A Study on the Performance of Small and Medium Enterprises in Modern World

The present period brings new challenges concerning the organizational decision-making processes. On one hand, it is talked about a tendency of accelerating the rhythm of the decision. Speed is a characteristic of the modern world, the factors which affect the internal environment and the external environment of an organization that the decision-maker must take into account, being very unstable, each of their changes urging a very quick reaction from an organization that wants to be performance. Although the strategy formation process in large companies has been extensively and deeply researched, the strategy making in SME (small and medium sized companies) is largely under investigated by researchers. In our thesis, we find even for entrepreneurial SME owners, the process doesn’t exhibit the characteristics of comprehensive and exhaustive environmental scanning and strategic analysis. Instead, the strategy formation in entrepreneurial SMEs is a combination of systematic planning and improvisation, a combination of pro-activity and reactivity.