Reading Report on Essentials of Strategic Management

Enterprise strategic management means that enterprises make full use of their human, financial and material resources through macro-level analysis, prediction, planning and control, so as to optimize management and improve economic benefits. In China, due to the long-term influence of the planned economy system, the strategic management of enterprises has just begun. However, with the deepening of China's economic marketization and the approach of WTO, the market competition is becoming increasingly fierce. China enterprises, as the main participants in the operation of market economy, are the decisive factors for China to achieve economic prosperity and full employment. The author thinks that strengthening enterprise strategic management is a powerful tool to improve the level and competitiveness of enterprise management system in China. The author has been engaged in the assessment of hundreds of enterprises, and thinks that combining with the present situation of enterprises in China, we should strengthen the strategic management of enterprises from the following seven aspects.

1. strategic goal: an enterprise must have a clear long-term goal. As the saying goes, "Where there is a will, there is a way." An enterprise without grand strategic goals, just like a person without ambition, can't achieve great things. Only by setting ambitious goals can enterprises unite all their forces and work in the same direction. There is a saying that an enterprise can develop to the size of a boss's ambition, which is a truth. Everyone knows the slogan of Oracle Bone Inscriptions Company in the United States, which wants to surpass Microsoft and become the first in the world. Thanks to the concerted efforts of Qi Xin's Qi Xin, after several years of leaping development, it has not yet become the first in the world, but it has also become the second in the world. Another example is Haier Group in China, which puts forward the strategic goal of striding into the "top 500 in the world" in the next few years. At present, it has rushed out of China and gone global, invested and built factories in the United States, the only superpower in the world, and even the local government of the United States named a "Haier Road" for the first time, which excited Chinese at home and abroad.

Second, strategic planning: Because the strategic goal is a long-term goal, it can't be realized immediately, and there must be a hard struggle between ideal and reality. The so-called strategic planning is to plan this struggle process in order to fully mobilize enterprise resources, advance along the established direction and achieve strategic goals as soon as possible. Suppose a company wants to develop into the world's top 500 in 20 years, then, first of all, it is necessary to make clear what the standards of the world's top 500 are in 20 years, and then make a feasible plan according to the existing actual situation. For example, in 1-5 years, it is necessary to make clear objectives, make plans, cultivate core competence, establish a good internal management system, reserve talents, and form strong competitiveness. In 6- 10, it obtained the qualification of listing at home and abroad, and raised sufficient capital through issuing stocks to ensure rapid expansion. From 1 1 to 15, the company expanded on a large scale and gained a dominant position in the market through mergers, acquisitions and alliances. 16-20 years, we laid a solid foundation, straightened out the management structure, improved efficiency, and achieved the strategic goal of entering the world's top 500 through further expansion, making the ideal finally become a reality. On this basis, after deepening and concretizing, the enterprise will publicize and encourage all employees and establish the company's consistent direction with strategic planning as the core.

Third, the strategic foundation: the overall core competence of the enterprise constitutes the strategic foundation of the enterprise. The reason why an enterprise can stand in an invincible position in the market competition and grow stronger is because it must have something special, superior to others and different from others. This unusual place is the core competence of the enterprise, which is the key to the vitality of the enterprise, such as Coca-Cola Company, whose core competence is its secret recipe and brand; Microsoft's core competitiveness is its excellent software development ability. As the board of directors and the top leader of an enterprise, we should carefully analyze and judge the core competence of the enterprise, and then consolidate, develop and protect the core competence. Otherwise, once the core competence is lost, the enterprise will be like a walking corpse, with no competitiveness and viability.

Four. Strategic guarantee: the development of an enterprise and the realization of strategic objectives must also be achieved through strict management, including: preparation and implementation of planned budget, cash control and management, cost and profit analysis, technology development system, procurement and payment methods, sales and collection policies, financing and investment decisions, corporate culture construction, corporate image design, etc. This is the successful strategic reassurance of an enterprise, and it is also the foundation of the core competence of the enterprise development strategy. For example, many business management experts have a profound discussion on this issue. I won't talk about it here.

Verb (abbreviation of verb) strategic decision: The development of modern economic life has gone far beyond the control of personal experience and ability. A good information collection, collation, analysis and reporting system must be established to ensure the sensitivity and accuracy of decision-making. When making major decisions, we should discuss them together, give full play to their respective advantages, and form scientific decisions. After hundreds of years of market economy practice, board decision-making and committee consultation are powerful tools for enterprise decision-making. The board of directors should include representatives of shareholders and managers, and more importantly, there should be enough independent directors composed of experts and scholars. Independent directors do not represent the interests of individual shareholders or senior managers, but represent the long-term interests of the whole enterprise, providing professional advice for the decision-making of the board of directors of the enterprise and making up for the shortage of internal directors. All members of the board of directors should bear legal responsibility for their decision-making actions, including economic responsibility and even criminal responsibility. According to American law, a company must have independent directors and an audit committee composed of independent directors. This is one of the keys to the success of American companies' decisions. Similarly, the establishment of various professional advisory committees, accommodating various interest representatives, consulting and providing decision-making basis for relevant parties is also one of the powerful tools leading to scientific decision-making. Although the influential collective decision-making model of party committees has been widely established in China, there are serious conflicts in this model because enterprises take profits as the main goal and political parties take politics as the main goal. In essence, the Party committee is not the representative of the interests of enterprise property owners, which is not in line with the law and international practice. In today's highly developed market economy, it can't adapt to the law of economic operation, which leads to the failure of this decision-making model. Although the shareholders' meeting, board of directors, managers and other institutions have been established. However, due to the influence of long-term planned economic system and the remnants of long-term feudal social consciousness, many enterprises have now become centralized, subjective and arbitrary factory directors and managers, especially in a few private enterprises, which often leads to blind decision-making by top managers, and may eventually destroy not only the enterprises, but also the top managers themselves. Jiang Wei, the famous Shenyang Longfei Group, complained about the "Top 20 Mistakes" because of his decision-making mistakes, and Shi Yuzhu, the giant group, almost went bankrupt because of his arbitrary decision-making to build the "tallest building". It can be seen that it is urgent to establish a scientific strategic decision-making system in China.

Strategic implementation of intransitive verbs: any correct decision can only be achieved through accurate and effective implementation. The implementation of the strategy is mainly accomplished through the activities of managers, functional organizations, branches and managers. Through the open recruitment examination, we will select people with professional ability to take responsibility, equip all kinds of talents to form a team with overall cooperation ability, scientifically set up various functional institutions according to the actual needs of enterprises, and establish a feasible system to ensure the operation of institutions. In addition, it is necessary to establish personnel training, assessment, selection, rotation and renewal systems, such as rotation of directors of the board of directors, three-year tenure of general managers, annual tenure of department managers, quarterly assessment of ordinary employees, etc., to ensure the vitality and development of the organization to adapt to the continuous development and changes of social economy.

Seven, strategic evaluation: an enterprise must have a timely and full understanding of the actual results of all actions, that is, it needs a correct evaluation, and can't wait until something goes wrong, so it is necessary to establish a perfect evaluation system, including shareholder evaluation, employee evaluation, internal audit evaluation, and internal enterprise evaluation, including customer evaluation, peer evaluation, external audit evaluation, and government. The operation of an enterprise must be based on the law, and must fully consider the reflections of all aspects, weigh the weight, correct mistakes, correct mistakes, maintain and give full play to the correct ones, realize their own gaps through continuous evaluation, and make continuous efforts to achieve strategic goals as soon as possible.