The content and development trend of enterprise strategic management

Introduction: corporate strategic management has become an important category of modern business management discipline. It is not only pointing out the right direction for the enterprise. And it also includes the methods and paths to make the enterprise move along the right direction, so it is not only a theoretical problem, but also a practical problem.

The content and development trend of enterprise strategic management

I. The development process of strategic management theory

(a) Traditional strategic management theory

The traditional theory of strategic management is based on environmental factors. Three schools of design arose during this period:

1 Design School

The origins of the design school can be traced back to the books Leadership in Business by Seznik in 1957 and Strategy and Structure by Chandler in 1962. But it is represented by the 1965 book Business Strategy: content and cases by Andrews et al. The core element is the SWOT model, which matches the internal strengths and weaknesses of a company with the opportunities and threats of the external environment. And it divides strategy into 4 elements: market opportunities, company strengths, personal values and aspirations. Social responsibility.

2 The Planning School

Corporate Strategy by Ansoff in 1965 is the most influential work of the Planning School. According to the planning school, strategy arises from a controlled, conscious, more independent and systematic formal planning process, with planners developing and implementing plans and being accountable only to top management, and strategy should be detailed and specific and subdivided into goals, budgets, procedures, and other implementation plans.

3 Positioning School

Porter to the 1980 Competitive Strategy and 1985 Competitive Advantage of the two masterpieces, so that the positioning of the school of thought to achieve the mainstream of strategic management theory in the 1980s. Porter believes that the core of corporate strategy is to obtain competitive advantage, and there are two factors affecting the competitive advantage of enterprises, one is the structure of the industry in which the enterprise is located; the second is the enterprise's competitive position in the industry. Traditional strategy theory assumes that the external environment is predictable or basically predictable, but as the environment in which the enterprise is located becomes complex and diverse, this theory is no longer adapted to the needs of enterprises.

(2) Competitive Strategy Theory

Competitive strategy theory is based on the analysis of the structure of industrial competition. 1980 Harvard professor Michael Porter, in his book "Competitive Strategy", said, "We are not sure if we have the right to compete with each other. Porter in the book "Competitive Strategy", put forward the industrial structure analysis based on the theory of competitive strategy, constructed on the enterprise competitive strategy of the basic analytical framework, provides the relevant research enterprise competitive strategy analysis tools. It discusses many issues of corporate competitive strategy. After that, Porter published the book "Competitive Advantage", which formed a systematic model - the Porter model.

The main point of Porter's theory of corporate competitive strategy is that industry attractiveness is the main determinant of profitability, and the appropriate positioning of the enterprise is the basis for obtaining competitive advantage. Compared with the traditional strategy theory, the theory of competitive strategy has made some progress, but because the theory of competitive strategy lacks the analysis of the internal environment of the enterprise, and only stays on the analysis of the flow of competitive resources, so it also has its limitations.

(C) Modern strategic management theory based on resources, capabilities and knowledge

The competitive environment in which enterprises were engaged in the 1990s was unprecedentedly fierce, so the modern strategic management theory based on the enterprise's core resources, capabilities and knowledge was bred. The resource-based view argues that key resources can bring an enterprise a lasting competitive advantage.

And pointed out the judging criteria: first, valuable, resources must have strategic value, that is, the ability to improve the efficiency and effectiveness of enterprises; second, scarcity. Resources are scarce to a certain extent, demand is high and supply is very small; third, inimitable; fourth, irreplaceable, competitors can not find substitutes.

In 1990, Prahalad and Hamel, in their article "The Core Competitiveness of the Firm", proposed that the competitive advantage of a firm lies in its core competence, which is the unique ability of a firm to produce a product, which can be expressed as: having a potential channel to a wide range of markets: making a significant contribution to the welfare of the consumer of the final product; and being difficult to be imitated by its competitors. In 1996, Grant argued that firms are organizations that integrate proprietary knowledge into products. Firm-specific knowledge is an effective way for firms to have a lasting competitive advantage.

The process of corporate strategic management and strategic risk analysis

The process of corporate strategic management can be divided into three parts: strategic analysis, strategy formulation and strategy implementation. Strategic analysis is to influence the present and future survival and development of the enterprise `some key factors to analyze, which is the basis of strategic management, strategic analysis mainly includes internal and external environmental analysis, strategic objectives and intentions set several aspects.

On the basis of strategic analysis. Strategy development mainly includes four parts: corporate strategy, competitive strategy, functional strategy and a variety of strategic programs to assess the choice. Strategy implementation is to carry out the implementation of the established strategic planning activities necessary for the general term, refers to the specific implementation of the enterprise selected strategic program to take a variety of measures. In the process of enterprise strategy management, we must analyze, develop and implement the strategy of these three stages organically combined. Form an organic dynamic process.

Strategic risk is derived from the strategic management process, in the strategic analysis, selection and implementation due to different strategic tasks at each stage, it will present different strategic risks. This constitutes the whole of corporate strategic risk.

Enterprise strategy risk is composed of two parts: external risk and internal risk. External risk can be further divided into macro-environmental risk and industrial risk, while internal risk is determined by the enterprise's own factors, such as bankruptcy risk, lack of information, loss of earnings, credit decline, organizational deficiencies, cultural deficiencies and so on.

But the enterprise is in a complex and changing competitive environment, the strategic risks faced by it can not be described only by external and internal risks, and in most cases should be the result of a combination of factors. According to the source and composition of strategic risk can be divided into four parts: operational risk, asset loss risk, competition risk and goodwill risk.

Operational risk is the risk arising from poor core business operations; the risk of loss of assets is mainly the risk arising from the degradation of financial values that have a significant impact on the implementation of the strategy, such as intellectual property rights or the natural conditions of the assets:

Competition risk is the risk arising from the changes in competitors' strategies, ordinances, and public **** governmental changes, the changes in customer demand, the changes in pricing and policies of suppliers, and so on. Pricing and policy changes, etc. These may weaken the competitive advantage of the enterprise and become strategic risks; goodwill risk is the result of the combination of the above three aspects.

For these reasons, goodwill risk arises when the credibility of the entire enterprise declines, reducing its value. The strategic management process is inextricably linked to risk, so companies must consider the issue of strategic risk when implementing corporate strategy. Minimize the risk. So that the enterprise can have a foothold in the industry.

Third, the development trend of enterprise strategic management

(a) the competitive space of enterprise strategy is expanding

The boundaries of the industry, the boundaries of the inter-enterprise is becoming increasingly fuzzy, the competition is no longer within the boundaries of a particular region or industry, the enterprise must be from the global perspective, from the cross-industry point of view, the enterprise must be from the global point of view, from the cross-industry point of view, from the global point of view, from the cross-industry point of view.

(2) The enterprise's strategy should have a high degree of flexibility

When the enterprise is facing a lot of uncertainty in the business risk or the requirement of the enterprise's strategy and the pace of change of the external synchronization, the enterprise has to have the ability to adapt to the uncertainty of the rapid response, which requires that the enterprise's strategy to have a high degree of elasticity.

(C) the main body of the formulation of corporate strategy tends to diversify

Due to the rapid development of information technology, making the organizational structure flat, each individual in the process of information dissemination in the enterprise is a node, the enterprise's top management no longer resides in the center of information dissemination, ordinary employees have more opportunities to participate in corporate strategy development, they have a decision-making participant. The general staff also has more opportunities to participate in the development of enterprise strategy, they have the characteristics of the dual identity of the decision-making participants and decision-making executives.

(d) Formation of an enterprise ecosystem? The ecosystem of the enterprise?

For an individual company, the competition is more about joining or creating an influential ecosystem that brings real value to the organization. It is also about seeking a more favorable position within a system, and of course, about being a leader of the group. In a harmonious environment of competition and cooperation. To realize the full potential of the advantages, and to reduce operating costs and risks.

(E) the formation of dynamic integration of strategic management thinking

This thinking emphasizes the dynamic integration of the enterprise's resources, capabilities and competitiveness, the formation of a dynamic cycle process. To form a competitive advantage.