According to the available data on economic trends in Serbia, it is noticeable that companies in wood industry do not use their capacities to the maximum. Furthermore, a significant number of newly founded small enterprises, shortly after their establishment, go bankrupt or go into liquidation. Research works that have been conducted so far have indicated that, most commonly, company deterioration is caused by a lack of strategic approach in business management and company development. The aim

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... f this paper is to gain an insight into the extent to which wood industry enterprises apply strategic approach (their vision, mission and development strategies) when making business decisions, as well as the effects of such approach. This will be achieved by analyzing collected questionnaires and interviews with competent experts from wood industry monitoring institutions. Besides, SWOT and PESTLE analyses of the surveyed companies will be conducted. Furthermore, possible solutions for overcoming weaknesses and threats emerging in Serbian wood industry development will be indicated. Likewise, the possibilities for encouraging industry development and increasing its competitiveness level will be presented.