engleski

CORPORATE STRATEGY IMPLEMENTATION MODES: ANALYSIS OF LARGE CROATIAN CORPORATIONS

Contemporary business environment drives corporations towards practicing different growth strategies in order to successfully position with respect to competition and to preserve and increase their profit margins. Growth strategies are concerned with increasing the size and viability of the business over time with the final aim of building and sustaining their competitive market position. A successful growth strategy will allow corporations to increase its customer base, market segments, geographical scope, and/or product lines, which should lead to revenue growth. Implementation of corporate growth strategy is one of the critical phases in strategic management process and therefore focal interest of this paper. Strategic management theory recognizes three modes for corporate strategy implementation (internal growth, mergers and acquisitions, and strategic alliances). The paper analyses the practice of Croatian large corporations in terms of implementation modes. Internal growth encompasses growth based solely on their own resources and capabilities and is recognized and used by majority of Croatian large corporations. Mergers and acquisitions are defined as ways of growth by merging or purchasing the independent entities while strategic alliances as a strategic connection of businesses in which corporations retain independency, but work jointly in order to achieve certain strategic goals and projects by sharing and combining resources. The research identified that due to higher risk and deficiency of trust, Croatian corporations do not use extensively mergers and acquisitions and strategic alliances as implementation mode in comparison to internal growth.

internal growth; mergers and acquisitions; strategic alliances; corporate strategy implementation; Croatian enterprises

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