The Role of Marketing in Corporate Competitiveness: Marketing Practice Analysis of Hungarian Companies

The objective of this article is to analyse the marketing practice of Hungarian companies. On the one hand, the role of marketing function in the company has been revealed, and on the other hand the relationship between marketing efforts and market performance has been investigated. In frame of the Hungarian Competitiveness Studies, 300 marketing executives were surveyed to rate the marketing practice of their companies, concentrating on branding, pricing policy, applied marketing channels and promotional activities. The results confirm that sophisticated marketing practice leads to higher business performance. Keywords: marketing tools, competitiveness, performance

Bank financing of Hungarian SMEs: Getting over to credit crisis by state interventions

In this article we aimed to present and analyse the 21st century history of bank financing in the Hungarian small and medium enterprise (SME) sector in the period ranging from 2000 to 2012. The credit products offered by banks and credit unions are the most fundamental means of external financing capable of fulfilling the financing needs of a wide array of SMEs. The conditions of accessing credits and their prices exert a decisive influence on the profitability and business opportunities of SMEs. As a result of economic slowdown SMEs had to face higher interest rates, decreasing credit limits, and bank financing options that became increasingly slowly accessible alongside stricter conditions. Due to this process SMEs business performance had been falling continuously which has a destructive contribution to the national economy. In the first chapter of the article we present the dynamic development of credit financing in the Hungarian SME sector, along with the causes that triggered it, then we will continue with the negative tendencies dating from the onset of the 2008 debt crisis. In the second chapter we discuss the vicious circle, due to which the business performance of the SMEs, as well as the conditions of access to credits and their prices, have entered into a negative spiral. In the third and final chapter we make suggestions regarding the direction and means of necessary government intervention, in order to stop and reverse the negative tendencies observed in SME credit financing.

Knowledge and innovation as value drivers in professional services firms: an empirical research in Central and Eastern Europe

The purpose of this study was to investigate empirically the role of knowledge and innovation within Central and Eastern Europe’s changing economy. We applied qualitative research methods, and focused only on professional services firms within the region. The connection between knowledge and innovation as well as knowledge and competitiveness was analyzed by top managers and senior industry experts. Our findings revealed that knowledge might be a real value driver for professional services firms. These companies can significantly contribute to the development of modern economies through the dissemination of their internal best practices in knowledge management. We found three factors that might influence the effectiveness of knowledge management. These three factors are the involvement of international knowledge networks, the investments in human capital, and focus on critical resources. These issues proved to be essential to maximize the potential of knowledge and to leverage this into increased business performance.

Challenges the finance profession has been facing following the 2008-2009. A multi-country research

In the successful strategic management of the modern companies each function plays their specific role. While today’s businesses in many ways are different from their ancestors, the key fundamentals are derived from the same roots. Their main purpose of existence is to serve the needs of their shareholders and stakeholders by creating value (Pike et al., 1993). To achieve this effectively and efficiently the various functions need to work in close cooperation with each other. The global crisis, starting in 2008, proved that volatility is higher for the financial markets and the ordinary businesses that have been anticipated before. As the recession started as a financial crisis many people started to blame – amongst others – banks and financial institutions for excessive risk taking and taking short profits ahead of long term sustainable growth. Accordingly the lost confidence in the financial institutions has taken a toll on the reputation of other Finance professionals such as accountants, book keepers, treasury, tax people and others. The finance function’s strategic importance is linked to its ability to help interpreting the business performance and provide transparency. In order to restore the trust the finance profession is now facing one of the biggest challenges of its history, the need to reinvent itself. This paper presents the findings of a recent international research conducted in the United Kingdom, France, Hungary and Poland interviewing 169 executives of the business sector plus the review of 237 job descriptions of finance professionals in order to understand the challenges of the modern finance function. The findings of the study could provide relevant answers and help to overcome a very current problem that Finance is facing today, how to rebuild reputation and to stay a trusted partner and enabler for long term business strategy.

Teljesítménymérés és döntéstámogatás az üzleti szférában = Performance measurement and decision support in business practice

Tanulmányunkban a hazai vállalatok teljesítménymérési és teljesítménymenedzsment gyakorlatát vizsgáljuk a Versenyben a világgal kutatási program adatainak felhasználásával. Célunk a döntéstámogatás hátterének vizsgálata: a vállalatok teljesítménymérési gyakorlatának jellemzése, konzisztenciájának értékelése, vizsgálva a korábbi kutatásaink során megfigyelt tendenciák további alakulását is. A vállalatvezetők által fontosnak/hasznosnak tartott, illetve rendszeresen használt információforrásokat, teljesítménymutatókat, elemzési eszközöket a korábbi kutatásainkhoz kialakított elemzési keret (orientáció, egyensúly, konzisztencia, támogató szerep) felhasználásával értékeltük. Az információs rendszer különböző tevékenységeket támogató szerepének az értékelése során a különböző területekért felelős vezetők véleményét is összevetettük, s különböző vállalatcsoportok sajátosságait is vizsgáltuk. --------- The paper analyses the performance measurement and performance management practice of Hungarian companies, based on data of the Competitiveness research program. Our goal was to evaluate the practice from the point of view of decision support, based on our previous framework, evaluating the orientation, the balance, the consistency and the supporting role of the performance measurement practice.