Strategic decision making

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Management" No. 7, Moscow, p. 54-63

12.

Alekseev I, Butenko V, Jukova E, other. Uzbekistan - window of

opportunity. BCG, 2019, 56 p.

TalipovaN. T. PhD,Associated professor of the «International Economics»

Department Russian Economic University G.V.Plekhanov in Tashkent,

Uzbekistan

Fayzibayeva N.T.PhD, Associated professor of the « International Economy»

Department University of World Economy and Diplomacy, Uzbekistan

STRATEGIC DECISION MAKING

TalipovaN, Fayzibayeva N

Abstract: In the article, the authors analyze matrix models when

strategic decisions making in the economy. The main factors, opportunities
and problems in applying matrix models are considered and analyzed.

Keywords: matrix models, management, management strategy, factors,

methods of influence

Introduction
In industrial sphere problems of development of the proved strategy in

relation to paid products and services will be actualized. For the decision of
this class of problems - so-called models widely approved in foreign practice
portfolio analysis which it is especially successful, apply in conditions mass
and a batch production.

Generally speaking, this class to become especially perspective, for the

enterprises which leave in Internet with the offer of production and services
- cardinally expands its market space and makes tempting a problem of a
conclusion to the market of such new products and services which would
have the mass consumer.

This circumstance defines interest to possible appendices of models of

classical management and the marketing, successfully used by the western
industrial firms, for development of the proved strategic decisions both
concerning information bodies as a whole, and concerning separate
information products or categories of consumers of information services [1-
3].

Now besides traditionally represented services of information search

in a databank multiplying, educational, it is possible to observe and services
which were unusual for the enterprises, such as intermediary, consulting,
advertising, telecommunication earlier, rent, polygraphic, expert, search,

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hire, trading, help, intermediary, restoration, a photo, cinema, video of
service etc.

However in many cases the set of the services making a so-called

portfolio, is formed in many cases spontaneously while the market economy
directly touching the enterprises, demands from them development of the
proved market strategy with reference to each of units of a portfolio of paid
services.

Modeling in economics
The idea of classical models portfolio the analysis will consist in

positioning each of kinds in some coordinate space and the differentiated
choice of strategy with reference to each of kinds of production depending
on its coordinates. For presentation of results matrix representation of
coordinate spaces is used. Portfolio analysis is directed on:

1) Reception of the maximal profit during the most long time;
2) Financial stability for the account недопущения sharp failures in an

industrial and marketing policy;

3) Duly replacement of one products and services by others, more

perfect and viable;

4) Rational distribution of financial streams with precise

understanding of what products are donors, what are investment recievers,
and what for reasons.

In the organizational plan portfolio analysis is based on the concept

strategic business - units, independently managing units [4,5].

This concept assumes realization of a complex of the organizational

actions connected to transition from linearly - a function chart of
management to дивизиональной with delegation to divisions of the
corresponding powers providing them sufficient independence. Allocated
business – unit (BU) should work directly in the market, instead of be
engaged in service of other divisions, have the consumers and competitors,
and management should supervise the factors providing successful work in
the market.

One of the most widespread models портфельного the analysis is the

matrix of Boston consultative group (Boston Consulting Group), named also
a matrix « a growth - share of the market » since as coordinates parameters
of a relative share of the market and rates of growth of the branch market
(fig. 1) here undertake.

"Stars"
To invest with the purpose of increase
in a share of the market

« Difficult children »
To increase a share of the market or
no-invest

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Figure 1.High Low
Positioning of a full spectrum of information production and services of

the companies on matrix BCG allows to formulate the basic strategy which
should продерживаться BU. Having serious theoretical base method BCG is
simple and evident. From practical point of view BCG allows to receive
simple and evident representation about a place and comparative force of
every BU in coordinative portfolio, to analyse dynamics of development and
to formulate perspective strategy for every BU, also to make the proved
decisions on the redistributed financial streams between various BU with
the purpose of realization the chosen strategy.

On fig. 1 area of circles reflects a share in total proceeds from realization

of a product, and allocated sectors - a share of the market in comparison with
the nearest competitor. The matrix the Poppy - Kinzey offered by company
General Elestric and firm McKincey, called “ appeal a branch - position in a
competition ” has three graces 3х3 (fig. 2).

Figure 2.

Aggressive growth
To invest or hold positions
"Stars"

To invest, re-invest
profit

Selective growth
To invest, re-invest,
leave.
“ question signs ”

Re-invest profit or to take
the maximal profit

Take maximum benefit
or leave

To remain or leave
slowly

Low activity
To take the maximum
benefit or leave
“ double investments ”

Slowly leave

No-invest
leave quickly (slowly)
or remain
"Refusal"

Here long-term appeal of branch is considered as the integrated

characteristic, determined proceeding from an estimation of the certain set
of factors. Thus in various situations various factors can be involved,
including:



The capacity of the market and its prospective growth;



Technological condition;



Availability of the market;

To invest only for maintenance of a
share of the market to put means in
other directions
«Investments »

To no-invest and liquidate business
"Refusal"

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

Profitableness of branch;



Degree of an acuteness{a witticism} of a competition;



Duration of life cycle (LC);



Seasonal and cyclic fluctuations;



Degree of dependence on a social and political situation, state

regulation, etc.



The estimation of a concrete position also occurs from values of some

set of corresponding factors:



Relative share of the market in relation to the leader;



Relative level of expenses in comparison with the direct competitor;



Degree of development of technology;



Level of management and level of profitableness concerning

competitors;



Opportunity to compete under the prices and quality;



Image, degree of popularity of production, etc.

Estimations of appeal and competitive position are made for each of

kinds of production then the matrix Poppy Kinzey is under construction.
Model BCG and Poppy - Kinzey are guided by short-term prospect. That it is
better to identify the kinds of business which are taking place on rise, and to
take into account long-term prospect (forecast), involve the models using
the concept of life cycle (LC).

On fig. 1 and 2 diagonals blacked out cells of a matrix are zones with a

low priority for the investment, not filled diagonal - with an average priority,
and filled light grey наддиогональные - with a high priority. The model the
Poppy - Kinzey, despite of the complexity, has received the big distribution.
The set of variations of the given model connected both with increase of
number of considered factors, and with expansion of set of strategic
decisions is known. The model "ADL/LC" (Arthur D., Little Life Cicle) is one
of the most widespread models using concept LC (life cycle) business - units
(BU) or branches. Here it is supposed, that any business consistently passes
stages of a birth, development, a maturity and recession in the existence.

The analysis of a position of concrete business is carried out in

coordinate axes «a LC stage of a product - relative position in the market (a
competitive position of business) ». According to model, relative position of
business in the market can be the leader, strong, appreciable, strong, weak.
Procedure of a choice of strategic decisions on a matrix (4х5) will consist of
three steps. On 1-st step strategy preliminary and in the general form is
defined according to what cell of a matrix is occupied with the given concrete
business. On 2-nd step positioning business inside the given cell of a matrix
is taken into account.

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Depending on a position the choice of lines of the further movement of

business and a concrete definition of strategy though formulations of
strategy here too have still the general character here is carried out. For each
of cells of a matrix there are possible strategic routes by natural
development and a line of selective development (fig. 3) and, according to a
choice, the set of the specified strategy.

Therefore on 3-rd step the choice of the specified strategy

corresponding to the chosen way of development of business is carried out.
Here for each of possible situations the concrete set of combinations from
24 specified strategy is offered, and the last are formed in terms of economic
operations. The strengths describing relative position of business in the
market, can define also variables, as: a degree of patent security; a
production efficiency; a degree of vertical integration; the attitude of
management to probable risks, etc. The received integrated estimations
basing use of weight factors and the expert data, can be dictated by a
concrete situation. Within the framework of model carrying out not only the
static analysis, and also forecasting, both in short-term, and in long-term
prospect is possible.

The advantages and the lacks are inherent in each of the considered

models. Therefore at a choice of strategy it is recommended to not be limited
to one model, and to try to construct all three matrixes, that the portfolio
from various positions, on the one hand, allows to consider, and with
another - will help to reveal the errors admitted at construction of models.

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Jackson Grayson, Harla O’Dell. American management on the

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Meskon M. H., Albert M., Hedouri F. Fundamentals of Management

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Talipova N.T. Food Security Risks under Climate Change. X

international scientific-practical conference "Analysis, forecast and
management of natural risks taking into account global climate change
Georisk - 2018", 2018, p. 125-131

4.

Ansoff I. New corporate strategy. - St. Petersburg: Publishing House

"Peter", 2001, 215 p.

5.

Vinokurov V.A. Organization of strategic management at the

enterprise.- M.: Center for Economics and Marketing, 2001.-274 p.