Strategic Management in Lithuania: Application Possibilities Cover Image

Strateginio valdymo panaudojimo galimybės Lietuvoje
Strategic Management in Lithuania: Application Possibilities

Author(s): Edmundas Smilga, Valentinas Dubinas
Subject(s): Economy
Published by: Vytauto Didžiojo Universitetas
Keywords: strateginis valdymas; strategijos; aplinka; direktorių taryba; aukščiausio lygio vadovai; palankios nišos; strateginiai langai, strategic management; strategies; environment; board of directors; top managers; propitious niches; strategic windows.

Summary/Abstract: State management in Lithuania shows that the country still lacks the culture of strategic mind. That situation in recent years has prevented from getting better results in social and economic development and from reaching potential competitiveness in respect to foreign countries. In Lithuania only 7 percent of manufactured production corresponds to the high technology’s level. Modern strategic management involves four main elements: environment scanning, strategy formulation, strategy realization, and evaluation and situation control. In order to scan external and internal environment there must be prepared such variable dimensions which could show the work of an organization not only at present, but also could serve for the purposes of formation of effective strategies for the future. In Lithuania dominates small and intermediate enterprises, therefore the formation of cooperative strategies is very important as it enables companies to collaborate with other companies of the same branch and by forming strategic alliances they could master expensive technologies and get access to new markets reducing financial and politic risk. The realization of prepared strategies depends on the activity of strategic management institutions. The main role in such institutions falls on the boards of enterprise directories and ministry colleagues. Their activity field must be expanded towards strategic planning, because the latter correlates financial results of companies, therefore the activities of ministries should be targeted to the creation of modern and real programs. The quality of strategy preparation for the most part depends on activities and responsibility of top managers, who on the one hand must be leaders when preparing the vision of their company’s functions and the strategic planning leaders on the other hand. From the activity of top managers depend on social responsibility and etiquette of strategic decision making. Strategies must conform to valid laws and regard etiquette. It means that projecting production must be socially responsible and correspond to the requirements of harmonious society. The above mentioned elements must be reflected in the etiquette code of a company, which is the main juridical document designating the behavior that employees are awaited of. The formulation of strategies depends on the stage at which an organization is functioning. Four stages must be identified in order to realize the formulated strategies in practice. The most complicated is the formulation of strategies at the fourth stage when strategies are formulated for each business unit, managed according to the organizations division structure. The stage development of organizations depends on the organizations life cycle: birth, increase, maturity, fall and death. Throughout that process propitious niches and strategic windows are very important and their mastering is complicated. It is necessarily to apply SWOT (strengths, weaknesses, opportunities, threa

  • Issue Year: 2008
  • Issue No: 47
  • Page Range: 23-42
  • Page Count: 20
  • Language: Lithuanian