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Table 4.1.

Matrix production / the market

Production which is let out now

The new production connected with let out

Absolutely new production

The available market

90 %

60 %

30 %

The new market, but connected with the available

60 %

40 %

20 %

Absolutely new market

30 %

20 %

10 %

Accepting this or that strategy, the management should consider 4 factors:

1. Risk. The firm considers what risk level comprehensible to each of Accepted decisions?

2. The knowledge of last strategy and results of their application will allow firm

More successfully to develop the new.

3. Time factor. Quite often good ideas suffered failure because were Are offered to realisation in an inopportune moment.

4. Reaction to owners. The strategic plan is developed by managers The companies, but often owners can put power pressure upon it Change. The company management should mean this factor.

Strategy working out can be carried out by three ways: from top to down, From below upwards and by means of advisory firm. In the first case The strategic plan is developed by company management and as the order Goes down on managements all to levels.

By working out "from below upwards" each division (service of marketing,

Financial department, industrial divisions, research and development service etc.)

Develops the recommendations about drawing up of the strategic plan in Frameworks of the competence. Then these offers arrive to a firm management, Which generalises them and accepts the final decision on discussion in

Collective. It allows to make use of the experience which has been saved up in divisions,

Directly connected with studied problems also creates at workers Impression of a generality of all organisation in strategy working out.

The firm can use and services of advisers for research The organisations and strategy developments.

The resume

Strategy working out switches on purpose statement, form giving, an estimation,

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