Strategy Review for Central and Eastern Europe: Strategic Responses of Foreign Multinational Corporations to the Recent Economic and Financial Crisis

Abstract

The economies of Central and Eastern Europe were hit particularly badly by the global financial and economic crisis of 2008–2009. This raises the question of whether the severe economic downturn had any effect on the strategic orientation of foreign multinational corporations operating in Central and Eastern Europe. The purpose of the study is to contribute to the discussion of the effects of the recent crisis on strategies of multinational corporations. The crisis brought the successful economic catching-up process of the reforming countries over the previous decade to an abrupt halt, shattering the image of Central and Eastern Europe as a growth region. Multinational firms are now in the process of reviewing their original internationalization strategies for the region. The author argues that the business model that guided the expansion into Central and Eastern Europe still remains valid.

KEYWORDS:

• Central and Eastern Europe
• economic crisis
• multinational corporation
• strategy