Corporate planning in Hungarian companies

Abstract

The article is based on the practical experiences of the author as a consultant for several industrial companies in Hungary. Managers in Hungarian companies face quite complex and difficult environments. They operate in the markets of the developed countries, where they have to be aware of management methods used by their rivals if they are to compete. They also work on the varied markets of the developing countries and the sometimes very tightly controlled COMECON ones, as well as on the home market, which is becoming more and more competitive as economic reform progresses. Can they use similar methods to those of their counterparts in the market economies, to help strategic planning in such complex surroundings? The author presents a method based on the well-known BCG portfolio approach but tailor-made for the conditions that apply to Hungarian firms. The method has been adopted by more than 20 firms, with success in some. However, problems include a corporate culture which is resistant to change, overly self-confident management, or government control. The author discusses the changing role of strategic planning in a changing environment. She argues that aspects of strategic planning can apply to any company in any country, operating under similar circumstances. Finally the author summarizes the basic reasons for lack of interest in strategic thinking and change in public companies, and suggests some solutions.