home Accounting Coursework on the topic of strategic alliances, strategy of synergy. Synergy as the main direction of the corporation's development Rapid response strategy

Coursework on the topic of strategic alliances, strategy of synergy. Synergy as the main direction of the corporation's development Rapid response strategy

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Similar Documents

Five main components of strategic management. Characteristics of objects of strategic management. Features strategic and operational management. Transition from planning to management. Basic Strategies and types of competition.

cheat sheet, added 05/05/2009

The essence of strategic management. Main key factors which should be taken into account when choosing a strategy. The role of the leader in developing the strategy of the enterprise and organization. Management control over implementation strategic planning.

abstract, added 09/15/2010

Balanced system indicators as the most effective tool of strategic management. Study of the structure of prospects and indicators of this system. Characteristics of technologies for its implementation in the company. Planning and budgeting.

term paper, added 02/24/2014

The essence and significance of strategic management (MS) of an enterprise. Choice of strategy and problems of SU. The main directions of improvement of the enterprise development strategy. Plan for the implementation of the Balanced Scorecard to implement the strategy.

thesis, added 08/14/2017

Principles of forming an enterprise development strategy and implementing strategic management. The concept and purpose of enterprise strategy. Stages of strategic planning. Types of strategic planning and general form structure of the strategic plan.

term paper, added 06/29/2010

Strategic management: its essence and functions. Principles of strategic management. The structure of strategic planning, its advantages and disadvantages. The strategy of the organization, its main types and principles of choice. The concept of vertical integration.

test, added 03/06/2010

Theoretical essence and types of planning. Comparative analysis strategic and financial planning. The effectiveness of the strategic management of the projected enterprise and the assessment of the degree of risk in relation to the conditions of entrepreneurial activity.

term paper, added 12/18/2009

1.2 Synergy as the main direction of the corporation's development

Synergy - involves the unification of potency or energy in joint work. Synergism is the subject of close attention of managers, because its cumulative positive effect significantly improves overall results various businesses corporations compared to the performance levels of each of them individually. Therefore, it is synergy that is a prerequisite for creating diversified structures. Synergies underpin most decisions regarding the diversification of companies and the degree of diversity in the areas of activity of the organization. But in order for managers to effectively use the most important component of the corporate portfolio, they must have an understanding of its concept and practical approaches to synergy issues. Over the past three decades, the efforts of many managers, consultants and scientists have been directed to the study of synergies and the study of the relationship between theory and practice. A huge number of books and articles are devoted to issues of synergy; even a short list of areas of theoretical work on this topic indicates how wide and complex it is.

First, there are various ways to achieve synergy. A company can integrate externally or internally, either taking advantage of control over key sources of raw materials or distribution channels. Another source of benefits is economies of scale, when the combined costs of several business units of a company for equipment, research and development, and other activities are lower than if they were carried out independently of each other.

Competitive advantage can also be the joint possession of certain skills or know-how, as well as the transfer of intellectual property, the creation of new or more effective methods production, marketing, etc. Another type of synergy is corporate branding, allowing capitalization of high business reputation several divisions or business units at once. Corporate managers may develop strategies for groups of business units in order to search for new, broader opportunities. The concept of synergy encompasses all these forms of horizontal relationships.

The concept of synergy includes various situations and circumstances. Usually, it is synergy that creates the preconditions for such actions and is the decisive factor in making decisions on the feasibility of mergers and acquisitions. Corporate decisions regarding investments, changes in the composition of the corporate portfolio or restructuring can be based on the recognition of the presence of synergies or, conversely, their absence. Achieving such a cumulative effect can create difficulties for multinational companies that operate in various countries ah world using universal marketing concepts. Synergies are usually the ultimate goal of alliances and joint ventures, in which different companies learn from each other's examples, deriving various benefits from their cooperation. The complexity of synergy issues is explained by the variety of cases where synergistic effects are applied and ways to achieve them.

The concept of synergy affects various areas of management. Synergy involves the integration or coordination of multiple functions and sectors of the corporate portfolio, so that the organizational structure, coordination mechanisms and corporate systems All of these are very important factors. Strategy development involves cooperation and mutual study of the various parts of the organization; that's why great importance to understand synergy have organizational learning, management processes and corporate culture.

Despite the benefits of synergy, achieving it can be a significant challenge. Although synergy has been a fundamental component of a diversification strategy for forty years, its effect has been largely exaggerated. We started our study of synergies by trying to understand how companies manage them in practice. It was found that unsuccessful attempts occurred much more often than successful ones, and even long-term and intensive steps to achieve synergistic effects did not always lead to the desired results. For example, the purpose of studying the activities of the company WOK Chemical, a European manufacturer of chemical products, was to analyze its attempts to use synergies in production, marketing and R&D of various divisions. The company identified centers of excellence, established coordinating and ad hoc committees, funded cross-cultural training programs to improve cooperation and understanding, held informal meetings of department managers, initiated accounting projects, developed complex decision matrices, and attempted to create coordinating strategies. The result of all these efforts was a "civil war" between divisions of the corporation. The creation of a wide range of interconnection mechanisms has not led to the emergence of sustainable synergistic effects.

The thesis about the difficulty of achieving synergy is confirmed not only concrete examples companies. The results of large-scale studies on diversification testify to the same. For example, in 1985, Michael Porter published a paper that provided data on the very low success rates of American corporations diversifying into new business, as a result of which they had to abandon new structural divisions within a few years of their acquisition. Mark Seerower's recently published M&A study analyzes the challenges of achieving synergy benefits that match the costs of acquisitions. Despite the fact that we know a lot of evidence of unsuccessful attempts to achieve synergy, this fact does not in the least disprove its concept. On the contrary, such reputable specialists in the world of management as M. Porter and R.M. Kanter are increasingly emphasizing the importance of synergistic effects. As a result, we decided to try to answer the question of why so many companies fail to achieve the desired effect.

One of the reasons why synergy is somewhat illusory is the misjudgment by managers of its potential benefits. Too often, the latter are defined in general and abstract terms, leading managers to look for either non-existent or unattainable benefits. A key task for managers is to identify the specific opportunities available to their company. But finding its solution is very difficult, since it requires a detailed analysis at a certain level for a specific situation.

Although a significant part of the implementation of synergistic strategies is to stimulate the sharing of skills and know-how within the same organization, managers counter this claim by focusing on finding benefits through alliances and joint ventures. But the participants in the latter usually have different strategic expectations or “do business” in different ways. Work with a partner whose decision-making process or management style is different from your own.

Creating new organizational cultures is a long-term endeavor, and this advice may not be of much help to managers dealing with synergy-related organizational challenges. Sometimes the advantages of competing firms are so strong and the barriers so high that fundamental organizational reforms are the only way out. Often resistant competitive advantage can be achieved within the current organizational structure, and E. Campbell offers a scheme to help managers realize the variety of approaches that leaders can take in the absence of radical changes.

The failures of some companies are not due to lack of strategic analysis, but to organizational inefficiencies. In the course of the studies conducted, the participants were greatly impressed by the fact that the majority of company managers from various countries correctly determined what exactly they needed to do to increase global competitiveness. The challenge is to determine how to develop the organizational capacity to implement these measures.

The proposed solution is to create "transnational" organizations that are able to use the full variety of opportunities available to global companies. A transnational corporation is an integrated network in which components, products, resources, personnel and information are freely exchanged between departments. An organization of this type is able to use all available strategic opportunities. Operations on a global scale allow the multinational corporation to take advantage of economies of scale; it has the ability to distribute existing knowledge and skills across the breadth of its activities and takes into account the national characteristics of host countries.

Horizontal or transnational companies, however, exist only theoretically so far. We only know that many companies find it very difficult or impossible to overcome organizational barriers.

The notion that the benefits of synergy come from clear goals and targeted actions was supported by Phillip Haspeslaf and David Jemison in their work on acquisitions. The authors considered the case of integration by the 1C1 corporation into its structure of a relatively small company, Beatrice Сhetica1s. This process was gradual in nature, since within a year after the takeover, ICI took a position of non-intervention and only then began the slow integration of Beatrice into its structure. The authors believe that this approach provided the Beatrice managers with time to adapt to changes and identify potential contributions to 1C1 activities. Although the latter had a clear understanding of the takeover objectives, the corporation understood that acting too quickly could undermine the benefits of the Beatrice acquisition.

An analysis of examples of companies achieving benefits from the establishment and development of horizontal relationships allows us to conclude that the final success is determined by a detailed analysis of opportunities and a targeted approach to the implementation of strategic plans. Synergy is a broad concept that reveals many potential benefits, but in practice, managers need to first determine the specific opportunities available to their companies.

Necessary conditions the emergence of synergistic organizations are the processes of organizational interaction, within the framework of which various forms integration, cooperation and evolution. Primarily, we are talking about vertical or horizontal integration, the formation of organizational alliances and associations, the creation of joint ventures. In particular, various strategies for computer integration of enterprise resources in the virtual space are actively developing today - virtual corporations, consortiums, holdings, cartels. It should be noted that even with the integration of organizations, not only their unification takes place, but also mutual adaptation and joint evolution of partners.

In the case of a biological interpretation of an organization as a “biosocial organism”, hybridization can be considered as a strong form of integration when it comes to the combination of heterogeneous hereditary traits and components in one organism. Financial-industrial groups serve as an example of an organizational hybrid.

In turn, a synergistic organization is such an open, integrated, developing organization in which the original partner organizations operating in a complex, dynamic, poorly defined competitive environment cooperate, forming new, rapidly changing organizational structures. The non-linear connections between partners that arise in these structures ensure the superadditivity of the overall effect in joint actions. Note that such synergistic effects are closely related to the implementation and evaluation of organizational innovations.

An example of organizations with an unstable and rapidly changing structure are strategic alliances.

Usually in SO there is a compensation of shortcomings and strengthening of the merits of cooperating organizations. Here, the synergistic mechanisms of cooperative interaction lead to the synchronization of processes in different partners and the formation of coherent behavior in them. As a result, resonant effects arise when the profits and competitiveness of partners increase many times over.

The early prototypes of SO can be considered fractal and holonic organizations, the most important properties of which are self-organization, cooperation, dynamics, and adaptation to the external environment. However, the greatest prospects for the development of the theory and practice of SR are associated with the convergence of the concepts of network, virtual, intellectual, reflexive, evolutionary, self-learning organizations based on a single agent-oriented approach. Here, an agent is understood as any open system that has its own behavior and controls it.

A set of basic characteristics of such a CO, which combines the properties of networked, virtual, intelligent, learning organizations, is presented below.

1. CO unit: integral, heterogeneous, non-equilibrium unit.

2. Structure of SO: open, flexible, dynamic, developing network of trained intelligent agents as main form collective intelligence.

3. Interaction in SO: a combination of cooperation and competition strategies with the former predominating.

4. Cooperation between partners in SO: joint implementation of tasks in conditions collective use intellectual capital, constant exchange of information and knowledge as key resources.

5. Links in CO: emergent, flexible, variable, non-linear.

6. Management: combined.

7. Formation: a combination of organizational design and self-organization in line with agent-based methodology.

8. Training: cross-cutting, multi-level.

9. Development: evolution according to non-Darwinian or integrated teachings. Examples of non-Darwinian theories are: the concept of finalism, predictions of organizational evolution "from the future", based on the goal, understood as an attractor state; symbiogenesis; evolution based on the horizontal transfer of genetic information.

To stay in the lead. We brought short description new approaches in strategic management in order to show that for their use it is necessary to seriously restructure all work in the field of marketing information policy and marketing strategy(study customer values and their migration, the most effective industry business models and business architectures) and based on them...

4] and found appropriate confirmation in practice are such groups of directive integration as FIGs, holdings and concerns. Chapter 2. Analysis of the possibility of a directive form of integration in the form of a holding company on the example of JSC "ZMZ" and JSC "SCZ" 2.1. Analysis of the main indicators of the development of the metallurgical industry in Russia in the context of the global crisis The metallurgical complex, ...

Costs by 8 percentage points, the share of costs for technological innovation in relation to the volume of gross regional product - by 9%. 3 Development innovation system enterprises as a means of combating economic crisis 3.1 Organization innovation activities and R&D at OAO Nizhnekamskshina OAO Nizhnekamskshina as an independent legal entity, has existed since 1971 ...

synergy business restructuring

Growing companies tend to be short of competent senior executives. Any improvement in leadership has significant synergies. This effect increases if the firm's management has already encountered similar problems and has experience in solving them. If the problems are new and unknown, and the manager has no experience in resolving them, then there is a threat of a negative effect from the decision-making of incompetent management. Thus, management synergy, like other types of synergy, can be both positive and negative. A competent manager, having systemic knowledge about the organization, can significantly improve its resulting indicators, an illiterate one, on the contrary. Whether a firm's potential synergy becomes a reality depends on how production is managed.

In short, the firm is looking for combinations in which the effect of the sum is greater than just the sum of the effects. constituent parts. All targeted synergies can be described by three variables:

increase in profit;

lower operating costs;

reducing the need for investment.

Synergy strategy

Synergy (synergy) - strategic advantages that arise when connecting two or more enterprises in one hand. Efficiency increases, which is manifested in the growth of productivity and (or) in the reduction of production costs; the effect of joint action is greater than the simple sum of individual efforts. Initially, the term synergy was formed from the term synergism, which in biology means cooperation between different organs. The term "synergy" was introduced by I. Ansoff to justify group structures in the organization of the company. Both terms are now used interchangeably in the economic literature. The benefits of synergy are defined as 2+2=5, in other words, the total return on all the firm's capital investments is higher than the sum of the returns on all its business units, without taking into account the benefits of using common resources and complementarity. This determines the relevance of the research topic of the course work. The purpose of the course work research is to study synergy, the sources of synergy. To achieve this goal, it is necessary to perform the following tasks: - to give the concept of synergy; - classify the types of synergy; - give examples of synergy; - study the evaluation of synergistic effects. The object of research is strategic management, the subject of research is synergy. Course work consists of an introduction, two chapters, a conclusion and a bibliography.

Synergy strategy - a strategy for obtaining competitive advantages by combining two or more business units (business units) in one hand. The presence of the synergistic effect and the ability to manage this effect creates a specific competitive advantage, which is realized at the level of the enterprise as a whole and which, ultimately, manifests itself in different commodity markets in reducing the level of costs or in the acquisition of unique properties by products. The synergy strategy involves increasing the efficiency of activities through the sharing of resources (synergy of technologies and costs), market infrastructure (joint marketing) or areas of activity (synergy of planning and management). The value of the synergy strategy is, therefore, that it helps to obtain a higher profitability of production when the business units are interconnected than when they are managed separately.

American economists W. King and D. Cleland consider synergy important element selection, development and refinement of the strategy. They point out that the synergistic effect - however potentially great - will not manifest itself, it must be planned and extracted. And this is possible if synergy is identified, defined and incorporated into reasonable plans. The synergistic effect is most clearly manifested at the level of the portfolio (corporate) strategy, but it is also possible within the same business unit. Economic practice indicates that the effect joint activities always higher than the simple sum of individual efforts due to the potential for cooperation, interconnection.

B. Karlof notes that many managers avoid using the term "synergism" (synergy), using synonyms that only slightly differ in meaning. Such synonyms are the concepts of "strategic leverage", "relationships", "rationalization", "cost advantage". For the first time the term was introduced by I. Ansoff to assess the relationship of activities within the company. In his opinion, “in its original meaning, the concept of synergy was a transition from the principle of economies of scale in the manufacturing industry to the broader principle of strategic economies of scale, the source of which is the mutual support of various strategic business units.” market conditions the use of this strategy is the joint ownership of resources and areas of activity or voluntary association of efforts. It is the synergistic effect that managers refer to when justifying the need for the acquisition or merger of enterprises5.

However, the synergistic effect is extremely complex and depends on the successful combination of many different elements. The omission of even one of these elements or part of them may exclude the possibility of achieving such an effect. To avoid this, it is desirable to introduce a collective discussion of this phenomenon by specialists with knowledge in the areas under consideration. This will eliminate the wishful thinking that is so common in synergy strategies. In addition, the management of the enterprise should be organized in such a way as to achieve the realization of potential synergies from the managing business units. Otherwise, a negative synergistic effect appears. I. Ansoff believes that when choosing a synergy strategy, managers should proceed from three considerations:

It is believed that the higher the expected instability external environment and the fierceness of competition, the higher the value of synergy to achieve success.

The main problem in developing a synergy strategy is related to the contradiction between management flexibility and synergy: increasing management flexibility reduces potential profits and potential synergies. At the same time, it is believed that the main danger of this strategy is the lack of flexibility, as well as possible compromises and delays in decision-making. These disadvantages can negate any cost advantages.

It should be noted that this strategy underlies the creation of various unions, alliances, financial and industrial groups both at the national and international levels. On a national scale, the result of such a strategy is the creation of marketing networks different kind, which allow you to use the synergistic effect of the interaction between production and marketing.

Synergy, which is based on the matching of resources and capabilities of the firm, determines the success of its new ventures. Some companies (for example, conglomerates) may ignore the potential synergies of their firms, others refrain from efforts aimed at obtaining the effect of joint activities in cases where its achievement requires the restructuring of the corporation or the redistribution of managerial efforts. Thus, synergy is one of the possible key components of a corporate level strategy. I. Ansoff determined the economic basis of synergy (the possibility that the result of the joint efforts of several business units will exceed the final indicator of their independent activity). The synergy equation is partly based on the economic benefits of economies of scale. For example, it is possible to reduce the costs of two business units by increasing the load factor of a certain enterprise, using a common staff, or combining sales efforts.

However, synergy also affects other more abstract benefits, which are called managerial synergy. Managers can use the experience and knowledge gained in one of the business units in new sphere activities. In the event that this is followed by better management decisions there is synergy. The opposite happens when managers work in an unknown industry or when they try to implement bad decisions. The result is a low efficiency of the company and a negative synergistic effect.

The firm's strategy must find correspondence in five areas: three external customers, competitors and technology and two internal - resources and organization. The goal of the strategist is to achieve maximum benefit from the use of resources and the creation of adequate resources. In this case, synergy is seen as a process of increasing the efficiency of resource use: physical (tangible) assets (such as production facilities) and invisible (intangible) assets. The latter are understood as intangible resources, which can be a brand name, knowledge of consumers, possession of technologies, a strong corporate culture that ensures high involvement of employees. Invisible assets, by virtue of their uniqueness, are the best long-term source of a company's competitive advantage. They cannot be bought with money, they can be used and developed in different departments of the company, they can be combined or used in new directions, ensuring the growth of the company. The firm should strive to improve the results of the use of all available resources. Ways to achieve this goal are to improve the utilization of physical resources (expanding the product range without increasing production capacity) or entering new market in conditions of overproduction in the current. Increasing the efficiency of the use of physical resources, the organization reduces costs (complementary effect). The complementary effect is not the true source of synergy.

Synergy strategy - a strategy for obtaining competitive advantages by combining two or more business units (business units) in one hand. The presence of the synergistic effect and the ability to manage this effect creates a specific competitive advantage, which is realized at the level of the enterprise as a whole and which, ultimately, manifests itself in different product markets in reducing costs or in acquiring unique properties for products. The synergy strategy involves increasing the efficiency of activities through the sharing of resources (synergy of technologies and costs), market infrastructure (joint marketing) or areas of activity (synergy of planning and management). The value of the synergy strategy is, therefore, that it helps to obtain a higher profitability of production when the business units are interconnected than when they are managed separately.

American economists W. King and D. Cleland consider synergy to be an important element in the choice, development and specification of a strategy. They note that the synergistic effect, however potentially large it may be, will not manifest itself, it must be planned and extracted. And this is possible if synergy is identified, defined and incorporated into reasonable plans. The synergistic effect is most clearly manifested at the level of the portfolio (corporate) strategy, but it is also possible within the same business unit. Economic practice shows that the effect of joint activities is always higher than the simple sum of individual efforts due to the potential for cooperation and interconnection.

B. Karlof notes that many managers avoid using the term "synergy" (synergy), using synonyms that only slightly differ in meaning. Such synonyms are the concepts of "strategic leverage", "relationships", "rationalization", "cost advantage". For the first time the term was introduced by I. Ansoff to assess the relationship of activities within the company. In his opinion, "in its original meaning, the concept of synergy was a transition from the principle of economies of scale in the manufacturing industry to the broader principle of strategic economies of scale, the source of which is the mutual support of various strategic business units." The market conditions for the use of this strategy is the joint ownership of resources and areas of activity or a voluntary association of efforts. It is the synergistic effect that managers refer to when justifying the need for the acquisition or merger of enterprises. Ansoff I. Strategic management. - M.: Economics, 1998. - 519 p.

However, the synergistic effect is extremely complex and depends on the successful combination of many different elements. The omission of even one of these elements or part of them may exclude the possibility of achieving such an effect. To avoid this, it is desirable to introduce a collective discussion of this phenomenon by specialists with knowledge in the areas under consideration. This will eliminate the wishful thinking that is so common in synergy strategies. In addition, the management of the enterprise must be organized in such a way as to achieve the realization of potential synergies from the managing business units. Otherwise, a negative synergistic effect appears. I. Ansoff believes that when choosing a synergy strategy, managers should proceed from three considerations:

1. Does the enterprise have a tradition of using synergies?
2. What level of communication does senior management prefer and what managerial experience does it have: suitable for a conglomerate or for a synergistic enterprise?
3. What requirements and instructions will be set by the conditions of the external environment?

It is believed that the higher the expected instability of the external environment and the stiffness of competition, the higher the value of synergy for achieving success.

It should be noted that this strategy underlies the creation of various unions, alliances, financial and industrial groups, both at the national and international levels. On a national scale, the result of such a strategy is the creation of various types of marketing networks that allow you to use the synergistic effect of the interaction between production and marketing.

I. Ansoff determined the economic basis of synergy (the possibility that the result of the joint efforts of several business units will exceed the final indicator of their independent activity). The synergy equation is partly based on the economic benefits of economies of scale. For example, it is possible to reduce the costs of two business units by increasing the load factor of a certain enterprise, using a common staff, or combining sales efforts.

However, synergy also affects other more abstract benefits, which are called managerial synergy. Managers can use the experience and knowledge gained in one of the business units in a new field of activity. In the event that better management decisions follow this, synergy takes place. The opposite happens when managers work in an unknown industry or when they try to implement bad decisions. The result is a low efficiency of the company and a negative synergistic effect.

The firm's strategy must find correspondence in five areas: three external - customers, competitors and technology and two internal - resources and organization. The goal of the strategist is to achieve the maximum benefit from the use of resources and create adequate resources. In this case, synergy is seen as a process of increasing the efficiency of resource use: physical (tangible) assets (such as production facilities) and invisible (intangible) assets. The latter are understood as intangible resources, which can be a brand name, knowledge of consumers, possession of technologies, a strong corporate culture that ensures high involvement of employees. Invisible assets, by virtue of their uniqueness, are the best long-term source of a company's competitive advantage. They cannot be bought with money, they can be used and developed in different departments of the company, they can be combined or used in new directions, ensuring the growth of the company. The firm should strive to improve the results of the use of all available resources. The ways to achieve this goal are to improve the utilization of physical resources (expanding the product range without increasing production capacity) or entering a new market in conditions of overproduction in the current one. Increasing the efficiency of the use of physical resources, the organization reduces costs (complementary effect). Complementary effect is not a true source of synergy Ansoff I. Strategic management. - M.: Economics, 1998. - 519 p. .