Importance of strategy in small companies

Presented thesis provided an overview of small companies and the most important strategies in strategic planning used by many companies. It also discussed how important it is to have efficient and effective strategies in place. As the reader was getting familiar with all the provided strategies, it gave him an understanding of how their implementation can help small companies in particular situations. Planning the future of the business can be very beneficial and can assist the managers and owners to move the company in the right direction. The strategic approach also makes small business owners proactive to business conditions. As noted in the introduction, not many studies have been made in regards to the correlation between small company performance and the use of strategies. But still, these strategies exist for helping companies reach their goals, and owners and manager should do everything within their power in order to make their companies succeed. One study made in Kosovo in 2012, concluded that after the implementation of strategic planning in small and medium enterprises, the companies in Kosovo experienced growth. Although this study was made on only 51 SME’s, it still concludes that there is a positive correlation between strategies and small businesses.19 To summarize, company managers and owners should not only have an understanding of internal company operations, but they should also understand their external operations and be familiar with their external environment, as well as to be informed with all the planning and strategies which could be implemented in order to benefit their companies. A thorough understanding of every possible strategy and their effects is oftentimes argued to be not necessary, but a moderate understanding of most important strategies is, as discussed through the thesis, more than needed for making sure that owners and managers are doing their best to improve their small business performance