6.1.1 General concept of statistical management

The actions of the company and their managers ^* cannot be reduced to a simple response to the changes, the need for conscious management based on their scientifically-based prediction, regulation, adaptation to the goals of the organization, and changing external conditions is increasingly recognized. Of particular importance is the understanding of the concept of strategic management, which has been gaining momentum in recent years. It allows you to understand the structure of the strategy planning process ^* , the role of strategic market segmentation, select tools for developing and selecting strategic alternatives, select and design a management system for implementing strategies and organizational structures for managing a company, allowing you to achieve your strategic goals in an unstable external and internal environment .

The word "strategy" ^{* is of} Greek origin and means "the art of a general." However, this term in recent years has entered the theory and practice of management.

A strategy is a general, integrated plan designed to ensure that the mission is carried out and the goals of the organization work are achieved . The essence of strategic management is that the organization has strategic planning ^* and the structure of the firm must ensure the implementation of the strategic plan and mission of the firm.

Strategic management is developed primarily based on the nature of the instability of the external environment of the organization. In the development of strategic management there are several stages.

Management ^* based on performance monitoring, in which the organization’s response to changes appears after the occurrence of events. This is a reactive adaptation, it takes a lot of time to realize the inevitability of change and acts with a delay. In conditions of high instability of the environment, it is unacceptable.

Management ^* based on extrapolation, when the future can be predicted by extrapolating past trends (long-term planning).

Management ^* based on the foresight of changes, when the pace of change accelerated, but not so much that it was impossible to foresee in time future trends of change and determine the response to them by developing an appropriate strategy (strategic planning ^* ).

Management ^* based on flexible emergency solutions, which develops in an environment where many important tasks arise so rapidly that it is impossible to foresee them in time (strategic management).

Long-term and strategic planning ^* is widely used in management practice. The main differences of long-term and strategic planning are:

• a long-term plan is formed as a “rigid structure”, ignoring the fundamental principle of strategic planning - the adaptability of plans;
• in the long-term planning system, it is assumed that the future can be predicted by extrapolating the current trends of the past (improvement in performance compared to the past).

The system of strategic planning focuses on the analysis of the prospects of the organization, the identification of those trends, hazards, opportunities, emergencies that can change the current installation. This analysis should be complemented by an analysis of the positions in a particular fight.

Long-term planning involves planning ahead for a long period of time - 5, 10 or more years. At the same time, this period for each specific organization depends on the nature and conditions of its work - what is long-term for one organization may be short-term for another. In this sense, the use of the term "strategic planning" ^* seems more preferable, since it does not mislead about the planning horizon and indicates the possibility of this work.

The strategic management system consists of two complementary subsystems: the analysis and planning of the organization’s strategy, as well as the management of strategic problems in real time.

In the subsequent questions of the section, the focus will be on the issues of planning a strategy, its implementation and building the organizational structure of a firm focused on strategic management.