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The highest realm of strategic management

The highest state of strategic management

The highest state of strategy is reflected in the enterprise's lasting competitive advantage and long-term excellent operating performance. To win, or win, usually means to stand out, to stand out. And if you want to win in the long term, you need to be outstanding and different over a long period of time. This is not only common sense and belief, but also has convincing practical evidence and profound theoretical support behind it.

According to an article written by Professor Bruce Henderson, founder of the Boston Consulting Group, in 1934, a scientist at Moscow State University, G.F. Gause, conducted the following series of comparative experiments: comparing two Very small animals (protozoa) are placed in a bottle and given an appropriate amount of food. If the two are different types of animals, they can survive together; if they are from the same kind, they cannot survive together. Gauss then came up with the "Principle of Competitive Exclusion": Two species with the same way of living cannot survive for a long time. Heinz introduced this principle into business competition and pointed out that the basis of strategy is the unique attributes, or uniqueness, of an organization or enterprise.

This uniqueness, lasting uniqueness, defines the distinctive characteristics of an enterprise, from self-perception to external image, and highlights the essential superiority of an enterprise: its competitiveness , its strategy relies on a combination of resource endowments and capabilities that are difficult to imitate by its opponents, or other organizational mechanisms and behavioral paradigms.

It is precisely because of this uniqueness and difficulty in imitating that corporate strategies based on it are difficult to be imitated by opponents, and long-term success is possible. Whether it is Porter's outline of "differentiation" strategy or the expression of "market segment" or "niche" in marketing literature, they actually reflect the favor of enterprise uniqueness and emphasize such a basic idea. : The formulation of strategy cannot be separated from the creative application of the company's own conditions.

Hu Yifu, a well-known expert in middle and senior management training, believes that the more competitive a market is, the more it will test the level of strategic management. Xiaomi was born in a mobile phone market with mature competition. Apple is at its peak, Nokia is struggling in the quagmire, HTC is a rising star, and there are a large number of Chinese and foreign brands that are constantly encroaching and taking the opportunity to join the competition in China's huge mobile phone market. It is really an era of the jungle. Ah!

However, Xiaomi, a small and medium-sized enterprise established only two years ago, has been valued by the market at US$4 billion. And raised another US$216 million. What is the magic that allows this small and medium-sized enterprise like Xiaomi to miraculously grow? It has a good strategic idea and does not rely on advertising or marketing. In a short period of time, it has hundreds of companies in the market. Wan Bu’s share.

Hu Yifu, a well-known middle and senior management training expert, said that if a company does not have a strategy, or the strategy is not clear enough, then the company will not have a clear guidance for its business operations, and it will be difficult to formulate a strategy that meets market demand, obtains competitive advantages, and achieves goals. Specific strategies for company goals.

If there is no strategy, there will be a lack of an overall strategic principle to shape the operations of different departments into a unified team force. It will be difficult for the company's managers to coordinate the decentralized decisions and actions of various departments. There is no synergy, so the company's various efforts are likely to cancel each other out. Indeed, corporate strategy determines the life or death of the company, and management determines the life or death of the strategy. Strategy implementation is to implement the strategy, put the strategy into action, and make overall arrangements for the matters determined in the company's overall strategy, business unit strategy and functional strategy.

Strategy implementation is the most complex, time-consuming and arduous task in strategic management. Different in nature from strategy formulation, strategy implementation is entirely action-oriented and its entire job is to make things happen correctly. It basically includes all aspects of management and must start from all levels and functions inside and outside the company.

Building company culture, improving company rules and systems, formulating strategic guidelines, drawing up various budgets, organizing necessary resources, implementing control and incentives, improving the company's strategic capabilities and organizational capabilities, etc., these are all strategies Implement the work involved. Without efficient execution, even if the strategy is perfectly formulated, it will only be a piece of paper and will not make the company successful.

Only excellent strategy formulation coupled with excellent execution can create excellent management and achieve an outstanding company.

As we all know, strategic management is to ensure the implementation of the strategy. Strategic implementation is the bridge connecting corporate ideals and reality, and is the only way for companies to realize their ideals. After the company has formulated a clear and scientific strategy, it needs to select the corresponding functional strategy to correspond to it. In the process of implementing functional strategies, it is necessary to rely on suitable and precise management systems and methods, which must include lean management systems. The functional strategies that most need to implement lean are cost strategy, logistics strategy, etc., but other functional strategies also Incorporate lean concepts and ideas.

Whether it is detail management, goal management, or brand management, etc., it is all about the management of strategy implementation. If you want the strategy to be implemented, you must decompose the strategy step by step. Teacher Hu believes that strategic management is the implementation of strategy, which can be divided into three steps:

The first step: decompose the strategic goals

After the corporate strategy is formulated, it first needs to be the strategic goals Decompose the overall strategic goals into annual strategic goals for each year, and then decompose the annual strategic goals into quarterly goals and monthly goals for each year; break down the corporate strategic goals into departmental strategic goals, and the departments then break down the goals to individuals. . The decomposition of strategic goals allows personnel in all departments and levels of the company to have a clear understanding of the company's strategy. It also clarifies personal goals and closely integrates employees' goals with the company's strategic goals.

Step 2: Develop a strategic implementation plan

The process of strategic goal decomposition and implementation is also a goal management process, which requires a continuous cycle of dynamic planning, execution, inspection, and revision. , push forward. A strategy implementation plan is a summary of a series of reorganization resource activities carried out by an enterprise to implement its strategy. Through planned strategic actions, the enterprise will move toward strategic goals step by step and eventually achieve the goals. Therefore, the strategic implementation plan is of great significance to whether the strategy can be successfully realized. The strategic implementation plan ensures the realization of strategic goals.

The third stage: Develop detailed implementation content based on the implementation plan and implement it.

Strategic management determines the future development direction of the enterprise, so it must be scientific and prudent at the beginning, and plan well. Teacher Hu pointed out that strategic management has several elements:

1. Strategic business opportunities

Excellent strategy must be an important grasp of strategic business opportunities. Strategic business opportunities are based on the in-depth grasp of the company's internal resource capabilities and external business opportunities. They are important for the rapid advancement of corporate strategic planning. Guarantee is also one of the "important assumptions" in formulating corporate development strategies. It is based on grasping "strategic business opportunities" that we can better formulate strategies and determine the main content of strategic planning.

2. Core competitiveness

Strategic business opportunities are for the external resources of the enterprise. They focus more on grasping external business opportunities and focusing more on the discovery of external business opportunities; while focusing on external strategies While looking for business opportunities, we should pay more attention to the internal resources and capabilities of the enterprise to better discover our core resources and core capabilities. Only by combining internal and external can we formulate the correct "enterprise development strategy".

3. Comparative competitive advantage

Resource sorting and capability consolidation are mostly done for the enterprise itself, and its objects of insight are mostly "internal factors of enterprise development", while competition Compared with its competitors, an enterprise's "comparative competitive advantage" becomes particularly important. It directly determines the enterprise's "strategic advantage" and determines the foundation and reliance of the enterprise's future strategic planning. At the same time, it also partially limits the speed of the enterprise's future development.

4. Strategic Goals

Strategic Goals are guidelines for strategic planning. They are strategic decisions made by an enterprise based on internal and external inventory. They guide the direction of enterprise development. It determines the future of an enterprise's development. At the same time, the "phased promotion and implementation" of its strategic goals also invisibly determines the core tasks of each development stage of the enterprise.

Corporate strategic goals include short-term, mid-term and long-term.

5. Strategic Guarantee

The core strategy of the strategy is the key to "enterprise strategic planning", and the implementation of the strategy must have its guarantee. Strategic guarantee is an important part of the advancement of strategic planning. It is also an important support for the successful implementation of the strategy. Strategic assurance covers a wide range and can be divided into functional, service and alliance categories. Different types of assurance have different operational points.

In short, if an enterprise wants to grow healthily, development is the last word, and the effective execution of strategy is the key. Through effective strategic management, each growth period of an enterprise should formulate a series of sub-strategic goals that are suitable for its external environment and consistent with the overall strategy, so that the enterprise can develop in a step-by-step, planned and regular manner. At the same time, in the process of strategy implementation, effective management methods are used to continuously adjust and improve the company's strategy, strengthen the management and implementation of the company's strategy, enhance the implementability and controllability of the company's strategy, and get rid of various factors that inhibit the growth of the company. , to promote enterprises to enter a new round of enhancement loop and promote in-depth development of enterprises. ;