Reforms in economic inseparably linked with changing stereotypes of rule, methods and methods to approaching, and also methods and approaches in planning and realization of changing. Essence of this reform lies in quick and fundamental changing of acting procedures.
In today’s highly competitive environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustment as necessary to stay on track.
The diploma contains of two parts: theoretical and practical. At first for better understanding of a theme of the diploma the student gives a definition of a system, because then he will tell about strategy of organization in order to understand clearly : What is an open system, how strategy influence an organization.
After that the student starts explanation of a strategy, its types, process of strategic planning and how to write a strategic plan of organisation.
In the second practical part, Petrov A. gives common information about company «АВВА Хлеб» and its history, the decision - making process .
Вложение | Размер |
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diplome_work_nachalo.ppt | 2.08 МБ |
diplome_work_prodolzhenie_1.ppt | 2.77 МБ |
diplome_work_prodolzhenie_2.ppt | 1.96 МБ |
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Projecting strategy of municipal business Done: student Petrov A. Checked: Ignatova I.Слайд 2
Reforms in economic inseparably linked with changing stereotypes of rule, methods and methods to approaching, and also methods and approaches in planning and realization of changing. Essence of this reform lies in quick and fundamental changing of acting procedures. In today’s highly competitive environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustment as necessary to stay on track. Now in the beginning I will tell about my diploma work briefly. My diploma contains of two parts: theoretical and practical. At first for good understanding a theme of my diploma I will give a definition of a system, because then I will tell about strategy of organization and we need to understand clearly What is an open system, how strategy influence an organization. After that I will start explanation of strategy, its types, process of strategy planning and how to write correctly strategy plan documentary. In the second practical part, at first I will tell and give common information about company « АВВА Хлеб » and its history, how they made decision to make business-plan. After that I will oversee and tell all parts of their strategic-plan. In following part I will oversee the results and make conclusions about their work. Introduction
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This is my first big work in the English language, but I believe that you will be pleased and my work will not be in vain. Hypothesis: Purpose: Explain strategy of organization with the help of example of developing organization « АВВА Хлеб ». Goals: 1) Overview organization like an open system 2) Give a definition and an importance of a strategic plan
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I. Theoretical part A definition of a system and its types In this part I will give a definition of a system. It has to be said because an organization is an enormous, powerful structure, that contains a lot of elements, which are cohere. Each of from these elements makes its own function and together they creating one or another production. A strategy of organization or a business-plan, how we could call it, implicates one or another change, which will be done with these elements for improvement work of all the system. So for good understanding of strategy I will start from a definition of а system. A system is an integrated collection of parts (or subsystems) that work together to accomplish an overall goal. All systems have inputs, transformation processes, outputs/outcomes and feedback channels.
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structure, defined by components behavior, which involves inputs, processing and outputs interconnectivity functions or groups of functions system Common characteristics of a system
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Organization like an open system and its characteristics An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. An open system must interact with its environment for survival. It extracts certain resources from its environment and returns others to its environment. By definition, all organizations are open systems. To fully understand an organization, it must be viewed as an open system.
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www.themegallery.com An open system constant changing in organization influence all factors of environment interconnection all elements influence outer conditions on internal operations using the ones own products in production Characteristics of open systemСлайд 2
www.themegallery.com Common definition of a strategic plan Planning – at first, is the main function process of direction, that could be viewed like a process of strategic planning. It shows what purposes we must reach and which methods we must use, conforming with time and location. Planning is important for various organization, that will affect their activity in future. Process of planning allows us to see all complex operations in future of an organization activity and forecast what can happen.
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A strategic plan serves several very important purposes within an organization: 1) It helps the organization to analyze its current condition, establish future goals, and determine how it will achieve these goals 2) It helps to determine the business or businesses in which the organization should participate 3) It serves as a guideline for conducting the day-to-day business of the organization 4) It informs employees of the directions in which the company is heading and of the actions are expected to take in order to move the company in that direction 5) It provides an indication of managements expectations 6) It sets the tone for the organization in its market place as parts of the plan become known by outsiders (e.g., supplies, customers, etc.) 7) It establishes means for monitoring organizational, departmental and individual performance levels. Importance of strategic plan
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gathering, processing and analysis information determine strategic mission and vision of organization determine methods of reaching strategic plan writing a documentary realization and results measurement and control Planning of a strategic planСлайд 2
Composition, structure and volume of strategic plan determine specific sphere of activity, size of organization and aims of composition, that’s why the strategic plan cannot be the same, it is always various. In fact, the Bigger is a firm, the more complicate is its functional activity, and then deeper and baser planning and realization sections of a plan. Strategic plan of not great organization is greatly simpler in composition, structure and volume, then the same plan of a big corporation. Hardly regalement forms and a structure of a strategic plan do not exist, but, usually, in its foresee segments are given common idea and purposes of business, specific characteristics of goods and services of an organization that will satisfy demand of markets, determine an organization and a productive structure, forming a finance project, including strategy of finance and suggestion about investment. I. II. III. IV. V. Title list Summary Discribtion of a firm Leadership and property Marketing and sale VI. Problems and goals of an organization, and its decisions
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Characteristics of a municipal enterprise Municipal enterprises are businesses owned by local public authorities that provide services and often revenue in cities. Increasingly, local governments have turned to a municipal enterprise to both raise revenue and promote local jobs and economic stability by developing a more diversified base of locally controlled wealth. The profit and loss account in the municipal budget includes settlements between the municipality and a municipal enterprise (internal interest paid and return on the municipal enterprise's fixed capital) but not the municipal enterprise's "own" profit and loss estimates. Hence a municipal enterprise is not linked to the municipal budget "line by line". The municipality can use this profit and loss estimate in communicating about its budget to the public. The trend toward municipal enterprise appears to be escalating as cities small and large, liberal and conservative increasingly recognize the significant benefits linked with these profitable endeavors: 1) increased responsiveness to community needs and interests; 2) enhanced local stability by anchoring public assets within the community; 3) local job creation; 4) local dollars re-circulated within the community; 5) enhanced community participation and involvement; 6) strengthened citizen pride in their community.
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II. Practical part. Strategic plan of organization « АВВА Хлеб » 2.1 Common information and structure of « АВВА Хлеб » Company OOO « АВВА Хлеб » produces various types of bread and baked goods. This company was created in 2005 year, by government investments of city Moscow. So it is need to say, what this company is a municipal organization. Although the fact that this company has a president and top-managers, how full faith and credit private organization, it is commanding and making some investments (grant and money helping). Headquarters of the company is located in center of Moscow. Company has three factories in various cities of Moscow region. It is a very well developed and receiving stable Profit company, in spite of the fact that the structure and technology, in some factories, are too fossil. Registered capital of organization – 35 000 000 million rubles .
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In fact the structure of the company contains two parts: head center and units (structure of factories). Let’s say how the head center of the company works. How it could see, that the company leads by a president of the company. He and his assistants rule office departments, directors of factories and the executive committee. Executive committee – it is a committee which discharges orders of the president and controls functions of work units and factories of the company. Office sectors gathere, process and give out information about successful or unsuccessful work of factories. Thereupon giving information the president of the company, his assistants and top-managers plan strategies for continue development. Also, in fact each of these factories could be viewed like structure divided in two pieces. The first - it is an office part, and the second – a labour part. In the office part work an accountant, a procurement department, a control department and ETS. The leader of the factory it is a director. He commands all spheres of factory activity.
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2.2 First thinking about progress and present condition It was in previous years, in February of 2009 year. Company « АВВА Хлеб » had 3 factories all over the region. It dealt With some trade partners, such as « Квартал », « Копейка ». But company head leaders discovered strange things that started with profit – it was not very high. The President of the company wanted to know what was happening so he called the committee of directors. At first they though that prices which were set up in this year, was too high for consumers. But finance director using price lists and some documents, not only of the beginning of past year, but and present days, explained that it was not possible because prices of products were low and average profit of consumers made possible free shopping of company production. Is that so that the economy performs so bad that people cannot buy bread, which costs only 16 rubles? Finally the leaders ended committee but they could not reach the purpose of this day, and the president of the company suggested to make full analyses not only of the company, but and its all processes. The President and workers understood the tasks that they set up started to work. The one of top-managers of the company had an idea from that they have to start analyses. He suggested to make full analyses at first by system thinking and after that to make analyses of the main problem. Before giving a start of doing a strategic plan (business plan) they had begun making full analyses of the company and its work. The President of the company gave order to his assistants to make auditing of company processes. Some people in the head company and at that time believed that the source of problem (low profit) was economical recession of the country.
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Assistants made their job and made analyses about situation with demand. But the company still had problems and they require decisions. Leaders of the company understood what they need in strategy after viewing the whole situation with documentary and started finding decisions to that tasks that had been set up. And so they began planning their strategy. According to analyses, the source of problem was some problems in marketing of their company. From this goes a low investment in the company, and as a result of this – low salary of workers and courses absence. No doubt that in interview assistants noticed absence of interest in work. Also they found out that in factories contain moral-old machinery . moral-old machinery.
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2006-08 years – two new factories, “ golden years” 2009 2005 2006 2008 Company’s «АВВА Хлеб» History Creation of «АВВА Хлеб» First sailing and deficit of production Present days: 1) bad sailing 2) low production
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Bringing raw materials Filling and blending Fermentation Dough delivery in forming sector Forms creation Baking Packing Loading and taking up production Production line before innovations automatically work – orange color hang-on work – green color Characteristics: Time production - 2,5-3 hours Quantity of goods in a day – 65 tones Half-automatic and half-hang-on work Technical problems
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Loading and taking up production Packing Forms creation and baking Dough delivery in forming sector Bringing raw materials Fermentation Filling and blending No changing No changing No changing Production line after innovations Now it’s automatical mechanism Automatical mechanism which combining two functions Bigger and more productively than his old forerunner Characteristics: Time production - 1,5-2 hours Quantity of goods in a day – 120 tones Full automatical work
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Position Functions Percentage ratio main manager coordinate and rule in all the work of marketing sector 20 % first manager’s assistant work with documentary, information, data base 32% second manager’s assistant realize conversations with suppliers and business partners, 48% Improving the work of marketing sector
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Consultant Plus is an assistance system to work with the legislation of Russia. Consultant's centralized database is updated daily. It is distributed via a network of partners. The information contained in the system is structured into several notions, including: 1) legislation; 2) jurisprudence; 3) financial advices; 4) legislation commentaries; 5) document forms (templates); 6) technical standards and rules. Every class mentioned above consists of several information banks to simplify the search throughout the database by manually excluding the classes and banks inappropriate for the each current search. And so the results from this: 1) receive of information became more faster; 2) quality of work with documentary improved; 3) with further integration of « Консультант +», workers in head offices units in present time, receiving modern information about styles, forms of documents (orders, arrangements and ETS) and knowing about laws.
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Realization of improving the integration goods in market, in such position, like make winning of favour to suppliers and consumers and improving collaboration with suppliers and strategic business partners, will take big period of time and energies. But the elements, such as ameliorating packing for products and creation advertising materials of productions, what influence on two first enumerated. Amelioration and changing packing for products was too difficult in aspects of imagination, which form of product will be in future. But after discussions and choosing scathes, which were ordered from internet and in them added some innovations, leaders decided to choose packages with transparent style and with organization’s logotype. In creation advertizing materials leaders decided affect on catalogs and copies for quick and cheap integration. But in future leaders think what it could be great, if products, like bread or cake, can be famous in all ways of advertising communications. Improving the integration goods, like as bread, in market
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Developing a network supply delivery After that, leaders and top-managers started to conduct negotiations with suppliers. They let have plan of first innovation and changing in organization for convince of them, what collaboration with « АВВА Хлеб » will be pleased for every business partner. After presentation business plan members of suppliers and business partners of « АВВА Хлеб » gave positive appreciation their work. And so in this part ended realization of business plan.
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Conclusion
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After realization of business plan leaders of organization started to open all factories with new equipment. At the beginning it was small delay because of checking and first testing of equipment. But after testing, people started to work. First results justified expectations. First line of production was send to markets and demand was completely satisfied. Factories of « АВВА Хлеб » became completely automatic and interest in work started to get high. Special role in distribution and carrying production acted marketing sector of « АВВА Хлеб ». Thanks to changes in personal quantity and innovations it was solved problem with supply delivery. Marketing sector managed to increase sale production, to low their workload. Head offices unit thanks to « Консультант +» reached these results: 1) it became faster to receive information; 2) improved quality of work with documentary; 3) with further integration of « Консультант +», workers in head office units in present time, receive update information about styles, forms of documents (orders, arrangements and etc.) and about laws. Advertizing of « АВВА Хлеб »’s production also played good role. Organization managed to make population of Moscow to be informed about production of « АВВА Хлеб ». In consequences, demand for organization production increased .By the business plan after innovations leaders have to increase production, that will compensate financial spending, and by prevision of top-managers cost of production will not to increase in serious way. For its turn it will create good conditions with business partners.
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Leaders of organization founded point of equilibrium between supply and demand of production after first sale and information about marketing situation, It helped to set up good medium price – 18 rubles for bakery unit. Point of equilibrium gave to organization balanced situation in market and profit. My hypothesis and goals of my diploma project were completely proved. The creating and realization of business plan it is an important part of any organization, no matter municipal or just private. Like every person thinks before saying or doing something, so leaders of organization have to imagine in what way will his organization develop, what steps must be done and what results will be in future. Maybe the leaders of municipal organization ask local government some money for “patching holes”, but every sober-minded has to understand that it is not an exit from bad situation. And so in conclusion it has to be said hat the theme of my diploma work is exposed. My first thinking, when I got the theme of my diploma, was how I could manage to write this thing. It is not a private organization, there everything is so clear-cut. But when I started to work with theoretical part I understood that every organization needs a plan and after gathering information and creating a part about a municipal enterprise I did my work quickly and with much pleasure. I hope that you were pleased with my work and my report.
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