Source

In the corporate environment of any business, immersed in a global world, it is common to find a desire to be competitive in the market, this is the reality of large and small companies, although in the latter, this priority is held with greater force in these times, but due to the difficulty they have to establish appropriate processes that give the organization quality in their processes and in the products and / or services they offer, has not been the impediment to generate this priority, which would increase their levels of market share and therefore their business economic growth.

On the other hand, the situation that Venezuela is going through has brought negative economic consequences to the business system, since many companies have closed their doors, not only because of the constant increase in prices, but also because they do not have management strategies that would allow them to mitigate such situation; however, some companies have sought ways and plans to counteract the adverse effects on business success. In spite of this, other companies continue to struggle with the lack of knowledge of alternatives to weaken the reality and are facing a declining position in the competitive market.

Figueroa (2004) suggests that strategic direction is, "A process of continuous and systematic movement that provides better guidance to the entire organization on the crux of what it wants to achieve, making managers more alert to the winds of change, new opportunities and threatening developments, providing ideas for evaluating budget requests, capital investment and new personnel, allocating resources in areas that produce results and support strategy, helping to unify the many strategy-related decisions across the organization, creating a more proactive managerial attitude and thereby counteracting tendencies toward reactive and defensive decisions".

Source

Therefore, strategic management is made up of a series of decisions and actions aimed at raising, formulating and implementing strategies of a specific nature that will allow the organization to adjust to its environment in a superior competitive manner, and thus achieve the established objectives and goals. At the present time in Venezuela there are many companies that have been presenting weaknesses in the management and control of resources in the companies, causing overstock in the warehouse, which has brought as a consequence problems of financial illiquidity; they have had problems due to non-payment of some labor and financial obligations; untimely purchases are made that affect the warehouse management; The company does not know which are the products with the highest output, the existence of products with low mobility, the loss of products due to expiration or decomposition, the percentage of profitability has decreased more than 15%, the working capital is insufficient in some periods, which generates uncertainty and nervousness about the economic situation of the company, among other failures not mentioned.

The failures or weaknesses mentioned above may be caused by some deficient management by the planning and administration personnel of the companies, originated by the lack of knowledge of the planning, formulation and distribution of the budget, the isolated decision making between departments, the execution or implementation of marketing plans with insufficient working capital, the lack of knowledge of strategic financial alternatives that allow identifying the reality of the company and making timely decisions to remain in the competitive market; without leaving aside the economic and social shocks that the company has suffered.

Reference Consulted

Figueroa, M. (2004). Management and Operational Control Model of Strategic Direction, for the National Electricity Company (ENDE S.A.)

Article prepared by:

Topics