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Home / Issues / № 3, 2014

Economics

ON THE ESSENCE OF SITUATIONAL STRATEGIC PLANNING FIRM
Merkulova Yu.V.

  Having developed the businesses new planning system, it should be repelled and built on the strategic planning model, which is actually the progenitor of many modern foreign models of the strategic planning. However, the model data to be copied, even at the enterprise level, is quite impossible. So, in the course of the conducted study [1,2,3] the used planning and economic management models in the developed foreign countries have been studied, substantially and essentially revised, expanded, and further improved, having taken into account the modern and current stage of the development and economic management specific character of the domestic enterprises. As a result, the methodology of the strategic – situationally planning system implementation has been proposed by me, the main essence of which is concluded, as it is followed.          

               Firstly, it cannot be separately the perspective one and separately current economic management, under the current economic conditions. So, they must be connected into the single system, one is flown into another, having significantly complemented each other. Not separately strategic, and separately the situational planning for the implementation, but the strategic – situationally planning, as the quite single system have been proposed by me, that is fundamentally changing the nature and the content each of them. This is explained by the fact, that the strategic planning should be focused on the situational mobile planning, which, in its turn, should be organically fit well, and contributed to the further development strategic plans implementation. For this purpose, it is proposed to be left the quite possible range for the indices adjustment of the merchandise strategies and resource possibilities in the strategic plans, in accordance with the situation, which is provided the necessary flexibility in the plans implementation to the current situational planning. So, the situational plans should be considered the working out strategic directions of the firm’s further development, and, moreover, its product offering. And this is the principally new, very significant and distinctive feature of the proposed planning system;       

               Secondly, the modern planning systems should be dynamic. So, the exactly planning system, which is based on the markets dynamics study, and the consumer demand, has been proposed by me. In general, it is proposed to be taken into account the supply and demand life cycles, and to be found the balancing not only by the volumetric, price, and quality indicators of the supply and demand, but also by their timing parameters, and tempo proportions, when the individual products competitiveness planning, and the product range. It is, fundamentally, changed, as the strategic one, well as the current planning. So, it should not only to be taken into account the consumer demand main requirements, but also to be predicted in time its possible change, and the situational planning should be possessed the quite necessary flexibility to be responded to demand in the operative online regime, in the strategic plans working out. 

                Thirdly, modern planning systems should be characterized by the comprehensive approach, that is to be taken into account for the conditions, factors, and situations complex, having predictable with varying probability degree, in the process of the plans working out. It is not sufficient only to be considered the each impact of factors separately, and it is already necessary to be assessed their cumulative impact on each other, and also on the firm’s plans, with the further development strategic plans formation. This is fundamentally the new time requirement, which has been taken by me, at the strategic – situationally planning system formation. For example, the change in the market size capacity is practically being changed the number of buyers and sellers on it, and, consequently, as the in-competition intensity, the number as well as the composition of the company’s goods buyers, their consumers demand are being changed, and this is caused the chain reaction for the already agreed changes of the volume, price, and quality indices of the merchandise offer. If the company has, in time, been predicted this situation, and it has taken the appropriate actions, and it will be released the new goods modification with a few altered prices and the quality parameters, it can be greatly won, and got more additional profits. In the same case, when its reaction will be too delayed, the company may be occurred its heavy losses, as the enterprise resource base should be thoroughly prepared to any changes of the commodity plans, which, it appeared, may not be ready for the immediate response to the situation. So, this example has been shown, how everything is closely related, and, consequently, the planning formed system should be established, practically, all these relationships and mutual relations, under today planning conditions.    

            Fourthly, because of the significance for all the world economies of the rational resources consumption, the modern planning systems should be, especially, taken into account the resource base, its changing trends at the goods competitiveness growth planning. According to the traditional theory of the strategic planning, the management strategies are usually being formed, having taken into account the firm’s financial, and resource possibilities. So, with more static, and measured flowing economy, it is quite possible, perhaps, this could be restricted, but not at the dynamic economy. At the tempo and rapidly changing economy, the companies and firms should be guided not only the already reached production resource support level, but also the projection assessments of their changing trends, having influenced, as the external ones, well as the internal factors. In other words, not only the strategic and the situational planning, but also the commodity and the resource strategies planning to be joined into the single system have been proposed by me. Thus, this has largely been justified and conditioned, due to the specific resource provision of the domestic enterprises.         

               So, the Russian enterprises and companies are possessed more outdated production technical base. In addition, there is no system of the continuous economic resources, including the technical and technological updating renovation in their economic management practice. As a rule, this process is being carried out periodically, as a result of the production technical re – equipment, or their further modernization. Therefore, the domestic enterprises are very often to be implemented the strategy for the new goods production, the further improved products, have to simultaneously to be implemented the strategies for the production technical re – equipment, or the reconstruction, and as the systemic and continuous process of the technical updates have been missed, so, they have to be changed everything at once. This is significantly risen the final product cost, and increased the cost price, and its price.  

               Thus, the technical base and its updating process specific character are conditioned the high output – costs of the domestic production, which is quite another challenge and its peculiarity, in comparison with the foreign productions. The high output – costs of the domestic goods is also explained and is due to lower labor productivity, as well as the low capital productivity, and quite unreasonably high product material consumption. The goods material consumption optimization is practically depended not only on the design and technology excellence, but also on the goods components markets development, and on the company’s and firm’s capabilities to be maneuvered them, under the present conditions. The completing products markets are very poorly developed, the prices for the component prices are very high, the large percentage of the imported packaging arrangement is practically used in the Russian economy. All this is greatly increased the final product cost. That is why, it is necessary to be developed the markets for the intermediate production.    

               How does the production’s staffing provision is practically affected on the output – costs of the domestic production? In average, the salary of the professionals, experts, and specialists at the domestic enterprises is considerably lower, than in the foreign companies and firms. However, the general managers and executive personnel have, as usual and often, unreasonably, very high salaries, and, moreover, there are the very large gaps between the management personnel’s earnings, and the rest of the workers, and employees, which is negatively affected on the quality and efficiency of the work. So, the cheap labor power use is practically turned by the bad quality, and the slowdown in the process of work, rework and reconstruction, and unreasonable costs, and downtime. All this is being led, exactly, to the unjustified increase in costs, and to the labor productivity decrease. Therefore, the rational use further improving of the resources, the rhythm of the production process, and its output – costs further reducing – those specific challenges of the domestic enterprises, which will be faced by them at the planning process of the competitive goods of the production. It is also determined the specific features and its peculiarities of the proposed planning system.              

   At the strategies for commodity planning, the companies and firms must be taken into account, on the one side, the resources constraints, and, on the other hand, the available reserves for the production technical base further perfection, and also the resources use further   improvement: the production capacity utilization rationalization, the employment training, the materials’ economic consumption, and the others. So, the domestic companies and firms, as a rule, have more constraint resource base, but more and reserves for its further improvement and perfection. So, it is supposed to be implemented the targeted, dynamic, complex, and integrated approaches, i.e. to be planned the resource expenditure for each type of the goods and the products during the period of their life cycle in the market, and having taken into account the factors complex, at the resources use planning.     

               Fifthly, in the planning, as the commodity supply indicators, well as the resources utilization indices, should be applied the theory of sets and be solved the multi – objective optimization challenges, in order to be allowed and optimized each specific indicator of the commodity or the resource strategies, in conjunction with the other indicators and indices, and, moreover, to be found the consistent sets of the indicators, that having combined are produced the best synergetic effect. So, on one hand, the particular commodity supply is proposed to be formed a set of the related indicators of the quality, price and volume of the goods supply, having dynamically changed from stage to stage of their life cycle in the market. Then, on the other hand, it is quite important to be planned the set of the resource indicators to be achieved them: the labor productivity and efficiency, material consumption, and cost price. So, not only the individual indicators should organically be combined with each other in the framework of the data sets, but also the relationships are existed between the sets, and, moreover, at the planning it is quite important to be determined, how they are affected on each other. In other words, the relationships between the indicator sets of the commodity and resource strategies should be tested for the optimality. It is proposed the matrices and algorithms extensive use for the decision making, to be solved such challenges. 

               The proposed methodology using of the strategic – situationally planning has been opened the wide possibilities for the resource, goods, and commodity strategies maneuvering, with due regard for the factor of time, and depending on the current situation; the change trends in the market, the consumer demand, the economic management conditions, and the rest factors. Thus, the final result will be quite possible really to be chosen the most efficient variant of the resource and commodity strategies coherent combination, significantly to be improved the competitiveness of the goods and commodity, having produced by the company and the firm.



References:
1. Merkulova Yu.V., “Situation and Strategic Planning in the Economy”.Vol.1. ─ М.: «Economy», 2013., p. 439;

2. Merkulova Yu.V., “Situation and Strategic Planning in the Economy”.Vol.2 ─ М.: «Economy», 2013., p. 411;

3. Merkulova Y., “Guidelines for the Implementation in the Economy Situational Strategic Planning System. Part 1: «Guidelines on the Formation of Multi-Layered, Complex, through the Planning System: "Region – Industry – the Corporation"». – M.: «The Publishing House of the Academy of Natural Sciences». 2013. – p.136.



Bibliographic reference

Merkulova Yu.V. ON THE ESSENCE OF SITUATIONAL STRATEGIC PLANNING FIRM. International Journal Of Applied And Fundamental Research. – 2014. – № 3 –
URL: www.science-sd.com/458-24591 (29.03.2024).