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Defining strategic areas of management for small business and private enterprise players
Salaev Sanatbek Komiljanovich, Urgench State university, Doctor of Economics, Faculty of Economy E-mail: [email protected]
Masharipova Manzura Alimbayevna, Urgench State University, assistant teacher, Faculty of Economy E-mail: manzuramohira @mail.ru
Defining strategic areas of management for small business and private enterprise players
Abstract: This article explores the ways and features to define strategic areas of Management for small business and private enterprise. In addition, the article includes algorithms and factors for Defining Strategic Areas of Management.
Keywords: small business, economic management, strategic area, supply, demand, economic, social and political factors of demand, variety of strategies.
Conditions for the existence of small businesses say that against the background of increasing competition and falling demand of the population, the instability of the environment is growing: the events are becoming more unusual and unrecognizable; the pace of change is increasing, which far exceeds the speed of response of small business; increases the frequency of occurrence of unexpected events, sudden changes in their unpredictability. In this situation, the very existence of small businesses depends on how their leadership could correctly predict the prospects of development of events, assess the domestic capabilities, coordinate the actions of all subsystems of the organization for achieving its goals. These actions are intended to implement the strategic management subsystem.
For small businesses to develop a strategy begins with identifying the industry in which the company operates. The modern concept of the market is based on effective methodological techniques — strategic segmentation and allocation of strategic areas of management.
In the terminology of American business strategic area management (SZM) — a separate segment, the sector of the market for which the firm has an access or is willing to receive it. As a result of analyzing this SZM, prospects are determined opening any competitor, in terms of growth, the rate of profit, stability, etc.
Practice shows that the majority of managers about the outlook for the development of a business, based solely on their experience. Note also the following: one of the main characteristics of today’s regional small business is that ownership and management are in the same hands. Entrepreneur is able to participate, make decisions, manage a maximum of two types of business (if these businesses are completely different from each other in technology, consumer and market characteristics), or four or five (in the event that these types of businesses are related to technology, consumer or market basis), regardless of other circumstances.
Studies have shown that in cases where the amount exceeds the above-mentioned types of business performance, small businesses become out of the control of the owner-entrepreneur and had a dismal finish. This happened due to the two main reasons: First, the system operational and strategic decisions on small businesses are usually located in a single center, and appearing problems demanded rapid decisionmaking, but because of the high degree of congestion of the head, responsible decisions were not taken in time, which ultimately affects the speed and quality of the enterprise and the reaction resulting in the loss or weakening of the positions in the competition; secondly, the lack of a clearly established system of internal monitoring led to a distortion of the data that received the head to make a decision that led to the error and, as a result, to the weakening of the competitive position.
In this regard, before consideration of the definition of strategic areas of managing small businesses should consider the following assumptions:
- Entrepreneur already leading a particular business and managing its small business can: assess the prospects for the development of operating business; assess the prospects of the business, as close as possible to the technology, geographic location to the current one; assess the prospects for the development of a fundamentally new business for the entrepreneur (SZM);
- A businessman who has attained success in one of the types of businesses tends to have a desire to invest in the current or any other business.
One of the stages of strategic management in a small business, as a rule, is to find the direction of further movement.
As the search business ideas for the organization and implementation of a new kind of business or expanding an existing business within, the entrepreneur should assess the impact of the environment on the activity of a small enterprise, that is, to monitor the environment.
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Section 14. Economics and management
There are two types of monitoring: commercial and strategic. The algorithms of strategic monitoring can be represented as the following steps:
1. Arranging goals.
2. Setting the system principles.
3. Setting the boundaries of the environment and its cleavage.
4. Selection of components of the environment to be monitored.
5. The choice of method.
6. Implementation, analysis and control.
7. Regulation.
8. Decision making.
Monitoring activities in a small business is complicated by the fact that there is no stencil technologies. It is the very area, where appears the talent and ability of the manager to manipulate poorly structured objects and data sets. Definition of indicators by which you can track the probability of occurrence and the extent of its impact on the small business — a task that is also facing uzbek managers.
Modern management techniques offer a variety of selection criteria for assessing the external environment and the extent of its impact on business prospects. Note the most common of them proposed by I. Ansoff, — method for assessing the attractiveness of the strategic areas of management. Parameters for assessing the attractiveness are the future growth in SZM, future profitability SZM, future instability [1].
As the parameters defining the strategic areas of managing existing and prospective business for small business in Uzbekistan, we offer the use of the following indicators:
1. The detection of SZM in terms of changes in demand.
2. The detection of SZM in the terms of position in the competition.
To identify these indicators is needed to identify the factors (events) that may affect accordingly to changes in demand and position in the competition. The identification of such factors — is a very individual for each small business. Taking into account all the specifics of their operation conditions, it is possible to offer a list of factors that may be taken into account by managers of small businesses in the formation of the monitoring system. To assess the prospects for changes in demand in the current and future business, we offer the use of the following factors: events in the economy, developments in the social sphere, developments in technology, and other events that may affect the change in demand.
1. Economic factors:
- Rate of the national currency;
- The refinancing rate;
- The formation and execution of local budget (orientation, procedure);
- The average salary in the region;
- The presence of a stable functioning of enterprises in the region;
- The ratio of private and public enterprises in the region;
- The nature of the use of municipal property;
- The nature of privatization;
- The presence (absence) in the region of large monopolies;
- Regularity of payments in the social sector and the public sector;
- The policy of local banks;
- Relations with regulatory authorities;
- The purchasing power of the population;
- The mechanism of formation of local taxes and fees;
- The state and the nature of the labor market;
- Formation of the local business elite;
- The infrastructure of small business in the region;
- The ratio of income and expenses between the rich and the poor in the region, etc.
2. Social factors:
- The degree of social orientation of budget expenditures;
- Demographic and ethnic composition of the population in the region;
- Geography of settlement construction in the
region;
- The condition and rhythm of urban transport;
- Ownership enterprises urban infrastructure;
- Statistics of marriages and divorces;
- Carrying accessory kindergartens, schools, etc.;
- The weight of the cultural intelligentsia in the life of the region;
- Frequency of citywide events and activities;
- Status and activity of organized crime in the region;
- The state of the health care system in the city, the region, etc.
3. Technological factors:
- The state of R & D in the region;
- The emergence of technological innovations;
- The state of the market “know-how";
- Conditions for the import of technology and equipment;
- Availability of domestic analogues of imported equipment, etc.
4. Other events that can be monitored:
- Weather forecast for the coming season;
- Climatic conditions;
- The development of communication systems;
- Access to information sources, etc [2].
Allocation of factors and assess the impact of their changes on the demand are determined by peer review. Estimation algorithm might look like this: stand factors, whose change may affect the change in demand in each of the types of businesses; determined by the valuation rules, for example: each of the factors expert assigns a score depending on the impact of changes in factor to changes in demand for five or ten point scale. Integrated assessment is defined as the arithmetic average of the opinions of experts. Each group is assigned a specific weight parameters.
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Ecologization of thinking: economic and legal factors of formation
Due to the fact that collecting the maximum amount of data on competitors is simply not possible and the scheme proposed by M. Porter is used to determine the SZM in terms of position in the competition.
This scheme brings information to the four elements: future goals, current strategy, presentation and possible competitors [3].
Recognize the purpose of competitors in the near future is possible, using, for example, the following characteristics:
- Direction of investments;
- Orientation of R&D expenditure;
- Personnel policy of a competitor;
- The degree of product updates;
- The possibility of diversification, etc.
Current strategies can be determined with the help of using this information:
- Focus and aggressive advertising;
- Current personnel policies;
- Market share;
- Pricing policy;
- The level of after-sales service, etc.
Organization of the system of strategic monitoring in a
small business should engage in either the head or a specially prepared for this employee. It is possible to separate the functions of information collection and analysis.
The importance of defining the strategic business areas of management lies on this, that it is the beginning stage of determining whether, where a small business will move on. It is this analysis will allow the head owners of SB to see not only the economic side of their intended future actions, but also their qualitative assessment from the perspective of securing the future for small business.
References:
1. Ansoff I. Strategic Management. - M.: Economics, 1989.
2. Gulyaev S. L. Attractiveness of the strategic areas of management for small businesses, taking into account regional economic conditions.//Management in Russia and abroad. - 2001. - № 3.
3. Lapusta M. G., Starosti Yu. L. Small business. - 2nd ed., Rev. and supplemented. - M.: Infra-M, 2007.
Sautieva Tamara Batrbekovna, Branch of the FSBEIHPE «Plekhanov Russian University of Economics» in Pyatigorsk, Stavropol region, Professor at the Department of Theory and history of state and law E-mail: [email protected]
Ecologization of thinking: economic and legal factors of formation
Abstract: Rapid change of technological behavior in some countries and hopeless backwardness of the other, fast deterioration of the environmental condition and climate of the planet, destruction of the system of international relations with concurrent enhancement of conflict situations, especially in relation to natural resources, are typical for modern stage of development of world economy. The mankind lack not only knowledge to prevent natural catastrophes and negative consequences of climate changes, but even elementary ability to use the existing potential to ensure sustainable economic development [1,15].
Keywords: surrounding environment; environmental crisis; legal requirements concerning economic measures of nature use and protection of the environment; environmental thinking.
Degradation of the surrounding environment and its consequences are only one side of the environmental crisis. The other side is social, reflected in the crisis of state and public structures incapable of ensuring the performance of effective measures on environmental safety of the society. Externally, it is manifested, firstly, in the insufficiently effective work of special agencies for environmental protection, special agencies for protection and use of forests, animals and resources.
Secondly, environmental crisis is manifested in the incapability of law-enforcement agencies of ensuring sound control and supervision of the execution of laws on environmental protection.
Thirdly, environmental crisis is manifested in the social aspect in the mass ecological nihilism, i. e. in mass disrespect of ecological legal requirements, their violations or non-performance.
Among the reasons of exhaustion, pollution and destruction of the environment arising from man-induced activity, one can define objective and subjective ones. Objective reasons include the following:
• Firstly, it is maximum capacity of nature for self-cleaning and self-regulation. The nature processes, cleans the wastes of the man’s production for a certain time protecting itself from their harmful effect. But its capacities are limited.
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