Mkrtumova A., Benyash S.
Saint - Petersburg’s
national research University of informational technologies, mechanics and
optics
THE COMPETITIVE STRATEGY OF THE ENTERPRISE AND
ITS VALUE IN THE ORGANIZATION
The
relevance of developing strategic plans for the development today does not
cause doubts on all levels of economic activity in our country. After a long
period of rigid, centralized system of state planning of economic activity of
enterprises, now is the time (in the late 80's – early 90-ies) when was denied
any long-term planning of economic activity. But the development of market
relations in modern Russia, in all actuality, raised the question of the
implementation of strategic planning at all levels of economic activity in our
country. Moreover, strategic planning is recognized as one of the main
directions of administrative activity professionals managerial level. Moreover,
it should be noted that in the modern
world the development and implementation of strategic plans is carried out
taking into account internal and external factors. Strategic plans are not
immutable dogma, they must constantly be adjusted in accordance with dynamic
change of the situation and the environment in which to operate a business or
organization. This
change, adjusting plans as is one of the main activities of managers.
Without
exception, all the business firms strive to achieve the highest possible effect
in the use of a range of resources at their disposal, to ensure a competitive
advantage over rivals. However, the life of irrefutable evidence that not every
subject of entrepreneurial business is able to do this.
There are
different points of view on the concept of competitiveness of the organization.
So, T. G. Gor'kova and Shapovalov allocate such an important aspect of the
organization's competitiveness as its ability most effectively to meet the
needs of consumers . Thus, we can say that competitiveness is a relative
assessment of the benefits to companies, organizations, products, and services
that enables them more effectively to meet the needs of consumers and make a
profit on invested capital.
A. Voronov
divides the concept of product competitiveness and the competitiveness of the
organization. Competitiveness is a relative value that characterizes a
quantitative correlation of the most important characteristics of the two
products. The competitiveness of products testifies to the satisfaction of the
purchaser one counterpart of the production in relation to another. The
competitiveness of organization is its ability to produce and sell competitive
products.
The main objective (mission) of the organization is to meet the needs of
the consumer. Consumers are also interested in the first place, relevant
characteristics of goods, works and services. Each specific segment of buyers
in each situation chooses those product parameters that best satisfies existing
demand, and fully meet the expectations of the consumer. In addition, the organization sets specific objectives
in the short and long term. Such goals may include obtaining a certain mass of
profit, the achievement of a certain percentage of profitability, market share,
etc.
So, the
competitiveness of organization is a relative value that characterizes the real
and potential ability of the organization in existing conditions to design,
produce and sell goods (works, services), which are important characteristics
more attractive to consumers than the products of their competitors, and thus
in the short and long term to achieve your goals. However, the work on the
consumer should not be reduced to the satisfaction of its current requests. The
consumer does not know what could be the product of the future. The objective
of the company is to develop and offer such a product (not to go on about the
customer, and to shape it needs). According to Mitsuaki Shimaguchi, the main
source of competitiveness of the company in the XXI century - "the love of
their consumers and meeting their demands". You have to fight for the
client and improving his position, and not with a competitor, trying to worsen
his situation in the market. Therefore, one can only agree with scientists who
rightly believe that the main engine of the economy - competition creditworthy
customers.
The
innovative concept of business development with an eye to the future were the
first to offer G. Hamill (London business school) and C. K. Prahalad
(University of Michigan), who worked several years together. Abandoning
traditional strategic planning, Hamill and C. K. Prahalad coined the terms
"strategic intentions" and "strategic architecture",
meaning the clarification of the contours of the future of the industry as you
create it. To take place in the future, it is important, in their opinion, not
to limit the strategic objectives of today's available resources, but rather to
"move" from target resources as far as possible. If the direction is
correct and all divisions of the company are being pursued consistently, should
build up resources "on the march".
Success
factor in the market, according to the authors, is intellectual leadership. Its
most important condition G. Hamill and C. K. Prahalad called the skillful use
of "basic functionalities of the product" and "key
competences". The first concept indicates the potential of development and
new use of the product, the second - the knowledge and skills of people who are
wider than their official duties. If a particular merchandise is not in demand,
the key competencies will allow you to come up with other suggestions.
Strong point
of this concept is the assertion that business is a dynamic movement into the
future. G. Hamill and C. K. Prahalad declared that to be second or third in the
industry is not as profitable as previously thought. They tried to specify the
path to the leaders of even small businesses, calling collect resources, and
ability, to break with the idea that the possession of a large share of today's
market is a measure of success. After analyzing the factors of the rise of some
leading companies (Microsoft, Motorola, Honda, Wal-Mart, etc.), H. Hamill, and
C. K. Prahalad has provided evidence of how important it is not to be
distracted by the restructuring and the restructuring, and to create future
markets and dominate them.
In recent
years in economic science increasingly began to climb the full, comprehensive
approach to human labour from the standpoint of the concept of human capital.
In modern companies and organizations are increasingly dominated by fixed
assets and inventories, and information, knowledge and other intellectual
capital elements. The intellectual capital includes human capital and
structural capital, internal and external to the organization. Human capital is
understood as a set of knowledge, competences and relationships, which are the
employees of the organization.
The business
entered the stage of revolutionary upheaval: the organization of the
revolutionaries seize the traditional companies in their own markets and
consumers, then the best employees and, finally, the assets. Those who do not
have the gift of foreseeing and works the old fashioned way, denied access to
future competitive advantages. To win in future competition, we must overcome
the stereotypes of thinking. To enter in the future, you need to put aside
almost everything that made the core management of the XX century (incremental
changes, restructuring and reorganization, short-term wins at the expense of
reduction of expenses and even the effectiveness). Competition is no longer a
"product against product", "efficiency against
inefficiency", "skinny" firm vs. "thick" and the like,
and "non-linear" innovation against "linear".
Competitive
advantage become a fundamentally new businesses, non-linear innovation and
creative solutions. Strategic flexibility (the ability to quickly change the
product, distribution channels, etc.) is certainly important, but it doesn't
help much when it comes to new business. It is not enough to predict what may
happen to the company in the future, you must design the future, we have to
manage it. The conquest of leadership, in turn, requires focusing on one or
more competencies, even if the ambitions of the organization are limited to the
conquest of leadership in the region.
Thus, the
concept of basic competence actualizes the thesis about necessity of formation
of intellectual capital. Even industrial companies increasingly feel only the
links in the value chain of the industry and are increasingly dependent on
services of intellectual nature. It is this intellectual capital must be formed
within the organization. Thus, intellectual capital is becoming the competitive
advantage to win and retain which the organization aspires. Everything else can
be purchased from suppliers.
The
organization, managed to create, maintain, and proficiently use competitive
advantages that can compete (ably compete and win in it), in other words, to be
competitive. The main criteria of competitiveness of the enterprise can be
summarized to offer two assessment categories: the value of manufactured
products (services) and the value of the enterprise as an economic entity.
To judge the
degree of success or failure of a subject of entrepreneurial business by the
extent to which the process of competition is the company able to create, to
reproduce, to increase their competitive advantage, or to what extent it is
forced to reduce its previously established competitive advantages through to
their complete loss. The competitiveness of a subject of entrepreneurial
business is its ability to detect the benefits over rivals, and the level of
competitiveness of the company is determined on the basis of an assessment of
the dynamics of the aggregate competitive advantages possessed by this company.
Competitive
advantage is a consequence of the implementation of elements of
competitiveness. Therefore, the increment of competitive advantage suggests
raising the level of competitiveness of a subject of entrepreneurial business,
the reduction in the number of competitive advantages - on the unconditional
reduction of the level of competitiveness, maintaining the composition and volume
of competitive advantages - on the approximate preservation of the achieved
level of competitiveness, which could be considered as evidence of relative
success and relative failure at the same time, entrepreneurial firms.
The
competitiveness of entrepreneurial firms is the ability of the firm application
combined competitive potential, and having a constructive, and destructive
character, to fight with rivals and achieve competitive advantage. Currently in
the literature there are different methods of assessing the competitiveness of
the organization, but in our country there is no generally accepted methodology
for assessing competitiveness, which would be acceptable for different types of
enterprises operating in various fields. Each company evaluates its competitive
position in the market of goods or services takes place, guided by the method
adopted by the company or using the existing methodology, which is partially or
fully adapted to the conditions of functioning of the organization.
Most of the
existing methods of estimation of competitiveness of the enterprise equate the
company's competitiveness to the competitiveness of goods produced by this
company. The competitiveness of a product is mainly determined by the ratio
price-quality in comparison with similar products on the market at a given
time. Enterprise as a system must be competitive by itself and not depend on
the level of competitiveness of its products. The high competitiveness of the
organization should enable it to produce more competitive products.
The
stability of the organization, its survival and effectiveness in the conditions
of market relations are inextricably linked to its continuous improvement and
development. The development organization should be carried out according to
the principle of adaptation to the external environment.
Factors
determining the need for continuous improvement, is obvious today. This:
• the market
for manufactured or marketed products and services;
• market
provider or a consumer of raw materials, energy, goods and services;
• financial
market;
• the labour
market;
• the natural environment.
Without
these factors it is impossible to plan development strategy. The survival of
the company and its success depend on the ability to adapt quickly to external
changes. In a continuous effort of the organization to comply with the
conditions of the external environment is the principle of adaptive management.
It is manifested in the dynamic development of new products, modern techniques
and technologies, progressive forms of labor, production and management,
continuous improvement of human resources.
Assessment of
competitiveness is a complex task, which must begin with a definition of the
key indicators of competitiveness and identify their weight in the total integral
indicator of competitiveness of the enterprise. Competitiveness is a process of
creation, production and commercialisation of goods and services that are in
demand in a given market at a given point in time. An indicator of the
competitiveness of enterprises is an indicator of the effective use of its
financial, production, scientific-technical and labor potential. Therefore,
when assessing the competitiveness of enterprises will be more correct, if we
consider the competitiveness of the organization as a sum of one of the
components of which will be to the competitiveness of its goods (services), the
second component will be the competitive potential of the enterprise. However,
note that the index of enterprise competitiveness is a constantly changing value,
that is, reaching a certain level of competitiveness is impossible to maintain
this level without any effort. In other words, the process of maintaining and
growth of competitiveness of the enterprise is a process that requires
management.
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