The Strategic Analysis Of Partnership Srl
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UNIVERSITY OF ECONOMIC STUDIES BUCHAREST
FACULTY OF MANAGEMENT
LICENCE PAPER
Title: ´´The Strategic Analysis of Partnership SRL´´
Scientific coordonator,
Prof.univ. dr.
Name Surname
Stănescu Aurelia
Student:
Name Surname
Alexandru Daniel
2018
´´The Strategic Analysis of Partnership SRL´´
§INTRODUCTION
Strategic planning can be used to map as accurately and simply as possible the direction the organization wants to focus on in the short, medium or long term. Strategic innovation and strategic thinking must therefore be the cornerstone for an organization to survive in a turbulent environment. Strategic management is a process that continually evaluates the market in which the organization is involved, as well as its competitors. It also sets goals to meet as many of the present and future needs, and then reassesses each strategy and tactical strategy used. The strategic management process means defining the organization's strategy. It is also defined as the process by which managers make choices about strategic thinking transposed into practice that will allow the organization to achieve better performance. Strategic planning is the process through which an organization defines its strategy or strategic direction. Decision-making on resource allocation is the key point in drawing strategic directions. In order to determine where it is going, the organization needs to know exactly where it is, where it wants to go, then, if it wants to go in the established direction, determine how it will get there. The document resulting from this analysis is called a strategic plan. The preparation of a strategic plan is based on planning. The first chapters of a strategic plan may include an analysis of the current situation and strategic documents already in place, as well as the strategic and operational objectives of the organization. It should be noted that, in the case of public institutions, there are normative acts regulating the budgetary management and planning components, which underlie the elaboration of the institutional strategic plans. These normative acts specify the basis and structure for the development of institutional strategic panels. However, its structure can be supplemented and adapted in line with the evolution of strategic management and strategic planning.
ARGUMENTING THE CHOSEN THEME
The objective of this paper is to establish a strategic analysis within a predefined framework, a limited liability company, depending on its specific needs. The motivation is to demonstrate that the collaboration between vision and mission is essential in a successful strategy. Many people confuse vision with the mission, and sometimes one is used as a long-term version of the other. The vision should describe why it is important to accomplish the mission. Vision defines the broader purpose or goal of the organization. Mission is more specific to what can be done in the organization. The vision should describe what will happen in a wider sphere. Some organizations are more effective in translating visions to the interior and to the outside, as other organizations only translate the mission, considering that vision is the aptitude of the upper echelon of leadership. The mission may resemble the vision in some organizations, but this can lead to serious mistakes in implementing the strategy and achieving the vision. People can be confused. The mission can stimulate people to reach defined goals, even if they are short, medium and / or long-term objectives, provided they are SMART (objectives specific, measurable, achievable, relevant and time-limited). The mission provides a way to achieve the vision, according to its values. Correct and realistic definition of vision, mission and values creates a direct impact and can lead the organization to success. The mission presents the fundamental purpose of the organization. How does the organization reach the established vision? The mission is defined in terms of customer needs and functional internal processes. It informs you of the desired performance level. The advantage of having a strong claim is that the mission creates value for those who are able to implement the organization's desires, from managers, employees, and sometimes to customers. The mission creates a sense of direction and opportunity for the organization. These two aspects are an essential part of the process of strategy development. The vision emphasizes what the organization wants to be and become (defining the vision must be made to the present, to update already intentionally what the organization wants) or what it wants that the world in which they carry out their activities is or becomes. The vision focuses on the future. It's a source of inspiration. This clearly sets out the decision making criteria by force of the assertion.
§CHAPTER I. GENERAL CONSIDERATIONS ABOUT STRATEGY
In the past, strategic management and particularly strategy formulation has been considered to be like a conexion with every stage of management process. However, it has now been realized that strategic management is more like a collage, and the approach to crafting strategy is analogous to creating a collage. Just as there are some rules for the creation of a collage, the juxtaposition of colors for example, there are some rules for combining the models of strategic management. For example, the markets in which a firm is operating will almost always be linked to the economy and not separated from it. It is always useful to set down some markers for the term 'strategy' so that it is possible to make some early connections between the various issues of strategic management .
Planning systems are useful, and arguably essential, for complex or diversified organizations with a large number of businesses that need integrating. Accordin to Lynch, there are several possible approaches. Head office can delegate the detailed planning to each division, offering advice and making sure that the plans can be coordinated into a sensible total package . Alternatively, the planning system can be controlled centrally in order to establish priorities for resource allocation. It makes sense to consider strategy as a side of decisions where each set of decisions has a 'knock on' effect on subsequent decisions, as well of course, as having consequences for all those affected by them (customers, suppliers, employees, and so forth).The cycle incorporates a review' element which enables decisions to be questioned, and changed if need be. The model simplifies the actual strategic management process for the purposes of highlighting the key elements, and it should be understood that strategic decisions are not always made in the step-by-step approach implied in the model. There are a good deal more in toch and suitable with the elements in actual practice. Before moving on to consider how to analyze competitors, it will be helpful to reflect on the broad aspects of competition by asking in what way are competitors competing?' . One of the most obvious ways is through price, where for goods or services of a comparable quality the competitor is offering a lower price.
The proviso of comparable quality is important. Cheap prices can often mean cheap, shoddy goods – the 'You get what you pay for' approach. If, however, the goods are of a comparable quality to others', then lower prices will be attractive. One major high street retailer started life with the slogan ‘Don't ask the price, everything is a penny!' For many years that particular company built its reputation on cheaply-priced but good value products .
Formal strategic planning implies determined actions for achieving stated and desired objectives. For many organizations, these objectives will focus on sales growth and profitability. A detailed analysis of the strategic situation will be used to create a number of strategic alternatives, and then certain options will be chosen and implemented.The major dilemma for many global companies concerns their need to achieve global scale economies from concentrating production in large plants whilst not sacrificing their local identity and relevance in the various markets. To accomplish this they must stay close to their customers and markets, whose specific tastes and preferences may differ markedly, even though they are buying essentially the same product.
The organizational structure can be. and often is. just as important as the strategy. This, in turn, raises a number of important people issues. People may be switched from business to business. While the discipline of planning and setting priorities is valuable, the plans must not he inflexible and incapable of being changed in a dynamic competitive environment . During implementation, it is quite likely that some plans will be discarded and others modified. Having said that strategic management is concerned with the overall direction of the whole organization, it should be stressed that a board of directors isn’t the only group of people who are involved in or should know about strategic management, and neither are those who are working in a strategic planning department as specialist planners . These are exceptional positions; most people will be operating in the functions, such as marketing and operations. It might be felt that managers in the functions will only be contributing in a peripheral manner to strategic management. However, this isn’t the case.
The number of people who might contribute to strategic management has increased considerably over the past decade. The trend towards a larger number of more autonomous units with the people in them responsible for unit strategy has played a part. There has also been delayering, where the number of people between the top and bottom of an organisation has been reduced. Everyone is now nearer the top of their organizations and thus closer to those with ultimate strategic responsibility, and the emphasis on empowerment gives employees the freedom to get on with contributing to the running of their organization without detailed interference from above("). A further impetus towards wider involvement has been the realisation that the implementation of change is far easier to carry out successfully if those responsible for the implementation, and those affected by it, have contributed to the thinking that has led to the change. A feature of mission statements is that they are very broad, and this sometimes causes them to be stated with such generality that they may not make their point clearly enough. This vision is intended to motivate managers, other employees, and customers as well as other interested parties . However, it is important for a statement to be sufficiently focused in its message for it to be understood, and believed in, by those affected by it.Through strategic management, an organization can handle its mission while at the same time assessing the relationship of the organization to its environment. Peter Wright and colleagues addressed the intended strategy as the one that was originally planned and could he emergent in its original, modified, or an entirely different form.
On the other hand, realized strategy is what is actually implemented because of changed external or internal events. The real challenge for small businesses is to develop and strengthen their resources once they start growing: if they fail they will lose their competitiveness . Some never possess any real competitive advantage in the first place and, while they may survive if they are run efficiently, they are unlikely to grow to any significant size.Strategic management regards with the overall direction of an organisation and as such it is a vital management activity.
The present trends in business mean that many more managers than previously have the opportunity and responsibility to contribute to the strategic management of their organisations: strategic management is far too important and complex to be left solely in the hands of the board of directors. To make a useful contribution, however, managers must understand their role in the strategic management process and how strategic management differs from other forms of management.There is generally a great reliance on the owner-manager for all major strategic decisions. The advantage can be speed, as decisions need not become lost or slowed down in discussion or committee: the corresponding disadvantage can be an overreliance on one person who may become overstretched as the business develops. Hence, there is an emphasis on visionary strategy creation and on emergence, as new ideas are tried out. Sophisticated analysis and planning is less likely, and sometimes a lack of attention to detail can constitute another weakness.Responsibility for the overall direction of the organisation sums up what strategic management is about. In small businesses this is a responsibility for the livelihood of the owners, the employees and their families. In large organizations, it means responsibility not only for large financial investments but also for the jobs and well-being of perhaps thousands of people, possibly around the world, who might be affected directly by the firm’s operations.
Thus strategic management truly is important, concerned as it is with the sustained well-being of the organization and with the groups and individuals affected by its activities.The corporate strategy describes what business the firm is in or should be in, and how the corporation friends for its business to be conducted. Corporate strategy includes the overall aspects of integrating its business into a unified position in relation to the environment and competition. There are two main strategic concerns at the corporate level. The first concern is with the executive management and deals with the scope, mix, and emphasis among the various activities. Ai this level, decisions are concerned with the appropriate strategic approach For each different business unit and the improvement of performance for the overall organization.
The second major strategic concern is prioritizing corporate resource allocation across various corporate activities. For example, multiple-SBU organizations must determine in what areas the organization wishes to compete and then arrange the various SRU produce a balanced portfolio. Here the corporate strategist's essential task is to determine the business mix. establish investment priorities, and allocate corporate resources among the various SBUs. Thus, in determining corporate strategy, the organization endeavors to coordinate the business portfolio and to provide direction to the individual SBUs. Various generic strategies are labeled growth, stabilization, investment, reduction, turnaround, and takeover (to be discussed in later chapters). However good a strategy may be in the abstract, it is unlikely to be implemented unless considerable thought is given to the human resource implications.
The business-level strategic management concerns strategic change management, particularly important as the demands on the leader-managers arc for constant change. What also needs to be considered is how the objectives should lie monitored, how frequently they should be monitored and how the findings should most appropriately be reported. This is the area of strategic control .
Figure no 1. Performance representation
Globalization is the emergence of virtual economy. The Internet significantly increases the efficiency of the enterprise's current business. The company benefits, on the one hand, from increasing the productivity of the production factors used and, on the other hand, from lowering the production costs, mainly due to the reduction of the purchase prices of the necessary equipments and equipment. For this reason, the company makes great investments, thus sustaining a high growth rate.
Now, for several decades, Marshall McLuhan spoke of the "global village" surprising by that expression the essence of the phenomenon of today: information technologies that they are quicker and more dense with each other; compression of distances through new technologies; inter-connecting and increasing mutual dependencies; integration of financial and commercial markets; increasing internationalization of production (through global companies); the emergence of "planetary" issues that require global approaches; the spread of behaviors and clichés supposed to express the rationality of a homo economicus that knows no "local" borders and feelings – the emergence of a homo globalus); developing transnational identities.
The process of globalization must not be overestimated, but on the contrary, risks and contradictions must be highlighted, globalization being also a process of redistribution of economic power and of widening social gaps and differences across the world. Moreover, the failure to achieve economic progress in most countries of the world is a failure of the contemporary world, of the efforts made by specialized international institutions as well. And in a world where the poor and very poor make up more than three-quarters of the total, conflicts are inevitable.
At the same time, the multiplication of financial and economic crises produces great effects on social and political life. Another aspect worth mentioning are inter-ethnic and inter-confessional conflicts (often degenerating into violence, civil wars), xenophobia and chauvinism. Terrorism suddenly becomes a global threat. If globalism basically cancels out the possibility of a war between the great powers, terrorism, organized crime and the proliferation of weapons of mass destruction, ethnic and religious extremism are the basis for armed conflicts. Organized cross-border crime is seen as a residual phenomenon of the globalization process.
We must not forget the fall of totalitarian systems in Europe in Asia. In China and Vietnam, political systems – under pressure from economic reforms – are forced to be pragmatic to manage the public affairs of economies that are increasingly using market mechanisms to allocate resources and pay production factors. The economic and political opening will certainly take place in Cuba. What is globalization and what impact does it have on the society we live in? The answer to this question does not come at all, even though the term globalization lies on the lips of many scientists, politicians, economists, etc. , even simple people, who in heated, sustained and endless discussions try to decipher the beginnings, causes, dimensions, but especially the effects of globalization.
Against the backdrop of all the transformations that have characterized the last decades and are specific to globalization, the great actors of the economic scene have developed new development strategies that combine the whole range of cross-border activities: export and supply to / from abroad, foreign investment, international alliances, and so on The basic feature of globalization lies in the fact that goods, services, capital, labor and ideas are transferred internationally through companies. In this context, there is an increase in the number of multinational enterprises and it can be said that the process of economic globalization is a result of the intensification of multinational companies activity, but also a cause of their stronger assertion. With globalization of markets, products, in turn, are becoming more "globalized". A finished product is increasingly the result of the combination of material inputs and services whose sources of origin are increasingly diversified, being located in the most diverse corners of the world. We can still say that there is still no definition of globalization in a form universally accepted, and perhaps not definitive.
The reason lies in the fact that globalization underpins a multitude of complex processes with variable dynamics reaching different domains of a society. It can be a phenomenon, an ideology, a strategy, or all together. Today's globalization is a partial globalization, and so many scientists argue that terms like "triad" or "regionalization" would be more appropriate to express the changes that are taking place in society. "Triadication" means process : technological and economic integration and socio-cultural integration are more intense and more important among the best developed three regions of the world (Japan and newly industrialized countries in south and south-east Asia, Western Europe and North America) than integration processes between these three regions and less developed countries or between less developed countries. Thus, corporate strategic alliances were signed by 92% between corporations in Japan, Western Europe and North America, and the number of foreign direct foreign investment increased over the past 10 years. The regional grouping of several states has led to the formation of so-called regional blocks, which suggests the idea of cohesion, unity and solidarity. There are several types of regional unions / blocks, from the simplest, the free trade area to the most integrated and complex, economic union. A global strategy means increasing interdependencies between geographically separated activities of subsidiaries and parent companies. It implies optimizing the local activities of each subsidiary with the satisfaction of the requirements of the market target according to the commendation "A company must think globally but act locally. For example, the price of products in a given country can not grow too much above the price of the same products in another country without attracting the reaction of consumers who can resort to imports."Globalization is the term used to describe a multicultural process that results in events taking place in a part of the globe having more and more repercussions on societies and issues in other parts of the globe. Globalization brings extraordinary opportunities , which allowed countries to open up markets and assimilate new technologies (China and India in particular).
In the economically advanced world, new information technologies have prolonged the US boom, which has led some to believe in the remarkable virtues of the "new economy," speaking of a "new"paradigm ", able to combine uninterrupted economic growth with low unemployment and low inflation. Enterprises interested in the phenomenon of globalization are characterized by an elastic, dynamic structure and high technology content, either in terms of production or distribution of goods. At the same time, in a global market, companies can no longer make decisions in a fragmented way, that is, the country with the country as traditional multinational companies did in the past not too distant. The system of interdependent markets forces them to adopt a global strategy, an integrated strategy that is valid for the entire planet. In the current economic environment, businesses face fierce competition on a world-wide scale, making their marketing work in a very dynamic global environment, which leads to frequent reviews of marketing programs. The ability of a company to generate new goods and services or to improve and market them as soon as it gains a vital importance to ensure its competitiveness, as rapid technological changes shorten product life cycles. In this respect, innovation is achieved through Research and Development.
§CHAPTER II. STRATEGIC MANAGEMENT: CURRENT TRENDS
Economic globalization encompasses the globalization of products, markets, competition, technology, corporations, and industry. Global strategic management is the application of strategic management to global markets, most frequently through the organizational form of multinational enterprises. A global strategy may be appropriate in industries where firms face high pressures to reduce costs. There is no clear and widely accepted definition of the globalization of strategies. In the economy, internationalization is the process of increasing business involvement in international markets.
As Grant suggest, the modern means offered by artificial intelligence include mainly decision support systems and expert systems. A decision support system is an artificial intelligence system that uses the knowledge in a particular applied field to assist managers in addressing complex, semi-structured decision-making issues that they usually solve using their own intelligence. The objective of a decision-support system is to improve the way in which the managerial decisions are substantiated or to prepare a preparatory study in order to make the decision if all the activities to be carried out for this purpose are not programmable. To be effective, decision support systems must have the ability to structure a decision-making problem and to quickly adapt to the multiple requirements of the decision-maker
An expert system is a software capable of solving decision-making problems that require human expertise to be solved. From a functional point of view, such a system consists of a package of programs designed to obtain solutions to the various problems faced by the respective organization. It is important to note that smart systems currently contribute significantly to increase work productivity. In the current period, a fundamental feature of the managerial activity carried out in organizations is the use of the Internet and the Intranet. The Internet facilitates operative to access and low cost to a series of documents, information, etc.
Strategic management of sustainable development requires, in addition to setting long-term objectives (15-20 years), compatibility with short- and medium-term ones, and applying a set of internationally validated principles and criteria: process improvement, effective use the focus on financially critical areas, the creation of opportunities for innovation and technological progress, the improvement of the supply mechanism and the obligation to promote personal interaction and negotiation at all levels, the continuous evaluation of the organization and technological trends, the analysis market potential and skills, etc.
Multinational strategies have the following characteristics
° Customized product (customized) for each market;
° Decentralized control – decision making at the local level;
° They are effective when there are large differences between countries;
Advantages: product differentiation, minimized political risk, minimal exchange rate risk.
In the case of multi-national strategies, firms are adapting their product offerings and marketing strategy to suit local conditions. Production, marketing, and R & D activities tend to be established in each major national market. Companies are involved in a number of markets beyond the national market.The global strategy is characterized by:
° The product is the same in all countries;
° Centralized control: low decision-making authority at the local level;
° It is effective when the differences between countries are small;
Advantages: cost, coordinated activities, faster product development.
Global strategies require firms to strongly coordinate their product and pricing strategies in international markets and locations, and as a result, firms with global strategies are highly centralized. An important part of the global strategy is the method the company will use to enter the foreign markets. There are four ways:export; licensing (including franchise); joint venture; foreign direct investment.
These options vary in terms of speed, control, and risk, as well as the level of investment required and market knowledge. In most cases of globalization, the diversity of consumers, regions or countries needs to be taken into account.The Managerial Information System consists of application packages that can be purchased according to the needs of public institutions and their financial possibilities. There are many types of information systems on the market but which have been specially set up for administration or restricted communication in public institutions that do not need or can not afford to acquire complex computer equipment. Expert systems are applicative programs of artificial intelligence based on high-level specialized knowledge, reached in a company of the most competent human experts of the applied domains that are being implemented in these systems. The name "expert systems" derives from the ability of these programs to equate some of the thinking and intuition performance that human experts gain when applying such knowledge to solve complex problems in the field of expertise .
From a functional point of view an expert system is defined as a program that provides knowledge to obtain the results of difficult tasks usually solved by human experts. From a structural and architectural point of view, SEs have the following characteristics: a) they are generally built to focus tasks with a limited range of applicability; b) there is an explicit separation between the knowledge and the methods of rationalization used in order to obtain knowledge-based conclusions; c) are able to explain their own actions and lines of judgment. Professionalization of management involves reorienting the selection activity of future position holders and management positions, in the sense of attracting those who have the necessary qualities complex. The prevalence of the professional competence criterion is a fundamental prerequisite for professionalisation of management within organizations. An important coordination of the professionalisation of management is the development of the career system (Pandele, 2004).
Through this system, people who achieve outstanding results are given greater competencies and, at the same time, they are given the opportunity to carry out a wide range of activities in the respective organization. Managing the profession is the corollary of the other trends registered in the organization managementProfessionalization of the management is influenced in a way determining the activity of training and improving the human resources. It is now widely recognized that human resources are the most important strategic resources of an organization. The continuous preparation of human resources has a significant impact on the quality of managerial and executive processes carried out in organizations and, implicitly, on their performances. It has long been considered that in the public sector there can be no performance, arguing that through the very content of the objective fundamental of public management is eliminated the possibility of accepting this concept. The limits of such thinking have long been overcome in public management in developed countries after a good number of years the subject has been in the debate of theoreticians and practitioners.
This starts from a first premise, according to which the thinking of public managers should be somewhere on the border between social logic and competitive logic . Social logic results from the fact that any initiative of the public management representatives, in terms of the quantity and quality of the services offered, must be determined by the general public interest and fully oriented towards its satisfaction.
There are the following types of approaches to hiring an enterprise in the competition worldwide: 1. Global competition on a broad front, which involves engaging in global competition with a wide range of products and production facilities in many countries.2. Focusing on certain market segments, meaning serving in each of the target countries the same market segments.3. Applying strategies specific to each of the countries concerned, because market disparities across countries are often so great that a global competitive approach is not possible.4. Determination of certain niches protected on the market, which consists in the application of geographically localized strategies, corresponding to the regulations of local authorities . The differentiation strategy allows to obtain a competitive advantage through the uniqueness (unique character) of a specific attribute of the offered product in the market, which justifies a higher price that is accepted by customers. The low cost strategy focuses primarily on the company's efforts to minimize production and distribution costs at levels below those of competitors. Promoting this strategy requires cost efficiencies, preferential access to low-cost entry resources, reduced spending for some departments. Focusing strategy involves concentrating on a focusing criterion: either by differentiation or by through low costs. Sustainable is a principle taken into account in the substantiation of strategic management of sustainable development. The correlation of the organization's strategy with the sustainable development management system can be done by using the BSC (Balanced Scorecard) with the Goal-Question-Metric (GQM) method and the SWOT analysis. BSC uses perspectives to describe and track the organization's strategy and vision. GQM develops a goal evaluation system and supports the interpretation of the results. The evaluation system is based on the identification of specific objectives and the selection of a set of evaluation measures.
The objective of SWOT analysis highlights the strategic position of an organization by scanning the internal and external environment. The main foresight tools that are recommended to be used in management activity in organizations are prospective studies, prognosis, strategy, policy and program Prospectiva is a logical construction offering a brief representation of the evolution of phenomena and economic and social processes. Prospective studies prepare the ground for preparing forecasts, but also provide grounding for other types of forecasts. The forecast is another form of predictive activity that anticipates the probable evolution of economic and social phenomena in the form of variants. On the basis of prospective studies and forecasts, the development strategy, as well as the strategies that target the most important segments of the organization, are grounded.
The policy is defined as supporting the provisions included in the strategy adopted in the previous stage. Another tool used in predictive activity is the program, which resides in a set of actions, works and operations in time, with fixed durations and resources allocated for each sequence. Programs may be operational (for example, technical-material supply programs) and measures (formulated by senior management and to be implemented by organizational subdivisions located on middle and lower levels of management). The diversification and increase of the complexity of the activities of the national and multinational organizations generated significant changes in the concept and philosophy of their establishment and functioning. The strategic management of the sustainable development of the organizations was based on the BSC strategic management system, a system successfully used in recent years. The system has been developed and experienced for strategic management to meet the goals of sustainable organization development, combined BSC methodology with advanced methods and techniques – GQM and SWOT analysis, for: determining objectives and measures for each perspective; their ranking as the relative importance for managers and employees; determining causal relationships between objectives and measures; Developing dedicated support tools integrated with Dialog Strategy, which develops a BSC strategic management system. Because in the BSC system the measures (indicators) required to evaluate the objectives are determined by the persons involved in the design of the system, the GQ method was used.
§CHAPTER II. STRATEGIC MANAGEMENT:CURRENT TRENDS
2.1.The reputation
Organizations can be seen as a clutter of relationships and their ability to be in good relationship with several stakeholders at the same time can be a key asset. Ability to manage relationships with a lot of stakeholders is essential for the communication function. Apart from the CEO, the communications profession may be the only management function that requires a multi-stakeholder perspective, and this may be one of its distinctive features. Reputation is an essential immaterial asset of the organization and is a weapon against competition. Robust reputations make competition in the wheel and ensure ROI, because they are hard to imitate.
A solid corporate reputation indicates that the products and services of that corporation are of good quality and that the organization is responsible and will treat its customers well. Product renewal allows the company to grow by introducing new products into its current markets. It assumes the change of the basic product / service or the addition of new products / services, closely related to those marketed so far on company-specific distribution channels..
The key factors determining success in implementing such a strategic option are the reputation of the firm that applies it and the interest of existing products / services. An illustrative example of a strategy focused on product development offers the spectacular expansion of mobile telephony in our country, where competing firms compete in offering a range of services that are continuously expanding to basic services. It is very important that the public relations practitioner and the communicator show that the reputation has a positive impact on the financial aspects of the organization, since today it is increasingly required to demonstrate the effectiveness of the communication programs and ROI that bring these. A penetration strategy in current markets, with existing products, involves increasing market share and consumption or utilization by existing customers.
The expansion strategy involves market development, that is, the market segment of the firm with its current business. This is achieved by expanding the segment covered in the current market by expanding into new geographic areas or by attracting non-users. The strategic weapons used in this variation are intense promotional campaigns. The organization's reputation with its customers or customers leads to the perception of quality, durable and reliable products, the organization's reputation with suppliers resulting from efficient and reliable collaboration.
Financial management accepts the idea that organizational reputation is an immaterial asset. Following this perspective, reputation is a socially complex immaterial resource that is non-transferable and extremely valuable, and in whose formation the organizational past plays an essential role. It has thus proven that reputation contributes to the formation of clear performance differences. This perspective on organizational reputation indicates that reputation is a result of interactions and experiences of stakeholders over time. At the individual level, resistance to change occurs when it induces a sense of insecurity, present in situations where: there is uncertainty about the impact and consequences of change; it is necessary to take risks for which the individual has no affinity; there is the risk that the individual will lose his / her position in relation to his / her equal; there is the lack of ability or desire of the individual to acquire; knowledge and skills and to adopt the behavior required for change. As far as managers are concerned, their resilience to change occurs when they feel the position of power held within the organization, we have the following situations: a) their part in the organization's reward system is likely to decrease; b) their power of influence in the decision-making process threatens to diminish; the prerogatives they have on the control line within the organization have the prospect of diminishing; his personal prestige and reputation risk eroding.
Regarding the resistance of groups to change, it is more difficult to overcome as groups develop their own culture and structure of specific power, set their norms and values that cherish certain abilities and behaviors. Group resistance to change occurs in situations where the latter: – poses a threat to the group's power; attacks the system of rules and values specific to the group; is based on information deemed insignificant by the group members. Reputation is often difficult to define, since things that damage the reputation differ from case to case.
A lot of academic sources and not only have offered a variety of definitions for this concept. Reputation is "the general way in which an individual is perceived by the public.
However, by intersecting and combining the multiple definitions of the concept, we get the following characteristics. The answer is a derivation of all organizational actions and behaviors: it is difficult to isolate only one variable that will more influence the perception of all stakeholders. consisting of the sum of representations of the organization formed over time in the minds of multiple audiences and develops through a complex bilateral exchange between an organization and its stakeholders. Reputation is judged in the competitive market context.
Reputation is not a norm for all companies and does not have the same value for all stakeholders. Reputation is the way in which stakeholders, who never know the true intentions of an organization, determine whether it deserves their trust, notes that trust is essential in a world where business operates on the basis of cooperation and relationships. Trust is the core essential element of social contacts – the immaterial basis of true long-term successes. It is both a process and a result.
Corporate reputation is the prestige preserved over time that, based on a set of shared values and strategies, and on ensuring stakeholder precedence, ensures the sustainability and differentiation of the company through the management of its own intellectual capital (intangible assets). According to Knipp, reputation is based on behavior, communication, and organizational relationships: sum of images = (performance and behavior) + communication = sum of relationships. . The ability to administer reputation is therefore critical to the communicator, as stakeholders develop their perceptions of an organization through a variety of social relationships and exchanges, or through the emotions they themselves feel about the company or the collective beliefs and mentalities in the organizational environment, about the organizational identity.
SWOT analys implies the following steps: The most important aspects of the company's internal and external analysis will be highlighted: I. internal analysis: a) strong points of the company: for example, a reputable (goodwill) a high reputation, a high quality offer, a well-sized and motivated distribution network, professionally trained staff; b) weaknesses (weaknesses, weaknesses) of the company: for example, confusion on the market, unknown brand (still), insufficient promotional pressure, obsolescence of models / lines / product range, lack of investment in new brands.
External analysis: a) market opportunities (opportunities): ability to penetrate new markets (external), opportunities to diversify the offer, etc.; b) threats (dangers, risks): low purchasing power of the population, increasing competition, . etc.
Perhaps one of the most difficult situations is that of airlines which, because of bilateral agreements, are forced to use the same types of actions, with the same destinations and at about the same prices. But, as can be said at an international travel agency, there are huge differences in the serpent print. Singapore Airlines, British Airways, and Virgin Airlines have earned their reputation for the slicks offered during flights: better and more varied, free movies, a free accessory for passengers, and relatively modern aircraft. But differentiation depends, first of all, on the attention and professionalism of the flight crew. But the significance of quality as a differentiation factor goes beyond the field of slices. Success gained on the market by differentiation requires skills that are completely different from those required to obtain supremacy on the basis of costs. Differentiation is an advantage by the fact that the company can offer a product or service "unique or superior to those provided by competitors". At the beginning of the microcomputer, a competition was based on the ability of companies to provide the most sophisticated device with the most features. This situation has changed radically with the launch of his personal computer by IBM, whose project has begun to dominate the market. Companies based on di iated benefits, such as Hewlett Packard and Sinclair, have suffered; differentiation had become a disadvantage. The game had new rules: low costs, increased computing power and fewer possible differentiations. We must not draw the conclusion that the differentiation strategy is no longer successful on a mature market. The same approach has been exploited by Bang and Olufsen in the production of hi-fi and Ikea equipment in furniture production.
The production brand image can also provide differentiations in areas where the physical appearance of the products is identical, packaging or by the manufacturer's label. Numerous experiments have shown that even the most loyal consumers have not been able to identify, in blind tests, their favorite brand of cigarettes, soft drinks or beer. Absent the help of packaging, many have failed to identify even products like whiskey or cognac. Label and brand image are extremely important factors for prestigious manufacturers and designers. The name of the brand, which was once hidden inside a garment, at the collar of a shirt or on the sole of the shoe, is now exposed with ostentatiation. It is possible for some roughly identical products to be differentiated by means of distribution, such as home delivery of coffee or Rington Tea's Tea, Avon Cosmetics, or a super-store for women or private clubs. In the UK, Sainsbury and Marks and Spencer maintain a differential advantage by providing high-quality products and supplies to customers who, although more expensive than competitors, are deemed to be priced. But this factor has brought its decline as well.
An even better example is Sony, the pretender of the world leader in innovation for electronic equipment. But even Sony had to recognize the reality: innovation is risky. Their devices from Betamax appeared first, but JVC's VHS format removed them from the market. Their L-type audio tape disappeared without a trace, but the floppy floppy disk system has totally replaced the traditional computer floppy disk. Despite failures, Sony remains an innovative company. Without leaning against the dominant VHS technology, Sony has launched its own 16mm system, perfectly suited for photography. The companies whose advantages are based on differentiation require, in the end, skills other than leadership of costs. They favor a creative person instead of one able to control costs. Nowadays, the phenomenon "and I can do it" has become very prompt, and firms that are based on differentiation must move quickly to maintain their supremacy. They need stringent operational coordination and a flexible system for defining performance and incentives to encourage innovation. Grouping of risks is important to make it easier to identify and allocate responsibility for their management.
2.2. Branding
Focusing on the employer's brand can help the business overcome the usual blocks of bureaucracy, ego, territorialism and unaligned goals. Building a good brand is important, beyond a business, more than one corporate function, can not be done only through Marketing or through HR or through corporate communication. Only when people work together, the expectation of authenticity in the employer's brand increases. The brand is the secret business ingredient that, when properly prepared, creates real business results. Although each employer can create their own programs to build a brand, to promote a culture or to communicate a message, such programmatic efforts can not change the way people think and act.
Although many research talks about brands and customers, few focus on how to build it. If brand management focuses on brand experience rather than simply advertising and communication, HR / Talent Management is best suited to managing the brand because it is in a stronger position to influence the overall experience of employees. Brand management has been practiced for over 80 years, and the results have been proven to be a highly effective and sustainable method of capturing and generating value. Strengthening branding has always been important in communicating a sense of order, integrity and reliability, but the vitality and continuous impact of the brand is also based on a constant adaptation to the needs of different target audiences. If it operates two levels of branding of the company, a group company brand and subsidiaries' brands, it must be decided how much emphasis should be put on each from the employer's brand perspective. It should ideally support the customer's brand by clarifying what employees expect to provide the desired customer experience and defining what employees can expect to gain in return for their engagement experience . If the organization advances towards greater centralization in brand identity, common values, leadership development, talent mobility, and human resource processes, then more emphasis should be placed on the parent brand. If the organization continues to host a more diversified portfolio of companies with distinct brand and cultural identities, more attention should be paid to the unique employer character of each subsidiary. Besides, although there are exceptions above, the basic solution is to promote better identification with the brand. group manager among the management population and group support functions, as well as the stronger identification of the local company brand among the population among employees.
The employer's brand should not be considered to be divided into the entire corporate brand, but a facet of the general brand tailored to the more specific needs of current and potential employees. In the most advanced companies, the brand is ultimately owned by the entire management team, not just the marketing or corporate branding team. Questions in this section about what a brand can be applied in a way comparable to the employer's brand. The organization is now seen as an employer and (prospective) customers become (potential) job buyers: current and future employees working on their employer's brand.
Organizations are trying to become or remain an opportunity: an attractive employer . Just as a product brand has to do with important customer values, an employer brand involves important employee values. Some organizations believe that employer branding is a permanent improvement of organizational strategy. For other organizations, employer branding is a product of its own time in the context of economic cycles and their effect on the labor market. Organizations increasingly recognize the importance of the employer brand. Some organizations would prefer to talk about the hiring brand. With this idea, like the usual brand concepts, employer branding is not easy to define without ambiguity. Differences in needs and emphasis in employer branding offer a variety of opinions and interpretations .
In order to allow a firm to react to unforeseen developments while trying to focus on a particular path, a longer time is preferred. There are simulations, such as customer value models, that can help marketers perform strategic analyzes ice to forecast what might happen depending on possible actions and to measure how specific actions could affect variables such as customer revenue. Strategies often specify how to adjust the mix of marketing; firms can use tools such as Marketing Mixing Modeling to help them decide how to allocate limited resources to different media as well as how to allocate funds to a brand portfolio. In addition, companies can perform performance analyzes, customer analysis, competitors analysis, and target market analysis. A key aspect of marketing strategy is often to keep marketing consistent with the company's mission statement.
The marketing strategy should not be confused with a marketing objective or a marketing mission. For example, an objective may be to become a market leader, perhaps in a specific niche; a mission may be something like serving customers with honor and dignity. Instead, a marketing strategy describes how a business will achieve the stated goal in a way that is consistent with the mission, perhaps through detailed plans on how to build a referral network. The strategy varies depending on the type of market. A well-established firm on a mature market will likely have a different strategy than a start-up . Plans usually involve monitoring, assessing progress and preparing for unforeseen situations if problems arise. Once goals are set, marketing strategy or marketing plan should be developed. This is an explanation of the specific actions that will be taken over time to achieve the goals. Plans can be prolonged to cover many years with sub-plans for each year. Although, with the speed of change in the merchandising environment, the horizons become shorter. Ideally, strategies are dynamic and interactive, partially planned and partially unplanned. Thus, for example, many new products will come out of irrational processes, and the rational development process can be used to examine people who are not participating.
The design of advertising and packaging will be the result of the creative mind; which management will check to ensure it is reasonable. Few notable exceptions of "real marketing" rely on instinct as opposed to training, checking and sustaining large investment data. This can result in low returns and incomes. Many entrepreneurs and small businesses believe they can manage the non-professional marketing sector, but this is detrimental to their business. Most of the time, marketers use intuition and experience to analyze and treat the complex and unique situations they face.
This will often be intuition, accompanied by customer knowledge, which has been absorbed almost through an osmosis process. This will determine the quality of your marketing. This almost instinctive management is what is sometimes called "raw marketing"; to distinguish it from its refined, aesthetically pleasing, favored by theoreticians. Real-life marketing revolves around the application of many common senses; dealing with a limited number of factors, in an imperfect information environment and limited complicated resources of uncertainty and limited time. The use of classic marketing techniques under these conditions is inevitably partial and uneven.
CHAPTER III.PRESENTATION OF THE COMPANY
3.1.. General presentation of the company
Partenership SRL is a limited liability company that has been operating since 2005. The firm has three associates and two administrators. In 2017, the company is not published in the list of companies with overdue budget obligations that exceed the minimum ceiling and is currently in business, not inscribed in the insolvency bulletin..Since 2005, turnover has steadily increased from 4,170,847 to 14,773,104 in 2016. Profit also rose remarkably from 348,862 in 2005 to 533,653 in 2010, because in 2011 to reach only 21,933 in the accounting records. 2016 was not a special year, with losses of -1,080,267. Debts never revealed the figure of 2005: 664,461, meaning that they have risen by 2016 per year. In 2015 there was a level of 4 122 967. At the same time, a debt reduction was achieved in 2016: 3 304 112. The most consistent fixed assets were recorded in 2014, with a figure of 717 522, with a start of 713 in 2005. The the most remarkable increase in fixed assets is recorded in 2007, a number of 101 910. These fall to the middle of the record reached in the company's history in 2016: 379 142. The current assets have doubled since 2005 in 2016 and reached 2 103 992, but fell from 2015 to 3,760,849. Equity dropped drastically in 2016 to -805,664. It is noted that in 2010, when there was the highest figure of own assets: 694,988 and the net profit was remarkable 12 564 731. The number of employees was 15 in 2008, after In previous years it was one or zero. In 2008, the company was expected to evolve along with financial growth and market opportunities. In the years to come, the number of employees steadily increased to 59 in 2014, but 2015 and 2016 declined to 47. The profit is net and expressed in new lei.
Wunderman, is Partenership’s important business partener and is a network of advertising, marketing and office consultancy companies in 55 countries. The parent company is located in New York City. At present, Wunderman is part of Young & Rubicam and a member of the WPP. founder Lester Wunderman is considered the maker of direct marketing today, a term that, due to a speech given in 1967 at MIT originated. He opened Wunderman, Ricotta & Klein in 1958. Among the agency's first innovations are Record Club Columbia, the 1-800 free business tax (developed for a Toyota campaign), and the magazine's subscription.
A long-term relationship with American Express eventually led to the first customer rewards program, a move to keep loyal customers to a brand it has because it has transformed the travel industry. Founder Lester Wunderman is considered to be the creator of modern direct marketing, which he invented in 1967 in a speech at MIT. He founded Wunderman, Ricotta & Kline in 1958. The agency's early initiatives include the Columbia Record Club, the company's freephone number (for a Toyota campaign), and the magazine subscription card.
The long-term relationship with American Express eventually led to the first customer benefit program that has made progress in customer loyalty and since then has been widely copied by the retail and tourism industry.
Wunderman, Ricotta & Kline were acquired by Young & Rubicam in 1973. Since then, the agency has expanded its range of services in the areas of interactive advertising, strategic consulting and data analysis.
In the late 1990s, the agency was renamed Impiric shortly before remembering its origin and changed its name back to Wunderman just 6 months later. Wunderman has been present in Germany since 1971 and today has more than 200 employees in Frankfurt, Cologne, Munich and Düsseldorf.
Wunderman is currently the world's largest network of marketing services with around 75 offices in 60 countries. WRC was acquired by Young & Rubicam in 1973, expanding its reach in interactive, strategic analysis and data. The agency was briefly renamed Impiric in the late 1990s, before returning to its patrimony and brand as Wunderman 6 months later. Wunderman is the world's largest network of marketing agencies in the world. Its network currently has 15 companies and 130 offices in 55 countries. The companies are: Aaction Line, Actis Wunderman, Burrows Ltd, AGENDA, Aqua online, Radius blast, DataCore Marketing, Designkitche, Futurecom, Kassius, Knowledge Base Marketing, Quasar, RTCRM, Wunderman Dentsu Tokyo, ZAAZ.
Among the customers are AARP, Abbott Laboratories, Astra Zeneca, Bayer, Burger King, Citibank, Coca-Cola, Dannone, Diageo, Ford, Hewlett Packard, Jaguar Land Rover, Kraft, Lufthansa, Mazda, Nokia, Orange, Rogers, Shire Pharmaceuticals, Telefonica, Time Warner, Wyeth and Xbox. This list may vary by country. Awards and Honors: Cannes Lions International Advertising Festival: Direct: Grand Prix, Advertising Age: Ranked # 1 in worldwide marketing and digital agency # 4.
Figure no.2 Statistic data about Partenership SRL
§CHAPTER IV. PROJECT: STRATEGIC ANALYSIS OF THE COMPETITIVE ENVIRONMENT OF PARTENERSHIP SRL
4.1. Presentation of the strategy on which the company is based
We propose a descriptive case study. The theoretical part was presented in chapters 1 and 2 and the research part of the subject of the strategic analysis of Partenership is dealt with in Chapters 3 and 4. Our objective is to determine whether the strategy of the chosen company is efficient by the results presented in the accounting data . The results showed that although the firm has stable and experienced market research experience, other factors besides the strategic one could be taken into account for the recent financial downturn, such as the market requirement for this area of activity and support entrepreneurs by the state.
The Partenership Company has a plus in the SWOT analysis through its partner with Wunderman, a supporter recognized on the local market but especially abroad. Wunderman Romania recorded 12.5 million lei (about 3.04 million euros) in 2010, accounting for revenues of 13.5 million lei (about 3.3 million euros) in 2010. The company currently has 37 employees, compared to 32 in 2010 and was established in 2007. Among Wunderman's customers are Nokia, Ford, Asmita Gardens or Philip Morris International. According to Wallstreet, Wunderman representatives appreciate brand culture and identification with it. Although the market is still not very receptive to the products and services offered, the company's representatives are optimistic that the corporation's activity is one of the future. For the future, possible partnerships with Petrom and Rom chocolate company are expected. From the same field of activity, Magnum is also regarded as a possible partner. Other areas such as tourism are a good niche in Wunderman's vision. Innovation proposed to customers through customer-tested and personalized solutions is a core strategy for the company. Alongside this, another strength, viewed as an opportunity for SWOT Sanitation, can be appreciation of the company's human resource. These strategic approaches to branding and careful selection, as well as the appreciation of prepared and innovative human resources, have been taken over from Wunderman and Partenership SRL. In practice, a perfect campaign must have three ticked coordinates – the message to be understood through a clear communication, the client has to get to convince by himself of the ones communicated and the results to be as expected or even exceed them. Campaigns can target increased traffic to a particular location, increased brand visibility, or increased sales. The benefit of social media promotion and social networking is also pursued in the company's strategy to provide its customers' services. Wunderman's main competitors on the local market are Propaganda, Leo Burnett, Mercury 360, Interactions, and Tempo Advertising. ().
The company only presents a formal strategy, perpetuated by tradition, but there are no official documents expressing the strategic management plan. Although it seems to be a difficult task, we propose the Japanese strategy of Toyota that can inspire it. Although it functions in another field of causality, Japanese philosophy and discipline can be useful in coordinating activities and, therefore, we are spreading to profit growth – a stringent need of any enterprise.
In the following, we show a simple parallelism between the conception found in the Bushido Code of the Samurai Warriors and the core values of Toyota. About Toyota's organizational culture will be explored in the next chapter.
Bushido Toyota
fairness challenge
courage Kaizen
good-natured Genchi genbuten ("go and see")
respect respect
honesty work in the team
honor
loyalty
The challenge, along with the old Kaizen concept, translatable through "continuous improvement," can overlap naturally with the courage found in the Bushido code, as courage is needed when it comes to going out of a monotonous pattern and making life more efficient in general.
Teamwork requires just about all of Bushido's elements, trained in a value mix
(goodwill, fairness, respect, honesty, honor, loyalty) that inevitably reveals the specific Japanese goal: harmony.
Japanese ethics have a mysterious resonance and are often incomprehensible to a European. Although the values are similar (even identical), the depth they want to apply is the difference between a Western one who reports singularly to group ethics and a Japanese who has a much less individualistic perspective.
As I spoke in the first chapter when I conducted the manager / leader parallel, we can say that in Japan a stronger emphasis on leadership is put on than on formal management.
The seven principles of Japanese leadership created by Konosuke Matsushita (Electric Company)
-service for the public
– honesty and sincerity
-teamwork
– enhancing efforts to improve
– cordiality and humility
-An agreement with the laws of nature
-recognition for blessings.
Japan's ethics of work are legendary. Instead of traditional models, the employee commutes the commute for two hours and spends ten hours in the office six days a week. Functions or other employees work eight hours a day. When the office closes, the employee usually joins his colleagues to serve a drink. When he gets home, his children sleep. Just spend Sunday with them – if he can stay awake. The Japanese employee is entitled to a paid two-week leave per year. His sense of loyalty to the corporation he is working on will reduce holidays to just four days. Until ten years ago, the employee was hired for life. He climbed into the corporate hierarchy with age and less by its value. When he was a medium-quality manager at the age of 40, he had other obligations in addition to the older or younger ones, which increased his stress. If he did not succumb (caroshih-death from exhaustion), he became senior manager and retired to 60 years.
Despite the post-World War II crisis, the Japanese have managed to manage this mistrust and rebuild everything with an extraordinary economic drive.
As a difference in mentality compared to the West, Japanese politicians have been thinking of long-term recovery strategies for decades. The measures that have been imposed include the following:
focusing on education and on effective demography, a commitment to lifelong learning
declaring long-term goals for the economy as a whole, a single team in competition with other countries – the government being the "coach" of the companies and not the "team captain" (K. Ohmae)
the government's mediation function (the concepts of Mura and IE)
The main factors that ensured Japan's economic recovery after 1950 are the following:
• education of young people (the Government has invested enormously in order to obtain quality primary education)
• Healthy eating (fish, rice, seafood) that prevented Obesity and Occupational Diseases
• the lack of major border changes or massive population movements, with Japanese society remaining relatively homogeneous in terms of culture and religion.
To highlight once again the rapid expansion of Japanese trading companies abroad, we have to list four main and main differences between Japanese and Western business management:
• The concept of business is different in Japan to the West
• For Japanese managers, the company is equivalent to the company's staff
• The Japanese government is the "coach" of the companies and not the "team captain"
• Perpetual change of "battlefield" is the basis of the Japanese business strategy.
The necessary steps to start an optimal strategy for internationalization of the company are the determination of the main phases of the internationalization strategy, the strategic analysis of the international orientation and the strategic alternatives, as well as the decision to internationalize the society.
The classification of internationalization strategies comprises two criteria:
• reasons for internationalization. Here we meet international marketing strategies (market penetration, dumping and exploration strategies) and multifunctional strategies;
• the typology of the company that is internationalizing. It includes the strategies of small and medium-sized companies (niche, concentration, differentiation, mix) and strategies of multinational corporations (source-branch, functional autonomy, complex integration, technical-financial and global strategy).
Regarding the mechanisms of internationalization of the company, we find the following theories :
• the principle of material determinism. Here, the process of internationalization is seen as the result of forces outside the organization, forcing the firm to adapt to changes in the international business environment;
• the principle of behavioral determinism. In this case, the process of internationalization is a result of decisions taken by the organization's leadership to adapt to changes in the international business environment and business development;
• theories on the nature of the internationalization process (considered in this case as an evolutionary process or a compulsory process of survival of the organization);
• the theory of unilateral evolution. In this theory, we find the belief that firms are necessarily following the same process of internationalization according to a standard model, and any change in the sequence of development stages is excluded;
• the theory of cyclical evolution. This stems from the idea that the internationalization of the firm is a sequential process in which periods of stable evolution alternate with transition periods.
Implementation of internationalization strategies
The success of the penetration of an organization's international market is reflected by the following factors:
• using information on opportunities for profitable foreign market penetration;
• access to local market resources freely and under the same conditions as other local or international competitors;
• access to the market in question;
• overcoming barriers to entry.
The degree of internationalization of the firm can be appreciated through some analysis models. We have here: the model of quantitative appreciation of the degree of internationalization, depending on the internationalization of the market and the enterprise; the model based on the relationship between the internationalization of the organization and the general management orientation (E.P.RPG.); the model of presentation of the characteristics and needs of the company's development taking into account the internationalization phase in which it is located; the model that shows the staged approach to the organization's exports.
4.2. Analysis of the portfolio of activities
Partenership SRL has the CAEN number 73 activity code. This class includes the provision of a full range of advertising and promotional services (through internal or subcontracting opportunities), including consulting, creative services, production of advertising material and its purchase. This class includes: creating and performing advertising campaigns: creating and placing advertisements in newspapers, periodicals, radio and television, on the Internet and other media , creating and placing outdoor advertisements such as posters, panels and frames, and advertising of car and buses advertising, air advertising, distribution or delivery of advertising materials or samples – creation of stands, structures and display sites, design of marketing campaigns and other advertising services for the purpose of attracting and retaining – Product promotions, point of sale marketing activities, direct mail advertising This class excludes: printing of advertising materials, production of commercial messages for radio, television and film, market research activities, advertising photography, organization of conferences and commercial exhibitions, mail forwarding activities. The division refers to advertising and market research activities.
4.3. Analysis of the competitive enviroment
In a market economy where we face fierce competition, increasing competitiveness becomes an essential condition for the existence of companies producing goods or services. The performance of achieving the objectives depends on the permanent adaptation of the trajectories through which the enterprise has to respond to market conditions and consumers' claims through quality and innovation. The assessment of the company's competitiveness can be done by analyzing the economic efficiency compared to other competitors on the market. The Perspective of Sustainable Competitiveness and the tremendous value of gains that can be gained through international sources and new suppliers are driving companies to orient their marketing strategies towards the virtual environment (Internet), which tends to become a global market accessible to all, a venue for sellers and buyers everywhere. In conclusion, innovation, affordable prices and faster services can determine the difference when it comes to attracting customers and earning profits, and increasing competitiveness opens the horizon of progress and permanent search for ways to get business success. In practice, the competitiveness of a company is analyzed in terms of two indicators: the yield obtained and the impact of the products / services on the market. Experience shows that return is viewed as a means of ensuring the profitability of a business (development and achievement of the established economic and social objectives) and not as an end to the enterprise. Therefore, the basic objective of the enterprise is to satisfy the client and society as a whole, but profit must not be neglected as it is an indicator of the company's performance on its competitiveness. It should be seen as a consequence of the results obtained by the enterprise as a reward for success on a competitive market. At the same time, the impact of a company's products / services on a market demonstrates the performance of the enterprise by adapting products or services to customer needs and exigencies. Undertakings aim to meet customer requirements in order to achieve an important market share and the profits needed to develop their business. Studying consumer needs is a prerequisite for delivering quality products and services, so the quality-driven strategy determines the progress in achieving the company's competitiveness. The competitive strategy of the firm needs to adapt quickly to any change, so careful market monitoring, maintaining the offensive strategy and defense of results, adapting the competitive harassment strategy based on reactivity to any attempts by competitors to erode their position market. Strategies prove to be beneficial to the enterprise only if they are judiciously established, properly implemented, consistently pursued, and if they ensure that future competitive advantages for the firm are maintained, allowing for a better positioning in the marketplace specific to the field in which they operate. A company is competitive when it manages to achieve results comparable to or better than those of its competitors. This is achieved when the conditions at its disposal (factors of production, managerial and marketing capacities, financial, technical and creative resources etc.) become a lasting advantage over the competitor (in terms of cost, diversity, quality and renewal of supply) providing normal dividends to shareholders, self-financing and labor-related resources, coupled with productivity. Consequently, competitiveness depends to a large extent on the company's internal conditions, which express all the components and functions that define it. Regarding Romania, increasing economic competitiveness is a priority and is assumed in the National Development Plan. Despite all the efforts that have been made, although substantially progressed in recent years, there are serious competitive gaps compared to EU Member States. Limited access to capital and the use of outdated technologies and equipment dramatically reduce productivity in most economic sectors, which requires investment in research, development and innovation.
4.4. SWOT analysis
The plan is the coherent set of objectives to be achieved, in conjunction with the actions and resources needed to achieve them. It is a management tool, defining planning as the sum of the activities needed to plan the plan.
Business plan in international organizations
Planning has 4 stages:
-prepare the plan;
-laboration of the plan;
-implementing the plan;
-Reporting the plan.
For international planning, planning in the domestic environment, the analysis of government policy in host countries, differences in legislation, exchange rate and cultural differences is added.
The business plan is used to initiate a new business or to analyze and develop an already existing one, being indispensable for entrepreneurs, project managers, etc. It must be motivating (both for employees and prospective investors) and convincing.
The business plan must begin with a summary; it must be attractive, persuasive, explicit, concise, with the following elements:
-description of the business; (target of about 5-10 years)
– strategic directions of action; (target 3-5 years)
-the segment-segments and niches under consideration;
-the management system;
-the financial news.
Components of the business plan
Framework of action and motivation
The company's history, the comparative but technically explicit description of the products / services (revised language for investors) must be taken into account.
The objectives, both general and specific, presented quantitatively and satisfactorily. It is intended to reduce the number of questions on the plan and to impose its credibility.
Market studies: Demonstrate business profitability; there are 3 scenarios:
• the best case;
• worst case;
• Most likely the case.
Presentation of the market: no. potential customers; market size and segmentation; competition and trends.
The production process is the most technical part of the business plan; includes detailed resource presentation and offering guarantees and alternatives to resource, quality, and control.
Marketing strategy: advertising and advertising.
Financial Planning (the most read section of the business plan).
Organization of the firm.
Form of ownership (number and share distribution).
Sharing your business plan.
It is necessary to send a recommendation from a consultant, lawyer, clerk, etc. to the plan. Requirements: Concision; organization; lack of exaggerations; highlighting risks; proving management efficiency; focusing on one business and a well-known market; is written in the third person, with consistency and intelligibility.
Analysis of the organization's competitiveness in the international business environment
SWOT-S (strong points), W (weak points), O (opportunities = opportunities), T (threats); being simple and relevant, is the most used.
Strong points = characteristics, distinctive skills that offer advantages, along with the possibility of rapid adaptation.
Weaknesses = own characteristics that can constitute barriers to achieving the objectives.
Opportunities = positive elements from the external environment that can become potential chances, opportunities, shortcuts to achieving the goals and which the company seeks to exploit.
Threats = negative elements in the external environment that may unfavorably affect the achievement of objectives.
The company strategy can materialize in two forms:
• unique product strategy;
• diversification strategy (upstream or downstream).
Product strategy companies classified by type of products offered are available so three strategies: differentiation (for expensive products and quality), cost reduction strategy (for cheap products) and focus strategy (for specific products, assimilated to certain niches in the market).
Another classification of the product by evidențieea outlines of four strategies depending on the life cycle of products offered to the strategy leaflet (release phase) protective strategy (growth phase), analytical strategy (maturity phase) and reactive strategy (decline phase).
For a better understanding of Partenership's business, we will briefly present a SWOT analysis of the firm, along with our own views on a certain amount of efficiency in the future.
Strengths
– Good image
-Trust trust
-diversified product range
-marketing with well-established targets
– engagement to quality
-Good brand and advanced technology
Weaknesses (weaknesses)
-dependence on Romanian markets
– Instability over excess demand / offer
– Hybrid technology too new
Opportunities
– the urban presidency
-investment and research
– ecological character
Threats
-Technical problems and recall of machines
-competitive market players
– commodity price fluctuation.
§CONCLUSIONS
Most multinational corporations have not yet reached the stage of organization in which it can be declared that they are fully integrated globally or they respond with maximum efficiency requirements of each local market basis. But the goal pursued by truly efficient and adaptable corporations is to create a compromise between the two types of strategies described above. And small businesses, entrepreneurs as Partenership SRL our case study are forced to put always balance the benefits they generate increasing flexibility on a global scale and adaptability at regional or national level and thus learn from successful partners in strategy and branding. The success of meeting established goals depends on both organizational management and the right choice of managers so that corporations can respond effectively to environmental economic change. Analyzing the activity of companies, multinational corporations, we have seen that they, to achieve competitive advantage, but also to maintain At least three specific ways global strategy, among which we mention: cost minimization, product policy of the company and defining the goal pursued by the firm. Currently, the multinational corporation, the economic entity is in constant motion in the context of internationalization and moving towards global strategies so that we are dealing with a complex system within which manifests permanent contradiction between flexibility and coordination of activities. This contradiction is rooted in the very trend of moving the company overseas, predominantly constant desire to expand its activities beyond the country of origin. In other news, the problem of delimiting the "borders" of the company is becoming more and more difficult because the diversity of its activities is steadily increasing.
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