The thesis examines the challenges of modern management in small and medium-sized enterprises in the wood industry. The purpose of the research was to determine how these companies address digitalization, the shortage of skilled labour, and the need for sustainable development. The study is based on interviews with managers from four companies and an analysis of best practice cases. The results show that companies face numerous challenges when introducing digital technologies, making gradual implementation and employee training particularly important. The shortage of skilled labour remains a serious challenge, which companies address by investing in education and establishing partnerships with educational institutions. The research findings also emphasize the importance of sustainable management, with companies increasingly focusing on the circular economy and reducing their environmental footprint. The conclusions of the research indicate that the key to success lies in innovation, adaptability, and strategic planning, which enable companies to effectively tackle the challenges they now face and improve their competitiveness in the market.
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