engleski

Reasearch-developmental work a key factor of strategic management

All the economic entities have to permanently work upon a long-term stability of business transactions. That means that the management of the firms has to set up the long-term objectives, methods, and means for their realization, i.e., to establish a business strategy. The very term strategy originates from the Greek word strategos, which means the “military leader.” The definition of a business strategy implies the anticipation of business transactions in the future, which many entrepreneurs forget, being encumbered by different momentary problems and other objective or subjective reasons. The stability of an economic entity may be safeguarded not only through the definition of a business strategy but also through the management of process to realize the long-term objectives. Thus, the strategic management is a process that starts with the establishment of elements of a business strategy, which might be preceded by certain vision, or even mission, of a firm. In that process, the managers take part with their specificities with regard to the styles and modes of operation. Different intern and extern factors exert their influence upon the quality of process of strategic management. The process of strategic management has to respect the factors that most efficaciously take part in the process, one of which undoubtedly is the research-developmental work, the activity that proceeds permanently together with the operational efforts. The research-developmental work is the activity the aim of which is to create a new product or a service but also any other innovation in the domain of organization, financing, marketing and other business functions. The value of these activities is manifested in the fact that already the strategic goals imply innovations, so that the results of this activity have a long-term character. Therefore, the development of a product or a service and other improvements should be paid a special attention to in the process of strategic management.

research; development; strategy; managment

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