Controlling and Strategic Management in the Early 21st Century Olga Faltejskova and Lilia Dvorakova Faculty of Social and Economy Studies/Jan Evangelista PurkynÄ› University in Usti nad Labem, Czech Republic Faculty of Economics /University of West Bohemia in Pilsen, Czech Republic olga.faltejskova@karneval.cz ldvorako@kfu.zcu.cz Abstract: This paper presents the current scientific knowledge of the integration of strategic management and controlling in the context of the changing business conditions in the 21st century. It focuses on analysis of the impact of integration of methods and tools of strategic management and controlling in order to identify the benefits of their inclusion in business process management in a globalized economy. Under current conditions, Czech enterprises are increasingly exposed to the effects of globalization. What do globalization and the new economy bring? Turbulence, discontinuity, uncertainty and chaos characterize the environment in which they must operate. You can-not find certainty where there is none. It is clear that these trends will be intensified and accelerated. New insights into the current development of the company inform of changes to the global paradigm. Under the influence of turbulence, the global world changes from a post-industrial society to a knowledge society. Under these conditions, new approaches to corporate governance are being sought. The old, quite clear and quite predictable, hierarchically organized corporate world is rapidly expiring. The future can-not any more be understood as a linear continuation of the past. The effect of competition is strengthening due to discontinuities of our turbulent environment and is changing into hyper competition. Within the new conditions strategic management must be understood as a permanent, never-ending process, as a sequence of consecutive steps, beginning with defining the mission of the company and ending with implementation and monitoring phases. An important part of strategic management is setting goals. This means, greater demands are placed on managers, especially on their ability to be good strategists and visionaries. They must monitor not only operating of companies themselves, but also their environs, to be able to notice changes and react to them. Time becomes the main limiting factor. Strategic management methods, successfully used in past, fail, and often become subjects of criticism of experts especially too static, which is based on links to the past and subjective assessment. Their use must be based on new approaches. For the future it is necessary to take into account lessons from the past, not to condemn it, but to see and perceive new opportunities in the new conditions. This places new demands on strategic tools and the ability to work with them. By connecting with modern enterprise controlling, strategic management gains a new dimension, necessary for precise and quick decision making in an environment of sudden changes and reversals. Monitoring as a part of controlling can detect turning points in the development, strategic gaps important for managerial decision making about changes. Controlling, in connection with strategy, can focus on the near as well as long-term future. It is necessary to emphasize the need for communication and involvement of all employees in the creation of corporate business strategy, because only this enables them to accept it fully and it is then easier to achieve success. Keywords: strategic management, globalization, new economy, analytical methods, performance, controlling
1. Aims and research methodology This paper presents the current scientific knowledge of the integration of strategic management and controlling in the context of the changing business conditions in the 21st century. It focuses on analysis of the impact of integration of methods and tools of strategic management and controlling in order to identify the benefits of their inclusion in business process management in a globalized economy. In terms of methodology, the research was based on search, analysis and comparison of Czech and foreign literature on the analysis of documents and databases published by public and private institutions and the analysis of the results of the individual research projects and investigations. The business environment significantly changed under the influence of turbulence, chaos and instability in the last decade. The linearity of development is loses and other development can be predicted very difficult. How the concept of strategic management can to help to maintain position companies in a market, is a frequently asked question today. Search the solution of this problem is a main reason of our paper.
2. Introduction The world global crisis that hit in 2007, its size, depth and subsequently the continuing recession, tested and proved the adaptability of enterprises not only globally, but also regionally. Why are some businesses successful in the past, experiencing a deep crisis in the current period, an escalating threat to their self-
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