Abstract
The current hyper-competitive environment offers many great opportunities for small and medium-sized businesses (SMEs), but on the other hand, this business environment is also hazardous. SMEs are a significant economic power and employer in the European Union. Their competitiveness and long-term stability are a crucial factor for European cohesion and economic growth. The research aim is to design a strategic management controlling system that should be implemented to SMEs and be useful for their long-term future development. The study was conducted in 2017–2020 based on data from 403 SMEs. The PAPI method was used to collect data. The implications between defined variables controlling, ROA, turnover, financial analysis, and strategic management were explained, and the results obtained from an in-depth analysis were indicated. The research was concluded by a model of strategic management controlling system tested by experimental in-practice implementation on SMEs and verified. The model and the research findings are suitable for business practice and should support the long-term stability and development of SMEs. AcknowledgmentThe paper has been prepared within the project “Risk Management in Industry 4.0” (7427/2019/02 IGA VŠFS) using the objective oriented support for specific university research of the University of Finance and Administration.
Highlights
Today’s contemporary business environment is very volatile
The implications between defined variables controlling, Return on assets (ROA), turnover, financial analysis, and strategic management were explained, and the results obtained from an in-depth analysis were indicated
The model and the research findings are suitable for business practice and should support the long-term stability and development of small and medium-sized businesses (SMEs)
Summary
Today’s contemporary business environment is very volatile. Many factors influence a company’s business activities. A strategic management controlling system could be one of the essential tools for helping managers to identify business strengths, weaknesses, threats and opportunities. SMEs are an essential part of the economy Their financial stability and managing the growth of business value are crucial to increasing the competitiveness of SMEs, the cohesion of the European Union and its economy. It is important to note that business strategy is essential for the competitiveness of an enterprise at a given period, and for determining an opportunity of future improvement of the company’s position on the market and expanding the scope of its activities. Benedic, 2015; Laval, 2018) They focus on the is- the development of the company’s business stratsues of business strategies and controlling at SMEs. egies and the recognition of competition practic-. Operational controlling in small and medium-sized companies is linked to the ful-
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