Tsygankova N.A., Moiseieva F.A.
Donetsk national university of
economics and trade
named after Mykhaylo
Tugan-Baranovsky
STRATAGIC PLANNING AS BASIS OF EFFECTIVE BANK ACTIVITY
The
strategic planning is a process of determination main aims for a future and ways
of their achievement. The strategy of development is a general conception,
which is to be the basis for acceptance the key administrative decisions. The
strategic planning is a factor which includes relation between desirable level
of profitability, possible risks, and methods of achievement the aim. A
strategic management in commercial bank is a complex of administrative
processes and functions which provide realization of mission and strategic aims
of bank activity.
The general
strategy of development is realizing for all bank establishments as for one economic
unit during a long period. Strategic
planning does not foresee limitation for realization of purpose as a rule. The
strategy touches conceptual and important direction for a bank activity. The
development begins with determination of the system of strategic aims of a bank.
The strategic
plans are used to be at a long-term prospect. They based on the analysis of
existent progress of economy trends, financial markets. Plans also contain the elements
of prognostication and description of basic principles of making decision.
There
are no details and exact dates of implementation in strategic plans. So I fully
agree with that assertion that the strategic planning is not the simple fixing
of bank activity indicators in long-term prospects, but foresees the choice of
such directions and spheres of bank activity, which will provide the growth of
its competitiveness. Taking into consideration the strategic planning is a
function of bank development, and corporate strategic planning - the function
of time.
The development
of strategic plan is based on the results of structural subdivisions bank activity.
A strategic analysis enables to carry out the estimation of bank, to find out
its features of development according to external and internal environment. The
strategic planning supports the formulation of informative base for
prognostication and the optimum choice of the strategy development. The
important line of strategic analysis is an orientation on a prospect. The
management of a bank must foresee the perspective estimation of a bank activity.
The
economists noticed that a strategic plan does not need permanent update and
correction in the conditions of stable environment. The strategy formulation doesn’t
impact on bank activity in such case. The strategic plan becomes the most necessary
element of providing the successful bank activity in the conditions of dynamically
developed markets.
The
high-quality methods of researches are usually used in a strategic analysis
(diagnostics, interviewing, scanning-out, heuristic methods, benchmarking, and
factor analysis).
The most known method of strategic analysis
is SWOT. This method is adopted after the initial letters of the English words:
Strength - strong parties, Weaknesses are weak parties; Opportunities are
possibilities, and Threats. The method enables to discover and estimate strong
and weak parties of bank activity, potential possibilities and risks.
The logical
continuation of swot-analysis became the method of SPACE. Here the economists concentrate
attention to the financial aspects of activity. That is why I consider it is
more acceptable to all banks. The method of pest-analysis is used for research
of external environment. This method adopted after English abbreviation Policy,
Economics, Society-company, and Technology. It’s directed on minimization of
negative influence of macroeconomic factors and use of the favorable state of
market. A factor analysis is a determination of influence of separate factors,
reasons, on the effective index of the research. Benchmarking is a continuous
process of comparison of commodities, production processes, methods and other
parameters of the enterprise, with is to be analogical by structural
subdivisions.
Taking
to the point methods of the strategic planning, it is possible to come to conclusion,
that it’s necessary to use complex methods in this question for adjusting effective
profitable bank activity. It’s necessary to analyze external and internal
factors by a swot-analysis at first. It will give the possibility to form the strategy
of a bank including advantages and disadvantages. To revise the range of own
goods and services from the point of demand and perspectiveness. It is
expediently to apply a factor analysis. It will give the possibility to find
out the reasons of rejection of actual results from planned.
The
system of all these measures will give the possibility to estimate the
situation and prospects, to define the position on the market. It became possible
to find out failings, to accept optimum administrative decisions.
Research
in the area of the strategic planning, has also some difficulties:
-
It can be quite difficult in the high changeable terms of environment (a
company and economy is unstable);
-
It can provocate to go to
dangerous changes in current plans, instead of beginning everything again, coming from a new prospect;
-
Strategic planning is deal with
the heavy costs and production labour, when they are needed for the decision of
current problems;
-
The strategic planning - valuable measure. The budget of organization
has no money for consultants, organization of meetings with specialists and
other necessary charges.
All
these difficulties are incomparable with the effect which became valuable.
To keep
to the point, we can summarize, that the strategic planning is process and phenomenon
of prediction future and could be interpreted sufficiently widely. Scientists
examine it as a process of preparation and making certain type of decision, as
providing of preparedness for competitive activity on markets, as formulation
of aims and determination of ways of their achievement.
Not a
single bank can successfully function without conceptual principles of the
development at modern economic terms. The strategic planning grew into the
obligatory constituent of effective bank management.
The
strategic planning itself can not be a panacea from all «illnesses» of bank development.
But effective bank management activity impossible without planning.