Company Crisis Research Articles

Analisis Pola Kemitraan Petani Tebu (Saccharum officinarum Linn) di PT. PG Rajawali II Unit PG Subang

PG Rajawali II unit of PG Subang made a partnership program as a solution to the company's crisis as well as a form of integrated agriculture implementation. After approximately 5 years of running the partnership program, there are still things that are felt to be lacking from this partnership program, such as capital, facilities and infrastructure, guarantee of selling prices for partner farmers, and lack of attention from the factory that is evenly distributed to all partner farmers. This study aims to see the results related to the PG Subang partnership program in the context of partnership patterns and farmer satisfaction. This study uses a descriptive quantitative approach and is supported by descriptive qualitative data. The researcher assigned 80 partner farmers as respondents using simple random sampling, a measurement tool using a Likert scale. Overall, PG Subang's partnership program is in the good category. The partnership pattern used by PG Subang is the Plasma Core partnership pattern, in this case PG Subang moves as the core and partner farmers as plasma. With an importance value of 4.89, there are aspects of reliability and responsiveness that show that farmers are very concerned about the stability and availability of support from the program. However, there is still concern about the PG's response. Subang in responding to complaints and solving problems in the field.

Halkla İlişkilerde Tüketici Aktivizminin Rolü: Şirketler için Yeni Bir Paradigma

Consumer activism refers to consumers collectively acting to create change in companies, and this phenomenon has been further strengthened by the new communication tools and social media brought by the digital age. In the past, companies largely controlled trends and consumer preferences with traditional advertising and marketing strategies. However, consumers’ increasing awareness and organizational skills have changed these power dynamics. Now, consumers can make their voices heard through social media platforms and digital tools and become an effective force for social change. However, consumer activism can also create a potential public relations crisis for companies. The public’s demand for policy and practice changes in an organization can threaten the reputation and financial performance of companies. Therefore, managing consumer activism has become a fundamental element of public relations strategies. Companies should use public relations tools to protect their brand reputation and maintain consumer trust by developing proactive and reactive strategies. While proactive public relations emphasizes brand values and transparency before crises, reactive public relations offers fast and effective responses during crises. Integrating consumer activism into brand strategy can provide significant benefits by aligning a company’s core values with the concerns and expectations of its consumers. Social media is an effective tool for engaging with activist consumers. Using social media platforms, companies can listen to consumer feedback, engage in relevant online conversations, and address concerns. Additionally, measuring the impact of consumer activism on brand perception is also critical for companies. Using analytics tools, companies can track consumer feedback and interactions. This provides important data to improve future strategies and better respond to the demands of activist consumers. Consumer activism is driving organizations toward excellence by creating a more engaged and responsive approach to public relations. Key Words: Public Relations, Consumer, Activism, Brand, Paradigm.

Research on the Sustainability of Property Insurance under the Background of Extreme Weather Events

In recent years, the frequency of extreme weather events has significantly increased, resulting in global losses exceeding $1 trillion. The profit crisis of insurance companies and the issue of homeowners' payment ability have become more apparent. This article focuses on the sustainability of property insurance under extreme weather events, establishes a comprehensive insurance and protection model, and provides recommendations for relevant departments.Firstly, a set of seven indicators including the proportion of household insurance expenditure was selected to establish an indicator system. After conducting Spearman correlation coefficient testing on the data and combining it with LSTM neural network to predict the frequency of extreme weather in the next decade, this paper uses the SVM binary classification model to classify high-risk areas as uninsurable areas and other areas as insurable areas. This decision-making process resulted in insurance companies covering areas such as Alabama and refusing to underwrite insurance in Arizona, while also making relevant recommendations.Secondly, by calculating indicators for communities and real estate developers, and considering the impact of population growth on housing demand, this article uses the ARIMA model to predict population growth in different regions over the next five years. After standardizing the data, the entropy weighting method is applied to consider the subjective importance of different real estate developers for different indicators and assign weights to the indicators. Weighted indicator data is used as input for the SVM model, dividing regions into two categories, with regions with better overall conditions being more favorable for real estate development. This has led people to prioritize the development of regions such as North Carolina and Indiana. In addition, this article introduces the TOPSIS regional ranking comprehensive evaluation index, which is beneficial for the development of higher ranked regions. Similar to our SVM classification results, Indiana and North Carolina rank second and third.

History of a decline: The Federconsorzi case

Introduction: The paper focuses on analyzing the causes of the crisis of an Italian company in the early 1990s. Aim of the work: The aim of this paper is to analyze the causes that led to the crisis of Federconsorzi to identify the decision-making errors and incorrect accounting, management, and regulatory practices that compromised its operations. In addi-tion, special attention will be given to the individuals who operated in that organi-zation, which was unique worldwide, and who, through their actions, enabled the achievement of the corporate collapse. Methodological approach: The work is based on an enriched version of the "fraud triangle" to correctly identify the activities and individuals involved in the Feder-consorzi crisis. Main findings: The case was analyzed to find that the fraud triangle theory, even modified from the most recent literature, does not consider certain elements that, on the other hand, proved to be diriment in the case analyzed. Originality: The paper provides a broadening of knowledge on issues related to business crises and the factors and elements that can play an important role in the process of deterioration of key business economic quantities.

Impact of the COVID-19 Pandemic on the Economic Development of the Mining and Construction Industry: Case Study in Slovakia

Due to the present worldwide economic development, there is an increasing need to follow the financial health of companies in individual sectors to avoid possible decline and bankruptcy. The goal of this contribution is to find out the influence of the pandemic on the economic situation in the mining industry as the primary sector, in connection with the construction industry as the secondary sector. The research is carried out through economic and financial indicators, which mostly influence the potential crisis of companies. The results show that the mining industry and construction sectors managed to avoid the heavy decline and bankruptcy of certain organizations in the industries. Such results can be used for forecasting and modeling the socio-economic development of regions and countries. The growth of the analyzed industries could contribute to the sustainable development in the country.

Corporate news disclosure on intangible assets during the COVID-19 crisis in pharmaceutical companies

Purpose: This study explores corporate news communication about intangible assets during the COVID-19 crisis in the largest global pharmaceutical companies. Methodology/approach: Computerised lexical content analysis was performed on 297 articles (texts) from 34 companies, amounting to 280,246 words. We generated a bottom-up clustering of the keywords, titles and abstracts. The qualitative data were obtained from the ProQuest textual database by Clarivate. Findings: The research demonstrates that the biggest global pharmaceutical companies focused intensively on intangible assets during the crisis. They disclosed information on three main intangibles: (1) brand, (2) patent and (3) license, covering 78.17% of the entire corpus text. Research limitations: The study limitations include the fact that the sample concerns only the biggest pharmaceutical companies that met our criteria. Further research could cover small and medium-sized companies and other industries. Finally, further analysis could combine quantitative and qualitative methods within the same research. Originality/value: The research article contributes to the current literature on intangible asset narratives, showing how the biggest pharmaceutical companies tend to achieve a competitive advantage, stay successful during a crisis and address messages to their key stakeholders. Considering the high risks and existing uncertainties, these messages could be of the utmost importance.

The impact of cost resilience on management decision to respond to the COVID-19 crisis in healthcare companies

The impact of cost resilience on management decision to respond to the COVID-19 crisis in healthcare companies

Unravelling the three lines model in cybersecurity: a systematic literature review

Enterprise risk management frameworks have gained popularity after the Global Financial Crisis for companies to be more in control of their risks. Since then, the Three Lines of Defence model (based on defence-in-depth approaches) has become one of the primary risk management frameworks in the Western world. Yet, its application in the cybersecurity space, one of the fastest-growing areas of risk for modern organisations, has been fragmented at best. In this article, we conducted a systematic literature review on the application of the Three Lines of Defence model in cybersecurity. The model has been recently renamed the Three Lines Model. After the seminal publication by the Institute of Internal Auditors in 2013, academics and practitioners have either referenced this model as the primary governance framework for risk management or analysed it in depth in various areas. To the best of our knowledge, this is the first systematic literature review on the topic. We have performed a methodical analysis of existing research using best practices in the field and adopted the grounded theory approach as the theoretical underpinning of our investigation. This way, we unraveled details, critiques and possible alternatives to the Three Lines Model in cybersecurity. Our study expands our understanding of the Three Lines Model and its application in cybersecurity, highlighting the status quo of research in the space and offering practical recommendations for organisations interested in exploring its implementation to mitigate the impact of cyber-risks.

Research on the Application of Data Mining Techniques in Early Warning Models for Financial Management

Abstract In the process of accelerating enterprise development in China, enterprises are prone to financial management crises while grasping development opportunities. This paper is oriented towards enterprise financial management data and proposes an adaptive neuro-fuzzy inference system to reason about risky data. The ANFIS model is integrated into K-mean clustering to provide early warning of enterprise risk by dividing different financial management risk indicators. The validation method uses both the comparison of similar algorithms and the practical test of A enterprise. Compared to other analysis models, the accuracy of the early warning model constructed by the K-Means algorithm is as high as 99.64%, which is suitable for enterprise financial management early warning. Using the model built in this paper to cluster the types of enterprise financial risk, the second cluster centers clusters of enterprises in financial difficulties, a number of indicators show negative results, and the net sales interest rate is as low as −94.23. This indicator is applied to the financial crisis of Company A’s financial situation analysis and found to be consistent with the characteristics of the second cluster center. This verifies the accuracy of the financial early warning model constructed in this paper.

Doświadczenie kryzysu jako składnik zbiorowej pamięci przedsiębiorców

Objective – To identify and explain the reasons leading the company to a micro‑scale crisis, which is independent of the market crisis. Research method – The use of in‑depth qualitative interviews with entrepreneurs. They covered entrepreneurs working in the profession for at least twenty years and representing the sector of micro, small and medium‑sized enterprises. Result – The experience of a company crisis on a microscale is an individual experience for each entrepreneur, independent of the market situation. It is the building block of the collective memory of entrepreneurs. Originality / value / implications / recommendations – Based on in‑depth qualitative research, using original statements of entrepreneurs, it has been proven that the company’s crisis, perceived as a sudden event, has its genesis in informal institutions, including ethical and cultural principles in interpersonal relations. A large role in mitigating the effects of the crisis is played by the word, the language of everyday communication of entrepreneurs with clients, contractors, as well as those in power with this professional group.

Artificial Intelligence Technology to Predict the Financial Crisis in Business Companies

Artificial Intelligence Technology to Predict the Financial Crisis in Business Companies

The Trigger and Application of Black Swan Events: A Case Study of Silicon Valley Bank Failures

On March 10, 2023, Federal regulators shut down Silicon Valley Bank, the 16th-largest bank in the country. As a result of the significant run, the bank was forced to file for bankruptcy. The purpose of this paper is to analyze the borrowing and triggering factors of black swan events by taking the Silicon Valley Bank bankruptcy event as an example, and to discuss the revelations and reflections of black swan events from the perspective of risk management based on the definition and characteristics of black swan events. Black swan events are those rare, unpredictable events with great impact, while bank bankruptcy events imply significant changes in the stability of the financial system. The failure of Silicon Valley Bank exposed the vulnerability of the banking sector and raised depositors' concerns about bank withdrawals and the cash flow crisis of global technology companies. Thus, the failure of Silicon Valley Bank has important lessons for future bank management and regulation. This paper argues that for most people, the failure of Silicon Valley Bank was not a black swan event, but even for many professionals, the impact of bank failures is unpredictable.

Evaluation of Crisis Handling of Carasun Cosmetic Company

Threats to a company's existence can arise from a reputation crisis induced by various factors. If not handled carefully, such a reputation crisis can lead to a loss of trust from customers, investors, and employees, which, in turn, can have a detrimental impact on the overall company's performance. For example, Carasun, a cosmetics company, faced a reputation crisis due to allegations of using "buzzers" to tarnish the reputation of its competitor, Skingame. The research on Carasun's crisis aims to identify the triggering factors of the reputation crisis, evaluate the negative impacts experienced by Carasun, and analyze the company's crisis management efforts. This research uses a qualitative research method with a case study approach, and the findings indicate that Carasun's reputation crisis was triggered by the improper use of "buzzers" and negative posts on social media. The impacts of this crisis included a decrease in consumer trust, disruptions in business partner relationships, and threats to the company's sustainability. To address this crisis, Carasun has implemented crisis management strategies, including adaptive strategies and utilizing social media as a crisis communication tool. Recommendations for cosmetics companies facing reputation crises involving "buzzers" include increasing awareness of early crisis signs, improving the ability to identify crisis signs through technology and data analysis, and strengthening internal coordination and communication by prioritizing ethical values and integrity.

Strategic Planning and Crisis Management Styles in Organizations: A case Study of Starbucks Firm in Shanghai, China

Strategic planning is an essential process for organizations to set their long-term goals and determine the best course of action to achieve them. It involves analyzing the internal and external environment, identifying opportunities and threats, and formulating strategies to capitalize on strengths and mitigate weaknesses. Crisis management is a set of strategies and actions taken by organizations to effectively respond to and recover from unexpected and disruptive events. Crisis management styles can vary, ranging from reactive approaches that focus on immediate response and containment, to proactive approaches that prioritize risk assessment, preparedness, and resilience. Ultimately, organizations need to strike a balance between strategic planning and crisis management, integrating them into their overall management framework to navigate both predictable and unforeseen challenges successfully. The study findings indicate that Starbucks has a robust strategic planning process in place, which has contributed to its long-term success. The firm is highly committed to resolving crises promptly, whether they involve product quality concerns, employee misconduct, or public relations issues. The company's crisis response actions are guided by their long-term strategic vision, brand values, and commitment to delivering a unique customer experience. It was concluded that Starbucks has demonstrated a robust strategic planning process, focusing on premium-quality coffee, creating a unique customer experience, and fostering sustainable growth. This strategic approach has propelled Starbucks to become a global leader in the coffee industry. Starbucks' strategic planning and crisis management styles have positioned the company as a leader in the industry, allowing them to effectively manage challenges while maintaining their strategic vision. The study recommended that by continuously monitoring the market landscape, organizations can anticipate changes and proactively adapt their strategies to remain competitive. To enhance crisis management, organizations should prioritize developing a proactive approach, focusing on rapid response and transparent communication. Keywords: Strategic Planning, Crisis Management Styles, Organizations, China

Financial analysis and a course in reducing financial crises in medium industrial companies in the Republic of Yemen

The article's first section discusses how the corporation declined as a result of its subpar response to its financial instability. We concentrate on the approaching fall of the corporation in Yemen as well as a new legal definition of company decline. Companies can also reverse the drop by putting company crisis management into place and using both formal and informal methods to handle crises. The financial facets of corporate crisis management are covered next in relation to financial management. In the second section, we go into the methods and working methodology that were applied to the study of a particular sample of businesses. The statistics of testing reductions in a chosen sample of institutions are included in the application section of the paper, and we utilize financial analysis to show the decline of the sample of institutions. The study's findings and discussion help us identify the characteristics of the factors that contributed to the company's decline, and the study's conclusion offers suggestions for economic action in the area of the company's financial health with the main objective of preventing or delaying the company's decline with the fewest losses possible.

Going concern, COVID and bankruptcy prediction: in Italy identified valid forecast ratios of bankruptcy prediction

In this paper, a theoretical and operational analysis was carried out on the issue of going concern. First of all, from a theoretical point of view, the subject of going concern has been examined in-depth to explain how the Covid-19 health emergency has impacted the companies' ability to carry out their activities shortly. It also achieves this aim by implementing operational research having as its object forty companies belonging to three macro-sectors: industrial, financial services and non-financial services, whose stocks make up the Italian stock exchange index Ftse Mib (Financial Times Stock Exchange Milan. The FTSE MIB is the benchmark stock index in Italy. It consists of a basket of 40 stocks on the Euronext Milan and Euronext MIV Milan markets identified by capitalisation, trading volume and sector). The theoretical and operational analysis of the concept of going concern was carried out considering, also, the bankruptcy alert indices identified by the Italian National Council of Chartered Accountants and Accounting Experts. These indicators were introduced by Italian legislation with the entry into force of the new Code of Corporate Crisis to identify possible economic and financial instability situations before the state of crisis. The research, as mentioned above, was carried out using the alert indices recognised by the National Council of Chartered Accountants and Accounting Experts. This research emerged that these indices are actually predictive of a company crisis. It also completed the study illustrated in this paper by comparing the results of the bankruptcy's predictive alert indices and Altman's Z-score. It reached the trends identified by the alert indices with the results obtained from Altman's Z-score, and from this comparison, it can see that the final results are similar. The comparison between the alert ratios illustrated by the National Council of Chartered Accountants and Accounting Experts and the results of Altman's Z-score allows us to affirm two observations: undoubtedly, the alert ratios are characterised by a high predictive validity regarding the bankruptcy of companies and, in addition, that these ratios lead to similar results to those that can obtain by applying Altman's Z-score. In this paper, a theoretical and operational analysis was carried out on the issue of going concern. First of all, from a theoretical point of view, the subject of going concern has been examined in-depth to explain how the Covid-19 health emergency has impacted the companies' ability to carry out their activities shortly. It also achieves this aim by implementing operational research having as its object forty companies belonging to three macro-sectors: industrial, financial services and non-financial services, whose stocks make up the Italian stock exchange index Ftse Mib (Financial Times Stock Exchange Milan. The FTSE MIB is the benchmark stock index in Italy. It consists of a basket of 40 stocks on the Euronext Milan and Euronext MIV Milan markets identified by capitalization, trading volume and sector). The theoretical and operational analysis of the concept of going concern was carried out considering, also, the bankruptcy alert indices identified by the Italian National Council of Chartered Accountants and Accounting Experts. These indicators were introduced by Italian legislation with the entry into force of the new Code of Corporate Crisis to identify possible economic and financial instability situations before the state of crisis. The research, as mentioned above, was carried out using the alert indices recognized by the National Council of Chartered Accountants and Accounting Experts. This research emerged that these indices are actually predictive of a company crisis. It also completed the study illustrated in this paper by comparing the results of the bankruptcy's predictive alert indices and Altman's Z-score. It reached the trends identified by the alert indices with the results obtained from Altman's Z-score, and from this comparison, it can see that the final results are similar.

Application of Liquidity Ratios in Predicting Corporate Financial Crisis; Comparison of Support Vector Machine Model and Neural Network in Cement Industry

Investors need to evaluate and analyze financial statements for reasonable decisions. Using financial ratios is one of the most common methods. The main purpose in this research is to predict the financial crisis of companies using liquidity ratios. Support vector machines and neural network of back propagation error are compared. In this study, liquidity ratios have been investigated over the period of 93-89. The research method is quantitative and qualitative and casual comparative. The results indicate that the accuracy of the neural network with a significant difference of 0.001 in year t with a significant difference of 0.005 in year t-1 and with a difference of 0.30 in year t-2 is greater than the support vector machine. This shows that the neural network has the ability to predict correctly up to 2 years before bankruptcy. Also, the results showed that the ratio of capital to total assets had the greatest effect on bankruptcy prediction.

Financial Crisis Early Warning Model of Listed Companies Based on Fisher Linear Discriminant Analysis

Abstract This article first uses a new method of nonlinear combination forecasting based on neural networks to construct a financial crisis early warning model and conduct an empirical study. The drafting article uses Fisher’s second-class linear discriminant analysis and binary logistic regression to establish a three-year early warning model for listed companies before the financial crisis. Empirical research shows that this early warning model applies to various industries. It can play a certain role in predicting and preventing the financial crisis of Chinese companies.

An ethics crisis and corporate failure in food and beverage companies. evidence from Zimbabwe

Lack of adherence to ethics and principles appears to have been one of the main causes of corporate financial distress around the world. A lot of unethical practices have contributed to revenue leakages and reluctance by investors to buy a stake in the industry. The prevalence of unethical practices, illegal behavior, illicit and deceptive practices in food and beverage companies is an unsolved issue. The aim of the research was to find out the effect of ethical problems on company’s financial performance in food and beverage industry. The high failure rate of brands in the food and beverage companies has given the researcher interest to investigate the impact of ethics on financial performance of a company. Due to the diverse nature of food and beverage industry, an action research inquiry of 20 interviews and 100 questionnaires was conducted. A mixed method convergent approach was used to analyse collected data using questionnaires and interviews. Findings from the study that there is strong positive relationship between ethical conduct of employees, managers, business conduct and the financial performance of food manufacturing company. The study results show that ethical branding significantly enhances the firm's reputation; and good reputation reinforces the brand in turn. Ethical branding can provide the company with a differential advantage as a growing number of consumers become more ethically conscious. It is therefore recommended that, ethical issues should be considered in all company departments and embedded into total quality management processes of an organization as it affect potential investors and customers.

Editorial

Editorial