10. Adil' Shamil' ogly Shirinov

Formation of the Modern Strategic Management Cycle and Its Estimated Figures

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Adil' Shamil' ogly Shirinov

General Director

Industrial site „Alabuga”, Elabuga, Republic of Tatarstan, Russian Federation, 420008

The presented study examines the strategic management cycle with due regard for the provisions of alternative schools of management.
Aim. The study aims to analyze the content of the strategic management cycle and its constituent elements — strategic analysis, strategic choice, and strategy implementation — with regard to the mission and objective of the organization, correlation between strategies of different levels, and the need for a competitive organizational structure in a turbulent external environment.
Tasks. The study substantiates the importance of using tools for strategic management of enterprises in the real estate sector of Russian economy in an increasingly uncertain external environment, analyzes estimated figures of strategic and operational control, identifies shortcomings in management systems based on financial indicators, and demonstrates the necessity of implementing balanced nagement systems.
Methods. This study uses general scientific methods of cognition to examine the process of designing an enterprise development strategy with due regard for the correlation between strategies of different levels (corporate, international, business), to determine stages in the evolution of financial indicators of enterprise activity, and to identify the benefits of balanced management systems.
Results. Analysis of alternative schools of strategic management helps identify the key elements of the strategic management cycle. Examination of traditional strategic management systems shows their reliance on financial indicators to be a significant factor for their lack of efficiency in an uncertain external environment, which creates a gap between strategic and tactical management.
Conclusion. The identified benefits and shortcomings of individual financial indicators (return on assets (ROA), return on investment (ROI), return on capital employed (ROCE), cost to revenue rate (CRR), etc.) substantiate the need for implementing a balanced scorecard system and adapting it to the specific aspects of functioning of each economic entity under the current economic conditions in Russia.

Keywords:strategic management cycle and its elements, strategic analysis, strategic choice, estimated figures of strategic and operational control, DuPont Model, economic value added, return on investment indicator, balanced scorecard

References

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