Business Strategies Efects on Serbian Dairy Plant Efficiency

Abstract

The goal of this paper is to estimate efficiency of dairy processing industry in Serbia during 2016, from aspect of applied business strategy. Results achieved by conducting method Data envelopment analysis – DEA on 77 dairy companies with 6 identified business strategies, proved different effects on reached technical efficiency levels. Dairy companies focused on long term coordination activities with dairy farmers, and those companies oriented on purchase and distribution of dairy product processed on farms, achieved above average levels of efficiency. On opposite side, lowest level of efficiency performs dairy companies with business strategy focused on full vertical integration with upstream and downstream links.