The Relation between the Strategic Management Tools and Techniques and Organizational Performance: a Literature Review

článek ve sborníku ve WoS nebo Scopus

angličtina

Nowadays strategic management and strategic planning play the significant role in the decision making process of a company. In order to survive and succeed in the fast changing environment, a company should understand the importance of strategic management and planning and their influence on the financial and non-financial performance and purposefully utilize the strategic management tools and techniques (hereinafter SMTT) for successfully development of a company. The strategic management tools and techniques are the significant elements in the process of strategic management (Clark, 1997; Vaitkevičius et al., 2006; Aldehayyat and Anchor, 2008). In the conditions of rapidly changing markets strategic management tools and techniques start to be more and more important for the managers and CFOs. The main idea of the SMTT is to support managers in strategic decision making, which includes the definition of strategic directions, the establishment of goals, and their positions and behavior monitoring. The previous literature is focused mostly on the strategic management and planning in general. For example, there is significant correlation between planning orientation and financial performance (Bracker et al. 1988). And there are some studies that empirically prove the existence of positive linkage between strategic planning and organizational performance (Dess and Robinson, 1984; Pearce II, 1987; Bracker et al., 1988; Gibson and Cassar, 2005). In the 1990 the use of strategic management tools and techniques has been inseparably linked with strategic planning (Webster, 1988; Clark, 1997; Frost, 2003). Regarding to this theory this paper suggests that strategic management tools and techniques have influence on the financial and non-financial performance. However there are few studies according the relations between the SMTT and organizational performance (Iseri-Say et al., 2008; Friedl and Biloslavo, 2009; Efendioglu and Karabulut, 2010 etc.). Only recent years academics and practitioners put attention exactly on this issue. The comprehensive and structured analysis of existed worldwide studies according the relation between the SMTT and organizational performance will bring the significant knowledge about the development of strategic management and highlight the importance of the SMTT utilization among companies for stable further growth. According to the survey of the Czech companies in 2010-2011 on the theme of the SMTT utilization these tools and techniques were ranked based on the companies preferences in their usage. We took Top 10 tools and techniques by utilization, in order to specify our theoretical analysis to Czech current practice and make our analysis of the influence of the SMTT on the organizational performance more applicable for Czech companies. The chosen tools and techniques are following: SWOT analysis (93%); Customer Satisfaction Analysis (82%); Price analysis (77%); Analysis of views and employee attitudes (77%); Cost-benefit analysis (70%); Analysis of customer complaint (69%); Analysis of customers opinions and attitudes (66%) Porters 5 forces (64%); PEST analysis (64%); Level of service analysis (62%), Market share analysis (58%) Market segmentation based on customer needs and wishes (58%). The provided analysis of the relation between the SMTT and financial and non-financial performance is based on the literature research of the worldwide studies on investigated issue. The most used strategic management techniques and tools were sorted out on the base of the previous primary research among Czech companies in 2010-2011. This paper provides the unique structured analysis of relations between the SMTT and organizational performance divided as financial and non-financial performance. And what is more, we also examine the influence of the most used strategic management tools and techniques on the organizational performance based on the literature review.

Strategic management tools and techniques, strategic management, financial performance, non-financial performance, Czech companies

AFONINA, A.; MOKHOVA, N.; CHALUPSKÝ, V.

2012

20. 9. 2012

Brno University of Technology

Brno

978-80-214-4581-9

Trends in economics and management for the 21st century

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