STRATEGIC MANAGEMENT AND GLOBAL COMPETITIVENESS

Abstract

Competitiveness is one of the terms that are imposed strongly in the new era of globalization. It has become a key word used to describe the economic strength of a country or the position of a company with respect to its surrounding. Michael Porter was the first scientist who connected strategic management and competitive advantages, assuming that the wealth of a nation depended on the succes of the chosen business strategies of its companies – the real factors of economic growth of a country. In addition, four determinants of Porter’s diamond which determine competitive advantages on the national level are listed and discussed. Two most important lists of competitiveness of nations are presented with examples of falls and rises of several countries in recent past caused by mistakes made on top management level in the most important institutions of the countries in question. The connection between strong application of strategic management in leading corporations of some counries and leading position at the discussed lists of competitiveness of the same countries was also noticed.