THE NECESSITY OF ELIMINATING CLASSICAL CONCEPTS AND INTRODUCTION OF NEW CONCEPTS INTO STRATEGIC MANAGEMENT AND BUSINESS

Zivota Radosavljevic, Milan Radosavljevic and Aleksandar Andjelkovic

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2015, vol. 61, issue 01, 20

Abstract: The fact is that even today in the management of developed countries they apply the concept of strategy defined in the eighties by Michelle Porter. This concept is based on both classic and mechanistic basis, i.e. determinism and the organization chart that was effective in terms of small changes and a high degree of certainty in management decisions. Therefore, the fact that Porter's concept of strategy had not changed for more than three decades and is as such still applied and analyzed at high business schools in the West is reason enough for this concept to deteriorate leading to the final outcome - death . With evident turbulent and radical changes, Porter's concept of strategy is inefficient and it must be replaced with new approaches and concepts based on biologistical-medical grounds, which are natural, and hence more objective to formulate quality strategy and strategic decisions. It turns out that it is necessary to redefine the postulates of classic strategies and set a new basis, i.e. new strategy for the development and implementation of strategies, and the introduction of new, primarily adaptive, flexible, and strategies shaping the environment, which are relatively unknown today, or neglected. This paper aims to highlight the necessity of abandoning the classic strategy in strategic management and the necessity of introducing those concepts that take into account volatility and the high level of uncertainty that exists today and will in the future be even greater.

Keywords: Production; Economics (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:200269

DOI: 10.22004/ag.econ.200269

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