The Cornerstones of Corporate Strategies in Slovenia and Croatia (Research Note)

Zusammenfassung

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In our study, we managed to include companies involved in six different industries. Diversification is the most frequently used corporate strategy. Our study reveals that 43.3% of companies diversified through external means, 26.7% diversified through internal means, while 30% diversified through both internal and external methods. Retrenchment strategies are relatively unpopular because retrenchment seems to imply failure. The orientation of most top management towards growth strategies has resulted in a strong preference for acquisitions and joint ventures. 90.3% of companies are expanding their operations internationally. In our paper, we also examine the motives for developing a specific corporate strategy. Special attention is given to the core competencies and skills that have proved to be the cornerstones of the competitive advantages of companies.

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Auszug

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The Cornerstones of Corporate Strategies in Slovenia and Croatia (Research Note)

1. Introduction

Our paper presents some insight into the corporate strategies of companies in Slovenia and Croatia. Slovenia and Croatia have been undergoing transition since 1991. The principal concern of corporate strategy is to identify the business areas in which a company should participate in order to maximise its long-run profitability (Hill, Jones, 1998). To create value, a corporate strategy should enable a company or its business units to perform one or more of the value creation functions at a lower cost or perform one or more of the value creation functions in a way that allows differentiation. Thus, a company's corporate strategy should help in the process of establishing distinctive competency and competitive advantage at the business level. It is a link that many companies appear to have lost of sight of.

Slovenia and Croatia are new European states, founded in June 1991. In the last decade they have been faced with a three-way transition process: the transition to an independent state; the reorientation from former Yugoslav to Western developed markets; and the transition to a market economy. The Slovenian industry and som...

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