Capitalization of the corporation on the basis of planning its strategic development

As you know, the market capitalization of a corporation is the aggregate value of all its shares, determined, as a rule, on the basis of the summation of the private capitalizations of these shares. According to the established practice, corporate capitalization is one of the main characteristics of its success, although it does not always adequately show the state of affairs in this company. The reason for this situation is that the capitalization of a corporation company depends to a large extent on future possible incomes. That is why strategic planning for the development of corporations involves the introduction of planning activities.

Large companies are very interested in carrying out such planning, not only in themselves, but also with business partners. Capitalization of the corporation, with this approach, becomes quite predictable indicator.

Under the influence of TNCs, on the scale of individual states, different systems of central planning have developed. For example, in the US, in addition to intra-company, there is a private centralized planning. It is run by a core of 12 financial groups, which have almost 10% of the assets of all corporations in the country and control 60% of US stocks.

Relations between monopolies still remain competitive, although significant changes have taken place here. If in pre-monopoly capitalism, for example, from 4,310,000 manufacturers in a particular industry, 100 firms were killed, then for other competitors, the market size increased by 1%. With a modern oligopolistic structure, if, for example, even one participant perished from the 4 economic units of the industry, the market for each of the remaining ones will increase by 25%. Therefore, the intensity of competitive links is immeasurably increasing. If today the oligolist does not introduce new products, he will not have time for the policy of his competitors - his fate is predetermined.

The economic dominance of corporations is perceived not as dominance, but as a "distribution of roles", which is formed on the basis of objective laws, the effect of which determines the ratio of different forms of ownership, capital and the overall development of society. The realization of corporate potential is possible only in a society where both the monopolist and the small entrepreneur are equally responsible to him.

The corporate world is heterogeneous, each corporation has its own characteristics, both the management structure and the internal development mechanism. Capitalization also becomes a competitive parameter in this case, which determines the company's value in the market.

The fact is that capitalization may be insufficient. This happens when there is a significant disparity between economic capital and the capital of a particular corporation. Planning in the corporate business, just helps to eliminate this unfavorable imbalance.

Today, corporate planning and various integration models have become quite widespread. In the context of competition with state enterprises, large corporations already receive a priori preferences, because the very extent of the state contributes to this competition. The government can not fail to show interest in such enterprises both for economic and social reasons. Therefore, the state often provides them with various benefits - financial, customs, and in extreme cases even saves them from collapse. In turn, the largest firms, corporations and especially TNCs, largely determine the policy of the state, and not only in the economic field.

Advantages of corporations have caused their significant role in the world market since the end of XX - beginning of XXI centuries. The logical consequence of this was their desire to unite. The condition for such a merger was the agreement on the preservation of legal independence. After all, competition is connected to them with great risks, so they prefer it to union. And one of the important consequences of this development was the expansion of the scale of the planned. Planning has become an objectively necessary attribute of monopolized production, since TNCs do not risk releasing goods for an unknown consumer, into the market element, from which the company's capitalization suffers, first of all.