Crisis Identification and Development of Crisis Management Algorithm in the Agricultural Sector

Abstract

The efficiency of many enterprises has declined significantly in the current global crisis. Enterprise management is the management of joint activities of people, which consists of many problems. The primary tactical tasks for most business entities are “patching holes” (or a reactive form of management) and preventing bankruptcy. This approach does not allow to achieve sustainable operation of the enterprise in the long term. Therefore, the formation of an effective mechanism for managing enterprises is acquiring special significance in today's conditions. The crisis is characterized by many interrelated situations that increase the complexity and risk of management. The problem of evaluating the effectiveness of enterprises is still one of the most complex and intractable. The crisis is objectively characterized by many interrelated situations that increase the complexity and risk of management. The crisis state of the enterprise is particularly difficult in predicting the results of management actions, since the course of events can be changed by relatively small impacts. Based on this, the company should be able to analyze both its own interests and the interests of business partners with whom the company enters into economic relations. There is such a problem as low management competence in the agricultural sector. In this regard, the development of enterprises becomes an urgent problem. This can be achieved by forming a scientifically based algorithm of actions aimed at improving the position of enterprises in the market. The subject of the study is the formation of a crisis identification system and the development of an enterprise crisis management algorithm. The theoretical and practical significance of solving problems associated with achieving sustainable development and functioning of enterprises determined the choice of goals, objectives, object and subject of this study. Based on the foregoing, the object of study is industrial (processing) agricultural enterprises. The research task is to propose a set of measures to overcome the crisis in the processing industrial enterprise. A set of measures has been proposed and justified to overcome the crisis in an industrial enterprise, which will help in managing the economic entity and the result of the implementation of this approach should be overcoming the crisis. The proposed measures can be applied not only by industrial processing enterprises, but also by other economic entities.