Strategic planning as the inevitability of modern management

Abstract

The business strategy includes identifying different ways to achieve the vision, mission and goals of the organization. Organizations, both formal and informal, have their own goals and plans. The extent to which they will achieve their goals depends on managerial performance, efficiency and effectiveness. In conditions of increasing levels of turbulence and complexity of the environment in which organizations perform their business and wider social mission, managers are increasingly required to have leadership qualities and entrepreneurial spirit. Ability to create vision, mission, goals and strategies and their implementation in the life of the organization, change management, communication, ability to constantly learn, intuitiveness, confidence, creating new values are just some of the features of a modern manager required by new competition, new technology and new lifestyle. The company must strive to provide and permanently maintain a competitive advantage - its position in relation to other companies engaged in the same activity. The choice of business area is, in fact, the positioning of the company on the market and is oriented towards business efficiency. Strategy as a planning decision refers only to those decisions on the choice of business area and allocation of factors of production that have a significant and lasting impact on the profitability of the company. The basic elements for defining the area of business activity are products, market and technology. The business area is determined, first of all, by the category of customers whose needs the company intends to satisfy with its business activity. In order to define business areas, it is important to always talk about the product-market relationship.

Keywords

• strategic management
• planning
• business activity