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ЕКОНОМИКА Vol. 63, april-june 2017, № 2
ISSN 0350-137X, EISSN 2334-9190, UDK 338 (497,1)
87
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1
2
3
Faculty of Business Economics and Entrepreneurship
Belgrade, Serbia
STRATEGIC ADJUSTMENT
OF THE COMPANY CHANGES
Abstract
Strategic planning, because of its emphasis on the future, implies extreme
subjectivity in the development and assessment of a variety of objectives and
strategies. The inuence of personal values and priorities of the strategic planning
is not limited to personal values and priorities of the company managers, but also
other employees and the customers. Personal values and priorities, internal or
external, carry with them certain advantages and disadvantages. In some cases they
improve strategic planning by creating a dierential advantage in the marketplace
or in the costs. In contrast, they can sometimes limit the goals and strategies of
the company.The company must continuously assess potential trends in personal
values and priorities, and on the basis of this assessment to develop variants of the
strategic plans of potential changes, taking into account the possible reactions to
the same competition.
The plan allows the company to better prepare for possible changes in the
environment, and the development of strategic variants prepare their business for
any events before they actually do occur.
Key words: strategic planning, strategic management, company, plan and
strategy.
JEL classication: L52, P41, M11
Стратегијско планирање, због свог нагласка на будућности, подразуме-
ва изузетну субјективност у развоју и оцени разних циљева и стратегија.
Утицај личних вредности и приоритета на стратегијско планирање није
ограничен само на личне вредности и приоритете руководилаца предузећа,
1 slavica.andjelic@indmanager.edu.rs
2 nikolic2206@gmail.com
3 tamara.vesic@live.com
SCIENTIFIC REVIEW ARTICLE
DOI:10.5937/ekonomika1702087A
Received: April, 11, 2017
Accepted: May, 08, 2017
P. 87-95
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88 ЕКОНОМИКА
већ и осталих запослених, као и самих клијената. Личне вредности и прио-
ритети, унутрашње или спољашње, носе са собом и одређене предности и
недостатке. У неким случајевима они побољшавају стратешко планирање
тако што стварају диференцијалну предност на тржишту или у трошко-
вима. Насупрот томе, некада могу ограничити циљеве и стратегије преду-
зећа. Предузеће мора перманентно процењивати потенцијалне трендове у
личним вредностима и приоритетима, и на бази те оцене развијати варијан-
те стратешких планова потенцијалних промена, водећи рачуна о могућим
реакцијама конкуренције на исте.
План предузећу омогућава да се што боље припреми за могуће промене у
окружењу, и да развијањем стратешких варијанти припреми своје посло-
вање за евентуалне догађаје пре него што до њих заправо и дође.
Кључне речи: стратегијско планирање, стратегијски менаџмент, преду-
зеће, план и стратегија
Introduction
Management as a permanent action on the basis of decisions made planning
company strives not only to adapt, but also to actively inuence the conditions in which it
carries out its business activity. Planning company seeks to eliminate the adverse impacts
on their business activity. Although a number of factors aecting the company beyond
its control, without planning the events with which the company is facing would be left
to the case - a concurrence of circumstances with a positive or negative outcome for the
company. Experience teaches us that a number of events would not have occurred at all
if it were not planning activities of the company. Planning means that the company is in a
dilemma whether to leave him water events in the future or that seeks to create or at least
inuence on their future consciously denes the dierent alternatives. A company that
plans ready for the changes, while a company that does not plan permanent unsuccessfully
resolved “unforeseen problems”. Planning means thinking systematically about the
future of the company, with the emphasis that it creates in the present action. Planning is
creating change rather than preserving the status. This activity is for something to happen
that otherwise no action planned would not happen. Planning is a continual process of
making planning decisions to make changes in the relationship between the company
and the environment. Planning allows the company to expand its attention outside the
markets in which it performs its business activity at present.
Planning is a good approach to the time and space. The time horizon is a time limit
on a predictable share of the unpredictable future. Long-term planning does not mean the
same interval for all companies.
Belief in the planning is based on the assumption that it increases control of the
future and the ability to react to events that can not be controlled. The dilemma is planned
or being planned. The intended business objectives will not be achieved if it fails to take
appropriate action, and if it is likely to take positive outcomes povećava.Ukoliko the
company wants to have some control over events, it must be planned. If the activity is
not planned defense company must react to events in the middle. Planning company may
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seek to reduce the impact of changes to his position in the middle, to reduce delays in
response and, nally, as must act to reduce the costs of response.
Although planning is future-oriented, it allows you to support the current reality of
the decision, based on which the action is undertaken immediately. It allows to assess the
decisions “mature” to be made today, and that it is better to postpone for tomorrow. The
current decision is based on planned objectives. This reduces the ability to create a crisis
situation for which they found a partial solution, but it is not possible to avoid negative
consequences for the enterprise mobility.
Strategic planning is necessary due to changes in the environment which in various
ways aect the performance of the company. Very often changes aect the structure of the
industry that requires strategic reaction. Strategic planning allows the company to face
the so-called. “Future shock” which is described as a disease of people and organizations
that the future beyond, before being ready for it. “Future Shock” occurs when the tip
speed of change and developments beyond the individual’s ability to adapt. The necessity
of strategic planning stems from the fundamental dierence between passive and active
response to changes in the environment, or between passive and active adjustments.
Before making business decisions to initiate an active adjustment, it should be established
whether these are operational, competitive or strategic changes in the middle. On the
operational changes to respond by adjusting the volume of activity. In the competitive
changes respond planned actions that lead to change the position of companies in the
structure of the branches. On the strategic changes are responding by changing markets,
technology and capacity of the company. Today, literature is treated as strategic planning
framework for innovation, and as a stimulus for new products, technological processes
and markets. Strategic thinking is needed is not to be taken aback eects of changes in
the macro and micro environment. The problems arise when the company changes in the
environment are not accompanied by customizing company adequately.
Changes in the environment can be basically positive for the company or
inadequate response management can lead to a deepening mismatch between resources
companies and require protection. It’s in a good number of cases means that invent new
relationships between assets and expertise of companies and require protection.
In strategic planning, the company faces very complex problems that can not be
solved or can be somewhat simplied. They have a number of causes, it is dicult to
describe, there is no right answer. Solutions to these problems are not real and false, but
good or bad. There is no direct or nal test for this kind of problem. Any such problem is
unique. The diculty is that planners have no right to make mistakes. Those who solve
this kind of problem are responsible for the consequences, because the stocks have a large
impact on the company. Nevertheless, strategic planning is the right answer for this kind
of problem. Strategic plans should be “living” documents which change according to the
needs of enterprises, should create scenarios and strive to achieve the future they want.
All shares of individual competitors in the industry are focused on the use of ways
of gaining competitive advantage. The eectiveness of certain actions depends on the
phase of the life cycle of the branch, as well as the reaction of other companies in the
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industry. Superior protability assumes a high perceived value and / or lower costs than
competitors in its delivery. One must know when it is more emphasis on perceived value,
and when the lower costs.
The purpose of strategic planning is to achieve superiority over competing companies.
Superiority should exist in relation to consumers, in the way of meeting their needs and to
deliver superior value. The causes of superiority over the competition should look for the
roots of the advantages and superior expertise and superior resources. To root advantages
have resulted in a better strategic position in the market, management must have the ability
to eectively and eciently use superior expertise and superior resources. Strategic plan
companies expressed direction for the future, the objective of performance and strategy. A
merging of strategic vision, goals and strategies in the strategic plan.
The eectiveness of strategic planning now predominantly depends on the level of
development of the strategic management of the company. Strategic planning contributes
to the creation of strategic options and the choice of optimal strategy. Strategic
management involves thinking, decision making and action to create competitive
advantages. The concept of strategic management allows a rational approach is not only
more strategic planning and realization of transformation processes in the company.
Strategic management involves three areas of activity: strategic analysis, strategic
choice and strategic change. Strategic planning gives its full contribution to the strategic
analysis and strategic choice. These are areas of activity covered by the sector planning
in modern enterprises.
According to Drucker strategic planning, analytical thinking and preparing
resources for allocation. He emphasizes that strategic planning does not deal with future
decisions over the future of present decisions. The problem is that the future should be
incorporated into the current thinking and action, that period should be considered and
how to use the information that at present make rational decisions. For him, the real
strategic plans are leading to immediate action, seeking new and better ways to achieve
the objectives of the business. Strategic planning is preparing the current business for the
future. Its purpose is to direct action. He points to the three essential attributes of strategic
planning. The rst is its orientation to basic questions the eectiveness of the company,
such as the selection of the right business area. Another important attribute of strategic
planning is its orientation to change the strategic position of the company. The third
attribute is oriented to the growth and development of the domestic and international
markets.
The relative value of strategic planning is measured by its contribution:
1. precise identication of strengths and weaknesses of the company;
2. identifying existing and potential advantages over other participants in
business operations;
3. risk assessment of certain alternative courses of action, and
4. assess the internal consistency of the elements of the Strategy.
Strategic planning contributes to avoid the mistake that the allocation of origin do
before you formulate strategies, and to formulate strategies and allocation of resources
is performed spontaneously. Finally, strategic planning is a creative approach to the
planning process that focuses on the future of present decisions.
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In strategic planning should make a distinction between the decisions that have
the character of policy and strategy. Privacy (attitudes, concepts, principles or criteria)
shall be taken to ensure the routing decision (making daily decisions) toward the goals.
Decisions that have the character of policies ensuring consistency, economy and unique
solving current problems that arise in business. They are the focus of decision-making
that occur in business and which can be largely programmed. The strategy is a way
to achieve the goals and objective of each new strategy seeks to achieve. These are
decisions that are not structured and that can not be programmed.
A distinction is made between one-way and two-way learning. At DC learning
or model of organizational learning that begins with a plan that, like any plan, seldom
fully realized. Usually that is based on monitoring of the execution plan, and adjusted
as new implements. This continues the trials and errors, corrections and adjustments.
The DC cycle learns how to better implement the existing plan. Does not leave enough
room to open itself into question. The focus is how to eectively implement a plan that
you’ve implemented the real operation. Sooner or later, every company has to move
towards strategic learning cycle, in which the focus is changing from ‘’ how ‘’ to ‘’
what ‘’, ie the emphasis on the eciency of the emphasis on eciency. Strategic cycle
involves reecting operational performance as required by developments in the external
environment. Connection between the external environment and internal organizational
processes, enables management to create new business vision and priorities. New
approaches are then included in the operational processes in the next operating cycle.
Then two-way learning happens in the strategic and operational cycle. Working only at
the strategic level, without involving the learning back to the operating cycle, is a one-
way learning at the strategic level. Similarly, working only on an operational level without
being able to observe whether the current operation still valid for the environment, is a
one-way learning at the operational level. Transformation goes further and asks what is
the purpose of the action? It links the operational and strategic levels of learning.
Long ago has argued that planning is a learning enterprise planning institutional
learning. Indicates that the weight of institutional learning from individual learning.
Eective individual learning is a prerequisite for the success of the company. The reason is
that signicant changes resulting from learning about the companies themselves and their
environment. In fact, the normal decision-making process in the company is a learning
process, because people change their mental models and create common models as they talk.
Learn faster than competitors may be the only way to strengthen competitive advantage.
When both markets, both product and origin, turbulent and disruptive, competitive
advantage must be constantly renewed. Businesses can do so only if you manage your
knowledge. Therefore, it is necessary to use two means of strategic planning - planning
scenarios and internal strategic analysis - to create a plan and integrate knowledge to
achieve a sustainable competitive advantage in the hypercompetitive markets.
How external market-oriented, and internally-oriented company can provide focus
and create a strategic plan to guide business action. But with this it is necessary to employ
the organizational knowledge management prepared to use the advantages of developing
the competitiveness of the market. There is no essence of competence does not give the
company a competitive advantage because they can copy, replace and make irrelevant.
Companies can gain competitive advantage in the hypercompetitive markets,
developing organizational knowledge through strategic planning. It enables both the
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structure and context for the development of such knowledge that is sustainable and
renewable source of competitive advantage.
Strategic planning is a process that identies the gap between existing and required
skills, contributing to the company becomes a learning organization, which creates
conditions for superior performance.
Strategic analysis
Most authors dene analysis environment as the process of monitoring the state
and changes in it to set up signals for the opportunities and risks that may aect the
company’s ability to achieve its business objectives. There is an opinion that the analysis
of the middle has three purposes. The rst contribution to enterprise policy and improve
the management of information on developments in the middle, that would be well
dened basic strategic questions. Another role is to help the integrated strategic planning
or providing information needed by managers at both companies, and the level of SPJ to
improve the overall quality of the planning and coordination of special management and
the SPJ. The third role is to help the business functions that help functional managers at
the company level and possibly SPJ, if any in the company, the changes that have a major
impact on the results of individual business functions.
Critical information for the assessment of the current strategic position of the
company are about to get on to market share, the relative growth rates of companies
and markets and whether the competitive position improves or worsens. On the basis of
such information it is possible to estimate the power of strategic positions of companies
and to assess whether it will be in the foreseeable future to improve or deteriorate. The
emphasis in monitoring changes in the middle should be on those changes that have a
high probability event and a great inuence on the company.
The economic analysis should determine whether the structural changes in the
environment or in part. Partly reect the important indicators in a given structure, a
structural point to qualitative changes in the relations between enterprises and the
environment. Economic analysis can include all levels (global, regional, national, and
local) or only one of them. Changes to the higher level have implications for the lower
levels. Economic analysis is a reliable information base for the analysis of sensitivity
to changes in companies, or answer questions “what if?” What is important to identify
market opportunities and alternative approaches to their use.
Managers should use planning as an essential mechanism in dealing with the
instability of the environment. Of course, as the situation becomes more complex, it is
planning more complex. It is understandable that emphasize innovation and adaptation.
It is essential to balancing the four dimensions of planning: symbolic, rational,
transactional and generative. In large companies a bigger role than a symbolic planning
at companies of other dimensions. Expressed instability requires more emphasis on
generative planning. Assessment of future markets is an important prerequisite for timely
adjustment to changes in the enterprise environment.
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Strategic planning should be introduced taking into account the culture of the
company, in an eort to reect employees as a strategic thinkers. Strategic thinkers are
people who have already shown that they can think beyond today. This does not mean
that only strategic thinkers participants in the process of strategic planning because the
teams need people whose competence in understanding everyday tasks at the operational
level. The realization of the relationship between operational considerations and strategic
considerations is a critical element in the successful implementation of strategic planning.
Looking at the performance of people rather than businesses in relation to the
strategy, suggests a new concept of “champions of strategic planning.” This applies to
practitioners involved in the strategy. These are practitioners who introduce, promote
and guide the process of strategic planning in the company. It is believed that there are
three roles that the champion has to do to perform traditional tasks competently and
technical expert. The three roles are: development of social relations, a good interpreter
of the famous alien. Champion is an expert in strategic thinking, which has specic
technical and analytical skills. This helps to enable you to master the traditional roles of
strategic and analytical thinker planners.
Strategic control deals with the success rate to achieve the basic strategic direction
of the company, in terms of its relationship with the environment. Strategic control
relies on information from several sources, but it is a greater reliance on information
from external sources. Often it comes to assessing planning assumptions underlying the
strategic plans. The focus of the analysis of the information on which it is possible to
answer the questions: whether the company choose the right business areas, whether in
them moving in the right direction and whether it works eectively.
Strategic control has a directional character due to the time lag between the
initiated application of the chosen strategic options and the nal results of the actions
taken. The focus of the strategic control in several important areas, which can be a source
of risk. The assumption of strategic control performance is good to identify the critical
success factors of companies in formulating strategic plans.
It is believed that there are three styles of management in diversied businesses:
1. Strategic Planning,
2. Strategic control and
3. nancial control.
Conclusion
Successful strategic planning is a kind of bridge between the company and its
environment. Bridging the perceived obstacles and establishes the shortest connection
to the target markets.
The system of strategic planning arises from the need for strategic management
thinking. Performs the analysis and assessment of the competitive situation and to
analyze branch (s) in which the enterprise conducts its business activity. Performs the
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dynamic allocation of resources based on their potential to create value. Predict new
trends and phenomena of discontinuities in the economy. Management is increasingly
focused on new product - market. The emphasis is increasingly placed in the research and
development activity of the company. Greater attention is paid to the study of consumers
and competition. The company is oriented to the domestic and international markets as a
source of ideas and scope of business activities.
A larger number of authors tell the dierence between long-term and strategic
planning in the future observation. In long-term planning is believed to be to predict the
future by extrapolating the historical growth of the company. Management believes that
the performance in the future will be better than in the past. The strategic planning is
not expected that the future will certainly be better than the past, nor does it believe that
the past can be extrapolated into the future. In strategic planning replaces extrapolation
strategic analysis (internal and external) to establish the strengths and weaknesses as
well as opportunities and threats for the company.
The Company generates, its business plans, the mission in cooperation with internal
and external factors. Management is the one who has to understand and predict the
scope of opportunities and threats that are in the environment and taking into account the
strengths and weaknesses of the company determine the way of business. The development
environment is changing and management company. If a company combination of nancial,
material and human resources, and realizes maximize business objectives, then the launch
and implementation of its activities depends on the circuit entrepreneurs, leaders and
managers whose successful cooperation between the company achieves its mission.For the
emergence, survival and successful business operations are important: capital, innovation
and risk-taking, business ideas, and the ability to get through the planning, organization,
management and control in managing the process of production.
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environment even though they are often masked the problems. At the company or the
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