Economic Strategies of the Firm

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

For strategic decisions, two features are typical: long-term consequences and their irreversibility. Proceeding from these features of strategic decisions, it follows a logical conclusion 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, like the economic strategies for pc, are based on strategic decisions. Strategies themselves, in fact, represent a kind of framework, on which specific tasks and special decisions on specific issues of the enterprise work.

Strategic decisions are made by choosing one of a variety of options. Economic strategies include such solutions as serious reconstruction, expansion of production, change of 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 with the layout of a set of interrelated solutions that determine the priority directions of available resources and application of the company's efforts in order to realize its basic economic mission.

The first step in creating a quality strategy is to determine the business credo of the enterprise (mission) in the form of general principles and guidelines that determine the purpose of the enterprise in the company with other business entities .

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

When managing an enterprise based on the principles of strategic planning, which are complemented by a mechanism for coordinating tactical and operational decisions with the general, 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 its policy, which only proclaims the main intentions in the activity 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 covers decisions in the scope and structure of production, the strategic aspects of internal management, the behavior of the enterprise in the markets of factors and goods, 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 enterprise's behavior in the market.

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

4. Integration - solutions for 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 management of the firm in the course of implementing a specific strategy.