The growing interest in total quality management as strategic support to obtain a sustainable competitive advantage is enabling organizations to achieve superior performance. The critical factors of business excellence models are management value, principles, and techniques necessary to yield the desired effects on the company´s performance. The paper focuses on decision making on a strategy of Czech SMEs in the context of business excellence models. The objective of the paper is to specify the relationship between strategy and performance (improvements) of Czech SMEs in the context of business excellence models. The enterprises included in the study are those enterprises that are incorporated in the Czech Republic. A total of 490 enterprises participated in the study, and the main primary data collection instrument was a questionnaire-interview. The findings of the statistical analysis show the influence of selected internal variables on the decision-making the process of Czech SMEs on strategy and relationship between strategy and performance.