business strategy, and functional strategy.
Under normal circumstances, when enterprises make strategic planning, there is often strategic confusion, combined with experience, it is mainly caused by the unclear understanding of the strategic level and the unclear understanding of the role of cadres; When you should think about the company's strategy, you think too much about the business strategy, or when you do the business strategy, you go back to thinking about the company's strategy; When formulating functional strategies, they are too independent and do not take into account business strategies, etc.;[Company Strategy]: also called overall strategy; He focuses on the overall development and planning of the company, the choice of the company's strategy, and the influence and guidance of the business strategy.
Business Strategy]: also known as BU Strategy; Under the guidance of the company's overall strategy, it is responsible for the specific implementation of the strategy of a specific strategic unit to ensure the implementation and implementation; (This BU will generally have a specific industry or market of its own, which can be a specific product line or a specific business line).
Functional Strategy]: also called departmental strategy; In general, in addition to adhering to the overall strategy of the company, the functional strategy also needs to be considered from the perspective of specific functions, integrating the efficiency, collaboration and support of different BU in the same function. What needs to be solved is the optimization of the overall benefits of each BU and the company.
From the perspective of strategic functions, general strategy is divided into development strategy, defense strategy, and stability strategy.
Development strategy: It is an offensive strategy; Enterprises that adopt this type of strategy have opportunities to develop and grow in the industry and market in which they operate; Generally, in the process of operation, there are obvious offensive attempts, by investing a lot of resources, to enhance the competitive position, to increase market share, etc.In the specific implementation process of the development strategy, combined with the different offensive methods adopted by different enterprises, it is generally divided into integration strategy, strengthening strategy and diversification strategy.
In the process of enterprise integration, according to the actual characteristics of the enterprise and the different objects of the implementation of integration, we divide the integration strategy into three strategic integration methods: forward integration, backward integration and horizontal integration;
Forward integration strategy]: As the name suggests, the behavior of integrating and integrating to the front end of the industrial chain with the position of the industrial chain where the enterprise is located as the center; Mainly in order to break through the sales or technical bottleneck barriers, take the initiative to provide raw materials, semi-finished products and other end customers to get closer to the end customers, in order to obtain a greater market voice;
Backward integration strategy: It is the behavior of integration and integration to the back end of the industrial chain, mainly to ensure the stability of raw materials and parts, ensure greater control over the first end, and enhance the overall competitiveness of the enterprise;
Horizontal integration strategy: based on the existing competitive relationship, merger, acquisition or control of peer competitors, change the competitive landscape, reduce the number of competitors, expand the market scale, and then obtain a higher market share and right to speak.
Strengthen the strategy]: If the integration strategy is the "white-knuckle war" in the enterprise competition strategy, the means are crude, but simple and effective; Quickly gain competitive advantage and status through simple acquisitions, mergers, etc.; Then the strengthening strategy is similar to the "protracted war", the enterprise is based on itself, through the penetration of the target market, market development, product development and other strategies, and constantly strengthen its various capabilities, by improving its position in the market, market share, and obtain profits and income.
Diversification strategy]: Although the integration strategy and strengthening strategy are slightly different in the way of attack, there is a common feature that they stick to the existing industrial chain system and continue to cultivate in the industry; The diversification strategy generally jumps out of the existing industrial chain and restarts a new business; According to the different degree of relevance between the selected business and the existing business, it is divided into related diversification and non-related diversification; For example, the original manufacturing industry is now investing in real estate; If it is not related at all, it is non-correlated diversification; Another example: it used to be an air conditioner, but now it is a refrigerator; The two do not belong to the upstream and downstream relationship in the industrial chain, nor do they belong to the substitution and complementarity relationship; However, if it belongs to the manufacturing industry and has a certain correlation in manufacturing plants and technologies, it belongs to related diversification.
Defensive Strategy]: also known as austerity strategy; Compared with the development strategy, enterprises that adopt this type of strategy generally face unfavorable external markets and internal environments; In order to avoid greater losses, enterprises have carried out a large-scale or substantial reduction of existing investments, and adopted methods such as contraction, divestiture, and liquidation, and concentrated their efforts on fighting a defensive war -- a strategy of maintaining the viable assets of existing enterprises.
Stable strategy]: Compared with the rapid offensive development strategy and the extreme contraction of the defensive strategy, the enterprise that adopts the stable strategy, under normal circumstances, although the market environment does not seriously affect the life and death of the enterprise, the environment faced by the enterprise is not suitable for the development or expansion of the enterprise; Therefore, in the process of operation, such enterprises reduce non-operating investment, do not invest or invest less resources; The primary consideration is to stabilize and consolidate the existing market share and competitive position;
Today, mainly from the definition, I reviewed some knowledge about the definition of strategy and the relevant aspects of strategic choice of enterprises; The content of the review is mainly in the previous development strategy part, and there are more summaries, because generally speaking, more enterprises still choose development strategies; For the defense strategy and stability strategy, I will write a similar article in detail if I have the opportunity in the future; For example, the contraction strategy, the divestment strategy, the liquidation strategy in the defense strategy, etc., under what circumstances, and under what circumstances is the divestment? What is the difference between a shrinkage strategy and a divestment strategy? Relatively speaking, they are part of a more independent part of the day-to-day operation, and will be supplemented later when needed; The above content is a summary of personal experience and learning, and I would like to represent my personal views for your reference;