Introduction: Strategic Management of Engineering Enterprise

Introduction: Strategic
Management of Engineering
Enterprise
ME 201

1st Semester 2012
Pangasinan State University
Prof. Jo B. Bitonio, DPA

Introduction

The world is changing. The old rules are
beginning to buckle, and new standards
are emerging-- some still masked in fog,
others with greater clarity.

The thing that distinguishes today's successful
enterprise, business and government, is the
ability to adapt to changes in environment, in
markets, and in customer expectations.

In order to survive into the 21st century, an
enterprise must make change management
an integral, enterprise-wide process. To
think in radical terms, a dramatic overhaul of
entire operations at a single stroke.

Drucker sees the period we're living in as one of
"PROFOUND TRANSITION--and the changes are more
radical as those ushered in the 'Second Industrial
Revolution' in the middle of the 19th century, or the
structural changes triggered by the Great Depression
and the Second World War". In the midst of all this
change, he contends, there are five social and
political certainties that will shape business strategy
in the not-too-distant future: the collapsing birthrate
in the developed world; shifts in distribution of
disposable income; a redefinition of corporate
performance; global competitiveness; and the
growing incongruence between economic and
political reality.

Drucker then looks at requirements for leadership
("One cannot manage change. One can only be
ahead of it"), the characteristics of the "new
information revolution" (one should focus on
the meaning of information, not the technology
that collects it), productivity of the knowledge
worker (unlike manual workers, knowledge
workers must be seen as capital assets, not
costs), and finally the responsibilities that
knowledge workers must assume in managing
themselves and their careers.

Singapore is the Greenest City
according to Asian Green City Go Green Architecture,
Index ... Sonjiang Hotel, China

MOMEMA - Museum of Middle East
Modern Art - UNstudio
Ar21stcenturyarchitecture.blogspot.comchi
tects

This Modern Cyber Egg Office Building Design and
architecture by James Law Cybertecture International and
located in Mumbai, India.

Canada, is becoming a pioneer of modern
Royal Ontario
development in the country
Museum, Toronto

Spain Modern Architectural Building

a suite will look
like at the
Water Discus
hotel.

the first five-star underwater hotel in Dubai

Underwater Hotel From Future

t looks like a cross between Noah’s ark and some ship from a science
fiction film 1970. Futuristic Hotel “Ark” was designed to withstand flooding
caused by rising sea levels. Floating behemoth “biosphere” is conceived
as a safe, self-seekers in the event of a disaster.The hotel is landscaped
with all facilities for guests. With a shell-shaped, it will withstand tsunamis
and other natural disasters.

Biosphere: solar panels and rainwater collection system that will provide
residents of electricity and water, can be adapted for use on land and water.

In the field of engineering, a more
general form of enterprise engineering has
emerged encompassing "the application of
knowledge, principles, and disciplines
related to the analysis, design,
implementation and operation of all
elements associated with an enterprise”

Disciplines
The engineering majors offered at U.S. colleges and
universities can be roughly divided into one of four size based
categories:
• The “Big Four” Disciplines: Civil, Computer, Electrical, and
Mechanical Engineering, which together
collectively account for approximately two-thirds (67%) of all
engineering bachelor’s degrees awarded annually.
• The “Medium Four” Disciplines: Aerospace, Biomedical,
Chemical, and Industrial/Manufacturing
Engineering, which collectively account for approximately 20%
of all engineering bachelor’s degrees awarded annually.
Engineering

Disciplines
• The “Smaller Ten” Disciplines: Agricultural,
Architectural, Engineering Management,
Engineering Physics/Engineering Science,
Environmental, General Engineering Studies,
Materials, Mining, Nuclear, and Petroleum
Engineering, which collectively account for less
than 10% of all engineering bachelor’s
degrees awarded annually.
• The Specialty Disciplines: A variety of specialty
disciplines offered (such as Ocean Engineering

Philippines
There are many types of engineering courses being offered in
schools in the Philippines. These engineering courses are:

o Ceramics Engineering
o Chemical Engineering
o Civil Engineering
o Computer Engineering
o Electrical Engineering
o Electronics and Communications Engineering
o Geodetic Engineering
o Industrial Engineering
o Marine Engineering
o Material Science Engineering
o Mechanical Engineering
o Mechatronics Engineering
o Metallurgical Engineering
o Mining engineering
o Software Engineering
o Structural Engineering

In essence this is an interdisciplinary
field which combines systems engineering
and strategic management as it seeks to
engineer the entire enterprise in terms of the
products, processes, business operations, this
field is related to engineering management,
operations management, and management.

•

LAW

PUBLIC
ADMINISTRATION BUSINESS
POLITICS

MANAGEMENT

PUBLIC ECONOMICS
POLICY
PUBLIC
•
CHOICE
DEVELOPMEN
T Graduate School of Asia and
Pacific Studies
University of Waseda, Tokyo-
JAPAN, 2010

Enterprise Engineering
Enterprise engineering is a sub discipline of system
engineering, which applies the knowledge and
methods of systems engineering to the design of
businesses. The discipline examines each aspect
of the enterprise, including business processes,
information flows, and organizational
structure. Enterprise engineering may focus on
the design of the enterprise as a whole, or on the
design and integration of certain business
components. Wikipedia retrieved 6/24/2012

o "Enterprise Engineering," as it is defined by Visible:
1997, involves all the activities that organizations
("enterprises") perform to improve productivity, gain
and maintain competitive advantage, optimize
resources, deliver quality products and services, and
meet customer expectations and demand.

o These can include traditional activities such as
reorganization, concentration on core products and
competencies, niche marketing, acquisition, merger,
and new technologies.

Enterprise Engineering also includes
new techniques and methods such
as business process re-engineering,
continuous process improvement,
total quality management, enterprise
architecture, and enterprise
integration.

The management gurus generally agree that time
can be squeezed out of every job; that self-
managed teams throw more challenge and
meaning into employment; and that
enterprises sorely need to create networks of
relationships with customers, suppliers and
competitors (Byrne:1997 as cited by Perskin:
1997).

o Management guru’s tend to agree that smaller is
better, yet they do not applaud wholesale downsizing
as a cure-all.
o "If all you try to do is flatten your existing
organization, you'll kill it,“ "The fat is not waiting
around on top to be cut. It's marbled in, and the only
way you get it out is by grinding it out and frying it
out. "may mean that enterprises need to totally "re-
engineer" how work gets done -- new goals, new
methods, new processes, new measures, new
technologies (Hammer:1992 as cited by Perskin:1997)

Given the dynamic nature of the global
changes, only applied systems
approaches can come to rescue because
of their inherent capability to bridge the
gaps between theory and practice.

Not only governments, enterprises and other
organizations, but the world at large are in
desperate need of effective methodologies
and multi-methodologies in order to manage
today’s organizational complexities and
implement efficient strategic management.

Essence and the Stages of
Strategic Management at the
Enterprise
Key Words: Strategy, Management, Engineering,
Enterprise

Historically, the concept of "strategy" has developed
in the military lexicon, where it defines the planning
and implementation of state policies and political and
military alliance of several countries, using all
available means.

The creation of an economic strategy is
"long-term, the most fundamental
and important installations, plans,
intentions of the government,
regional administrations, leadership
organizations in the production,
income and expenditure, budget,
taxation, investment, prices and
social protection."

Strategy
a set of core activities and ways of their
implementation.
Recent studies and leading management
theorists have advocated that strategy
needs to start with stakeholders
expectations and use a modified balanced
scorecard which includes all stakeholders.

Enterprise Strategy
- a systematic plan for its potential behavior under
incomplete information about the future
development and business environment, including
the formation of the mission, long-term goals, as well
as the ways and rules of decision-making for the
most effective use of strategic resources, strengths
and opportunities, the elimination of weaknesses
protection from threats in the environment for
future profitability.

The strategy should be, on the one hand, have a
clear idea about the strengths and
weaknesses of the company, its market
position and, on the other hand, understand
the structure of national economy in general
and the structure of the industry in which the
enterprise operates

The Importance of strategic Management at the Enterprise
in Modern Conditions of Management

The economic crisis of the economy depends on several
factors, among which an important place is occupied
by the imperfection of the control system. The
turbulent nature of the adverse changes in the
economy (inflation, rising prices for raw materials,
high interest rates for loans, reducing the
population's purchasing power, etc.) and high
complexity of the tasks now expanding the role of
scientific management to stabilize the socio-
economic processes and to ensure high efficiency all
types of businesses.

Strategic Management
o The term and concept of "strategic management" introduced
in the scientific revolution in the early 70 - ies of the
twentieth century to refer to differences between the
management of current manufacturing processes and
management of the Summit, which focuses on the external
environment should be the object of control.
o Strategic management as a new approach to management
was formed in 1970 - 1980 years. Strategic management is
closely linked to issues of planning and economic analysis.
o Ansoff [1] as "an interrelated set of planning strategies for
organizing and implementing a plan of a life."


o is a field that deals with the major intended
and emergent initiatives taken by GMs on
behalf of owners, involving utilization of
resources, to enhance the performance of
firms in their external environments
(Hambrick:2007)


Changes in the state of the product, market,
industry, position in the industry, the
technology used in different growth
strategies, strategies for stabilization and
reduction strategies (withdrawal).


“Strategic management is an ongoing process that evaluates and
controls the business and the industries in which the company
is involved; assesses its competitors and sets goals and
strategies to meet all existing and potential competitors; and
then reassesses each strategy annually or quarterly [i.e.
regularly] to determine how it has been implemented and
whether it has succeeded or needs replacement by a new
strategy to meet changed circumstances, new technology, new
competitors, a new economic environment., or a new social,
financial, or political environment.” (Lamb, 1984:ix)

Concepts
/Approaches of
Strategic
Management

A global/transnational
Strategic management organization may
can depend upon the size employ a more
of an organization, and structured strategic
the proclivity to change of management model,
its business environment. due to its size, scope of
These points are operations, and need to
highlighted below: encompass stakeholder
views and requirements.

Transnational corporations are engaging in developing transition
economies through a broadening array of production and investment
models, such as contract farming, service outsourcing, franchising and
licensing.

• An SME (Small and Medium Enterprise)
may employ an entrepreneurial approach.
This is due to its comparatively smaller size
and scope of operations, as well as
possessing fewer resources. An SME's CEO
(or general top management) may simply
outline a mission, and pursue all activities
under that mission.

Four Approaches
to Strategic
Management

Whittington (2001) highlighted four
approaches to strategic management,
utilizing different factors that organizations
may face. These are the Classical,
Procession, Evolutionary and Systemic
approaches. Each paradigm is suited to
specific environmental factors, of which
global firms have faced over the past 4-5
decades.

Classical School (1960)

The Classical School (1960) of strategic management
essential points of the approach are "where are we
now?", "where do we want to be?" and "how do we get
there?". It thus comprises an environmental analysis, a
choice of available options, and determining a path for
action and implementation.

The initial task in strategic management is typically the
compilation and dissemination of a mission statement.
This document outlines, in essence, the raison d'être of
an organization. Additionally, it specifies the scope of
activities an organization wishes to undertake, coupled
with the markets a firm wishes to serve

Processual
• Processual strategic management thus emphasizes politics, in
terms of resolving/managing internal conflicts and reaching
compromises in strategic decision-making. Internal politics
may be required for the following purposes. Some functional
areas may require more resources, or be competing for the
same items from top management. A functional area could be
headed by a powerful manager, who by virtue of his or her
influence can impede general strategic actions.
• In these cases, satisfying differing viewpoints is key, in an
effort to resolve conflict and provide a common path for the
organization

Evolutionary
• In the 1980s, business environments became more dynamic. It thus
became key to "sink or swim", and adapt to the needs, challenges and
rigors of one's business landscape. In this sense, evolutionary strategic
management is essentially Darwinist, and follows a classical Darwinian
path.
• Organizations must develop or nurture traits that will help them survive
and prosper within their given markets. If they do not, they will perish. A
major facet of evolutionary strategic management is a population ecology
model, in which firms in an industry are seen akin to a population of
animals.
• Evolutionary strategy stems from an inability to track properly complex
environments. If an industry has continuously changing factors, rational
planning (as per the Classical school) is futile. An organization holds no
choice but to "adapt or die".

Whittington (2001)

Systemic
• In recent years, there has been greater emphasis on consumer
rights and the general social responsibility of companies.
Consumers are now expecting firms to act responsibly in their
business operations, and to take heed of numerous needs in
this process. It can be said, consequent from this eventuality,
that firms operate in a connected fashion with their
communities and societies, and necessarily impact and "give
and take" from such bodies.
• Systemic strategy views the organization as an open system,
in that it takes inputs from society and imparts outputs into it.
It thus is an integral and interconnected facet of the wider
society, and not an entity distinct from it. A rational planning
model is not seen as optimal, as it detracts from attuning to
the needs of the community and the wider society a firm
engages in.

Mintzberg has stated there are prescriptive
(what should be) and descriptive (what is)
schools, in the sense that the prescriptive
schools are "one size fits all" approaches
designed to work as best practice methods,
and the descriptive schools merely
describe how corporate strategy is devised
in given contexts.

The Industrial Organizational Approach

Two main approaches, which are opposite but
complement each other in some ways, to
strategic management:
1. The Industrial Organizational Approach
– based on economic theory — deals with issues
like competitive rivalry, resource allocation,
economies of scale
– assumptions — rationality, self discipline
behavior, profit maximization

2. The Sociological Approach

– deals primarily with human interactions
– assumptions — bounded rationality, satisficing
behavior, profit sub-optimality. An example of a
company that currently operates this way is
Google. The stakeholder focused approach is an
example of this modern approach to strategy

Strategic
Management
Techniques

Strategic Management Techniques

Strategic management techniques can be viewed as bottom-up, top-down,
or collaborative processes.

The top-down approach is the most common by far. In it, the CEO,
possibly with the assistance of a strategic planning team, decides on the
overall direction the company should take. Some organizations are starting
to experiment with collaborative strategic planning techniques that recognize
the emergent nature of strategic decisions

In the bottom-up approach, employees submit proposals to their
managers. who, in turn, funnel the best ideas further up the organization.
This is often accomplished by a capital budgeting process. Proposals are
assessed using financial criteria such as ROI, cost-benefit analysis.

Cost underestimation and benefit overestimation are major sources of
error. The proposals that are approved form the substance of a new
strategy, all of which is done without a grand strategic design or a strategic
architect.

It can be said that there is no overriding
strategic managerial method, and that a
number of differing variables must be taken
into account, relative to how a corporate
strategic plan is outlined. It can also be said
to be a subjective and highly contextual
process.

In terms of level of management strategies are ranked
as follows:
1) Corporate strategy - implemented in diversified companies and
includes: creating and managing a highly productive economic
portfolio of business units, creating a synergy among related
departments, establish investment priorities.
2) Business strategy involves: development of measures aimed at
enhancing the competitiveness and the preservation of competitive
advantages of firms, the formation of a mechanism to respond to
external changes, the union of the strategic actions of major
functional divisions of the company.
3) Functional strategy involves: steps to support the business
strategy, actions to achieve the goals department.
4)The operating strategy requires actions to address specific
business challenges of subdivision (a functional, territorial).

Management
POSDCORB is an acronym created by
Luther Gulick and Lyndall Urwick in
1937. Developed as a means to
structure and analyze management
activities, it set a new paradigm in
Public Administration

POSDCORB lists the functions of the
executives according to Luther
Gulick who was a well known member
of the classical school of POSDCORB
includes seven functions

Enterprise Management Strategy
 Enterprise management
strategy is guarantee of
realization of business
strategic innovation and
successful
implementation of
sustainable development.
 Human capital strategy
 Practical experience to
enterprises strategic
innovation

Leadership
Roles for
Making
Strategic
Planning

Leadership involves:

· The whole organization
· Leaders are defined by those that decide to follow
· Communicating the expectation
· Empowerment
· Sense of direction or vision
· Developing teamwork
· Inspiration and motivation
· Example
· Encouraging people to “step out”
· Encouraging people to “get it right”
· Engaging people’s hearts and minds

Stages of Strategic
Management

First Stage: Analysis of the Environment
The internal environment is analyzed in the following areas:
• Human Resources firms, their capabilities, skills, interests,
etc.;
• Organization management;
• Production, which includes the organizational, operational,
technical and technological characteristics, research and
development;
• Finance companies;
• Marketing;
• Organizational culture.

Second Stage: Develop a Strategic Vision
• Develop a strategic vision and mission of the enterprise,
the definition of goals and strategy selection are the
main tasks of choosing the direction of the organization.
• strategy provides (to ensure) the direction and
adaptation activities of the enterprise in a market
environment, the creation of a strategy - is first of all
entrepreneurial activity, policymakers increasingly must
focus on changes in the external environment than to
study the internal problems of the enterprise, a dynamic
strategy and in the process of enterprise development,
strategies for enterprise partially visible and partially
hidden from view.

First under the process is to determine the firm's
mission, which in concentrated form expresses
the meaning of existence of the company and
its mission. Next comes a process of
determining long-term goals. Completes this
part of the strategic management of a process
for determining short-term goals. Defining the
mission and goals of the firm leads to the fact
that it becomes clear why the company
operates and what it seeks

The third stage. Analysis and selection strategy

This is the main strategic management process.
Using special techniques the organization
determines how it will achieve its objectives
and implement their mission.

Fourth Stage. Implementation

Implementation of the strategy is a critical step,
because it was he who in the case of the
successful implementation leads the firm to
achieve its goals. Very often there are cases
when firms fail to implement the chosen
strategy.

 Implementation of the strategy through the
development of programs, budgets and
procedures, which can be regarded as medium-
and short-term plans to implement the strategy.
 In the process of implementing the strategy,
each level of leadership will carry out its specific
task and carries out the functions assigned to
him. A crucial role is played by top management.
His activities at the stage of implementation of
the strategy can be represented in the form of
five successive phases.

• Company's strategy consists of actions and
attitudes of management personnel to achieve a
certain goal of activity;
• strategy provides the direction and adaptation
activities of the enterprise in a market
environment, the creation of a strategy - is first of
all entrepreneurial activity, policymakers
increasingly must focus on changes in the external
environment than to study the internal problems
of the enterprise

Fifth stage. Assessment and Monitoring of the

Strategy
Assessment and monitoring of the strategy are
the logical last step, carried out in strategic
management. This process provides a robust
inverse relationship between how the process
of achieving the goals and objectives of the
organization.

The main task of monitoring:
definition of what is and what indicators to
check;
assessing the state of the controlled object in
accordance with accepted standards,
regulations or other benchmarks;
identify the causes of deviations, if any, shall
be opened as a result of the evaluation;
implementation of adjustments, if necessary
and possible.

Engineering provides both a
road map and a vehicle for an
enterprise's journey into the
future. The Enterprise
Engineering life cycle involves
a multi-phased approach that
coordinates strategic,
operational, and
organizational demands.

The following is a typical Enterprise Engineering
cycle:

1. Describe the enterprise mission in a brief
statement of purpose: what the enterprise does,
how, and for whom.
2. Make assumptions and gather data about external
factors; for example, government policies, rates of
inflation, markets, and demographic changes.
3. Assess enterprise strengths and weaknesses.
4. Establish goals and objectives and measures
linked to the enterprise mission.
5. Develop strategic and operational plans to meet
the goals and objectives.

6. Design/re-design and integrate cross-
functional processes to meet goals and
objectives.
7. Implement information systems that support
enterprise processes and assist decision-
making.
8. Evaluate performance to ensure that goals
and objectives are being met.
9. Reevaluate and change goals, objectives,
processes and measures as necessary.

Forms of Business

 Distinguish the differences between Sole
Proprietorship, partnership, Corporation &
cooperative

 Requirements for doing business in the
Philippines.

 Types of Employment in the Philippines

OECD Organization for Economic
Cooperation and Development.

Introduction: Strategic Management of Engineering Enterprise

Organization of the Development Strategy

 selection of personnel development, organization
of their work and control
 change management organizational structure in
accordance with the needs of strategic management
 human resources development in the strategic skills
and
 information and analytical support for the strategy
development process.

Organizational “Culture”: People,
Processes and Values

• Major Elements of Organizational Culture
• “Sociability” vs. “Solidarity”—or Task and
Relationship
• Managing People and Strategic Execution
Excellence

Topics
Assignment &
Oral Report
2-3 Topics Per Meeting
beginning July –Oct 2nd
Week 2012

Enterprise Development Strategies
a. Tourism & Environment (Eco Tourism)
and institutional factors of its development
•Green economy
•Global Green Economy Index
•Issues and Criticism
b.Entrepreneurship and growth strategies of
SMEs/Cooperatives
c.Organizational, operational and Technological development
d.Production
e.Financial
f. Engineering economics
f. Marketing

g. Techniques and Methods in Enterprise Engineering
h. Using the Balanced Score Card (BSC)

Strategies for Sustainable Development
Innovation and Business Strategies for
Sustainable Development

Globalization and Business Strategies
Management challenges in the New Millennia
(21st Century)

Reinventing Strategic Management
G8 Economy
Emerging Markets
BRIC

Tourism, Environment and Enterprise
Development Strategies

Tourism has become an important service industry all
over the world, and been playing a significant role to
poverty reduction. But with the development of
tourism, a number of problems appeared, such as
the double impact of environmental and cultural
crisis of the sensitivity and vulnerability, etc, both of
which have become the tourism industry problems
to be solved.

The role of tourism industry in the region’s
economy and institutional factors
of its development
 Ecotourism’ to ‘Sustainable Tourism’
 Responsible Tourism

Measurement: the existing situation
 Tourism Accounting
 Economic Impact
 Environmental Impact
 Livelihoods Impact

Green Economy
• Green Economy
• Global Green Economy Index
• Issues and Criticism

Entrepreneurship and Growth Strategies of
SMEs/Cooperatives

The importance of SMEs in the economic
development
 The issue of sustainable development of
SMEs
 key points influencing sustainable
development of enterprises

Enterprise Management Strategy
Enterprise management strategy is
guarantee of realization of business
strategic innovation and successful
implementation of sustainable
development.
 Human capital strategy
 Practical experiences to enterprises
strategic innovation

Production

• Organizational
• Operational
• technical and technological characteristics
• and development;

Financial
• The role of commercial banks in regional
economy investment
• Role of IMF/ADB and WB in global economy
and venture capital
• The method of “financial traffic lights” as an
instrument of overcoming
economic insolvency of business structures

Marketing
• Low cost producer: diversification, niche, hybrid,
marketing new products versus mature products
models, marketing of industrial vs. consumer vs.
“.com” products and services; and role of advertising
in marketing;
• This marketing orientation, in the decades since its
introduction, has been reformulated and repackaged
under numerous names including customer
orientation, marketing philosophy, customer
intimacy, customer focus, customer driven, and
market focused.

Techniques and Methods
in Enterprise Engineering

• Business process re-engineering
• Total quality management
• Enterprise architecture and
• Enterprise integration

Engineering Economics
• “Economics is the study of how people and society
choose to employ scarce resources that could have
alternative uses in order to produce various commodities
and to distribute them for consumption, now or in the
future” Samuelson and Nordhaus:1985, Economics,
12th Ed., McGraw-Hill, New York, 1985.
• Cost-effectiveness
• Typical Accounting Tools
 Time value of money
• Estimation of cash flows
• Quantitative measurements of profitability
• Systematic comparison of alternatives

Using the Balanced Score card as a Strategic
Management System

Introduction to the Balanced Scorecard
What is it?
Why do it?

Balanced Scorecard Fundamentals
The Four Perspectives
Measures, Targets and Initiatives
Roles and Responsibilities

Using the BSC as a Management System

Sustainable
Development
of Enterprise

Key Point of Influencing Sustainable
Development of Enterprise
• Conceptual positions of “The full potential of these new
innovative-competitive developments will depend on wise
policymaking and institution building by
economic relations governments and international
• Human capital as a organizations. Entrepreneurs and
businesses in developing and transition
structural element of economies need frameworks in which they
national wealth can benefit fully from integrated
international production and trade”.
• Nature, role and
evolution of social BAN Ki-moon, Secretary-General of the
institutions United Nations, 2011
UNITED NATIONS PUBLICATION
ISBN 978-92-1-112828-4
Copyright © United Nations, 2011

Innovation and Business Strategies
Sustainable Development

 Strategic innovation
 innovation tending model of entrepreneurs
under the uncertain environment, and
furthermore its application in the transition of
economies

Globalization and Business Strategies
Coordinated Development
 Globalization is a new phenomenon appearing since
1980s worldwide as the basic character of present
era.
 How to enhance the core competitiveness of
enterprises under the background of globalization.

Globalization from positions of economic
theory and practice of Philippine economy
Sociocultural features of modern processes of
globalization
Modern global ecological calls to mankind: to
the problem of concept definition and
classification

Competitive Advantage

 There are many ways of competition and strategies
of the company: production, product, pricing, etc.
 Competitive advantage - this situation of the firms in
the market, which allows it to overcome the forces
of competition and attract customers. Competitive
advantages are unique tangible and intangible assets
owned by the company that are strategically
important for the business areas of activity that
allow to win the competition.


• The basis of competitive advantage, thus, are
unique assets of the enterprise or a special
competence in areas important to the
business. Competitive advantage is usually
implemented at the level of strategic business
units and is the basis of the business strategy

• The strategy consists of a number of
approaches and disciplines developed by the
leadership to achieve the best performance in
a specific field of activity. The combination of
common and general competitive strategy
depends on the characteristics of the industry,
the overall competitive position of firms in the
environment, the characteristics of the
enterprise.

Reinventing Strategic Management

Conclusion
• Economic development strategies of
enterprises is becoming increasingly
important for enterprises, which are set in a
highly competitive, both among themselves
and with foreign corporations. Although
strategic planning is not in itself ensure
success, but it creates the conditions for the
emergence of a number of important and
often essential enabling factors for the
organization.

At the present stage of development is the
transformation of the whole complex of economic,
social, relations of power. And it is very important
that these changes are the most effective way,
taking into account the well-defined, scientifically-
based priorities. Current trends that are observed in
the external environment and within the country,
necessitated, and the desirability of an overall
economic development strategy of enterprises,
organizations, government bodies and local
government units

• These and other questions of equally significant
stature are ones that business leaders cannot
ignore. Indeed, if these leaders are to survive
they need to address them head-on. And in
doing so, they need to painstakingly examine
their current business strategies and hold
them up to the new realities and determine
what needs to be changed. In short, they need
to re-invent their strategies! A failure to do so
could prove fatal.

References:

• Deminskaya Julia. Strategy Engineering
Enterprise
http://masters.donntu.edu.ua/2011/iem/demins
accessed 6/24/2012
• Alan Perkins. Enterprise Engineering.Visible
Systems Corporation 1997
http://www.ies.aust.com/papers/EEMT.html
accessed 6/30/2012

Paul Samuelson and William Nordhaus,
Economics, 12th Ed., McGrawHill, New York,
1985cw.mit.edu/courses/chemical-
engineering/10-490-integrated-chemical-
engineering-i-fall-
2006/projects/eng_econ_lecture.pdf.

Samuelson and Nordhaus:1985, Economics,
12th Ed., McGrawHill, New York, 1985

• Nag, R.; Hambrick, D. C.; Chen, M.-J,What is
strategic management, really? Inductive
derivation of a consensus definition of the
field. Strategic Management Journal. Volume
28, Issue 9, pages 935–955, September 2007
• http://en.wikipedia.org/wiki/Strategic_management

Introduction: Strategic Management of Engineering Enterprise

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