FORMATION OF PRINCIPLES OF STRATEGIC MANAGEMENT IN SMALL BUSINESS

Abstract

The article is devoted to the formation of principles of strategic management in small business. Strategic management has already been formed into a science by now, many scientific studies tested in practice are presented in textbooks, methods and models of strategic management have been formalized, strategies have been systematized and classified. However, strategies have become "demonstration" in nature, have become formal documents that are drawn up and then forgotten. Strategic management has traditionally been considered only in large organizations (opportunities, resources), small businesses, recognized as short-lived business organizations, have limited their interests to operational and tactical management. The article substantiates the need for strategic management in small businesses, reveals that well-known and traditional methods and models of strategic management are not applicable to small businesses. The purpose of this study is to find out the possibility of using strategic management in small businesses and determine the basic principles of management. It has been revealed that change management is now in the greatest demand, it can be considered as a new business platform for strategic management. The article provides a brief overview of the main change management models; a conclusion is made about the possibility of using these models in small businesses. It is proposed to distinguish operational, tactical and strategic changes; the process of managing strategic changes is proposed to be defined by the process of identifying strategic needs and strategic opportunities. The article formulates ten principles of strategic management in small business: the obligation of a formal and clearly structured strategy, the regularity of strategic management, the obligation of strategic thinking of the manager/owner, the possibility of combining the functions of production and financial management; the importance of maintaining the informal nature of the exercise of power, the possibility of strategic management based on a new business platform - change management, the need for small businesses in the conditions of lean production to focus on maximizing sales, the obligation of innovative development.