MANAGEMENT IN THE FUNCTION OF GROWTH AND DEVELOPMENT OF ENTERPRISES

Abstract

In today's economy, conditions for creating competitive advantage are subject to frequent changes, which is why it is a dynamic category and requires continuous analysis and the adequate reaction of companies in finding those areas of activity where there are significant chances of achieving business success in the market while avoiding jobs where they are advantages on the competition side. Achieving the goals and directions of growth of the company includes significant investments in expanding existing capacities, but also in building new ones. The growth of a business involves strengthening its core business and/or entering new areas of business and therefore tougher competition. Creating a sustainable competitive advantage presupposes the synergistic action of value and cost drivers, as well as the resources and capabilities created by the drivers. At the same time, the management of the company is expected to create such a strategy that will prevent or significantly reduce imitation of products or production processes by competitors, as well as educate customers so as not to orient themselves to substitutes produced by competitors. A significant factor of competence and a condition for realizing the competitive advantage of a modern enterprise are its resources, so it is competitive to the extent that it effectively exploits its resources and prevents competitors from imitating its strategies. Strategic management is expected to always, with relevant signals carrying messages from the environment, establish such a relationship with the environment that will enable it to have the right goals, to act by its capabilities and to always be ready to respond to new circumstances and requirements surroundings. The most important thing for the growth and even the survival of the company is finding a position in the market that is less exposed to the threat of direct adversaries, be it already established or new companies, or less threatened by direct customers, suppliers, and substitutes. Such a position can be established in various ways, among which are the following: consolidating relationships with the most important customers, differentiating products, establishing technological leadership in the industry or joining strategic business alliances to take advantage of the synergistic advantages of a company in a particular market position.