Economic Strategies of the Firm

Economic Strategies of the Firm

Economic strategies are a set of rules for making decisions that a firm or an enterprise is guided by in its activities.

Strategic decisions are characterized by two features- long-term consequences and their irreversibility. Proceeding from these features of strategic decisions the logical conclusion follows that their implementation can radically change the potential of the enterprise. Decisions of this kind are mandatory for enterprises at a certain stage of their development.

The economic strategies of enterprises, likeeconomic strategies for pc, are based on strategic decisions. The strategies themselves, in fact, are a kind of framework, on which specific tasks and special decisions on specific issues of the enterprise work.

Strategic decisions are made by choiceone of many options. Economic strategies include such solutions as serious reconstruction, expansion of production, changes in specialization or the profile of the firm.

Economic strategies are related to the implementation of decisions on the management of technical, economic, financial, social and other processes.

Economic strategies are important for life and enterprise development. It depends on their implementation, what resources will be allocated for future development, how dividends will be paid, etc.

The development of the company's strategy begins withlinking together a set of interrelated solutions that determine the priority areas of available resources and application of the company's efforts to realize its basic economic mission.

The first step in creating a quality strategyis the definition of a business credo of an enterprise (mission) in the form of general principles and guidelines that determine the purpose of an enterprise in a society with other subjects of economic activity.

The objectives of the strategies are to describe the final, andalso intermediate states of the organization or firm in the implementation of its strategy in terms of economic development. At the same time, specific objectives for specific areas of activity are concretized by general goals. The tasks are carried out through specific concrete measures.

When managing an enterprise based onthe principles of strategic planning, which are complemented by a mechanism for coordinating tactical and operational decisions with the general policy, in conjunction with the mechanism for monitoring and adjusting the strategy, it is a system of strategic management.

The strategy of the enterprise is not identical to itspolicy, which only proclaims the main intentions in the activities of the enterprise. The strategy guides the process of making important decisions in the chosen direction. Therefore, it is broader and more thorough than politics.

The content of the economic strategy coversdecisions in the scope and volume of production, strategic aspects of intra-firm management, enterprise behavior in factor and product markets, etc.

There are several main directions (types) of economic strategies.

1. Technological - strategic decisions in the field of technology, their development and influence on market factors.

2. Commodity market - a set of solutions for the nomenclature, quality and volume of output, methods of the company's behavior on the market.

3. Financial and investment - a set of decisions on how to attract, spend or accumulate finresursov.

4. Integration - solutions for the integration of functional and managerial interactions with partner enterprises.

5. Resource-market - decisions on the behavior of firms in the market of production resources and factors.

6. Social - decisions about the structure of the collective, the nature of its relationship with shareholders.

7. Management strategy - decisions affecting the nature of the company's management in the implementation of a specific strategy.

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  • Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm Economic Strategies of the Firm