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1. Introduction
1.1 Background
Nowadays strategic planning in the current economic climate is an important process of sur-vival in a competitive environment. Strategic planning is the process of modeling the aviation busi-ness in the long term (Tatum, 2012). Strategic planning provides for timely and adequate accounting changes, both in the external and internal environment in the operation of the business to achieve its strategic goals. Tools of strategic planning is an effective mechanism to adapt to the dynamics of the aviation enterprise market in the face of uncertainty, so its use can now deliver the desired performance of the economic entity in the foreign markets in the long term (Taylor, 2012).
Activities of most Russian aviation companies in overseas markets characterized by a lack of strategic guidelines, which significantly complicates the effective development of foreign trade, the problem is quite acute (Abell, 2009).
As change in the world and in the aviation industry accelerates, aviation companies have to tackle more challenges in the future. The extent to which a company can effectively select and achieve a corporate strategy is directly related to its strategic planning process; and often, the strategic planning process is based on organizational structure (Barksdale, 2012). Organizational structures have different strategic planning processes (Steiner, 2011). Each element of an organizational structure has specific functions related to strategy formulation and implementation. Hence, how to define and implement a strategic planning process and how to select effective analytical tools for developing strategies have become of critical im-portance for aviation companies (Kaufman, 2003).
Outside market opportunities determine a company"s strategy. Based on a knowledge of the nature and location of aviation opportunities, a firm can find out: in which market sec-tor its business exactly wants to achieve; and how the firm can accomplish its goals, such as carefully selecting a suitable structure to execute its missions (Jackson, 2007).
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2. Theoretical framework
2.1 Concept of strategic planning
Strategic planning is an organization"s process of defining its strategy, or direction, and mak-ing decisions on allocating its resources to pursue this strategy (Barksdale, 2012). In order to deter-mine the future direction of the organization, it is necessary to understand its current position and the possible avenues through which it can pursue particular courses of action.
Many organizations view strategic planning as a process for determining where an organiza-tion is going over the next year or – more typically – 3 to 5 years (long term), although some extend their vision to 20 years, or even (in the case of Mitsubishi) 500 years. George Friedman in The Next 100 Years summarises «the fundamental principle of strategic planning: hope for the best, plan for the worst» (Friedman, 2007).
The key components of "strategic planning" include an understanding of an entity"s vision, mission, values and strategies (Bruton & Hildreth, 1993). In the commercial world a «Vision Statement» and/or a «Mission Statement» may encapsulate the vision and mission.
Vision: outlines what the organization wants to be, or how it wants the world in which it op-erates to be (an «idealised» view of the world). It is a long-term view and concentrates on the fu-ture. It can be emotive (Phillips & Moutinho, 2000) and is a source of inspiration. For example, a charity working with the poor might have a vision statement which reads «A World without Pov-erty».
Mission: Defines the fundamental purpose of an organization or an enterprise, succinctly de-scribing why it exists and what it does to achieve its vision (Warner, 1996). For example, the charity above might have a mission statement as «providing jobs for the homeless and unemployed».
Values: Beliefs that are shared among the stakeholders of an organization (Ortega, 1989). Values drive an organization"s culture and priorities and provide a framework in which decisions are made. For example, «Knowledge and skills are the keys to success» or «give a man bread and feed him for a day, but teach him to farm and feed him for life». These example maxims may set the pri-orities of self-sufficiency over shelter.
Strategy: Strategy, narrowly defined, means «the art of the general» - a combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there (Mintzberg, 1996). A strategy is sometimes called a roadmap - which is the path chosen to plow towards the end vision. The most important part of implementing the strategy is ensuring the company is going in the right direction - defined as towards the end vision.
Organizations sometimes summarize goals and objectives into a mission statement and/or a vision statement (Allison, 2003). Others begin with a vision and mission and use them to formulate goals and objectives. A newly emerging approach is to use a visual strategic plan such as is used within planning approaches based on outcomes theory (Shelleman, 2002). When using this approach, the first step is to build a visual outcomes model of the high-level outcomes being sought and all of the steps which it is believed are needed to get to them. The vision and mission are then just the top layers of the visual model.
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