Abstract
Crisis management comprises planning, organizing, directing and monitoring companies experiencing difficulties that directly endanger their existence and further development and its purpose is to stop negative trends by achieving a drastic change and providing the foundation for redevelopment. The short-term measures of crisis management that put an end to negative movements (survival) in the first phase, must be followed in the second phase by middle- or long-term measures of ensuring development that are mostly connected to revolutionary changes. In regard to a corporation’s situation from its endangerment or the prospects point of view, restructuring as a method of revolutionary changes can have the different roles in crisis solving, crisis prevention, accelerated development of a corporation, insolvency procedures and business and equity alliances. For many companies or even industries, the inclusion into a strategic partnership at a certain level of development is not only a strategic possibility and opportunity, but also a business necessity, as this is the only way to preserve a competitive market position and prevent the occurrence of acute crisis in the future. On the other hand, it is also possible to heal a company crisis with strategic connections and equity alliances; whereby available assets and partner companies’ capabilities are also included into the healing process, which is also in search of synergy effects. Based on the theoretical discussion and empirical findings from the author’s research, two statements that were set forth in advance were confirmed. Strategic partnerships and equity alliances are often in the function of crisis prevention and management and they are inseparably connected with revolutionary changes, as positive effects cannot be achieved otherwise.
Highlights
A crisis is a short-term undesired, unfavourable and critical situation in a company, directly endangering the existence and further development of this organization and is caused by an intertwined and simultaneous action of both external and internal sources ([1] [2]; cf. [3]-[5]).In terms of the management of the company or strategic business decision makers, crisis brings exceptional situations, which require very rapid decision-making due to the critical state of the moment, and these decisions must be as correct as possible; as usually adjustments are not possible, the crisis contains a managerial viewpoint
The short-term measures of crisis management that put an end to negative movements in the first phase, must be followed in the second phase by middle- or long-term measures of ensuring development that are mostly connected to revolutionary changes
This way, the other hypothesis in this contribution was adopted, namely, that allows for an inseparable connection with revolutionary changes between a strategic partnership and equity alliances when they are in the function of crisis prevention and elimination, as positive effects cannot be achieved otherwise
Summary
A crisis is a short-term undesired, unfavourable and critical situation in a company (organization), directly endangering the existence and further development of this organization and is caused by an intertwined and simultaneous action of both external and internal sources ([1] [2]; cf. [3]-[5]). Managing a crisis situation (condition) alone ensures the company its survival, but not the recovery of the company (temporary standstill of the crisis) This phase must be followed by the earliest possible achievement of a drastic change (or turnaround), when negative trends, after hitting rock bottom (turning point), turn towards positivity, where the company ensures its existence and the realization of a development option or along with the temporary existence further competitive development. The actual objectives of in-depth and more complex strategic cooperation usually pertain to solving development issues and, on the other hand, the utilization of opportunities which means that it is either a case of efforts to eliminate the deficit in available assets or optimal as well as a complementary synergetic utilization of available assets and capabilities of the participants in the relationship which, when acting as individual companies, fail to manage all the key operative areas or the return value is too low due to various reasons. Restructuring and reengineering are methods of revolutionary changes and methods of achieving the reorganization of a company which are normally necessary in crisis prevention or management
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