Strategic Management and Decision Making of Small and Medium-Sized Enterprises in the Czech Republic

Abstract

The topic of strategic management and decision making was underestimated by SMEs for a long term. Managers believed that experience, intuition and operability are the key success factors of their management work. These opinions have recently been abandoned in the management practice. This paper is focused on the analysis of strategic management and decision making and presents the outputs from research based on a test sample of 381 enterprises, of which 114 microenterprises, 141 small enterprises and 126 medium-sized enterprises. The company size categorization within this sample is corresponding to the SME structure in the South Bohemian Region. Lack of awareness of procedures for development of essential strategic documents such as vision, mission statements and a corporate strategy was observed. More than 60 % SMEs do not have such documents. are Similar results were obtained with respect to the development of a corporate strategy using the methods of a strategic situation analysis. This finding is alarming and its adverse impact can primarily be expected in a period of economic recession or downturn.

Keywords

• strategic management
• vision, mission
• corporate strategy
• situation analysis