ECONOMIC MANAGEMENT OF COMPANIES AND NEW COMPETITIVE STRATEGIES

Abstract

Global hyper-competition, characterised by accelerated dynamism, intensive knowledge, shared management, and openness to the future, poses challenges to companies. The proposed management accounting responses assume the form of criteria for an economic management system. These measurement criteria allow for determining the added financial value in every transaction, event, activity, area of ​​responsibility, and whole enterprise, enabling continuous evaluation of the company and all its management levels competitiveness in the value chain. This approach defines a general management model that is inherently effective in competitive environments.

Economic management relies on a logical structure that guides decision-making in each event. This structure forms a general model encompassing all company decisions, identifying variables that affect economic outcomes, and enabling the selection of the best alternatives. The company operates as an open, dynamic system focused on value creation through all solutions. The management process includes three main stages: planning, execution, and control.

The management process follows the management model of shared values and coordinated decentralisation, prepared by managers in the respective responsibility areas. Thus, economic management is the key to effective company management, ensuring adaptability and orientation to value creation in a rapidly changing environment.

The article aimed to develop recommendations for enterprises regarding the adaptation of their strategies and management systems in conditions of intense competition to ensure their sustainability and efficiency in the long term. In addition, the article emphasises the need for structural changes in companies in response to new challenges arising in the competitive environment.

During the research, we concluded that companies require constant adaptation of their strategies and management systems to meet the hyper-competition conditions, as adaptability contributes to the company’s sustainability in a changing environment. Developing new strategic policies allows companies to maintain efficiency in the long term (the organisation’s stability depends on its ability to respond to market changes). The need for structural changes in companies is a core factor for successfully responding to new challenges (changes in the organisation’s structure can improve its flexibility and adaptability).

The article proposes an organisational change model for implementing a competitive approach at all company management levels, characterising management, measurement, and decision-making models as internally effective in intense environmental variability conditions. The focus is on a search for the best alternative solutions based on their opportunity cost, which defines all entrepreneurial economic activity as fundamentally competitive.