What is enterprise strategic management?
Enterprise strategy is the general name of all kinds of enterprise strategies, including competition strategy, marketing strategy, development strategy, brand strategy, financing strategy, technology development strategy, talent development strategy, resource development strategy and so on. Enterprise strategy is endless, for example, informatization is a brand-new strategy. Although there are many kinds of enterprise strategies, their basic attributes are the same. They are all strategies aimed at enterprises, and they are all strategies aimed at the integrity, long-term and basic problems of enterprises. For example, enterprise competition strategy is a strategy aimed at enterprise competition, which is aimed at the integrity, long-term and basic problems of enterprise competition; Enterprise marketing strategy is a strategy aimed at enterprise marketing, which is aimed at the integrity, long-term and basic problems of enterprise marketing; Enterprise technology development strategy is the strategy of enterprise technology development, which is aimed at the integrity, long-term and basic problems of enterprise technology development; Enterprise talent strategy is the strategy of enterprise talent development, which is aimed at the integrity, long-term and basic problems of enterprise talent development. Wait, it's all the same. There are similarities and differences in various enterprise strategies, the same is the basic attribute, and the difference is the level and angle of planning problems. In short, no matter what kind of strategy, as long as it involves the integrity, long-term and basic problems of the enterprise, it belongs to the category of enterprise strategy.
Factors affecting enterprise strategy
The first factor affecting enterprise strategy should be vision planning. Mission, core values and vision are three components of vision planning. It is also the core part of an enterprise. In the process of strategic planning, the mission and vision always guide the direction of strategic formulation; Core values guide the strategic thinking mode and implementation strategy.
The second factor that affects the enterprise strategy is the external environment. This external environment includes macro environment and industry environment. The so-called macro environment mainly depends on the regional economic situation and the economic situation of each economic cycle. The industrial environment can learn from Porter's five forces model. Including suppliers, customers, competitors, substitutes and potential competitors.
At the same time, strategic management is also related to internal factors. Internal factors include two aspects. First, the so-called core competitiveness of enterprises advocated by Hamel and C.K.Prahalad.
The second is corporate culture. The influence of corporate culture on corporate strategy mainly includes the following points (henry mintzberg's "Strategy Course"):
1, decision-making style
2, prevent the change of strategy
3. Overcome the obstacles of strategic change
4. Dominant values
5. Cultural conflict
Three States of Enterprise Strategy
Strategic form refers to the strategic ways and countermeasures adopted by enterprises. According to the manifestation, it can be divided into three forms: expansion, stability and contraction.
Expansion strategy
Expansion strategy refers to the strategic form of taking a positive offensive attitude, which is mainly applicable to leading enterprises in the industry, enterprises with development potential and enterprises in emerging industries. Specific strategic forms include: market penetration strategy, diversified management strategy and joint management strategy.
1, market penetration strategy
Market penetration strategy refers to the expansion strategy to realize the gradual expansion of the market. This strategy can be implemented by single or combined strategies such as expanding production scale, improving production capacity, increasing product functions, improving product uses, broadening sales channels, developing new markets, reducing product costs and concentrating resource advantages. Its strategic core is embodied in two aspects: using existing products to open up new markets to achieve penetration, and providing new products to existing markets to achieve penetration.
Market penetration strategy is a typical competitive strategy, which mainly includes three most competitive strategic forms: cost leading strategy, differentiation strategy and centralization strategy. Cost leadership strategy is a strategy to make the overall operating cost of enterprises at the lowest level in the industry by strengthening cost control; Differentiation strategy is different from competitors' business characteristics (from products, brands, service methods, development strategies, etc.). ); Centralized strategy is a strategy for enterprises to form professional advantages (serving the professional market or based on a regional market, etc.). ) by pooling resources. In textbooks, the cost leading strategy, differentiation strategy and centralization strategy are called? Business strategy? 、? Business strategy? Or? Direct competition strategy? .
2. Diversified business strategy
Diversification strategy refers to the expansion strategy of an enterprise operating two or more industries at the same time. Diversification mainly includes three forms: concentric diversification, horizontal diversification and comprehensive diversification. Concentric diversification is to face new markets and new customers, and to increase new business by using the original technology and superior resources. Horizontal diversification refers to the diversification of existing markets and customers by adopting new technologies and increasing new businesses; All-round diversification is a diversified operation realized by directly using new technologies to enter new markets.
Diversification strategy is suitable for large and medium-sized enterprises. This strategy can make full use of the business resources of enterprises, improve the utilization rate of idle assets, ease the pressure of competition, reduce operating costs, spread operating risks, enhance comprehensive competitive advantages and accelerate the process of collectivization. However, the implementation of diversification strategy should consider the correlation of industry selection, enterprise control and cross-industry investment risk.
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3. Joint operational strategy
Joint operation strategy refers to the expansion strategy of two or more independent business entities horizontally forming a business entity or enterprise group, which is an inevitable form of social and economic development to a certain stage. The implementation of this strategy is conducive to the effective combination and rational allocation of enterprise resources, increase the scale of operating capital, realize complementary advantages, enhance collective competitiveness, speed up expansion and promote the development of economies of scale. In industrialized western countries, joint operation is mainly in the form of holding, and the common characteristics of each group are: the holding company (parent company) establishes the control relationship with its subsidiaries with capital as the link, and the members of the group adopt two shareholding methods: circular shareholding (mutual shareholding) and one-way shareholding, which are divided into two control methods: mutual control of groups with large banks as the core and vertical control of subsidiaries with large production enterprises as the core. In China, joint operation mainly takes the form of merger, merger, holding and equity participation, and establishes enterprise alliance through horizontal joint formation. Its joint operation strategy can be mainly divided into four types: integration strategy, enterprise group strategy, enterprise merger strategy and enterprise merger strategy.
The integration strategy is an enterprise consortium composed of several affiliated units, which mainly includes vertical integration (serial connection between manufacturers and suppliers and distributors), forward integration (connection between manufacturers and distributors), backward integration (connection between manufacturers and raw material suppliers) and horizontal integration (connection between enterprises in the same industry). The advantage of this strategy is that through the close alliance of affiliated enterprises, resources can be shared and the comprehensive cost can be reduced. Its disadvantage is that the management scope is enlarged, which is not conducive to the coordination of resource allocation and interest relations.
Enterprise group strategy is an economic joint organization composed of several enterprises with independent legal person status in various forms. The organizational structure is divided into: the core enterprise of the group (a group company with the nature of the parent company), the tight layer (composed of subsidiaries controlled by the group company), the semi-tight layer (composed of enterprises in which the group company shares) and the loose layer (composed of enterprises that recognize the articles of association of the group company and maintain a stable cooperative relationship). The relationship between the tight layer and semi-tight layer and the group company is based on capital, while the relationship between the loose layer and the group company is based on contract. Group companies can form enterprise groups by combining with close layers. The difference between a group company and an enterprise group is that a group company is a legal person, while an enterprise group is a legal person consortium and does not have legal person qualification. The internal components of group companies are closely integrated, and the internal components of enterprise groups are multi-level integrated.
The strategy of enterprise merger and acquisition refers to the joint form of participating enterprises to realize the unification of assets, public relations and business activities and establish new legal personality by transferring ownership and management rights at the same time. Adopting merger and acquisition strategy can optimize the resource structure, realize complementary advantages and expand the scale of operation, but it is also easy to absorb non-performing assets and increase the risk of merger and acquisition.
The strategy of enterprise merger and acquisition is a joint form in which one enterprise obtains all assets or control rights of another enterprise through cash purchase or stock exchange. Its characteristics are: the merged enterprise abandons its legal person status and transfers its property rights, but retains its original enterprise name and becomes a surviving enterprise. The merged enterprise obtains property rights and undertakes the responsibilities and obligations of the creditor's rights and debts of the merged enterprise. Through merger, social resources can be integrated, production scale can be expanded, and enterprise output can be rapidly increased, but it is also easy to disperse enterprise resources, leading to out-of-control management.
Robust strategy
Steady strategy is a strategic form with a steady development attitude, which is mainly suitable for medium-sized and below-sized enterprises or large enterprises with sluggish operations. It can be divided into two strategic forms: no-growth strategy (keeping output, brand, image and status unchanged) and micro-growth strategy (slightly improving competition level on the original basis). This strategy emphasizes the preservation of strength and can effectively control business risks, but its development speed is slow and its competitiveness is weak.
Contraction strategy
Contraction strategy is a strategic form with conservative management attitude, which is mainly suitable for crisis enterprises with weak market, inflation, product decline, out-of-control operation, operating losses, insufficient funds, lack of resources and vague development direction. It can be divided into three strategic forms: transfer strategy, retreat strategy and liquidation strategy. Transfer strategy is a strategy to transfer market area (mainly from large market to small market) or industry area (from high-tech area to low-tech area) by changing business plan and adjusting business deployment. Retreat strategy is a strategy to withdraw or abandon certain geographical or market channels by cutting expenses and reducing production; Liquidation strategy is a strategy to repay debts or stop business activities by selling or transferring part or all of the assets of an enterprise. The advantage of contraction strategy lies in that by integrating effective resources, optimizing industrial structure and preserving effective strength, the losses of enterprises can be reduced and the life span of enterprises can be prolonged, and by concentrating resource advantages, internal restructuring can be strengthened to achieve new development. Its disadvantage is that it is easy to waste some effective resources of enterprises, affect their reputation, lead to low morale, cause brain drain and threaten their survival. Adjusting business ideas, carrying out systematic management, streamlining organizational structure, optimizing industrial structure, revitalizing the backlog of funds and reducing unnecessary expenses are the key points to be grasped in this strategy.
Strategic management of Amway enterprises
1. aims and objectives:
Based on honesty, let more people know about Amway through direct sales, so as to seek long-term development.
2. Environmental analysis:
I. External environment
1. Political and legal environment: China's politics is relatively stable. Since the reform and opening up, a series of laws and regulations have been formulated to ensure the investment environment of enterprises.
2. Economic environment: The socialist market economic system has provided Amway with the legal right of independent marketing and competition.
3. Social environment: China people attach importance to the relationship between relatives and friends, which is the basis of direct selling. With the improvement of living standards, people pay more and more attention to nutrition and health.
4. technological environment: China attaches importance to technological innovation, while Amway constantly studies based on consumer demand? New concept, new technology, new product? It is consistent with China's strategy of rejuvenating the country through science and technology and strengthening the country through talents.
Two. milieu interne
1. Industry Competition Analysis: In the cosmetics industry, similar products of other brands have fierce competition, such as Tiens, Perfect, Unlimited and Bai Ou, which carve up the market and have little room for development.
In health care industry, the diversification of health care products market and uneven quality have affected consumers' goodwill towards such products.
2. Financial analysis: Amway regulates the company's business activities and ensures the truthfulness, accuracy and completeness of accounting materials, financial statements and related information.
3. Management process analysis: Amway has a sound internal governance and organizational structure, forming a scientific decision-making, implementation and supervision mechanism, ensuring the legal compliance of company management and the orderly conduct of business activities, improving operational efficiency and effectiveness, and promoting the enterprise to realize its development strategy.
4. Marketing analysis: Amway adopts a marketing strategy suitable for China's national conditions. Direct sales+stores? Our business model meets the needs of consumers to the greatest extent.
5. R&D: Amway has made great innovations in product development. Compared with other competitors, Amway knows what consumers need.
3. Discover opportunities and dangers:
Opportunities:
1. After China's accession to the WTO, Amway's development potential in the China market has increased;
2. With the economic reform and opening up, the consumption level of consumers has improved and the market potential has increased;
3. The value and quality of Amway products are recognized by consumers;
4. There is an increasing demand for medical care, health care products, medicines and food in the mainland;
5. Storeless sales channels are gradually opening up (such as online shopping and telephone ordering). );
6. The increase of sports events held in China provides opportunities for the realization of product concepts and the promotion of image. Threats:
1. The direct selling environment is sluggish. The promulgation of "Regulations on Direct Selling Management" makes the original marketing model need to be readjusted to adapt to the new sales environment.
2. The competition among cosmetics, health food, personal and family care products is fierce;
3. Compared with similar products, the price of Nutrilite is on the high side, which does not meet the consumption level of some consumers.
4. Enterprise resource analysis
Through SWOT analysis method, the opportunities and threats of enterprises are discovered, so as to discover and tap the resources of enterprises. Resources can be divided into tangible resources and intangible resources.
(1) Among the tangible resources, the investment of Amway headquarters in stores reached 80.3 billion yuan, and Amway's factories and equipment reached the international advanced level.
(2) For intangible resources, but from the perspective of human resources, Amway has a mature and sound talent management system, especially their training system.
Besides, the resources of innovation and reputation also make Amway a brand in China.
5. Identify strengths and weaknesses
Disadvantages:
1. Advanced technology and management will lead to an increase in production costs, an increase in product prices and a decrease in consumer groups, which is not conducive to market development.
2. The distribution channels of Amway brand are too scattered, which makes it difficult for consumers to identify the source of regular products and makes the purchase demand weak.
3. Some nutritional supplements are not suitable for domestic people, and the development of some products is not strong.
The company is in the transitional stage of reform.
Advantages:
1. Its R&D technology makes its products better adapt to the China market, which is conducive to the development of China market and promotes the better marketing of its products.
2. Advanced enterprise management technology ensures the scientific management of enterprises, formulates correct development strategies, and lays a foundation and provides guarantee for enterprise marketing.
3. The strict quality management system ensures the high quality of products, wins the trust of consumers, is conducive to market development, and has a strong brand building publicity and a good product reputation.
4. Fully support sports and public welfare activities, establish a good corporate image, and have high visibility and reputation. ? Nutrilite? Nutritional supplementary food has a history of more than 70 years, with a long history and a high market share. The product has natural raw materials and advanced production technology.
5. The company has strong strength and is a giant in the direct selling industry in China.
6. Re-evaluate the goals and objectives of the enterprise:
From the environment, advantages and disadvantages, opportunities and threats of Amway mentioned by the previous team members, it can be seen that Amway needs to improve its high-quality products, perfect after-sales service, large and free sales team and positive entrepreneurial spirit if it wants to develop and grow better in such a big environment as China.
So our new goals are: honesty, value, responsibility, diversification and innovation.
Integrity: the foundation of an enterprise, and integrity is the cornerstone for consumers to buy products with confidence.
Value: While paying attention to quality, we provide consumers with cost-effective products, leading similar brand products. Responsibility: strictly control the products produced to ensure that consumers can use the products with confidence and provide perfect after-sales protection.
Barriers make consumers more at ease.
Diversification: it is no longer just a single sales method that varies from person to person, but should conform to the trend of the information age and broaden more sales channels.
Innovation: from the perspective of consumers, create the products they really need.
Goal: Amway adds color to your life.
7. Strategy formulation
Business strategy analysis:
1. growth strategy (SO): continue to stabilize the leading position of products and markets, try to maintain an internal feasible system and make use of existing advantages to develop.
2. Diversification strategy (ST): find out the flexible space of laws and regulations, attach importance to product development, improve product lines, use existing advantages to find new marketing methods, consolidate existing popularity and market position, and compete with competitors and new entrants.
3. Reversal strategy (WO): appropriately reduce the product price, fully appease the impact of channel adjustment, and emphasize all advantages and opportunities.
4. Defensive strategy (WT): Reduce the price of products, fully solve the conflict between laws and regulations and the original system, and only meet the requirements of national laws can we survive.
(1) Overall strategy formulation:
Development strategy:
Forward integration: In the past, Amway only used direct selling as a single marketing strategy. Due to the depression of direct selling environment, Amway can adopt an all-round and multi-level sales network in the future. We will see: direct sales, Internet sales with mobile Internet, call center ordering, Amway Health Channel (digital TV frequency) and so on.
Diversification strategy: On the one hand, Amway can make use of its R&D advantages to expand and enrich its product line. In terms of sales, Amway China can promote the strategy of physical experience, and experience stores can provide lifestyle solutions for consumers and enhance user stickiness through deep interaction with consumers. On the other hand, we can directly acquire successful local brands or participate in cooperation with them, reduce the risk of blindly entering new fields, and quickly obtain the expected results.
(2) the formulation of business strategy:
Cost leadership strategy: Amway can realize production innovation by strengthening IT construction, production process reengineering and production management, organize or integrate various activities in the value chain in a brand-new way, and re-create a lower-cost and more competitive value chain. Under the background of rapid economic development and increasing inflation in China, it is necessary for Amway to gradually introduce its overseas more modern logistics system in order to minimize the cost.
Differentiation strategy:
Product differentiation: the production line of household care products can not only be imported from abroad, but also increase research and development at home to create products that are more suitable for us.
Service differentiation: set up an Amway store, which can be located in the bustling area of the city with convenient transportation; decorative style
Unified grid, elegant and clean storefront environment. Can you also introduce a representative of the modern e-commerce trend? Compound home delivery service? . This will make Amway's service deeply rooted in people's hearts.
Price differentiation: because compared with similar products, Amway products have higher prices. Amway can reduce the cost to the maximum extent and the product price appropriately through the cost leadership strategy, so as to make itself profitable, at the same time, it can also bring preferential treatment to customers and win more trust and patronage.
(3) Functional strategy formulation:
Human resource management strategy:
In today's China, on the one hand, the economy is developing rapidly and the national consumption level is progressing step by step; On the other hand, a considerable number of young people have employment pressure. Amway needs to focus on the younger generation when considering the talent pool. The cultivation of talents is very important for growth. Therefore, the eyes need to see the considerations in the next five years and the next ten years. There is no doubt that Amway not only cultivates its own talent team, but also a new generation of consumers. Amway products will become more and more indispensable in the consumption structure of this generation. Technology development strategy:
Amway has always been independent research and development, self-produced and self-sold, to ensure product quality. As some nutritional supplements are not suitable for China people, Amway can increase its investment in China products and develop more new products in the next few years. For example, a plant R&D center can be established to study herbs to meet the needs of consumers in China. In order to expand the market share, R&D needs to highlight the localization strategy in China, so as to tailor it for consumers.
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