DOI: 10.5176/978-981-08-8408-6_BizStrategy2011_19
Authors:Prof. Dr. Zoltán Gaál and Hajnalka Fekete
Abstract:
One of the great challenges of today’s companies is globalisation and the gradually intensifying market competition under which competitive performance is becoming more and more demanding to assure. Companies respond individually to all challenges. The reason behind the diversity of reactions is that all companies follow different strategies and have different cultures with distinct sets of beliefs and attitudes.
Authors of this paper have developed indicators to measure company strategy, culture and performance. Present article focuses on the relationship between the characteristics of organisational strategy and
company performance. To describe organisational strategy the following characteristics - used later as indicators - have been analysed: the method of communicating organisational strategy and breaking
down strategy, the dynamics of strategy, the growth strategy, the competitive strategy, orientation and the company’s adaptation to the external environment. In order to evaluate company performance the
Kaplan-Norton Balanced ScoreCard model has been used. On the basis of this model financial and nonfinancial indicators will also be considered. The empirical research have been performed with quantitative methods in 256 companies Based on the research results three clusters have been determined: poor performers, weak performers and strong performers. The probabilities of occurring in one of the three clusters have also been identified when strategic indicators are considered. The factors functioning as barriers to strong performance have been listed, as well.
Keywords: company performance, Balanced ScoreCard, organisational strategy, strategy types
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