Production Management Model in Small and Medium Enterprises in Croatia

Small and medium enterprises play a key role in the economy of the European Union as the main generators of employment and economic development. According to the offi cial statistics of the EU, about 99.8 % of enterprises are small and medium. In order to be successful, the company needs to harmonize various parameters through strategic planning, preparation, organization and decision making. For the purpose of the research, two questionnaires were used, one for the purposes of descriptive statistics and χ2 test, and the other for the purpose of AHP data analysis. The χ2- test shows the opinion of surveyed experts and company managers, while the AHP method demonstrates the parameters considered most and least important for the company business. In contrast to the environmentally friendly production, which has shown to have the least significant impact on the management system, the market, promotion and marketing have the most significant impact. According to the results, production and business management model and block diagram were established.