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4.4. Organizational and Strategic Management of New 
Companies 
Werther et al. (1995) argue that the organization is a 
system of coordination of human activities in order to 
achieve the stated objectives. The organization is structured 
in a dynamic way, as an open system, and governance of the 
organization can be improved by the involvement of external 
consultants in the decisions. A key element in the 
organization there is strategic planning, which has three 
stages: the corporate mission, the principles and values of the 
organization and the vision of the organization (Grant, 2010). 
The statement of business ethics is a priority over all other 
corporate structures because this determines the way in 
which business operates. Thus, the business ethics statement 
should made clear which are the stakeholders, how to ensure 
the coverage of stakeholder needs, what are the procedures of 
work and how processes are controlled so as to ensure their 
relevance. The company should have created an environment 
that covering not only the interests of major shareholders of 
the company, but as well, the interests of other shareholders 
and investors (financial integrity), employees, suppliers, 
customers, competition (fair competition), the state (tax 
authorities) and the environment (environmental standards) 
(Grant, 2010). Through such a declaration corporate 
responsibility and integrity, the management makes it clear to 
employees, regardless of the hierarchical scale, how to 
exercise their functions and defines the impact will be in 
violation phenomena of these ethical principles. The second 
stage of the strategic planning is setting the business goals, 
which transform the business vision into specific goals that 
will be achieved after analysis of the internal and external 
environment of the enterprise. The business goal setting 
gives an answers to what the organization has to achieve in 
order to realize its vision. (Kachru, 2006). A widely used 
methodology for setting goals is the SMART method, under 
which the business objectives should, as indicated by the 
acronym to be: Specific Measurable, Achievable, Realistic 
and Time-Related (Yocam & Choi, 2010). The goals set can 
be quantitative, qualitative, or a combination of quantitative 
and qualitative data (Strack, 2004). Examples of targets are to 
increase market share, displacing competitors and improve 
competitiveness. The third step is the selection of actions to 
be followed by the company in order to achieve the 
objectives. At this stage, it is allocating resources and 
establishing mechanisms to implement and monitor 
implementation of the strategy (Kachru, 2006) 
In order to make the choice of appropriate action, the 
company should take into account parameters relating to both 
the internal and external environment. All these actions 
constitute the strategy chosen by the company to operate in 
the industry and bring about the desired results. According to 
Porter (1996) strategy is to do different things from those of 
your competitors or do the same things in different ways, and 

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International Journal of Economic Behavior and Organization 2017; 5(2): 36-53 
46 
according to Johnson & Scholes (1999), strategy is the 
direction and scope of action of an enterprise in the long 
term, which achieves competitive advantage through 
resource provision, in a changing environment, to meet the 
expectations of shareholders and other stakeholders. The 
company selects the appropriate strategy in line with the 
vision, mission, strategic approach, industry, product, and the 
special characteristics it has (Grant, 2010). We can 
distinguish the main strategies in cost leadership, 
differentiation and niche markets (Hitt et al. 2011). The 
strategic planning involves the stage at which an organization 
sets its objectives, or else it is that process that examines how 
the organization develops strategic objectives and action 
plans to implement these goals (Grant, 2010). It is basically 
the development of a vision for the future of the organization 
and setting priorities, procedures and operations to achieve 
that vision. In this kind of programming, the emphasis is 
given on long-term goals and that is the main reason why 
strategic planning is a continuous process, since essentially 
refers to the performance of long-term value added (Lynch, 
2006, p. 9). Strategic planning is exercised by the senior 
management level, as regards the overall course and strategy 
of an organization and contribute to the performance of the 
whole organism (Montana & Charnov, 2000). For the proper 
schedule and implemetnation of the strategic plan, the 
organization should have previously made a research on the 
product, buyers, industry and competition (Aaker & 
McLoughlin, 2010). When analyzing the customer and the 
product, there are a series of questions, such as who and why 
they need the product, under what conditions someone buys 
the product what are the buyers' criteria and what needs the 
product covers, (Aaker & McLoughlin, 2010). Based on the 
analysis above, the company will choose the strategy that 
will enable it to achieve its business objectives. The analysis 
is done at two levels: at the level of the firm macro 
environment (external environment) and the level of the 
microenvironment (internal environment) (Rummler & 
Ramias, 2010). 
An important analytical tool is the PEST analysis 
(political, economic, social, technological analysis). In this 
analysis, the company analyses the parameters of the external 
environment (macro-environment of the company), grouped 
into four levels: the political, economic, social and 
technological environment. This analysis is important 
because every company defines and shapes the strategic plan 
on the basis of the conditions prevailing in its broader 
environment (Williams & Green, 1997). Subsequently, the 
company analyzes the micro-environment. One of the most 
prevalent ways for the micro-environment analysis is the 
SWOT analysis (strengths, weaknesses, opportunities, threats 
analysis) (Ferrell & Hartline, 2014). During this analysis, the 
company records the points which have an advantage over its 
competitors (strengths), weaknesses against the competition), 
opportunities which can be exploited and risks - threats that 
may occur and impede the attainment of these objectives. 
Through SWOT analysis, the organization is able to record 
and analyze the elements that may determine its decisions 
(Botten, 2009). All of the above elements are the key 
procedures in order to analyze both the market and the 
company, so that the organization could have long-term 
success.