Scheme for conducting strategic analysis. Conducting strategic analysis Applying strategic analysis

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Strategic Analysis

strategic analysis production economic

Taking into account the complexity of the organization of our system. To determine further steps for the development of the enterprise, company managers must evaluate and take into account all aspects and nuances of its structure, as well as environmental conditions, in order to maximize the results from subsequent actions in the market. To achieve this, the top management determines strategic development, i.e. draws up a kind of plan of possible actions to improve or maintain positions in a particular area of activity of the enterprise.

Today there are many schemes (templates) by which you can determine the position of a given company in the market relative to competitors in various aspects of its activities and answer the question - What to do next? It is based on the results of the strategic analysis that a list of goals is compiled, by achieving which the enterprise can improve its well-being.

That is, strategic analysis, in my opinion, is a way of obtaining information about the state of our company, which is manifested in determining the competitive properties of the company itself and the properties of the external environment. It is then used to adjust old goals or create new ones.

Today it is common to present information about an enterprise and its structural elements in the form of matrices. The matrix representation is very simple, so they are widely used and we will consider them further.

Types of strategic analysis

SWOT analysis is one of the most common types of analysis in strategic management today. SWOT: Strengths; Weaknesses; Opportunities; Threats. SWOT analysis allows you to identify and structure the strengths and weaknesses of a company, as well as potential opportunities and threats. This is achieved by comparing the internal strengths and weaknesses of their company with the opportunities that the market gives them. Based on the quality of compliance, a conclusion is drawn about the direction in which the organization should develop its business, and ultimately the allocation of resources to segments is determined.

The purpose of SWOT analysis is to formulate the main directions of development of an enterprise through systematization of available information about the strengths and weaknesses of the company, as well as potential opportunities and threats.

The most attractive thing about this method is that the information field is formed directly by the managers themselves, as well as by the most competent employees of the company, based on the generalization and coordination of their own experience and vision of the situation.

Of course, SWOT analysis is a purely research work and consists of alternating stages.

1. Assessment of opportunities and threats emanating from the external environment

Identifying Opportunities and Threats

Determining the strength of specific opportunities and threats (allows the enterprise to focus on certain environmental factors)

Assessing the likelihood of opportunities and threats occurring

Classification of specific opportunities and threats using a two-dimensional matrix, where the main factors are strength and probability of attack.

Fig.1

Fig.2

The matrix is divided into 4 quadrants, each of which has its own degree of importance for the enterprise. Quadrant 2 in both matrices is of particular interest because factors in them have a greater probability of occurrence and strength of influence.

2. Assessing the strengths and weaknesses of the enterprise. Direct determination of the development potential of resources and various aspects of activity, as well as their condition.

In this case, you can give an example of constructing a simplified SWOT analysis of the IKEA company (without power and probability matrices of the occurrence of a factor)

SWOT analysis of the company.

1. Know your customers. One of IKEA's key competitive advantages is its extensive customer knowledge. The company understands the factors that push customers to make purchases. IKEA provides a wide variety of products at low prices. Designers constantly introduce new product designs that look stylish in the eyes of the customer. All products are designed to be easy to transport and assemble. In addition, the company offers the widest range. Without extensive customer knowledge and methods to capitalize on that knowledge, IKEA would not be able to displace its competitors.

2. Application of innovations to reduce costs. Low prices are the cornerstone of IKEA's business idea, and the company always tries to make products as efficient as possible. To reduce costs, a company must find innovative ways to do this and incorporate them into its business model. Innovation includes new materials that are more environmentally friendly and less expensive, as well as using new ways to package, process and transport materials.

3. Supply chain. IKEA strives to establish long-term relationships with suppliers. This way, the company can order in larger quantities and benefit from lower prices and higher quality, and suppliers are confident that they will consistently supply the product. IKEA orders materials from nearby suppliers, which reduces transportation costs.

4. Brand reputation. IKEA is the world's most valuable furniture retailer, worth nearly $12.8 billion in 2012. The company's business is distributed in 332 stores in 38 countries. More than 600 million customers visit IKEA stores every year. Global market presence and strong brand reputation ensure that customers prefer IKEA to other competitors

5. Diversification. Unlike IKEA's main competitors, the company has a fairly diversified business. In addition to furniture products, the company has restaurants and other products.

1. Negative publicity. The company has been criticized many times over issues such as poor treatment of employees and questionable use of advertising. Negative publicity reduces brand reputation and customer loyalty.

2. Low quality of products and services. IKEA fails to find a balance between continuously cutting costs while maintaining product quality. Customers are less satisfied with high quality products and services from IKEA than with services and products from other companies. Reducing costs leads to a decrease in quality, which is accompanied by customers returning products, which reduces the brand's reputation.

3. Standard products. IKEA's main competitive advantage is its low costs, which are achieved in part through product standardization. Standard products attract fewer customer segments. Thus, the inability to offer better quality more specialized products allows competitors to compete in this niche and strengthen their position in it.

1. Further expansion in developing countries. The growth of retail markets in developing countries offers enormous opportunities for IKEA's revenue growth. The company currently operates in most developed countries, but has entered firmly into developing countries, with the exception of China. There is great opportunity for IKEA to expand in Russia, Brazil, Mexico, Indonesia and Malaysia to increase its presence in these markets to support future growth.

2. Increase online sales. Online sales account for 17% and 4% of total sales in the UK and US respectively. IKEA's website has 870 million users and the company can use this to increase sales.

3. Expansion of the food market. The current trend of eating healthy foods has led to an increase in the demand for food in many developed countries. IKEA has the opportunity to expand its business by opening grocery stores. The company already successfully operates its grocery stores, so this expansion opportunity will fit well with the company's current policy.

1. Increased competition. Many retailers such as Walmart, ASDA or Tesco are entering the home furnishings market. These large companies have similar features as IKEA, including low prices, a well-managed supply chain, and a huge market penetration could easily take away some market share from IKEA.

2. Growth in average consumer incomes. This means that people are buying less of the low-quality and cheap products that IKEA specializes in. As income increases, customers will be less interested in IKEA products and will prefer more expensive and high-quality ones.

Based on the results of collecting information and presenting it in tabular form, a list of further steps is compiled that are aimed at suppressing or minimizing external threats, internal weaknesses, as well as realizing existing opportunities. But special attention is paid to goals based on the development capabilities of the enterprise (i.e., the emphasis is on development)

Boston Advisory Group (BCG) Matrix

A two-dimensional matrix developed by the Boston Advisory Group has been widely used in the practice of strategic choice. Therefore, this matrix is better known as the Boston Consulting Group matrix, or the BCG matrix. This matrix allows a business to categorize products by their market share relative to major competitors and the industry's annual growth rate. The matrix makes it possible to determine which product of the enterprise occupies a leading position in comparison with competitors, what is the dynamics of its markets, and allows for the preliminary distribution of strategic financial resources between products. The matrix is built on a well-known premise - the greater the share of a product on the market (the greater the production volume), the lower the unit costs per unit of production and the higher the profit as a result of relative savings on production volumes.

The BCG matrix is compiled for the entire portfolio, and for each product the following information should be available:

Sales volume in value terms, it is represented on a matrix by the area of a circle (in our examples, a sector of a circle);

The product's market share relative to its largest competitor, which determines the horizontal position of the circle in the matrix;

The growth rate of the market in which the enterprise operates with its products is determined by the vertical component of the circle in the matrix.

From the BCG matrices, if they are performed for different periods of time, it is possible to construct a kind of dynamic series that will give a visual representation of the patterns of movement in the market of each product, the directions and pace of product promotion on the market.

When constructing the BCG matrix, the growth rate of product sales volumes is divided into “high” and “low” by a conditional line at the level of 10%. relative market share is also divided into “high” and “low”, with the boundary between them being 1.0. A coefficient of 1.0 shows that the company is close to leadership.

The interpretation of the BCG matrix is based on the following provisions:

Firstly, the gross profit and total revenues of the enterprise increase in proportion to the growth of the enterprise's market share;

Secondly, if an enterprise wants to maintain market share, then the need for additional funds grows in proportion to the market growth rate;

Third, since the growth of each market eventually declines as the product approaches maturity in its life cycle, therefore, in order not to lose previously gained market position, the profits generated should be directed or distributed among products that have a tendency to growth.

Based on the above, the matrix offers the following classification of product types in the corresponding strategic zones depending on the characteristics of profit distribution: “stars”, “cash cows”, “wild cats” (or “question mark”), “dogs”. This classification is presented in Fig. 3.

Rice. 3

"Stars" are products that occupy a leading position in a rapidly developing industry. They generate significant profits, but at the same time require significant amounts of resources to finance continued growth, as well as tight management control over these resources. In other words, they should be protected and strengthened in order to maintain rapid growth.

Cash cows are products that occupy a leading position in a relatively stable or declining industry. Since sales are relatively stable without any additional costs, this product generates more profit than is required to maintain its market share. Thus, the production of products of this type is a kind of cash generator for the entire enterprise, i.e. to provide financial support for developing products.

“Dogs” are products with limited sales volume in an established or declining industry. Over a long period of time on the market, these products failed to win the sympathy of consumers and they are significantly inferior to competitors in all indicators (market share, size and cost structure, product image, etc.), in other words, they do not produce and do not need significant volumes of financial resources. An organization with such products may attempt to temporarily increase profits by penetrating specialty markets and reducing supporting services or exiting the market.

Problem Children (Question Mark, Wildcats) are products that have low market impact (low market share) in a growing industry. They typically have weak customer support and unclear competitive advantages. Competitors occupy a leading position in the market. Since low market share usually means small profits and limited revenue, these products, being in high-growth markets, require large amounts of capital to maintain market share and, naturally, even greater capital to further increase that share.

In Fig. The 3rd dashed arrow shows that “wild cats” under certain conditions can become “stars”, and “stars” with the advent of inevitable maturity will first turn into “cash cows” and then into “dogs”. The solid arrow shows the redistribution of resources from “cash cows”. Thus, within the framework of the BCG matrix, the following options can be distinguished for choosing strategies:

Growth and increase in market share - turning the product into a “star”;

Maintaining market share is a strategy for cash cows whose income is important for growing product types and financial innovation;

- “harvesting”, i.e. obtaining a short-term share of the profit of the maximum possible size, even at the expense of reduction in any of the other quadrants.

Fig.4

Thus, analysis of sales of a company’s products over a number of years using the BCG matrix makes it possible to identify trends for individual products and build an appropriate strategy for them.

So, summary: the BCG matrix helps to perform two important functions: to decide on intended positions in the market and to distribute strategic funds between products. However, the BCG matrix is applicable if the growth in the volume of activity can be a reliable measure of prospects (for example, the phase of the life cycle will not change, the level of instability is low). A firm's relative competitive position can be determined by its market share. In addition, it is necessary to take into account risk factors, knowledge of past strategies and their effectiveness, the impact on the owners of the company from investors and consumers, and the time factor.

McKinsey Matrix

A development of the model built on the basis of the BCG matrix is the McKinsey matrix. McKinsey improved the Boston Matrix during a project commissioned by General Electric. The improved matrix provides a more complete picture of the firm's strategic position and the resulting strategic choices. In this matrix, the factor “market expansion opportunities” turned into the multifactor concept “market attractiveness”, and the factor “relative market share” was transformed into the concept “strategic position of the company,” which is a measure of the company’s position in the market.

In table Figure 1 shows factors that can be used to assess a firm's "strategic position" and "market attractiveness."

An enterprise using the McKinsey matrix must assess its position for each of those listed in the table. 1 factors. Numerical values of factors are established by the method of expert assessments. In this case, for example, a scale from 1 to 5 can be used, which allows us to distinguish three possible levels (1-2 - low, 3 - medium, 4-5 - high). Thus, although the McKinsey matrix, like the BCG matrix, is two-dimensional, it already consists of nine constituent elements, as opposed to four in the BCG matrix. The results of processing expert assessments on market attractiveness and strategic position will make it possible to determine the enterprise’s place in one of the quadrants of the McKinsey matrix.

Table 1

Factors used in the McKinsey matrix

As can be seen from the one shown in Fig. 6 of the matrix, the upper left (northwest) corner means that enterprises placed there have favorable prospects for growth, the diagonal that separates the upper left corner and the lower right corner means dual position and limited growth, the lower right corner -- lack of real opportunities for future development.

The advantage of the McKinsey matrix compared to the BCG matrix is that it takes into account the largest number of significant factors.

There are serious limitations in using the McKinsey model, which include:

secondly, the possibility of a subjective, distorted assessment by the company of its position;

thirdly, the difficulty of selecting and systematizing information on significant factors.

Rice. 6.

Other well-known matrices are also used in the practice of strategic analysis:

· comparison of industry attractiveness and competitiveness (Shell/DPM matrix);

· analysis of market evolution (Hoter/Schendel matrix);

· industry life cycle analysis (ADL/LC matrix).

Concept and levels of strategy

The choice of an organization's strategy should be based on an analysis of existing and forecasting future strategic needs of consumers, strategic segmentation of the market, forecasting the life cycles of future products, forecasting their competitive advantages.

Currently, it is necessary to apply a marketing approach when solving any strategic management problems, and especially at the stage of forming the organization's strategy.

Strategy can be defined as the decision-making process at the highest level of the organizational hierarchy.

Strategic analysis is a management activity related to the setting and implementation of long-term goals, maintaining effective relationships between the organization and its environment while matching the goals set to its internal capabilities. There are five tasks of strategic management:

1) justification of the type of commercial activity and the formation of strategic directions for its development;

2) justification of strategic goals and objectives for their achievement;

3) justification of the strategy to achieve the intended goals;

4) justification of the strategic plan;

5) assessment of performance results and justification for changes in the strategic plan.

These tasks are closely interrelated and interdependent.

1) senior manager;

2) managers of production departments of individual areas of activity;

3) functional managers of production departments;

4) managers of main operational units.

In a company engaged in one type of activity, strategic analysis is carried out at three levels - strategic managers at the top level, managers at the functional and operational levels. In small organizations, the management work of developing and implementing strategy is concentrated in the hands of a few managers.

Scheme for conducting strategic analysis

Conducting a strategic analysis involves a certain order of work, including organizational aspects, collection, selection and consolidation of analytical information in the areas of assessing the external macroeconomic and internal microenvironment of the company.

In the context of globalization of economic processes, external factors cannot be considered in isolation from each other. Therefore, the development of an effective development strategy for an organization is based on three components: a deep understanding of the competitive environment, a real assessment of one’s own resources and capabilities, and the correct choice of strategic and tactical goals. That is why the development of an organization's strategy should begin with an analysis of the marketing environment. The success of further steps in strategic planning and strategy implementation depends on how correctly it is carried out.

The marketing macro environment for many companies today is international. F. Kotler and K. L. Keller note the following global macroenvironmental factors acting on organizations:

Significant acceleration of international transport, development of communications and financial transactions, which leads to a sharp increase in world trade and capital investment;

Economic recovery of some Asian countries;

The desire of participants in trading blocs for economic cooperation;

Serious problems with the external debt of some countries, increasing instability of the international financial system;

Increasing the importance of barter and countertrade transactions in international trade (countertrade is a form of barter in which a country requires foreign companies to buy its goods in exchange for the right to sell their goods on its territory);

The transition to a market economy in former socialist countries, accompanied by large-scale privatization;

Rapid unification of lifestyles caused by the development of global communications;

Opening new large markets, namely China, India, Eastern Europe, Arab countries and Latin America;

Globalization of transnational corporations;

An increase in the number of international strategic alliances of large corporations;

Increased ethnic and religious conflicts in some countries and regions;

Type of strategic analysis	Subject of analysis	Objectives
Analysis of the far external environment	Demography, economics, natural environment, technology, politics, legislation, socio-cultural environment, etc.	Monitoring and analyzing trends/events beyond the enterprise's control that may affect the potential effectiveness of its strategy Development of possible reactions to the development of macroenvironmental factors
Analysis of the near external environment	Buyers, shareholders, creditors, government agencies, the public, trade unions, etc.	Tracking and analyzing the interests of interested groups, their influence on the organization’s activities Ranking of stakeholder interests
Strategic management	Individual businesses; functional subsystems; Main structural divisions; all business processes	Assessing the effectiveness of current activities from the point of view of ensuring future long-term profits Determining the strengths and weaknesses of the enterprise Strategic Potential Analysis
Briefcase	Strategic portfolio of the organization, SZH of the organization	Coordination of strategies of business units of the enterprise Ensuring a balance between business units with quick returns and areas that prepare the future Distribution of human and financial resources between households. divisions Portfolio balance analysis Selecting competitive positions in SZH Redistribution of resources between SZHs Determination of agricultural storage facilities that should be abandoned, Determination of the needs of new agricultural storage facilities Establishing key synergies
Industry	Industry drivers, competitors, industry,	Assessment and analysis of industry attractiveness Determination of industry success factors of the industry, Determination of industry driving forces Justification for the decision to select a base market
Competitive	Competitors	Analysis and assessment of the organization’s competitive position Assessing the competitive forces of the industry Forecasting the actions of competitors and assessing their impact on the organization’s activities Determining Competitive Advantages Strategic position analysis
Strategic Marketing Analysis	Consumers, company products, pricing policy, product service, FOSSTIS system, company communications, demand, marketing, etc.	Identification, research, determination of the structure and development opportunities of markets and market segments Assessment and forecast of the future state of the company's goods Studying consumer behavior, demand analysis Pricing policy analysis Analysis of the product distribution process Product service analysis Analysis of the demand generation and sales promotion system
Analysis of a strategic problem (task)	Goals, strategies, strategic problem (task)	Identifying strategic issues Analysis of strategic problems Assessing the consequences of solving strategic problems
Investment analysis	Entrepreneurial project	Formation of investment decisions (preliminary examination and analysis of a new business case) Economic assessment of investments Investment efficiency assessment

Table 1. Adapted report from Poisk


Current assets
1. Cash and securities
2. Accounts receivable
3. Inventory

Long-term assets (real estate)
6. Total assets

7. Current liabilities
8. Long-term liabilities
9. Own capital
10. Total liabilities

Table 2. Adapted profit and loss statement of the Poisk company

Name
1. Sales
2. Cost of sales (-)
3. Gross profit
4. Operating expenses
4.1 Rent payments
4.2 Overheads
4.3 Utility payments

Total operating expenses (-)
5. Operating profit
5.1 Other income
6. Interest payments (-)
7. Profit before taxes
8. Income taxes (-)
9. Net profit
10. Dividends (-)
11. Retained earnings

Indicators of the financial condition of the company "Poisk"
Name of indicator 2007 2008 Standard value
Liquidity	Profitability
Net working capital		For general investments
Total liquidity		On own capital
Urgent liquidity (1)		For total assets
Urgent liquidity (2)		For sale
Debt repayment period		Asset use
Inventory turnover in days		Inventory turnover
Solvency	Return on current assets
General solvency		Return of real estate
Financial attitude (1)	Return of common assets
Financial attitude (2)		Share capital
Return rate of long-term liabilities		Number of shares in hand
Market value of one share
Earnings per share
Dividend per 1 share
Price-income of 1 share

In 2008, the company increased its liquidity ratios by reducing short-term liabilities by 2 times. Despite the reduction in assets, the company was not only able to maintain profit at the same level, but also increase it, this was due to a decrease in all types of costs and attraction of other sources of income in the amount of 3000. The company paid off loans and paid dividends, thereby increasing its reputation with investors and attracted new money through loans.

3. Answer questions
1. What information for strategic analysis can you obtain by completing?

A comprehensive assessment of the strategic financial position of an enterprise integrates the results of an analysis of all types of the financial environment of the enterprise. Carrying out such an assessment allows:

- clearly identify the main features of financial activities at a given enterprise, determine its “financial entity”;
- evaluate the achieved results of managing the financial activities of the enterprise;
- identify problem areas in the financial development of the enterprise and the management system of its financial activities;
- objectively assess the possibilities for the future financial development of the enterprise, taking into account factors of the external and internal environment;
- fix the starting positions of the enterprise’s strategic financial initiatives.

Objectives of financial analysis:

1. Analysis of assets (property)
2. Analysis of funding sources
3. Analysis of solvency (liquidity)
4. Financial stability analysis
5. Analysis of financial results and profitability
6. Analysis of business activity (turnover)
7. Cash flow analysis
8. Analysis of investments and capital investments
9. Market value analysis
10. Bankruptcy probability analysis
11. Comprehensive assessment of financial condition
12. Preparing financial forecasts
13. Preparation of conclusions and recommendations.

What are the limitations of financial information?

Financial information takes into account quantitative data well, but may not take into account qualitative data at all. For example, nothing can be learned from reports about the organization’s corporate culture

Using the information provided, draw conclusions about the resources, financial and property status of the enterprise

In 2008, the company improved its position by reducing short-term liabilities by 2 times, which made it possible to increase liquidity ratios to standard levels. Despite the reduction in assets, the company was not only able to maintain profit at the same level, but also increase it, this was due to a decrease in all types of costs and attraction of other sources of income in the amount of 3000. The company was able to pay off both loans and pay dividends, which will improve its reputation among investors and will allow it to attract new money through loans. We can see all this by looking at the odds.

What strengths and weaknesses of the enterprise can be noted based on the information provided?

· Increase in DS
· Reducing accounts receivable
· Reduction of current liabilities
· Growth of equity capital - increase in autonomy
· Reduction of almost all cost items

· Declining sales and gross profit
· Inventory growth

What is the degree of readiness of the company for the strategic deployment of its actions?

Almost all indicators of the enterprise are normal. It has fairly high revenues relative to costs, high dividend and interest coverage ratios. Reducing costs and attracting new sources of income indicates competent management. From all this it follows that the company is ready for a strategic deployment, which is also facilitated by high inventories and cash availability.

4. Give detailed answers to questions

strategic management analysis

1. What is the purpose of conducting an internal analysis of the company. What are the objectives of analysis?

The purpose of internal analysis is an in-depth study of the company and providing management with the information necessary when choosing a strategy. During the analysis, the existence of a correspondence between the strategic aspirations of the company and its internal resources and capabilities is revealed. Having an orientation inside the organization, this type of analysis is ultimately focused on the requirements of the external environment, that is, it is aimed at identifying the inconsistency of the organization’s existing ideas about the external environment. This focus of the analysis is to convince the organization’s employees to understand and accept the need for objective changes. During the internal analysis, it is possible to determine: whether the organization overestimates or underestimates itself; whether it overestimates or underestimates its competitors; Which market requirements does it provide too much or too little value to?

The internal environment of an organization is that part of the general environment that is located within its boundaries. It has a constant and direct impact on the functioning of the organization. The internal environment is understood as the economic organism of the company, including a management mechanism aimed at optimizing the scientific, technical and production and marketing activities of the company. When it comes to the internal environment of a company, we mean the global structure of the company, covering all the production enterprises of the company, financial, insurance, transport and other divisions included in the company, regardless of their location and field of activity.

A deep and thorough analysis of the internal environment is a necessary prerequisite for making management decisions. Economic information is a specific expression of processes occurring within the company. Without such information and its analysis, the effective functioning and development of the company's production and sales activities is impossible.

The study of the internal environment is aimed at finding out what strengths and weaknesses the organization has. Strengths serve as the basis on which an organization relies in its competitive struggle and which it should strive to expand and strengthen.

Weaknesses are the subject of close attention by management, who must do everything possible to get rid of them.

2. What elements may the internal environment of a company consist of?

The personnel profile covers: interaction between managers and workers; hiring, training and promotion of personnel; assessment of labor results and incentives; creating and maintaining relationships between employees, etc.

The organizational cross-section includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; hierarchy of subordination.

The production section includes the manufacture of the product; supply and warehousing; technological park maintenance; carrying out research and development.

The marketing section covers all those processes that are associated with the sale of products. This is the product strategy, the pricing strategy; product promotion strategy on the market; selection of sales markets and distribution systems.

The financial section includes processes related to ensuring the effective use and flow of funds in the organization.

3. What factors of the internal environment need to be analyzed?

A management survey involves an analysis of internal environmental factors in the context of the following functional areas:

· management organization;
· marketing;
· finance;
· technology;
· staff;
· organizational culture and image of the enterprise;
· Research and development.
4. What approaches to analyzing the internal environment does the scientific literature offer, and what approach do you recommend using to analyze the company (in which you were in practice)?
5. What methods do you recommend for analyzing the internal environment of a company?

Give a brief description in tabular form (at least 3).

Method name	Application area	results
SWOT analysis	this is the determination of the strengths and weaknesses of the enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment).	Carrying out a SWOT analysis comes down to filling out the SWOT analysis matrix. The strengths and weaknesses of the enterprise, as well as market opportunities and threats, must be entered into the appropriate cells of the matrix. In addition to the SWOT matrix, the analysis also uses an opportunity matrix, which highlights the probabilities of opportunities for the organization, and a threat matrix, which is used to assess threats.
SNW - analysis	This is an advanced SWOT analysis (Strength (strength), Neutral (neutral), Weakness (weakness)).	The main reason for adding a neutral party is that “it may often be sufficient to win the competition when a given organization, relative to all its competitors in all but one key position, is in state N, and only one in state S.”
PEST analysis	This is a tool designed to identify political (Policy), economic (Economy), social (Society), technological (Technology) aspects of the external environment that can affect the company's strategy.	The analysis is not general for all organizations, since each of them has its own specific set of key factors.

The forecast of the first option is more interesting than the second.

The BCG matrix is based on two assumptions:

1. A business with a significant market share acquires, as a result of the experience effect, a competitive strategic advantage in relation to production costs. It follows that the largest competitor has the highest profitability when selling at market prices and for it the financial flows are maximum.
2. Presence in a growing market means an increased need for financial resources for its development, i.e. renovation and expansion of production, intensive advertising, etc. If the market growth rate is low, such as a mature market, then the product does not require significant financing.

In the case when both hypotheses are fulfilled, four groups of product markets can be distinguished, corresponding to different priority strategic goals and financial needs:

1. "Challenges" (high growth/low share): Products in this group may be very promising as the market expands, but require significant capital to maintain growth. In relation to this group of products, it is necessary to decide: to increase the market share of these products or to stop financing them.
2. "Stars" (fast growth/high share) are market leaders. They generate significant profits due to their competitiveness, but also require financing to maintain a high share of a dynamic market.
3. Cash Cows (Slow Growth/High Share): Products that can generate more profit than is necessary to support their growth. They are the main source of funds for diversification and research. The priority strategic goal is “harvesting”.
4. Dogs (slow growth/low share) are products that are at a cost disadvantage and have no growth opportunities. Preserving such goods involves significant financial costs with little chance of improving the situation. The priority strategy is to stop investing and live modestly

Let's build the BCG matrix using the available data:

When constructing the graph, the following was taken into account:

· sales volume in value terms, it is represented on a matrix with the area of a circle;
· the product’s market share relative to the largest competitor, which determines the horizontal position of the circle in the matrix;
· the growth rate of the market in which the enterprise operates with its products, they determine the vertical position of the circle in the matrix.

SKHZ 1.4 - stars

SKhZ 2 - problem

SKhZ 6 - dog

· “Challenges” (high growth/low share): Products in this group may be very promising as the market expands, but require significant capital to maintain growth. In relation to this group of products, it is necessary to decide: to increase the market share of these products or to stop financing them.
· “Stars” (fast growth/high share) are market leaders. They generate significant profits due to their competitiveness, but also require financing to maintain a high share of a dynamic market.
· Cash cows (slow growth/high share): products that can generate more profit than is necessary to support their growth. They are the main source of funds for diversification and research. The priority strategic goal is “harvesting”.
· Dogs (slow growth/low share) are products that are at a cost disadvantage and have no growth opportunities. Preserving such goods involves significant financial costs with little chance of improving the situation. The priority strategy is to stop investing and live modestly. A more detailed and comprehensive assessment of SKHZ 1 and 4; these types of businesses are essentially very risky, since the competitor is very strong. At the same time, the market is developing very quickly and with the right approach, the business can turn out to be very profitable; you should more carefully review the indicators and characteristics of the leaders in this industry

The most well-known approaches (concepts) of portfolio analysis:

1. Boston consulting group “BCG Portfolio Matrix”;
2. Consulting firm McKinsey “Screen Business”;
3. Matrix of the company "Arthur D. Little";
4. Matrix "Ansofa";
5. Three-dimensional Abel diagram;

Mechanical engineering as an industry has existed for more than two hundred years. In terms of the number of employees and the value of output, it ranks first among all sectors of world industry. The level of development of mechanical engineering is one of the important indicators of the level of development of the country. Mechanical engineering determines the sectoral and territorial structure of industry in the world, supplies all sectors of the economy with machinery and equipment, and produces a variety of consumer goods.

Mechanical products are the third item of Russian exports (after fuel and energy goods and metals).

In a market economy, the main factor in increasing the efficiency of the national economy is no longer individual achievements of science and technology, but the high scientific and technological level of all production. This level is determined, first of all, by the state of mechanical engineering as an industry that meets the needs for technological equipment, which must be updated continuously.

Mechanical engineering is a basic branch of the economy that determines the development of such complexes as fuel and energy, transport, construction, chemical and petrochemical and a number of others. The most important specific indicators of the country’s gross domestic product (material intensity, energy intensity) and, as a consequence, the competitiveness of manufactured products depend on the level of development of mechanical engineering. The current level of mechanical engineering in Russia, its scientific, technical and production base do not currently meet the growing requirements of the country's economic and social development.

The development of mechanical engineering directly depends on the quality of economic education of managers and engineering and technical workers of industry enterprises.

1. The concept of the industry. Mechanical engineering industry

The national economy of the country includes various spheres, each of which? contributes to the development of the country. The main feature of dividing the national economy into various spheres is participation in the creation of the total social product. Based on this criterion, the spheres of the national economy can be divided into two groups: material production and non-production sphere. In turn, these areas are divided into industries.

Sectoral differentiation of industry - the emergence of more and more new branches - is a constant process determined by the development of the social division of labor.

There are three forms of social division of labor:

1. The general division of labor is expressed in the division of social production into large spheres of material production (industry, agriculture, transport, etc.);
2. The private division of labor is manifested in the formation of various independent branches within industry, agriculture and other branches of material production;
3. The unit division of labor finds its expression in the division of labor directly at the enterprise.

All forms of social division of labor are interconnected.

Industry consists of many industries and industries that are interconnected. The main features that distinguish one industry from another are: the economic purpose of the products produced, the nature of the materials consumed, the technical basis of production and the technological process, and the professional composition of the workforce. Individual productions also differ according to these same characteristics.

An industry is a group of qualitatively homogeneous economic units (enterprises, organizations, institutions), characterized by special production conditions in the system of social division of labor, homogeneous products and performing a common (sectoral) function in the national economy.

Material production includes:

Industry;

Agriculture and Forestry;

Freight transport;

Communications (serving material production);

Construction;

Trade;

Catering;

Information and computing services, etc.

The non-production sphere includes:

Department of Housing and Utilities;

Passenger transport;

Communications (serving non-production organizations and the population);

Healthcare;

Physical culture and social welfare;

Public education;

Culture and art;

Science and scientific service;

Lending and insurance;

Activities of the apparatus of governing bodies.

The mechanical engineering industry is part of the mechanical engineering complex. The machine-building complex includes 12 large industries and approximately 100 specialized industries, sub-sectors and productions. The mechanical engineering complex is connected with all industries, since the products of this complex are used in them as means of production.

2. Classification of mechanical engineering branches, dividing them into groups

Complex industries include:

Heavy, energy and transport engineering;

Chemical and petroleum engineering;

Machine tool and tool industry;

Instrumentation;

Automotive industry;

Transport and agricultural engineering;

Road construction and municipal engineering;

Mechanical engineering for light and food industries and household appliances;

Aviation industry;

Shipbuilding industry;

Communications industry.

Depending on what market the products manufactured by enterprises of the mechanical engineering complex are aimed at, they can be combined into the following groups:

1. Group of industries of investment engineering (heavy, energy, transport, chemical, oil, road construction engineering), which development? determined by the investment activity of the fuel and energy complex, construction and transport complexes;
2. A group of enterprises in the tractor and agricultural mechanical engineering, mechanical engineering for the processing industries of the agro-industrial complex and light industry enterprises, depending on the solvency of agricultural producers and processors of agricultural products, as well as partly on the demand of the population;
3. Electrical engineering, instrument making. Machine tool industry is a group of knowledge-intensive industries, the so-called components, developing following the needs of all other industries;
4. Automotive industry, the production of which is focused on the demand of end consumers (production of passenger cars), as well as on the needs of enterprises, firms and executive authorities (production of trucks and buses).

Mechanical engineering industries can also be grouped based on the territorial affiliation of sales markets:

1. Import substitution industries. This group includes such groups as the automotive industry, tractor and agricultural engineering, transport engineering, and road construction engineering. The development of industries in this group is determined by the infrastructural factor of the economy and the demand for their products in the domestic market;
2. Export-oriented industries. This group includes power engineering, electrical engineering, instrument engineering for the production of various elements of automated control systems (including multifunctional production complexes based on microprocessor control), machine tool industry for the production of heavy metal-cutting machines and presses, as well as aircraft and shipbuilding. They have scientific and technical potential that allows them to either produce competitive products or create them in a relatively short time.

Conditional groupings of mechanical engineering industries according to various criteria are used to develop directions for improving the industrial structure of mechanical engineering in accordance with the goals set and based on analysis of pre-grouped industries.

It involves assessing the strategic state of the company taking into account the following factors:

Internal microenvironment, a fully controlled firm and including divisions of the firm.
External microenvironment(business environment), regulated by the management of the company and including: suppliers, competitors, intermediaries (trading companies, transport companies, specialized firms (advertising, consulting), financial institutions), clientele and contact audiences (mass media, government agencies and authorities , general public).
Macroenvironments(background environment), absolutely beyond the control of the company’s management and including:
- political environment;
- economic environment;
- social environment;
- technological environment.

The essence of external environment analysis is the systematic study and assessment of controllable and uncontrollable factors (objects and events) related to the enterprise. The main goal of such an analysis is to obtain the necessary planning and forecast information, and an additional goal is to identify the strengths and weaknesses of the enterprise itself, as well as the opportunities and risks associated with its external environment.

A manager, while analyzing the state of the external environment, must analyze markets, levels of competition and technology. The analysis of the work of competing enterprises is based on the same scheme as the IT analysis of the work of one’s own enterprise.

Various types of analysis and their combinations are used:

analysis conducted solely on the basis of past factual information - factual analysis, or factual analysis;
analysis carried out on the basis of information oriented to the past and future - analysis of events and deviations. Variance analysis is part of control processes;
analysis carried out on the basis of future information - analysis of planned indicators. Serves to evaluate plans and select planning alternatives.

In addition to analyzing the external and internal environment, a good manager must be able to analyze and evaluate the business environment in which his enterprise operates. Depending on the results of such an analysis, many management decisions must be made that influence the strategy of the enterprise in the market.

Business environment- the entire set of elements of the external and internal environment that have a significant impact on the achievement of strategic goals in the activities of the enterprise in the market.

The main areas of the business environment largely coincide: political, economic, socio-political, legal, criminal spheres.

It is very important for managers to be able to identify and predict the business environment. Not only the growth or decline of economic indicators of doing business, but also the safety of the company’s activities in certain conditions depends on this. Western companies have been working on assessing the business situation and forecasting it for a long time. Russian companies often neglect this, and they pay for it. Such work should be placed on a scientific level and entrusted only to a competent specialist. The meaning of such activity should be reduced to three main areas: firstly, to the classification of the safety level; secondly, to assessments of external and internal impacts on the company; thirdly, to develop countermeasures.

Assessing the state of the business environment includes several parameters.

External influences can be classified as follows: unfair competition; dishonest relationships; disputes; dangers; threats; confrontation.

Internal influences can be classified as follows: interpersonal, personnel; technogenic and technological.

The state of the business environment is determined by the following levels: favorable or normal; unfavorable, or complicating; complex; tense, or pre-conflict; conflict; catastrophic.

Ranking the situation according to the above levels allows directors and managers of enterprises to determine the degree of tension in the security system and the need to seek support from government agencies and companies operating in the non-state security system.

Analysis of the strengths and weaknesses of the enterprise- a very important direction in the activity of the enterprise. The SWOT analysis method can effectively help with this and is widely used by businesses all over the world. A modern manager must be fluent in this method.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.

SWOT analysis helps develop an understanding of the circumstances in which a company operates. This method helps you balance your internal strengths and weaknesses with the opportunities and threats that the enterprise will have to face. This analysis helps to determine not only the capabilities of the enterprise, but also all available advantages over competitors. Below are sample groups of questions for conducting a SWOT analysis. The first two groups concern internal factors. Strengths and weaknesses are analyzed. The second group of questions concerns external factors and includes opportunities and threats.

So, at the first stage you need to analyze the following factors.

Internal factors

Strengths:

competence;
availability of sufficient financial resources;
having good competitive skills;
good reputation among consumers;
recognized leadership of the enterprise in the market;
the company has well-thought-out strategies in this area of activity;
Availability of our own high quality technologies; availability of cost advantages for products and services; having advantages over competitors; Ability to innovate, etc.

Weak sides:

lack of strategic direction;
marginal position in the market;
presence of outdated equipment;
low level of profitability;
unsatisfactory level of management;
poor control;
weakness compared to competitors;
backwardness in innovation processes;
narrow range of products;
unsatisfactory image in the market;
low marketing skills among staff;
lack of sufficient funding for projects, etc.

External factors

Favorable opportunities:

working with additional consumer groups;
introduction into new markets or market segments;
expanding the range of products to satisfy a wider range of consumers;
product differentiation;
the ability of the enterprise to quickly move to more profitable strategic groups;
confidence in relation to rival firms;
rapid market growth, etc.

Threat factors:

arrival of new competitors;
increasing sales of similar products;
slow market growth;
unfavorable tax policy of the state;
changes in the needs and tastes of customers, etc.

Summarizing the above, a manager must be able to determine what strengths his enterprise has, not only see, but also admit its weaknesses. He must recognize what opportunities exist for the enterprise and take into account those threats that may prevent it from capitalizing on opportunities.

Managing threats and taking advantage of existing opportunities requires more than just being aware of them. If a business is aware of a threat but does not confront it, it may fail in the marketplace. On the other hand, an enterprise may have information about new opportunities, but not have the resources to implement them.

The manager must also be aware that opportunities and threats can turn into their opposites. Thus, unused opportunities of an enterprise can become a threat if a competitor uses them in time. On the other hand, a successfully prevented threat can provide a company with a strong position if competitors have not eliminated the same threat.

Strategic planning defines the entire foundation of an organization, including determining where the organization is going and what it does.

Analysis of the enterprise's activities is a stage of planned research.

A thorough product analysis makes it possible to win the competition, which is why it is important as part of drawing up a business plan.

Research and analysis of the sales market is one of the most important stages in the preparation of business plans, which should provide answers to the questions: who, why and in what quantities buys or will buy the company’s products.

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