Strategic Management of External Disruptions on Realization of Business Plans—Case of Serbian Manufacturing Companies

Abstract

This research paper analyzes the key influences of external disruptions on the business sustainability of medium-sized manufacturing companies operating in Serbia. This paper explores the strategic management of massive external disruptions (such as the global pandemic in 2020) and unveils key correlations between internal and external influences. The quantitative part of this research includes two phases; the first was conducted in 2019, with predictions made in the pre-pandemic period, and the second phase was conducted in 2022 by comparing the predictions with actual business results. Existing theoretical research has already identified many weaknesses, including how strategic business outlooks (in relation to economic downturns and bottlenecks within supply chains) influence the success of medium-sized companies, as well as internal factors, such as strategic management and the flexible adjustment of business plans. Taking into account that the whole world is still recovering after the pandemic, the empirical research conducted on 580 Serbian companies sheds light on how the pandemic disruption has affected businesses. As business plans relate to forecasted revenue, profit margins and investment effects, the main results of this study confirm that predicted business results are significantly influenced by supply chain disruptions, negatively affecting companies relying on the import of raw material and companies that have widely internationalized their sales efforts.