Научная статья на тему 'ENTERPRISE MANAGEMENT IN CONDITIONS OF CRISIS'

ENTERPRISE MANAGEMENT IN CONDITIONS OF CRISIS Текст научной статьи по специальности «Экономика и бизнес»

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ANTI-CRISIS MANAGEMENT / ENTERPRISE / STRUCTURAL ANALYSIS / PLAN OUT OF THE CRISIS / SCIENTIFIC APPROACHES

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Ivanova Inna G., Voloshina Irina M.

The article deals with the stages to identify the crisis in business economics. Also it gives the algorithm of financial recovery of an enterprise.

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Текст научной работы на тему «ENTERPRISE MANAGEMENT IN CONDITIONS OF CRISIS»

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ENTERPRISE MANAGEMENT IN CONDITIONS OF CRISIS

Abstract

The article deals with the stages to identify the crisis in business economics. Also it gives the algorithm of financial recovery of an enterprise.

Keywords

anti-crisis management, enterprise, structural analysis, plan out of the crisis, scientific approaches

AUTHORS

Inna G. Ivanova

PhD, Associate Professor Kuban State Agrarian University. 13, Kalinina Str., Krasnodar, 350004, Russia.

E-mail: inna_ivanova_2010@mail.ru

Irina M. Voloshina

Student. Kuban State Agrarian University. 13, Kalinina Str., Krasnodar, 350004, Russia.

E-mail: Irina.voloschin@yandex.ru

Introduction

1.1 Urgency of the problem

A variety of actions to create and select strategy of anti-crisis management is related to unified operations to ensure the stable development. Also it is related to approve short-time insights to guarantee the survival of the company to preserve existing capacities.

1.2 Features crisis

The crisis has many faces, it is characterized by 2 different external features, and this fact leads to the need to introduce in its interpretation of refinement, with the help of theoretical and system views. Firstly, in the manufacture of a crisis occurs unexpectedly and not always instantly. It can develop slowly and imperceptibly. Secondly, the crisis state of the economic sphere does not appear contrary to the provisions of the system development and operation, as the economists believe, but just because of the effect of these conditions on the operating system from the inside. That external (inflation, disruption of supply and competition) and internal (hardware failure, not friendly staff and technological production left) factors disrupt normal functioning of the company and knocked her to the calculated trajectory. After all, depending on the set trajectory of his company's objectives should include both foreseeable and verifiable zigzags and risk unintended deviations of varying duration. Undoubtedly, to achieve the company is obliged to have its resources judiciously task, and deviation from this regime leads to a crisis in the organization.

1.3 Characteristics of the crisis

The depth and comprehensiveness of the study is carried out of the crisis when considering the financial, logistics, energy, social, employment, and informational, organizational, administrative, environmental, economic, legal and other aspects of the company in their relationship with each other. An important criterion for the study of the stability of the company acquires the environmental aspect of its operations. In this case, you can support the gG Vukovic that "during the transition period of the Russian market of the interaction and interdependence of economy and ecology, the formation of the aggregate of economic relations, aimed at environmental imperative, determines the content and the potential of the economic system." Consequently, if in the labor process, the company impact on the environment and uses natural resources in the strategic plans of the organization must take into account the economic and environmental spheres of production activities. (Kobtseva, 2016)

Materials and Methods

2.1 Objectives and Research

Each company starts to fight the crisis with the help of the basic elements: price reduction, cost reduction and a decrease in the intensity of promotion. Efficiency of use of the above elements can be increased. However, before you implement them amendments need to know how to change the marketing strategy in the new conditions. NV Kosyh believes that service companies marketing relevance, during the recession increased. As for the results of the collective meetings was amended in marketing strategies that will lead to a transformation not only of promotion and marketing, but also the product itself. Services should be changed more quickly than material goods, and it costs less. If the development of strategies occurs on the basis of the definition of segments and positioning, it is often possible to significantly increase the effectiveness of marketing. The effectiveness of the company's activities is determined by using the correct strategic marketing planning in the long term.

2.2 Management in crisis

The critical state of many firms in the market conditions of course, as not all are able to withstand the competition. The main problem of the crisis of market failure is wrong mistakes managers at all levels and their desire to enrich themselves, and officials at the expense of labor collectives. Management of the organizations as well, presents an economic crisis as limited, not knowing at the same time its development opportunities, in some cases, provides limited information that does not promote the use of its localization methods. Thus, it is necessary to evaluate and low level of management in organizations. In a crisis, every company strives for a flexible response to meet human needs, high quality products and services to improve the stability of the actively changing market conditions. To do this, companies must purposefully make changes in the strategic plans. These changes do not take place in an instant, suddenly, and require enormous preliminary work of leaders in different fields on the basis of sound events. At this point, companies need managers, executives, managers, organizers and managers of high-level performers. (Tolmachev, 2016)

2.3 Action plan

As a rule, defining a strategy as a plan of action is limited with immediate measures to ensure a specified level of mainly financial indicators.

The main cause of the crisis can be considered the financial and market instability, when companies are in complete uncertainty and often have as their main purpose is elementary to survive in the market.

But it is also to be understood that a crisis - it is an opportunity to win a strategic advantage due to a hard business.

The main emphasis would like to make on the fact that not all companies comply with market conditions. They are not designed to adapt to rapidly changing market framework conditions, i.e. not cope with the main management functions in the financial management system, such as production, finance, procurement, research and information provision. Overcoming the crisis and effective development of the company within the market instability can be achieved through innovative changes in the company. It may be noted that in addition to financial indicators on the efficiency of the organization affects corporate spirit of the production workers. (Ivanova, 2016.)

2.4 Rules for companies in times of crisis

In the context of the crisis in the country's population is reduced solvency, forecast demand is not just, sometimes, for goods and services is not the first necessity is almost impossible. This helps determine the next steps, which will help improve their business to further sustainable development in the market sphere. There are rules to be followed by each company during the crisis: the adoption of protective measures, artificial slowing development strategy of investing in key areas of business, optimization of operations and positioning change.

2.5 Mergers and acquisitions

The main instruments of the value in a crisis situation - acquisitions and mergers. These actions help to reduce the value of assets and integrate measures to overcome the crisis. Through mergers and acquisitions firm is able to provide itself with the flow of orders and avoid the decline in demand. Therefore, a stable cash flow contributes to

broaden the scope of action. Therefore, in volatile market conditions, the organization will be able to find the means to finance rapid growth.

It is worth noting that in mergers and acquisitions must be evaluated strategic expediency of each step. Successful mergers and acquisitions in a crisis - it is not mediocre action on vertical integration, the acquisition of companies with strong competitive advantages, or have access to the growing markets.

Results

3.1 Analysis of methodological approaches

The analysis of systematic approaches to develop, select and organize the implementation of management strategies allows us to conclude that a modern manager can use quite a lot of significantly different from each other viewpoints and approaches.

In the current environment every enterprise gains its qualities in the condition of large-scale financial-economic crisis. The main motives of anti-crisis management at the level of the economic entity are continuous monitoring of the financial and economic conditions of production; creation of a new marketing strategy; cutting fixed and variable costs; improving of productivity; stimulation of workforce.

3.2 Internal and external factors

Since the analysis should consider both external and internal conditions which affect on the company's activities, in modern conditions it is possible to mention about management capabilities in crisis, but not anti-crisis activities in general.

It should be noted that the crisis has two sides, which have different influence on the management. One side will be destructive, so it is obvious. The other side is creative, so to say it is time of renewal, when admitted mistakes are obvious to correct it will exclude failure.

When it crisis, it is not appropriate to wait, thinking that everything will be fine. This is slackness, which leads to the collapse of the company, even if the crisis does not directly affect on the company. In such situations it is desirable to focus on the situation and study it, find right solutions that bring out which will give the way out. It highlights that the financial crisis is the best time to capture or expand market resources.

3.3 Management specifics

Crisis management is responsible for the specificity of which is supported by its own resources. Currently, managers of the company should simply make changes in the production structure and its constituent elements, without which he would not have a thriving business. This is done by acting on the internal and external environment. This is necessary to achieve the objectives of innovation, aimed at the development of enterprises. Taking into account the scientific approaches, it may be noted that both the external control conditions associated with economic theory, as well as internal factors related to the theory of economic analysis. Attention may be focused on the fact that the structural analysis of industrial control companies makes an analysis in two areas of the economy and methodology ( Bugaeva, 2016 )

The total analysis includes the following main stages: finding of qualitative and quantitative methods to solve problems; assessment of improved structures of the ranked criteria; identification of structures that cause the improvement of the functional characteristics of company managing.

It is worth noting that it is impossible to predict what opportunities will be with entrepreneurs respond to changes in the economy, or to what extent they will increase or reduce the amount of investment. At a time when demand is made for goods or services of different industries and the expansion of its release, the leaders in those industries that are not yet experienced increasing demand for products, inclined to expect that it will occur.

3.4 Economic fluctuations

Economic fluctuations can be explained as: the introduction of technical innovations in the labor process, the involvement of new resources and the development of new territories. Many scholars have attributed the crisis to the lack of the "right proportions" between sectors and regions, with the unregulated activities of managers. The most significant aspect of the entrepreneurial process management is the most justified taking into account the logistics factor in solving problems, taking into account the socioeconomic conditions and crises.( Zagorulko, 2016 )

3.5 There are actions which are necessary in the crisis

There are actions which are necessary in the crisis they are

1. to prepare all important information about the state of the company and detailed analysis of its activities.

2. to monitor the economic and financial conditions of the company.

3. to make analysis of the causes of emerging problems.

4. to develop the best strategy which includes such spheres as: administrative, financial and marketing.

5. to develop a programme of cuts in fixed and variable costs.

6. to take measures to improve productivity.

7. to develop a programme to increase the motivation of staff

8. to find the amount of providers' funds, if such an option is possible.

It is well known that managing in crisis conditions is not only the process consisting of details. It is a systematic process of goal-oriented actions. It should be taken into consideration that the factor management must remain an integral part of business management to succeed and overcome the crisis.

3.6 Aggregate demand and aggregate supply in times of crisis

The economic crisis makes changes in aggregate demand and aggregate supply. This manifests itself in violation of the proportionality of social production and the momentum to achieve equilibrium. The combination of these views shows the importance and the complexity of the economic phenomenon. In connection with the improvement of market relations in the production activities of our country has to be carried out in the framework of increasing uncertainty and volatility of the situation of the economic sphere. Thus, there is indecision and uncertainty in the acquisition of the expected results, and therefore, the fear of occurrence of failures, unexpected loss and the onset of the crisis. The acuteness of the crisis can be avoided, given its characteristics, that is the time to explore it offensive. Therefore, any anti-crisis management should be considered. In today's world, the firm is an open system and is influenced by the external environment, which is not always positive. Therefore, it prevents the company to fully implement their goals. Initiative of companies in a market economy can be roughly mark the degree of similarity or dissimilarity between the outer and the inner sphere of production, which have been in business. If costs or loss in the domestic sphere are practically absent or

exist within the desired deviation, it means that the outer sphere is stable and has no negative factors. The activities of the company in these circumstances is determined by the stability of the social and working environment, innovative use of the level of technological capacity, minimum costs of the appearance of final goods and services. If amplified the impact of negative factors of the environment, the company goes out of the ordinary conditions of its functioning, so there are signals to generate substantial additional production costs. (Shmakova, 2016)

The process for the company is the average situation of economic stability. Its framework characterized by stable growth of additional costs, profit margin, which was acquired by the company from selling its final products. With increased exposure to adverse environmental factors appear instability in production and social spheres, reduced level of use of the capacity of the firm, formed cracks in the quality management system reveals the impossibility of ensuring the stability of the parameters of the enterprise through a system of strategic planning and made a sharp jump in additional costs. And, as a result, all of these processes lead to a lack of desired profit. The atmosphere at the company is a crisis which is characterized by the appearance of large losses and failure to meet its obligations to customers and creditors. Therefore, if the company gets into a situation, then it is necessary to develop a mechanism for optimization of parameters such that would correspond to the external conditions of its operation. The main unit of such regulation should be strategic planning. In the process of crisis management at the enterprise is detected potential threats and take measures to timely counter negative trends, which includes the following processes: diagnostics for early detection of potential threats, planning for localization of threats and countermeasures implementing measures to firm recovery, the control over the implementation of changes. Thus, the crisis should be described as a lack of effective management of the company at a certain level of its activities. It is manifested in the deterioration in the economic stability of the company.

3.7 A company plan to overcome the crisis

A company plan to overcome the crisis can be represented in several stages. The first stage is the primary one, as it determines quantitative output from the crisis to ensure recovery. To avoid bankruptcy integral financial claims of creditors must be determined and should be satisfied.

The second stage includes the list of events to overcome the crisis and lead to financial improvement of the enterprise. The list of actions should be based on the principle of "event - cost reduction."

The third stage includes finding the list of uncertainty factors.

The fourth stage is the calculation of various values of the company incomes for all combinations of values and changes in costs.

The fifth stage is finding the minimum profit of the enterprise for each item of anticrisis measures.

The sixth stage is developing of anti-crisis management programme by identifying actions from the list, i.e. finding the measures which satisfy the presented formal conditions to overcome the crisis. This stage is the most important.

Discussions

There are companies that survive in a crisis situation exist indefinitely just because they are developing dynamically changed, modernized and transformed. Research conducted analysis showed that one of the main criteria of a crisis in production is due to the lack of knowledge of the market's competitive environment. It is necessary to apply

the design techniques in organizations, which will help gradually change the system of their functioning and development. Considering the crisis in the company, you should pay attention that the repeatability is a universal form of economic dynamics. Since the dynamics of change reflects the evolutionary and revolutionary forms of economic progress, fluctuations in business activity, the alternation of predominantly extensive and intensive growth. Cyclical education crisis at company level did not always coincide with the general economic cycle phase. Experience shows that companies Crises often reveal their own rhythms of development of the financial performance of individual businesses. One of the forms of manifestation of the crisis may be: decline in profits and profitability, especially of the primary business.

Conclusion

Therefore, these steps to overcome the crisis situation determine the best strategy for company management in the crisis. It can help to understand the effectiveness of this plan. Effectiveness criterion may be represented as the level of the company overcoming the crisis and achieving its financial recovery.(Pisarev, 2016)

In conclusion it should be noted that the existence of special skills and knowledge in the field of crisis management is not sufficient to make final decisions. We must take into account all factors and possible steps of the output from the anti-crisis state. It should help create such a process of crisis management, the purpose of which will be to move into a new stage meaningful and technologically updated business process that meets the requirements of supply and demand on the market of products, works and services.

REFERENCES

Ivanova I.G., Pisarev V.S.and Zagorulko M.V., (2016) Peculiarities of Russian corporate governance model / In: Economic and legal problems of sustainable development of industries and enterprises collection of scientific works based on the II International Scientific and Practical Conference. S.50-55.

Kobtseva O.N. and Shmakova A.V., (2016) Social communications as an integral part of the management company / In: 21 Age: basic science and technology Materials of the VIII International scientific-practical conference. n.-i. c. "Academic". S.74-76.

Bugaeva, A.S. and Kobtseva, O.N., (2016). The impact on the public consciousness as a form of power / In: Economics and Management: Current Theory and Practice Proceedings of the III International Scientific and Practical Conference. S.3-57.

Ivanova I.G. and Tolmachev A.V., (2016) Organization Management (now) / Krasnodar, contemporary theory, methodology and practice of collection of scientific papers based on the I International scientific-practical conference. S.52-57.

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