48^th International Scientific Conference 2017

INTER RELATION OF COMPANY'S MANAGEMENT AND STRATEGY AND THE RATIONALIZATION OF THE MANAGEMENT AVAILABLE OF RESOURCES

Živko Erceg, Predrag Đurić, Boris Novarlić, Aneta Risteska Jankuloska

Abstract:  In conditions of globalization and market instability, there is a growing need for adopting a rational management concept of available assets in an enterprise. The global economic and financial crisis, which began in early 2008 and is still "deeply rooted" in transitional countries, such as the Republic of Srpska, is changing the philosophy of business of successful, but also all other companies that are trying to "compete" in an increasingly demanding market. Therefore, the aim of this paper is to prove that the rational management of the available funds indirectly contributes to the business success and sustainability of economic entities, by choosing an appropriate management strategy. The survey was conducted on the territory of 5 towns and 4 municipalities in the Republic of Srpska, on a sample of 130 companies. We found that as much as 90.00% of all respondents think that the rationalization of capital management significantly influences the formulation of the company's strategy, while on the other hand 80.00% of the respondents consider that rational engagement of the capital positively influences the creation of a competitive advantage of the observed company in the target market.

Keywords:  efficiency and effectiveness, globalization, rationalization, management strategy

Published: October 6, 2017.  p. 13-22   PDF