Abstract
Purpose of the article: The article aims at presenting and analysing key changes in the strategic internal control of companies under the pressure of crisis phenomena. The research question is how to adapt the strategic internal control to an evolving crisis through inclusion of control environmental sustainability measures, and strategic model adaptation.Methodology: A qualitative approach has been applied along with the research of larger companies from the brewery sector and small-and medium sized enterprises from the knitted fabrics manufacturing sector in Bulgaria. The study has also taken into consideration some companies’ strategic documents, as well as interviews with companies’ managers. The gathered information has been systematized, compared and evaluated with the help of the “Relative (Competitive) Advantage Matrix” model.Scientific aim: Understanding the impact of changes in strategic internal control on management under the pressure of crisis phenomena.Findings: The analysing of the quasi-control environment and competitive advantages is an important strategic management issue during crises. Competitive advantages derive mainly from the characteristics of the product (or service) that make it better than the products (or services) of competitors and they are associated with changes in the strategic internal control of companies under the pressure of hard times.Conclusions: Strategic internal control has to be adapted to the crisis situation through control environmental sustainability measures, strategic model adaptation and selected competitive advantages. Business processes are changing as a result of crisis times, then the control environment, risk assessments and competitive advantages need to be more detailed and analysed in different aspects. At the same time, the strategic internal control in hard times faces unexpected results, such as a drastic reduction in the incomes, a decrease in retail sales or a drastic increase in online sales. Using the collected information, comparisons can be made to better outline similarities and differences that will point out ways for improvement. This information should be brought to the attention of the personnel of the companies. The change in the activities should not be delayed in time, since information quickly becomes out-dated.
Highlights
In today’s conditions, a good managerial practice of different kind is accumulated by analysing and reporting on the many crises on the implementation of internal control of the organization
It is necessary to focus on increasing the risk of disorders, influenced by the hard times
The paper focuses on issues such as control environment together with the possibility of its formation on the branch level and strategic model adaptation for hard time management
Summary
In today’s conditions, a good managerial practice of different kind is accumulated by analysing and reporting on the many crises on the implementation of internal control of the organization (including this caused by the COVID-19 pandemic). Most of the opinions are associated with the idea that the increased complexity created by the pandemic environment in which management decisions are made often makes it possible to detect mistakes, abuses and frauds In this association, it is necessary to focus on increasing the risk of disorders, influenced by the hard times (including the COVID-19 pandemic). Most frequently, linking objectives of non-financial indicators with the financial goals of a company is advisable (Kocmanova, Šimberova, 2014) and businesses are impacted by the implementation of measures towards the reduction of the environmental impact (Krmela, Tesarova, 2020; De Bruyckere, Everaert, 2021) Another opinion is that managers must take concrete action to implement a correct strategy for reorganizing accompanying facility activities in the context of crises such as the COVID-19 pandemic (Trifonova, Pramatarov, 2020). The paper focuses on issues such as control environment (being an important element of the organizational culture) together with the possibility of its formation on the branch level (the so-called quasi control environment) and strategic model adaptation for hard time management
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.