Current situation and trends in creating corporate strategy

Abstract

Purpose of the article In current corporate practice, strategic situation analysis methods fail in generating corporate strategy. Not all analytic tools can be considered suitable and effective. The article presents the results of complex research on business entities in the Czech Republic focused on the area of creating corporate strategy, or the level and anticipated trends in strategic management and decision-making.

Methodology/methods The tested sample included 456 companies from the Czech Republic, further classified by their size (109 micro enterprises, 140 small enterprises, 124 medium-sized companiesand 83 companieswith more than 250 employees), sector (201 manufacturing and industrial enterprises, 255 companiesfrom the services sector) and location of their business activities (189 regional companies, 126 national companies and 141 multinational companies). By using Pearson´s chi-squared test, dependence / independence of selected internal and external methods of strategic situation analysis on creating corporate strategy are tested.

Scientific aim The objective of the article is to analyze and assess the application of the strategic situation analysis methods in creating a corporate strategy and the corporate sphere top managers awareness of such methods.

Findings The results obtained showed that the application of strategic situation analysis is insufficient and rather schematic. In a number of cases, it was found out that top managers often lack knowledge of basic rules and principles of strategic corporate management.    

Conclusions In the period of slowing economic growth, insufficient application of strategic situation analysis methods can be considered a critical element in terms of a company future competitiveness. In the conclusion, the authors present a vision of a new approach in generating corporate strategy based on the industry value chain and new approach to determining and analysis of business environment.