Strategic analysis main components. Strategic analysis. Methods of strategic analysis. Concept and levels of strategy

15.11.2019

Under methodology it is customary to understand the methods, methods and strategy of studying a particular subject. Management accounting is the direction of accounting in the company, which informationally supports the management system of its business activities. The subject of management accounting is the analysis, accounting and planning necessary to increase the effectiveness of the organization.

Management accounting, along with the budgeting system, production and commercial planning, is an important part of the strategic management of an enterprise, as carefully and competently as possible.

Objects of management accounting:

expenses of the CFD (financial responsibility centers);
their income;
the results of their activities.

The objects listed above are divided into:

enabling the implementation labor activity personnel of the enterprise production resources, including:
means of production, including production facilities, equipment, etc., their condition and use - the main fund;
objects of long-term investments, including lease of premises and land, standards, licenses, etc. - intangible assets;
objects of labor intended for processing with the help of means of labor in manufacturing process- material resources;
the volume of human labor that the company has, its use in business activities and the results - labor resources.
Economic processes and their results, which together make up production activities.

Automation solution:

IMPLEMENTATION MONITOR

The ITAN project team completed a project to automate the generation of management reporting in the Podruzhka retail chain. The implementation project was carried out according to the methodology standard project and ended after 4 months. As a result, the management reporting system based on "ITAN: PROF Management Balance" has undergone trial operation, and allows you to quickly receive reports such as:

The ITAN company has begun work on the implementation of a standard management accounting model for the ITAN: Management Balance subsystem for the 1C: Trade Management 11.1 configuration in AMARE. The ITAN company has begun work on the implementation of a standard management accounting model for the ITAN: Management Balance subsystem "for the configuration" 1C: Management tor

The Mirkon company previously worked on the ITAN: Wholesale Trade House 7.7 program, which in a complex automated operational and management accounting commercial enterprise. moreThe Mirkon company previously worked on the ITAN: Wholesale Trade House 7.7 program, which, in a complex, automated the operational and management

The company "Design-Fashion" contacted us in September 2014. The company faced the task of automating management accounting for a group of companies. The management of the company decided to automate the management accounting system based on software

The accounting department of the NPF of Sberbank turned to ITAN to solve the problems of generating a complex balance sheet “Calculation own funds". Read more. The accounting department of the NPF of Sberbank turned to ITAN to solve the problems of generating a complex balance sheet “Calculation of own funds”. To the report was

In July 2016, the NPF of Sberbank made a planned transition to new edition accounting program: 1C: Accounting 3.0 + 1C: Management of NPF 4.0, which has a built-in subsystem "ITAN: Management balance", this system used for budgeting

The company "ITAN" begins work on the project of automation of consolidated management accounting and budgeting of the group of companies "AGAMA". The company "ITAN" begins work on the project of automation of consolidated management accounting and budgeting of groups

The ITAN company has completed work on setting up a management accounting system for the Museum company. The implementation project lasted two months, and as a result, a management accounting model was set up for the needs of the Customer. The ITAN company completed work on setting up a management accounting system for the Museum company. The implementation project lasted two months, and as a result, according to the needs of the Customer, we

The ITAN company and the Regent holding are launching a joint project to automate management accounting, budgeting and cash management. The implementation will be carried out mainly by the IT department of the Regent holding with the participation of ITAN consultants for training and

Specialists of the ITAN company have completed work on setting up the ITAN: Management Balance system in terms of management accounting in accordance with the accounting policy of HOMAX GROUP. Product "ITAN: Management balance is integrated into working base"1C: Production Enterprise Management". As part of setting up the management model

The ITAN company has completed work on the development of the "Contract Management" subsystem for the tasks of "NPF Sberbank" for accounting business contracts.

The ITAN team of implementers has begun work on automating the operational management of cash in the Aktion group of companies. The implementation will be carried out according to the methodology of a standard project, which guarantees successful implementation. The ITAN implementation team has begun work on automating the operational management of funds in the Aktion group of companies. The implementation will be carried out according to the methodology of a standard project, guaranteed

ITAN specialists completed work on setting up a cash management model for the specifics of HOMAX GROUP. As part of the model setup, the following work was carried out: DDS analytics and payment priorities were set up. The DDS budget model has been set up. The types of payment transactions and applications are distinguished. Org set up. structure and routes of approval of requests for payments. The levels of access to applications and sections of the DDS budget have been determined. On the

ITAN and Ginza Project are starting to implement the ITAN: Management Balance program to improve the efficiency of financial management. The management of the Ginza Project holding has decided to introduce an integrated system of budgeting, management accounting

The ITAN company has completed the implementation of the standard model according to IFRS of the ITAN: Management Balance subsystem in the QUEENGROUP company. The IFRS model has been installed in the working base "1C: Accounting 8", user training has been carried out, initial balances have been entered. QUEENGROUP is a successful Russian company operating in the field of wholesale sales vehicles, transport services, automotive parts and accessories.

The ITAN company won the tender for the automation of the management accounting system in the Yellow, Black and White holding. Read more. ITAN Company won the tender for the automation of the management accounting system in the Yellow, Black and White holding. The management of the Yellow, Black and White Group of Companies was looking for a solution on the market that would be able to solve the following tasks in a short time: Load accounting data from current 1C systems. Implement complex meta

In October 2015, the management of NTZ Volkhov decided to introduce an automated system from ITAN. moreIn October 2015, the management of NTZ Volkhov decided to introduce an automated system from ITAN. The project as a whole was planned to be implemented in 6 months. In March 2016, NTZ Volkhov launched the second stage of the project: automation of consolidated reporting. As part of this stage, ITAN specialists will configure the

At the beginning of 2013, the Megalex group of companies decided to automate the management accounting system based on software product"ITAN: Management Balance". The main tasks are automation of management accounting, cash management and budgeting. management system

NPF Sberbank has been fruitfully working with the ITAN: Management Balance system since 2013. Implemented and successfully used "ITAN: Management Balance" for the purposes of budgeting, contract management, treasury, accounting for the location of contracts. "NPF Sberbank" has been fruitfully working with the "ITAN: Management Balance" system since 2013. Implemented and successfully used "ITAN: Management Balance" for budget purposes

The ITAN company completed the setup and refinement of the cash management system for the Terra Auri holding. The following settings have been made in the projects: The ITAN: Management Balance system in the Customer's 1C:Accounting 3.0. Adjusted traffic budget model Money. The document “Monthly payment plan of the Central Federal District” has been finalized for the business processes of the Customer. Types of applications and routes for their approval have been configured. Improved reports on payment

Automation of budgeting and treasury in the consulting company "Redl and Partners" on the basis of "ITAN: PROF Management Balance" Implemented a budgeting subsystem for planning and controlling income and expenses. The cash management subsystem is undergoing trial operation. Redl & Partners is a diversified consulting company specializing in providing professional

In just 2 months, literally from scratch, our ITAN specialists wrote a subsystem for the 1C configuration: Salary and personnel management. Now the system allows the correct allocation of accounting items, with convenient scenario planning of the budget for the year. Additionally, we have included a double check method for the reliability of the correct calculation, therefore, for the effectiveness of financial management. Employees of STS Eventim ru are already successfully working

Launch of a joint project to automate management accounting in the Museum company based on ITAN: Management Balance. The integration of the management system is planned to be carried out with "1C: Trade and Warehouse 7.7". The main activity of the Museum company is tea and coffee for the enterprises of the HoReCa segment.

The ITAN company completed a project on setting up financial accounting and reporting in accordance with IFRS in the branch of Alpen Pharma - Alpen Pharma Ukraine.

IT department of "MC Raiffeisen Capital" start the process of transferring the company's existing "1C: Accounting 2.0" to "1C: Accounting 3.0". more IT Department of Raiffeisen Capital Management Company, start the process of transferring the company's existing 1C:Accounting 2.0 to 1C:Accounting 3.0. In this regard, in order to maintain the current IFRS accounting system based on ITAN: Management Balance, it also needed to be updated. But keep it

ITAN specialists are implementing a standard management accounting model for the ITAN: Management Balance subsystem for the 1C: Trade Management 10.3 configuration at TelecomInvest. Specialists of the ITAN company began to carry out joint work with the Customer on the implementation of a standard model of management accounting for the subsystem "ITAN: Management database

JSC “V.I.P. Service" has increased the efficiency of financial management at the enterprise by introducing modern technologies automation of management accounting on the basis of PP "ITAN: Management balance". The implementation was carried out by the Customer's own IT service, with the consulting support of ITAN specialists. Client: V.I.P. Service" / "V.I.P.

The Ethan company has begun work on the implementation of a standard management accounting model for the ITAN: Management Balance subsystem for the 1C: Trade Management configuration in trading house"Red Triangle". Trading House "Red Triangle" offers a wide range of rubber-fabric conveyor belts (conveyor belt), as well as other rubber products (sleeves,

Millhouse has already implemented a standard IFRS model for generating IFRS statements in USD. Millhouse has already implemented a standard IFRS model for generating IFRS statements in USD. Due to different IFRS from the regulated functional currency, discrepancies arose in the accounting for the application of the provisions of IFRS. To solve this problem

As part of the ITAN financial management automation project, the first stage has been completed - automation of mutual settlements in management accounting. Further, it is planned to finalize operational accounting, comprehensive implementation of management accounting, budgeting and treasury. "Ali

The ITAN company and the BI Partner company have entered into an agreement on cooperation and partnership. Within the framework of cooperation, the BI Partner company will promote the ITAN: Management Balance software product. On the this moment, negotiations are underway on joint participation in projects to automate management accounting in several companies, based on software

IMPLEMENTATION OF MANAGEMENT ACCOUNTING AND "ITAN: MANAGEMENT BALANCE" AT SUMOTORI Group The independent implementation of the ITAN: Management Balance system at SUMOTORI Group has been successfully completed. The tasks of automating the financial accounting of Sumotori Group of Companies: Automation of the process of preparing individual and consolidated financial statements on the basis

ACCOR contacted us at the beginning of 2016. The main task was to automate the accounting and reporting system in accordance with IFRS. read moreACCOR contacted us at the beginning of 2016. The main task was to automate the accounting and reporting system in accordance with IFRS. The company's management decided to automate accounting in accordance with IFRS based on the ITAN: Management Balance configurations. The ITAN: Management Balance system improves accuracy and timeliness financial plans, budget

"TatSotsBank" held a tender for the automation of the bank's treasury. The bank needed modern instrument on problem solving. More. "TatSotsBank" held a tender for the automation of the bank's treasury. The bank needed a modern tool for solving problems: Budgetary control of BDDS by limits. Formation and approval of applications for payments and their verification for limits. Building a payment calendar. Control

The Avtobau company turned to ITAN specialists on a recommendation to solve the problems of generating accurate and prompt management reporting. The Avtobau company turned to ITAN specialists on a recommendation to solve the problems of forming accurate and operational management

Specialists of the ITAN company completed the implementation and configuration of the standard model "Data Consolidation" of the system "ITAN: Management Balance" and the standard model "Data Consolidation" for 11 information databases of companies included in the banking group of CB "Energotransbank" (JSC).Specialists of the ITAN company completed work on the implementation and customization of the standard model "Data Consolidation" of the system "ITAN: Management Balance" and the standard model "Data Consolidation" for 11 information bases of companies, entering

The ITAN company won the tender for the automation of the financial module in the Vipservice holding. The ITAN company won the tender for the automation of the financial module in the Vipservice holding. The following functional blocks will be introduced as part of the Financial Module project: Management accounting Budgeting

The implementation of a management accounting system based on 1C trade management 11 and management balance sheet in kpi has been completed. The implementation by Ethan specialists was completed in 4 months. As a result, kpi received modern facility management accounting and management reporting. Coil Products International

The company faced the task of automating management accounting and budgeting. To implement these tasks, the company's management decided to purchase the ITAN: Management Balance software product. Cooperation with MIR GAZ started in November 2014. The company faced the task of automating management accounting and budgeting. To achieve these goals, the leadership

ITAN specialists completed work on setting up a management accounting system for the specifics of Terra Auri. As part of the project, the following adjustments were made: The ITAN: Management Balance system into the Customer's 1C:Accounting 3.0. Set up a chart of accounts for management accounting. Management accounting analytics (6 features: CFU, CZ, Project, Article, Counterparty, Agreement) and the rules for filling it out have been set up. Compliance of accounts with RBSU and ex. accounting. set up

The introduction of an automated accounting and reporting system in accordance with IFRS was carried out according to the methodology of a standard project. The project lasted 4 months, as a result, employees made reports for 2013 in a new program. The introduction of an automated accounting and reporting system in accordance with IFRS was carried out according to the methodology of a standard project. The project lasted 4 months, as a result, reporting for 2013 with

The European legal service improves the efficiency of financial resource management by implementing the ITAN: PROF Management Balance system. European Legal Service is a notable player in Russian market legal services and is today recognized as one of the most

ITAN specialists completed a project to automate the plan-fact analysis of revenue in the company "STS Eventim RU" based on the configuration "1C: Enterprise Accounting 2.0" RU" based on con

Specialists of the ITAN company successfully completed the project on setting up and automating the financial management system in AKTION-DEVELOPMENT and launched the systems into commercial operation. Specialists of the ITAN company successfully completed the project on setting up and automating the financial management system in AKTION-DEVELOPMENT and launched systems in prom

In October 2015, the management of NTZ Volkhov decided to introduce an automated system from ITAN. Read more. The financial department of NTZ Volkhov has long considered the ITAN: Management Balance system as a good option problem solving

Subsidiary Liebherr Russland initiated a comprehensive project to automate financial management. The project will begin with the formalization of accounting policies in accordance with IFRS. Currently, the group of companies includes ten industry divisions. The holding company of the Liebherr Group is Liebherr-International AG in Bulle (Switzerland), which is wholly owned by members of the Liebherr family.

Specialists of the ITAN company completed work on the translation and adaptation of the management accounting and budgeting model performed on ITAN: Management Balance and 1C: Accounting 2.0 under edition 3.0 of the 1C: Accounting configuration in the Taber Trade company (chain of stores " Girlfriend"). The Podruzhka chain of stores is an active and successful Russian chain of stores

The ITAN company won the tender for the subject of "Automation of the treasury and transfer accounting to a single base”, conducted by VIKIMART. The accounting system is based on the configuration "1C: Integrated Automation", with the subsystem "ITAN: Managerial

In 2011, we started cooperation with Edil-Import. The company was faced with the task of automating management accounting, in connection with which the ITAN: Management Balance software product was purchased. More In 2011, we began cooperation with Edil-Import. The company had the task of automating management accounting, in connection with which the software was purchased

The ITAN company and the Baltis company signed an agreement on the implementation of management accounting based on 1C: Trade Management and ITAN: Management Balance. The main implementation work has been completed, the system is undergoing trial operation. "Baltis" is a Latvian canned food supplier and wholesaler.

The Etan company has completed the stage of trial operation of the automated cash management system at the Ostek Enterprise CJSC. The system has been put into commercial operation and is functioning stably. All cash flows are reflected in the system, regular input and approval of applications for payments is carried out. Forecasting payments and creating a payment calendar is carried out

In 2012, the Lendor company acquired the ITAN: Management Balance software product in order to automate the accounting and reporting system in accordance with IFRS. In 2012, the Lendor company acquired the ITAN: Management Balance software product in order to automate the system

The design department of the ITAN company completed the first stage of setting up a management accounting system at the Nevsky Transformer Plant Volkhov.

NPFs of Sberbank use ITAN: Management Balance for budgeting, contract management and treasury purposes. The accounting service needed a tool to record the location of contracts. more details NPFs of Sberbank use ITAN: Management Balance for budgeting, contract management and treasury purposes. The accounting department needed a tool

Automation of budget management is carried out using the "Budgeting" subsystem, which is an important component of the ITAN: Management Balance software and methodological system. Implemented: 1. Automatic calculation of the cash flow budget based on the profit and loss budget, taking into account payment schedules and cash gap planning.

The management of the company "Kholodilnik.ru" decided to introduce budgeting and cash management subsystems based on the "ITAN: Management Balance" system. Implementation will be carried out by Kholodilnik.ru specialists based on standard ITAN models. Refrigerator.RU - Russian online store specializing in the sale of all kinds household appliances domestic and foreign production. project open

The implementation of an automated accounting and reporting system in accordance with IFRS will be carried out by ITAN specialists according to the standard project methodology based on the ITAN: Management Balance software product. Read moreCompany "PARTER.RU" turned to us on the recommendation of our customers. The company is faced with the task of automating accounting and reporting in accordance with IFRS. Implementation of an automated accounting and reporting system for

ITAN specialists completed work on automating cash management and transferring accounting to a single base for the VIKIMART company. During the implementation project, the following works were performed: Written technical task according to the rules for converting 4 bases "1C: Accounting

The ITAN company has completed the first stage of work on setting up a management accounting system and developing a property management unit for JSC Voentorg. The ITAN company has completed the first stage of work on setting up a management accounting system and developing a property management unit

Strategic analysis is needed in order to provide managers with the necessary information to develop a company's strategy. Everything seems to be clear and logical, but, in fact, in practice, companies face one of the fundamental problems of strategic management.

When a company tries to conduct a strategic analysis, the question immediately arises of what, in fact, a strategic analysis should include, what information should be the output of this analysis, and what information managers need to develop a strategy. Many attempts have been made to somehow formalize this process, that is, to define standard formats for strategic analysis, following which the company is guaranteed to provide itself with the necessary information for developing a strategy.

But the problem is that there are a lot of strategic analysis tools, and at the same time there is no guarantee that if they are all used, the company will be able to develop some kind of correct strategy. The process of developing a strategic plan, in this case, as well as making any other decision, in principle, is not completely formalized. Strategic analysis techniques can only help organize information for decision making, but the decision itself remains with managers. This article will focus on the most common methods of strategic analysis.

So, when a company comes to understand the need to implement strategic management and begins to take the first steps in this direction, we can say that it has managed to solve the first fundamental problem of strategic management.

Although sometimes there are situations when the owners and management of the company realize the need for strategic analysis, but at the same time the strategic choice has to be made blindly. For example, once at a seminar one of the participants ( CEO small company engaged in wholesale and retail sales hours) told me a curious story. Even at the very beginning of the business, she had to make a very important decision. strategic decision, namely to choose a foreign supplier. And I immediately wanted to conclude a dealer agreement with exclusive sales in Russia.

To select a supplier, it was decided to visit a specialized industry exhibition. The calculation was made that all major watch manufacturers would be represented at the exhibition, it would be possible to collect information from them and make a strategic choice. But it turned out that not everything is so simple. Representatives of all companies were ready to talk for a very long time about what wonderful products they have, but at the same time they did not give practically any figures.

That is, we are not even talking about the fact that they did not provide information about the sales of their products in other countries, because they could not even provide a clear price list, according to which they are ready to supply products to their dealers. Therefore, I had to make a choice based only on intuition. They did not cooperate with companies producing premium products. We immediately focused on the middle segment and eventually guessed right. Products began to be sold both in Moscow and in the regions. But it was possible not to guess, but in this case, according to the general director, there was no other option.

Methods of strategic analysis

If you open books on strategy, then you can find a wide variety of all kinds of strategic matrices in them, which are just designed to conduct a standard strategic analysis in its various aspects. But, as a rule, in practice (at least in Russian practice) literally several methods are used. In addition, these books do not say how to use the results of such a large amount of analysis.

The most common strategic analysis techniques include the following:

SWOT analysis;

PEST+M analysis;

analysis of the company's product portfolio (BCG matrix or McKinsey matrix);

analysis of the problem field of the company.

Here it is necessary to clearly realize that in order to develop a strategy, on the one hand, there should not be little information, but, on the other hand, there should not be a lot of it. In addition, the time factor is also important. Sometimes in practice it is more important to make a decision that may not be quite correct and refined, but now, than a more reasonable and correct one tomorrow. Since either the information on the basis of which the the right decision, may become outdated, or, as they say, “the train has already left” and the right solution does not save the situation.

The simplest (in terms of perception of results) and the most common tool for strategic analysis is the SWOT analysis. The main idea of a strategic SWOT analysis is that when developing a strategy, you need to take into account the main factors that affect the company's business. Moreover, these factors are considered in two sections (see Fig. Rice. one):

external and internal;

positive and negative.

Fig.1. Strategic SWOT Analysis

Accordingly, when it comes to factors external environment, then among them allocate favorable opportunities and threats for the company. The same factors can affect the business of other companies, incl. competitors, however, this influence can be assessed differently. Among the factors of the internal environment, the strengths and weaknesses of the company are distinguished.

Here it should be noted right away that the strengths and weaknesses of the company are not an absolute concept, but a relative one. That is, the factors of the internal environment are mainly analyzed in comparison with competitors. It is clear that the company does not have complete information about the state of affairs of its competitors. Companies sometimes do not even know everything about themselves that they would like, but here you need to know the same about competitors. But, nevertheless, when determining the factors of the internal environment that significantly affect the business, it is necessary to classify them into strengths and weaknesses, comparing your company with competitors.

Naturally, to collect information about competitors, you will have to spend certain time and financial resources. Therefore, if the company really intends to introduce a full-fledged strategic management system, then this will have to be done. Of course, you still need to understand how detailed information about competitors is really required by the company, besides, some of the information can be quite accessible and open. In any case, monitoring information about competitors is one of the functions of the development directorate.

It should be noted that in practice it happens that the same environmental factor for one company is an opportunity, and for another - a threat in the external environment. When our team of consultants, carrying out a consulting project, together with the Customer's working group, carried out a strategic SWOT analysis at one dairy plant, among other environmental factors, such a factor as "bad collective farms" was also considered.

It meant that the enterprise was surrounded by a large number of small farms, which were in a very deplorable state. On the one hand, this factor should be considered as a threat in the external environment, but for this enterprise it was an opportunity. The fact is that if instead of this large number of inefficient collective farms there were several large farms, then a very large competitor (one of the leaders of the dairy industry in Russia) would buy them up, and in such a situation it was unprofitable for him.

For this dairy plant, such a state of the raw material base, on the contrary, was considered as an opportunity to gain control over them, and then to enlarge and develop these collective farms. Thus, it turns out that the same environmental factor for one company can be a threat, and for another - an opportunity.

Using even such a simple tool as a SWOT analysis helps a company to focus on strategically important issues. The CEO of a company at my seminar on strategic management he said right away that using a tool like a strategic SWOT analysis helped them increase profits. They constantly monitored the factors affecting the company's business, and concentrated on the most significant ones, that is, they worked according to priorities.

What to do with the results of strategic analysis?

The results of the strategic SWOT analysis should be used in the following way (see Rice. 2). After analyzing the selected factors, it is necessary, firstly, to assess the degree of their influence on the company's business, for example, on the basis of a point system. That is, the impact of all positive factors (external and internal) on the company's business is estimated, say, from one to three pluses, and the impact of negative factors - from one to three minuses, respectively.

If the influence of some factor was rated "0", then this means that now the influence of this factor is too weak to be taken into account when developing a strategy, so it should be excluded from further analysis. You can use a five-point or ten-point scale, but, as practice has shown, the wider the scale is used, the more difficult it will be to choose and concentrate on key factors later.

Secondly, the factors must be ranked in descending order of their impact on the business (as is done in the examples).

Thirdly, you need to try to understand how you can increase the influence of opportunities in the external environment, how to avoid threats, how to use the company's strengths more effectively and what to do with weaknesses.

Fig.2. Key Uses for Strategic SWOT Analysis

When assessing the degree of influence of factors on the company's business, of course, it is necessary to take into account the period for which the strategy is being developed. After all, some factor may be insignificant if the company is developing a strategic plan for a year, but at the same time the same factor can have a significant impact on the company if we are talking about a period of three or five years. Therefore, by the way, some companies sometimes conduct several strategic SWOT analyzes for different periods. strategic planning.

Such monitoring of factors should be carried out constantly. Some Russian companies, for example, hold it once a quarter (or at least once a year). But here it is necessary to pay attention to the fact that quarterly monitoring is carried out as part of a regular procedure - the regulation of strategic analysis. In addition, you need to constantly monitor the sharp changes in the situation.

Strategic SWOT-analysis is the simplest and most understandable business screen of the company, which allows the company to navigate the current situation and determine the strategic directions of development.

Of course, the information contained in a strategic SWOT analysis is actually the tip of the iceberg, so to speak. In addition to SWOT analysis, there are even more complex and meaningful strategic analysis techniques, but, nevertheless, while these techniques have not yet been implemented, one can start by using SWOT analysis. Over time, of course, the set of strategic analysis tools needs to be expanded, but this must be done gradually, because. if you immediately try to use a large set of tools, then none of them will actually work effectively.

It should be noted that there should not be too many factors in a strategic SWOT analysis. There must be, indeed, the most essential. There really shouldn't be too many of them. When a strategic analysis was carried out in one large energy company, then when collecting information, they went, as they say, from the bottom up in order to take into account as much information as possible and not miss out on essential information.

The work of collecting factors was distributed among departments, and as a result, the total number of factors amounted to several hundred. The selection of the most significant factors from this total number was carried out first by the development directorate, and then by the strategic committee. As a result, a table was obtained, located on one page and containing a summary of all the information collected (the very “tip of the iceberg”).

After completing this work, the company compared the results of the strategic SWOT analysis, which was carried out before and after such detailed work. It turned out that about 70% of them coincided. But in this situation, managers checked themselves, that is, how correctly they intuitively feel the situation in which the company is located.

It turns out that in practice a more detailed strategic analysis does not always provide newer qualitative information. For the future, the company decided to act like this. She constantly monitored the factors using the business SWOT analysis screen and, when new significant factors appeared, convened a meeting of the strategic committee and made a decision on how to respond to the changed situation. Naturally, before the strategic committee was held, the development directorate analyzed the situation and proposed several options for the strategy for discussion.

When conducting a strategic SWOT analysis for the first time, it is better to follow this simple principle. First write down all the factors that come to mind. It doesn't matter that this could end up with a very long list. The main thing is not to miss anything important. And then you need to evaluate each factor according to the accepted scale (for example, by the number of pluses and minuses).

Then rank all the factors in descending order of importance and start cutting off those that received the lowest scores first. In addition, it must be remembered that each factor recorded in the SWOT analysis should be further taken into account when developing a strategy. Therefore, if a factor either received a low assessment of the degree of influence, or it is not clear how it can be taken into account when developing a strategy, then this factor should be excluded from further analysis and strategy development.

It is necessary to pay attention to one more important point. Use strategic management in the company is impossible without the active participation of the CEO of the company. And in order for the CEO to be able to participate in this process, as practice has shown, the tools used must be simple and understandable for use. This is especially true for large companies.

CEOs are understandably busy people, so it will be difficult for them to immediately grasp a large number of complex schemes. Naturally, all simple solutions have a certain efficiency limit, so you have to complicate solutions, but you need to do this gradually.

First learn how to use simple tools and then slowly get harder.

Note: the topic of this article is discussed in more detail at the workshop

Type of strategic analysis	Subject of analysis	Objectives of the
Analysis of the far external environment	Demography, economics, natural environment, technology, politics, legislation, socio-cultural environment, etc.	Tracking and analysis of trends/events beyond the control of the enterprise that may affect the potential effectiveness of its strategy Development of possible reactions to the development of macroenvironment factors
Analysis of the near external environment	Buyers, shareholders, creditors, government agencies, the public, trade unions, etc.	Tracking and analysis of the interests of interested groups, their impact on the activities of the organization Ranking the interests of stakeholders
Strategic Management	individual businesses; functional subsystems; Main structural divisions; all business processes	Efficiency mark current activities in terms of securing future long-term profits Definition of strengths and weaknesses enterprises Analysis of strategic potential
Portfolio	Strategic portfolio of the organization, SZH organization	Coordination of strategies for business units of the enterprise Balancing between business units with quick returns and future-preparing directions Distribution of personnel and financial resources between hosts. divisions Portfolio balance analysis Selection of competitive positions in SZH Redistribution of resources between SZH Identification of SBAs to be phased out, Identification of needs for new SBAs Establishing major synergies
Industry	Industry drivers, competitors, industry,	Assessment and analysis of the attractiveness of the industry Identification of industry factors for the success of the industry, Identification of the driving forces of the industry Justification of the decision to choose the underlying market
Competitive	Competitors	Analysis and evaluation of the competitive position of the organization Assessing the Competitive Forces of an Industry Predicting the actions of competitors and assessing their impact on the organization's activities Definition of competitive advantages Strategic position analysis
Strategic Marketing Analysis	Consumers, company products, pricing policy, after-sales service of products, FOSTIS system, company communications, demand, marketing, etc.	Identification, research, determination of the structure and development of markets and market segments Assessment and forecast of the future state of the company's goods Studying consumer behavior, demand analysis Pricing analysis Analysis of the distribution process Product service analysis Analysis of the demand formation and sales promotion system
Analysis of a strategic problem (task)	Goals, strategies, strategic problem (task)	Identification of strategic problems 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 entrepreneurial business) Economic evaluation of investment investments Evaluation of the effectiveness of investments

Table 1. Adapted report of 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. Equity
10. Total liabilities

Table 2. Adjusted profit and loss statement of Poisk

Name
1. Sales
2. Cost of sales (-)
3. Gross profit
4. Operating expenses
4.1 Rent payments
4.2 Overhead
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 "Search"
Name of indicator 2007 2008 Normative value
Liquidity	Profitability
Net working capital		For general investment
General liquidity		On equity
Quick liquidity (1)		For common assets
Quick liquidity (2)		For sale
Debt repayment period		Use of assets
Inventory turnover in days		Inventory turnover
Solvency	Return of current assets
General solvency		Return of real estate
Financial relation (1)	Return of common assets
Financial attitude (2)		Share capital
Recovery rate of long-term liabilities		Number of shares on hand
Market value of one share
Earnings per share
Dividend per share
Price-earnings 1 share

In 2008, the Company increased its liquidity ratios by doubling short-term liabilities. Despite the reduction in assets, the company was not only able to keep 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 raising its reputation with investors and raised new money through loans.

3. Give answers to questions
1. What information for strategic analysis can you get by doing this?

A comprehensive assessment of the strategic financial position of an enterprise integrates the results of an analysis of all types of the financial environment for the functioning of an enterprise. The implementation of such an assessment allows:

- clearly identify the main features of the implementation of financial activities at this enterprise, determine its "financial entity";
- evaluate the achieved results of management financial activities enterprises;
- identify problem areas in the financial development of the enterprise and the management system of its financial activities;
- objectively assess the possibilities of the future financial development of the enterprise, taking into account the factors of the external and internal environment;
- fix the starting positions of the enterprise's strategic financial initiatives.

Tasks of financial analysis:

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

What is the limitation 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 corporate culture of an organization.

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

In 2008, the company improved its position due to the reduction of short-term liabilities by 2 times, which made it possible to increase liquidity ratios to the normative levels. Despite the reduction in assets, the company was not only able to keep 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 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 are the strengths and weaknesses of the enterprise can be noted based on the information provided

・Increased DC
· Decrease accounts receivable
Reducing current liabilities
Growth of own capital - growth of autonomy
Reducing almost all cost items

Decrease in sales and gross profit
Inventory growth

What is the degree of readiness of the company for the strategic deployment of its activities

Almost all indicators of the enterprise are normal. It has a fairly high revenue in relation to costs, high dividend and interest coverage ratios on the loan. Reducing costs and attracting new sources of income speaks of competent management. From all this it follows that the company is ready for a strategic deployment, this is also facilitated by high stocks in the warehouse and the availability of cash.

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 goals of analysis?

The purpose of internal analysis is to study the firm in depth and provide management with the information necessary when choosing a strategy. In the course of the analysis, the presence of a correspondence between the company's strategic aspirations and its internal resources and capabilities is revealed. Being directed 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 ideas that have developed in the organization about the external environment. This focus of the analysis is to convince the employees of the organization to understand and accept the need for objective changes. In the course of internal analysis, it is possible to determine: the organization overestimates or underestimates itself; it overestimates or underestimates its competitors; what market requirements does it give too much or too little value

The internal environment of the organization is that part of the overall environment that is located within it. It has a permanent and most direct impact on the functioning of the organization. The internal environment is understood as the economic organism of the company, which includes 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 the firm, we mean the global structure of the firm, covering all manufacturing enterprises firms, financial, insurance, transport and other divisions included in the firm, 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- this is a concrete expression of the processes occurring within the company. Without such information and its analysis, the effective functioning and development of the production and marketing activities of the company 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 the organization relies in the competitive struggle and which it should strive to expand and strengthen.

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

2. What elements can the company's internal environment consist of?

Personnel section covers: interaction between managers and workers; recruitment, training and promotion of personnel; evaluation of labor results and stimulation; creating and maintaining relationships between employees, etc.

Organizational cut includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; dominance hierarchy.

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

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

The financial cut includes the processes associated with ensuring the effective use and movement of funds in the organization.

3. What factors of the internal environment should be analyzed?

A managerial survey involves an analysis of the factors of the internal environment in the context of the following functional areas:

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

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

Method name	Application area	results
SWOT analysis	this is a definition of the strengths and weaknesses of the enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment).	Conducting a SWOT analysis comes down to filling out a SWOT analysis matrix. In the appropriate cells of the matrix, it is necessary to enter the strengths and weaknesses of the enterprise, as well as market opportunities and threats. In addition to the SWOT matrix, the analysis also uses the Opportunity Matrix, which highlights the probabilities of opportunities for the organization, and the Threat Matrix, which is used to assess threats.
SNW analysis	this is an advanced SWOT analysis (Strength (strong side), Neutral (neutral side), Weakness (weak side)).	The main reason for adding a neutral side is that "often, to win the competition, it may be sufficient to have a given organization relative to all its competitors in all but one of its key positions in state N, and only one in state S."
PEST analysis	it is a tool designed to identify political (Policy), economic (Economy), social (Society), technological (Technology) aspects of the external environment that may 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 one.

The BCG matrix is based on two assumptions:

1. A business with a significant market share acquires a competitive strategic advantage in terms of production costs as a result of the experience effect. It follows that the largest competitor has the highest profitability when sold at market prices and for him financial flows maximum.
2. Presence in a growing market means increased demand for financial resources ah for its development, i.e. renewal and expansion of production, intensive advertising, etc. If the market growth rate is low, such as a mature market, then the product does not need 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. "Problems" (fast growth/small share): products in this group can be very promising as the market expands, but require significant funds to maintain growth. With regard to this group of products, it is necessary to decide whether to increase the market share of these products or stop financing them.
2. "Stars" (fast growth/high share) are market leaders. They generate significant profits due to their competitiveness, but also need funding to maintain a high share of a dynamic market.
3. Cash Cows (Slow Growth/High Share): Products capable of generating more profit than is necessary to sustain their growth. They are the main source of funding 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 do not have growth opportunities. The preservation of such goods is associated with significant financial costs with little chance of improvement. Priority strategy - stop investing and live modestly

Let's build the BCG matrix according to the available data:

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

· the volume of sales in value terms, it is presented on the matrix area of the circle;
· the share of the product on the market 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.

SHZ 1.4 - stars

SHZ 2 is a problem

SHZ 6 - dog

· "Problems" (fast growth/small share): products in this group can be very promising as the market expands, but require significant funds to maintain growth. With regard to this group of products, it is necessary to decide whether to increase the market share of these products or stop financing them.
· "Stars" (rapid growth/high share) are market leaders. They generate significant profits due to their competitiveness, but also need funding to maintain a high share of a dynamic market.
· Cash Cows (Slow Growth/High Share): Products capable of generating more profit than is necessary to sustain their growth. They are the main source of funding for diversification and research. The priority strategic goal is "harvesting".
· "Dogs" (slow growth/small share) are products that are at a cost disadvantage and do not have growth opportunities. The preservation of such goods is associated with significant financial costs with little chance of improvement. The priority strategy is to stop investing and live modestly. To evaluate SHZ 1 and 4 in more detail and comprehensively, these types of business 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, a 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 famous approaches (concepts) of portfolio analysis:

1. Boston Consulting Group "BCG Portfolio Matrix";
2. Consulting firm McKinsey "screen business";
3. Matrix firm "Arthur D. Little";
4. Matrix "Ansof";
5. Three-dimensional scheme of Abel;

Mechanical engineering as an industry has existed for more than two hundred years. In terms of the number of employees and the value of its products, it occupies the first place among all branches 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 the world's industry, provides machinery and equipment for all sectors of the economy, and produces a variety of consumer goods.

Machinery products is the third article Russian export(after fuel and energy goods and metals).

In conditions market economy The main factor in increasing the efficiency of the national economy is no longer the individual achievements of science and technology, but the high scientific and technological level of all production. This level is determined primarily by the state of engineering as an industry that provides the need for technological equipment, which should be updated continuously.

Mechanical engineering is the basic branch of the economy, which 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 result, 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 bases do not meet today the growing requirements of economic and social development countries.

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

1. The concept of the industry. Engineering industry

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

Sectoral differentiation of industry - the emergence of more and more of its new branches - this ongoing process due to 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 social production on large spheres of material production (industry, agriculture, transport, etc.);
2. A private division of labor is manifested in the formation of various independent branches within industry, Agriculture and other branches of material production;
3. The individual division of labor finds its expression in the division of labor directly at the enterprise.

All forms of social division of labor are interconnected.

The 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 base of production and technological process, professional staff frames. On the same grounds, individual productions also differ.

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 (specific) function in the national economy.

Material production includes:

Industry;

Agriculture and forestry;

Freight transport;

Communication (serving material production);

Construction;

Trade;

Catering;

Information and computing services, etc.

The non-manufacturing sector includes:

Department of Housing and Utilities;

Passenger transport;

Communications (serving organizations of the non-productive sphere and the population);

healthcare;

Physical culture and social security;

public education;

Culture and art;

Science and scientific service;

Lending and insurance;

Activities of the administrative apparatus.

The branch of mechanical engineering is a part of the machine-building complex. The machine-building complex includes 12 major industries and about 100 specialized industries, sub-sectors and industries. The machine-building complex is connected with all branches, since the products of this complex are used in them as means of production.

2. Classification of engineering industries, dividing them into groups

Complex industries include:

Heavy, power and transport engineering;

Chemical and petroleum engineering;

Machine tool and tool industry;

Instrumentation;

Automotive industry;

Transport and agricultural engineering;

Construction, road and municipal engineering;

Mechanical engineering for light and Food Industry and household appliances;

Aviation industry;

shipbuilding industry;

Communication industry.

Depending on which market the products manufactured by the enterprises of the machine-building complex are oriented, they can be combined into the following groups:

1. A group of branches of investment engineering (heavy, energy, transport, chemical, oil, construction and road engineering), which development? determined by the investment activity of the fuel and energy complex, construction and transport complexes;
2. A group of enterprises of tractor and agricultural engineering, 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, and also partly on the demand of the population;
3. Electrical engineering, instrument making. Machine tool building is a group of science-intensive industries, the so-called components, developing following the needs of all other industries;
4. Automotive industry, the output of which is focused on the demand of end consumers (production cars), as well as the needs of enterprises, firms and executive authorities (production of trucks and buses).

Mechanical engineering industries can also be grouped according to the territorial affiliation of sales markets:

1. Branches of import substitution. This group includes such groups as the automotive industry, tractor and agricultural engineering, transport engineering, construction and road 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. Industries of export orientation. This group includes power engineering, the electrical engineering industry, instrumentation for the production of various elements of automated control systems (including multifunctional production complexes based on microprocessor control), the machine tool industry for the production of heavy machine tools 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 engineering industries according to various criteria are used to develop directions for improving the industry structure of engineering in accordance with the goals set and based on an analysis of pre-grouped industries.

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Gap Analysis

Gap analysis - simple but effective method and analysis. Its purpose is to determine whether there is a gap between the firm's goals and its capabilities and, if so, how to "fill" it.

Gap Analysis Algorithm:

Determination of the main interest of the company, expressed in terms of strategic planning (for example, in increasing the number of sales);

Finding out the real possibilities of the company in terms of the current state of the environment and the expected future state (in 3, 5 years);

Determination of specific indicators of the strategic plan, corresponding to the main interest of the company;

Establishing the difference between the indicators of the strategic plan and the opportunities dictated by the real situation of the company;

Development of special programs and methods of action necessary to fill the gap.

Another way to apply gap analysis is to determine the difference between the highest expectations and the most modest forecasts. For example, if top management expects a real rate of return on capital employed of 20%, but analysis shows that 15% is the most realistic, discussion and action is required to close the 5% gap.

Filling can be done in several ways, for example:

By increasing productivity and achieving the desired 20%;

By abandoning more ambitious plans in favor of 15%;

The following methods of strategic analysis are usually used to identify strategic alternatives, possible options for a strategic plan.

Cost Dynamics Analysis and Experience Curve

One of the classic strategy models was developed in 1926. It links the definition of strategy to the achievement of cost advantages.

The reduction in costs with an increase in production volume is due to a combination of the following factors:

1. advantages in technology that arise with the expansion of production;

2. learning by experience the most effective way to organize production;

3. economies of scale effect.

According to the experience curve, the main direction of the firm's strategy should be to conquer largest share market, since it is the largest competitor who has the opportunity to achieve the lowest unit costs and, consequently, the highest profits.

The application of the experience curve is possible in the branches of material production.

AT modern conditions achieving cost leadership is not necessarily associated with an increase in the scale of production. The current high-tech equipment is designed not only for large-scale production, but also for small ones. Today, even a small firm can use computers, modular equipment that provides high performance and the ability to reconfigure to solve various specific problems. The main disadvantage of the model is that it takes into account only one of the internal problems of the organization and inattention to the external environment (primarily to the needs of customers).

Analysis of market dynamics, life cycle model

The analysis of the market dynamics of this product is based on the well-known model life cycle product, which is an analogy of the life cycle of a biological being.

The life of a product on the market is divided into several main stages, each of which has its own level of sales and other marketing characteristics:

birth and introduction to the market - small sales and growth-oriented strategy;
growth stage - a significant increase in sales and a strategy for rapid growth;
maturity stage - sustainable sales and stability-oriented strategy;
stage of market saturation and decline - sales decline and reduction strategy.

The purpose of the life cycle model is to correctly determine the business strategy for each stage of the product's life on the market. There are a large number of life cycle modifications depending on the types of goods. However, the strategy should not be tied too tightly to the life cycle model.

The "experience curve" and "life cycle" models are the simplest methods of strategic analysis, since they associate strategy development with only one of the factors of the firm's activity. The methods described below are more complex and follow the path of linking the various components of the internal and external environment of the organization.

Model "product - market"

Suggested by A.J. Steiner in 1975. It is a matrix that includes the classification of markets and the classification of products into existing, new, but related to existing, and completely new products.

Rice. 1. Matrix "market-product"

The matrix shows the levels of risk and, accordingly, the degree of probability of success for various market-product combinations. The model is used for:

1. determining the probability of successful activity when choosing a particular type of business;

2. choose between various types business, including when determining the ratio of investments for different business units, that is, when forming a company's securities portfolio.

Portfolio Strategy Analysis Models

Portfolio models determine the present and future position of the business in terms of the attractiveness of the market and the ability of the business to compete within it. The original, classic portfolio model is the BCG (Boston Consulting Group) matrix.

The matrix indicates four main business positions:

1. highly competitive business in fast growing markets - ideal "star" position;

2. A highly competitive business in mature, saturated, stagnant markets (which produce steady profits, "cash cows" or "money bags") is a good source of cash for the firm;

3. not having good competitive positions, but operating in promising markets "question marks", whose future is uncertain;

About the combination of weak competitive positions with markets that are in a state of stagnation - "dogs" - outcasts of the business world.

The BCG model is used:

To determine interrelated conclusions about the position of the business unit (business) that is part of the organization, and its strategic prospects;

Using the BCG matrix, the company forms the composition of its portfolio (that is, it determines the combination of capital investments in various industries, various business units).

Within the framework of the BCG matrix, strategy options can be proposed:

1. Growth and increase in market share - the transformation of the "question mark" into a "star" (aggressive "question marks" are sometimes called "wild cats").

2. Maintaining market share is a strategy for cash cows whose revenues are important for growing businesses and financial innovation.

3. "Harvesting", that is, obtaining a short-term share of the profits as much as possible, even at the expense of reducing market share - a strategy for weak "cows", deprived of the future, unfortunate "question marks" and "dogs".

4. Liquidation or abandonment of the business and the use of the resulting funds in other industries - a strategy for "dogs" and "question marks" who do not have more opportunities to invest to improve their positions.

The BCG model has the following advantages and disadvantages:

Advantages:

The model is used to study the relationship between the business units that make up the organization, as well as their long-term goals;

The model can be the basis for the analysis of different stages of development of a business unit (business);

It is a simple, easy-to-understand approach to organizing an organization's business portfolio (security portfolio).

Flaws:

Does not always correctly assess business opportunities. For a unit defined as "dog", it may recommend exit from the market, while external and internal changes are able to change the position of the business. Yes, small farming, supplying vegetable products, in the 70s could be assessed as a "dog", but by the 90s, environmental degradation and a special attitude towards "clean" products created new prospects for this business;

Overly focused on cash flow when the organization is at least important indicator is the return on investment. Focuses on super growth and ignores business recovery opportunities, application best practices management.

A more complex version of the portfolio model is the McKinsey multi-factor matrix of the company that is developing it by order of General Electric.

Evaluation of the multi-profile portfolio model:

Its advantage over the simple portfolio model is that it takes into account most significant factors of the internal and external environment of the company;

In the application of this model, there are limitations, which include the lack of specific recommendations for behavior in a particular market, as well as the possibility of a subjective, distorted assessment by the firm of its position.

Source - I.A. PODELINSKAYA, M.V. BYANKIN STRATEGIC PLANNING Tutorial. - Ulan-Ude: Publishing House of the ESGTU, 2005. - 55 p.