After the transition - before the eu joining: Competitive strategies of Hungarian food industrial enterprises
2003
Lakner, Z. | Hajdu, I.
After the transformation process and privatisation a rather specific dual structure has been formed in the Hungarian food industry: large food industrial enterprises, dominantly in foreign ownership, fulfilling locally the global strategy of the international firm, and micro - and small - scale firms in domestic ownership. The strategic behaviour of Hungarian food industrial firms have been examined by direct-question surveys and interviews. Based on enterprise- and business-level strategy theories, the objective was to create a taxonomy of strategic patterns of Hungarian food industrial firms. On basis of investigations four characteristic groups of small and medium scale enterprises could be separated from each other. The high cost of technology development, the uneven quality and quantity of agricultural raw material, the concentration of food trade organisations are important hindrance factors of development of food industrial enterprises. The small and medium scale enterprises consider the activity of chambers of producers as an important tool in improving their economic position. In opinion of food industrial entrepreneurs the most important factor of success in privatisation was the knowledge of legal loops and good social network. Under these conditions, the promotion of preparation of newly formed small and medium scale enterprises to meet the demands of EU joining is a necessary precondition of success. The multinational food industrial enterprises forming four groups follow diversified strategies. This variability of multinational firms increases the flexibility and competitiveness of the Hungarian food industry.
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