Proceedings of The 5th International Conference on Management, Economics and Finance
A study of the strategic planning practices in Hungary and Romania
Beáta Bittner, Tünde Zita Kovács,, Adrián Szilárd Nagy, András Nábrádi
The strategic management process is aimed at allowing organizations to adapt and change effectively over the long run. Firms without a well thought out strategic plan and constantly evaluating and updating their plans are more likely to lose market share to competitors. However, the theoretical background of strategic management dates back to the 1960s; in practice, many organizations, especially micro and small enterprises, still do not apply established strategic planning tactics today. The present study seeks to answer the question – using a database of ongoing research – whether or not firms in the sample use traditional strategic planning techniques. The developed database was analyzed and processed utilizing SPSS 25 statistical software. First, descriptive statistics and frequency analysis were performed, followed by a two-sample t-test and ANOVA to explore the existing relationships. For the multiple mean comparison test, the Tamhane test was used to analyze for differences in variables. As a result of the evaluation, the authors found that 67% of examined companies indicated they do not have a formal strategic plan. The majority of the reason was that they do not consider it necessary, nor do they feel helpful in their business practices. In terms of distribution, it can be said that 100% of large companies have a plan; until then, the lowest proportion was among small enterprises. There this value is only 15%, which also lags behind the values of the micro-enterprises we examined. The present study details the explanations given by the interviewed firms for this practice.
keywords: strategy management, strategic planning, business practice.