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Knez Aleksandra , G. In his paper, N. Janiijevi explores interdependencies and inuences between the two of them. He nds that organizational culture can aect to a great extent both the process of formulation as well as implementation of the strategy.
On the other side, the author explains the role of strategy as a trigger of change in organizational culture. Birovljev, M. Davidovi, and B. Perovi in her paper analyzes the performance of franchising, distribution and nancial leasing in the light of recent developments in Serbian contract law.
Also, the author suggests the optimal solutions to secure the contract performance to contracting parties. Stojanovi, J. Stankovi, and M. Ranelovi deals with the competitiveness of city of Ni and its attractiveness for foreign investors. Also, key sources of competitive advantages as well as opportunities to improve competitiveness are identied. In their paper A. Nikoli, R. Tepavac, and M. Jezdimirovi analyze current trends in European Union with respect to budget decits and public debt.
Anelkovi-Pei, V. Jankovi-Mili, and A. Anelkovi present business process management maturity model which enables description of as-is enterprises state, in terms of presence and acceptance of process approach. Based on given research, they conclude that the business culture proves to be the greatest constraint for the implementation of process-based management in the enterprises in Serbia.
Maksimovi and M. Kosti analyze limitations in the application of concentration indicators on the example of insurance industry in Serbia, Croatia, Slovenia, Romania and Austria.
Kri presents the new IT paradigm cloud computing. He analyzes various benets in the form of low investment costs and signicant redaction of operating expenses. Furthermore, he presents underlying concept of the rst cloud oering on Serbian and regional market provided through Coming Computer Engineering and Telekom Serbia partnership. Discussed topics continued the debate of the last years Forum when it was concluded that Serbia needed a new economic growth model based on production and exports, instead of a model based on consumption and imports.
Government offcials, led by the Prime Minister Mirko Cvetkovic, put the emphasis on austerity measures, while experts and economists pointed out that there should be no more delay in implementing structural reforms, which include a serious reform of the pension system, health care system, education and restructuring of public companies. According to the World Bank analysis, one unproductive workplace in the public sector costs , Euros annually, and this money should be diverted to productive work places by stimulating foreign investments, and improving the infrastructure and the education system.
One way to spend the states budget more effciently and transparently is to switch to the program and project-based budgeting after six years delay of this reform.
If the structural reforms are not undertaken, the alternative is to additionally burden the economy and citizens by increasing taxes and other levies at the expense of competitiveness. The World Bank analyzed each of these sectors and concluded that they required different levels of support. Economists suggested additional analysis and warned that government interventions should be cautious, ensuring a suffcient level of competition.
At the same time, macroeconomic stability should be maintained, including the stability of the exchange rate. Dejan Soskic, however, expressed his determination to continue the policy of the foating exchange rate.
The businesspeople stressed the need for predictability of the business climate, which requires more transparent government actions. For example, the representatives of the pharmaceutical industry requested that decisions on prices and list of medicines to be fnanced by the Health Insurance Fund be adopted in regular time cycles, enabling these companies to plan their business operations.
Dissatisfaction was also expressed by the business representatives, especially by foreign investors, regarding the slow implementation of reforms that aim toward a better business environment, despite numerous elaborated recommendations by business associations and adopted action plans of the executive authorities. Concern was also expressed regarding the expected worsening of solvency problems of the economy and limited funding opportunities for doing business in Serbia, as well as regarding the slow development of the infrastructure, particularly railways.
The Forum also presented ffteen measures to promote exports proposed by the Serbian Association of Exporters and new initiatives for development of science and innovation, but it also highlighted the problem of quality of the existing workforce and the gap between the educational sector and the needs of the economy.
The Serbian Association of Economists and the Serbian Association of Corporate Directors shall continue providing constructive suggestions to the Government with the aim of improving the business climate in Serbia. Reductions in tax receipts, the stimulus spending necessitated by the fnancial crisis and rapid growth in the health care outlays due to population aging are to leave governments with soaring defcits and debts.
In the same time SEE national economies face less visible but more fundamental challenge: a series of underlying structural changes that could permanently impair their ability to raise the competitiveness.
Today the danger of doing nothing is most serious problem for policy makers. Also, if government and business leaders react only to the downturn and fail to confront deeper challenges, they will leave the economy with weak long-term prospects.
Business leaders from the region can and must play a far more proactive role in transformation of competition and investing in local industries than being passive victims of controversial public policy. We could have double digit economic growth for the next two decades and still have big defcits and indebtedness. Defcits and debt consume the resources we must invest in keeping the SEE competitive.
That would not address the fact that demographics have changed and health care costs are increasing at a much faster rate than the GDP. The rate of growth of health care costs in these countries should be, at most, one percentage point more than the GDP growth rate due to population aging. We could not solve the problem just by raising taxes. Also, mentioned contradiction cannot be solved entirely with cost cuts. The solution will require economic growth.
It will require industry policies, some revenue which could come from new investments, monetary model justifcation, simplifying the tax code, broadening the tax base, and eliminating the defcit back door spending.
In times of crisis, business as an institution faces rising skepticism in society. Not to decide is to decide. All of us in business must put aside our individual wish lists and think about what is really important for the country.
If we are unwilling to do that, then future generation, are going to be in a word of hurt. Polarized and sometimes paralyzed political system is not alibi for business leaders.
In some national economies big state investments in infrastructure development lead to crony capitalism which triumphs at the expense of the entrepreneurship and true innovation. Current account and budget defcits are a new bubble, one with terrible ripple effects. Some current SEE strength such as workforce skill levels were seen as declining.
The SEE cannot enjoy any more a late mover advantage relying on cheap labor, natural resources and imported ideas and innovations.
The raising costs of labor, energy, and row materials are already undercutting the competitiveness. To do that you need strategists, frst- class researchers, inspired entrepreneurs, imaginative fnanciers and statesmen. From macro perspective, a competitive nation requires sound monetary and fscal policies, strong human developments, and effective political institutions. Macro foundations create potential for long term productivity, but actual productivity depends on microeconomic conditions that affects business itself.
A competitive nations exhibit a sound business environment including imaginative industry leaders, strong clusters of frms and supporting institutions such as technological platforms.
All previous requires stronger links among innovators, businesses, and universities. Discrete reforms would undoubtedly help, but real progress will come only from a systemic, well choreographed approach to creating positive sustainable change. It was immediately clear that there is a specifc causal relationship between organizational culture and companys strategy, although it was not clear which of those two was older in this relationship, i.
Recent empiric research proved that there is a relationship of interdependence and infuence between the company strategy and its organizational culture . Organizational culture signifcantly infuences the process of strategy formulation and selection, as well as its implementation. On the other hand, the selection and implementation of strategy can strengthen or change the existing organizational culture.
But, what has less been investigated is the nature and mechanism of mutual infuence between organizational culture and strategy. In what way does strategy implementation strengthen or, more importantly, change the existing culture? In what way does culture infuence the selection and implementation of strategy? Te aim of this paper is to answer these questions.
Hence, afer presenting the strategy and organizational culture, the results of recent empiric researches regarding their relationship will frst be presented. Ten the nature of their relationship will be explained through the analysis Abstract The paper analyzes the relationship of strategy and organizational cul- ture as two fundamental concepts in management. The results of recent empiric research are frst presented, which prove that there is a relati- onship of interdependence and infuence between strategy and organi- zational culture.
Then, the nature and mechanism of the infuence of cul- ture on strategy formulation and implementation are analyzed, as well as the infuence of strategy on organizational culture. It is shown that or- ganizational culture infuences the strategy formulation by determining the gathering of information, perception and interpretation.
Also, orga- nizational culture can, through the process of legitimization, facilitate or disable strategy implementation.
On the other hand, implementation of the selected strategy leads to the strengthening or changing of organi- zational culture through the process of its institutionalization. Key words: strategy, strategic management, organizational culture Saetak U radu se analizira odnos strategije i organizacione kulture kao dva fun- damentalna koncepta u upravljanju preduzeem.
Prvo se prezentiraju re- zultati novijih empirijskih istraivanja koji dokazuju da izmeu organiza- cione kulture i strategije postoje odnosi meusobne zavisnosti i uticaja. Zatim se analizira priroda i mehanizam uticaja kulture na formulisanje i implementaciju strategiju kao i uticaj implementirane strategije na orga- nizacionu kulturu. Pokazano je da organizaciona kultura utie na formu- lisanje strategije tako to determinie prikupljanje informacija, percep- ciju i interpretaciju okruenja.
Takoe, kultura moe, kroz proces legiti- mizacije, da olaka ili da onemogui implementaciju strategije. Sa dru- ge strane, primena izabrane strategije utie na jaanje ili promenu orga- nizacione kulture kroz proces njene institucionalizacije. Finally, both implications and recommendations for management will be presented. Understanding of strategy and organizational culture Strategy is the most important planned decision whose infuence on business operations of an enterprise is crucial.
It is in the heart of the strategic management concept, i. Strategy represents a basic way of achieving the goals of an enterprise . It shows how enterprise harmonizes its abilities and resources with the requirements of ever- changing environment in which it operates. Trough its strategy, company strives to use all the options and avoid all the dangers in its environment, but also to use all the advantages and minimize the weaknesses with respect to competitions.
Strategy is today observed dynamically, as a continual process. Hence, it is regarded that strategy is formed, rather than formulated .
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