Business strategy and efficient strategic management are the key assumptions, not only to success, but also to survive on today's market. The capitalistic system is characterized by saturation of markets, strong competition and intense and rapid changes in market conditions. This system requires from companies to make changes and to react on them according to market modifications. To do that, it is necessary to develop a general plan of operations, based on analysis of all relevant factors of business. That plan is called a business strategy. Although, most companies have formed business strategy, there are companies that still have not. The assumption is that such companies do not have much chance of survival in the current market. The focus of this thesis is a little Croatian company, which does not have a business strategy. If there is economic crisis added, the assumption is, that survival of that company is endangered. The company which is the subject of the thesis, is actually caught in problems, and the aim of the research concluded is to proof that the lack of business strategy was the cause of poor adaptation to new market conditions. In the last part a business strategy will be designed. This business strategy should route the company in direction of recovery. The way of implementation and control of business strategy is developed in the last part of this thesis, and it is also pointing in recovery direction.