engleski

The Paradigm of Business Success in the Modern Enterprise

In today's global environment of business, in order to survive, sustain and grow enterprises need to ensure continued success. Business success is determined by what kind of strategies the management of an organisation foresees and implements and the dominant value- system of the organisation. Although there are many different forms of business success, a widespread opinion has it that the most successful companies are those generating the most profit or revenue considered the key performance indicators. The approach of business success evaluation from the viewpoint of maximizing financial performance measures is called mechanistic, and today is considered the main criterion for success by leading journals, audit firms, statistical institutes etc. The paper explores how the mechanistic approach to business success was formed historically, and then points out disadvantages of such approach. This paper then proposes a new, holistic approach, which places a greater emphasis on interest groups within and outside a business, and as such should serve as a valuable tool to create the right roadmap that helps the management of an organisation to enable to an expanding circle of stakeholders to achieve their goals easier.

Business success, Stakeholder theory, Mechanistic approach

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