METHODOLOGY OF THE INTERNAL ENVIRONMENTAL ANALYSIS AS A PART OF STRATEGY PLANNING

Hajnalka Madai (), Beata Bittner (), Tunde Kovacs () and Adrian Nagy
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Hajnalka Madai: University of Debrecen, Faculty of Economics and Business, Institute of Applied Economics Sciences, Debrecen, Hungary
Beata Bittner: University of Debrecen, Faculty of Economics and Business, Institute of Applied Economics Sciences, Debrecen, Hungary
Tunde Kovacs: University of Debrecen, Faculty of Economics and Business, Institute of Applied Economics Sciences, Debrecen, Hungary
Adrian Nagy: University of Debrecen, Faculty of Economics and Business, Institute of Applied Economics Sciences, Debrecen, Hungary

Annals of Faculty of Economics, 2020, vol. 1, issue 1, 551-556

Abstract: The market environment has changed significantly in recent years. Globalization, market concentration, rapid flow of information and technological advancement make increase competition in all industries. The previously commonly used the company, recognize the threats and opportunities outside the company, in this regard intuition skills have outstandingly importance. In this article, the authors present the importance of strategic planning and its connection to traditional planning and its differences. After that, the paper presents the internationally recognized strategic planning method, its steps and the quantitative approach was replaced by the emphasis on quality. The significant changes in the economic, social and natural environment require more responsible mentality and forcing companies to make more responsible decisions. Planning periods have been shortened. Due to rapid changes plans have to become dynamic and multiple controls and feedback have required at the planning stage. Due to the above changes, the overall strategic planning has also come to the fore. The main task of strategic planning is to recognize and respond to the opportunities of the organization in time, and to develop a systematic action program with a systematic approach to analyzing their risks. Successful strategy-making is a success factor of proper strategic thinking. This affects the company's framework of the strategy. The strategic thinker should coordinate a procedure to monitor the state of relationship of each step and its interrelation in particular the internal assessment methods. The development and formulation of the strategy begins with the definition of the business vision and the business mission. These are subordinated to analyze that seek to understand the firm's strategic position. After that, the possible strategic directions can be selected. After selecting the strategic direction (s), the long-term objectives of the organization should be recorded. Knowing the objectives, possible strategic options should be considered and analyzed. The final step of planning is the strategic choice that will help the organization decides which version or variations will be used in the implementation phase. The method described above provides a framework that can be applied not only at company level, but also at a sectoral, national, but individual level, as well.

Keywords: business strategy; strategic planning; internal analysis (search for similar items in EconPapers)
JEL-codes: L1 (search for similar items in EconPapers)
Date: 2020
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