From survival to business prosperity: the financial aspect of managing an organization in a crisis
Article Sidebar
Main Article Content
Abstract
The article is about revealing the content and role of finance capacity and financial and economic results of enterprises activity under the crisis. The article provides an understanding of crisis results at the enterprises activity in conditions of poor management and weak financial strategy. It is analyzed current business situation, including results of the companies due to the coronavirus. It is established that not only the crisis management system (if it exists at the enterprise), but also the financial management system at the enterprise has great importance during a crisis and ensures its stable functioning afterwards. With unstable financial flows and their inept coordination, a crisis for an enterprise can come much earlier (due to internal disruption) than for the whole country or the world economy as a whole. The results are based on theoretical scientific researches and financial and economic data of enterprises activity. Based on system analysis, a number of features have been identified as the building elements for the formation of understanding how to manage an organization in a crisis taking into account the financial aspect. A logical sequence of factors and their interrelationships was established within the entire process of enterprise management during a crisis. Identified elements indicate the directions that need to be implemented at the enterprise for its stable functioning even in times of crisis. According to the analyzed data, most companies used their financial reserves and were able to improve their positions. It is investigated the main common ways to reduce costs in crisis: reducing the production capacity (including the number of purchases, storage), changing the schedule of employees working day (taking into account daylight hours), reduction (closure) of sale points (which, among other things, provokes staff reduction also). It is declined ways of manager’s behavior as decide with speed over precision, adapt boldly, reliably deliver, and engage for impact, which help them to manage company effectively.
Downloads
Article Details
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
BIELIAIEVA, N. (2017) A Financial and Economic Activities Effectiveness Evaluation as a Condition of Corporate Management Decisions Making. Baltic Journal of Economic Studies, v. 3 n. 4, p. 12-17. DOI: http://dx.doi.org/10.30525/2256-0742/2017-3-4-12-17. Access: 16 July 2020.
BOWERS, M. R.; HALL, J. R.; SRINIVASAN, M. M. (2017). Organizational culture and leadership style: The missing combination for selecting the right leader for effective crisis management. Business Horizons, v. 60, n. 4, p. 551-563. DOI: http://doi.org/10.1016/j.bushor.2017.04.001.
BOYKO, L.; BIELIAIEVA , N.; BAY, S. (2020) Problems And Prospects Of Digital Economy Development In Ukraine. International Journal of Advanced Science and Technology, v. 29, n. 8s, p. 2322-2328. DOI: http://dx.doi.org/10.35940/ijrte.C1038.1183C19.
CALANOV, G. (2020) Macy’s reported a $ 3.5 billion loss. A new lockdown could destroy the network. Investments. Available: <https://quote.rbc.ru/news/article/5efe0ac79a79473fb712c2cb>. Access: 30 July 2020.
CHUPRYNA N.; HAIEVSKYI, V. (2017) The main theoretical aspects of system of crisis management at the enterprise. Baltic Journal of Economic Studies. DOI: http://dx.doi.org/10.30525/978-9934-571-28-2_27.
DELOITTE: official website. Available: <https://www2.deloitte.com/global/en/pages/risk/topics/crisis-management.html>. Access: 21 July 2020.
FEDORKOVA, K. (2018) Importance of Financial Aspects of a Company Crisis Management in Slovakia. Marketing and Branding Research, v. 5, p. 8-22. DOI: http://dx.doi.org/10.33844/mbr.2018.60439.
HAYES A. (2019) Crisis Management. Investopedia. Available: <https://www.investopedia.com/terms/c/crisis-management.asp>. Access: 18 June 2020.
HOWELL, D. (2020) The Complete Guide to Crisis Management for Every Business. BEEKEEPER. Available: <https://www.beekeeper.io/blog/what-is-crisis-management/>. Access: 01 August 2020.
KASIANOVA, N.; TARASOVA, E.; KRAVCHUK, N. (2019) Enterprise development management through managed chaos. Independent Journal of Management & Production, v. 10, n. 5, p. 1626-1644. DOI: dx.doi.org/10.14807/ijmp.v10i5.900.
KAZIUKENAS, J. (2020) Amazon Lost Web Traffic Market Share. Marketplace Pulse. Available: <https://www.marketplacepulse.com/articles/amazon-lost-web-traffic-market-share?fbclid=IwAR2_RdJ5VNohtw-R0kBMQjM3D55NNudoUd06eAFbsCQcTKon4NEHrB2i5as>. Access: 21 July 2020.
LABEAT, M. (2015) Role and importance of management in crisis situation in the enterprise. International Journal of Economics, Commerce and Management, v. III, is. 8. Available: <https://www.researchgate.net/publication/329324465_Role_and_importance_of_management_in_crisis_situation_in_the_enterprise>. Access: 16 July 2020.
LAI, Y.; SARIDAKIS, G.; BLACKBURN, R.; JOHNSTONE, S. (2016). Are the HR responses of small firms different from large firms in times of recession? Journal of Business Venturing, v. 31, n. 1, p. 113-131. DOI: http://doi.org/10.1016/j.jbusvent.2015.04.005.
LITVINCHYK, T. (2020) A third part of small and micro-businesses are going to reduce the number of employees in Ukraine - an EBA survey. Business. Available: <https://nv.ua/biz/markets/iz-za-karantina-tret-malogo-biznesa-planiruet-sokrashchenie-sotrudnikov-opros-novosti-ukrainy-50080567.html>. Access: 17 July 2020.
LOSITSKA, T.; BIELIAIEVA, N. (2020) HR Crisis Management at Trade Enterprises. EUREKA: Social and Humanities, v. 1, p. 10-15. DOI: https://doi.org/10.21303/2504- 5571.2020.001142.
MIKUSOVA, M.; HORVATHOVA, P. (2019) Prepared for a crisis? Basic elements of crisis management in an organisation. Economic Research-Ekonomska Istraživanja, v. 32, p. 1844-1868. DOI: https://doi.org/10.32838/2523-4803/70-2-45.
MITSAKIS, F.; ARAVOPOULOU, E. (2016) The Impact of the Economic Crisis upon Human Resource Development (HRD): Evidence from two Greek Banks. International Journal of Human Resource Development: Practice, Policy & Research, v. 1, n. 2, p. 67-82. DOI: http://doi.org/10.22324/ijhrdppr.1.117.
NICHOLS, C.; HAYDEN, S.; TRENDLER, C. (2020) 4 Behaviors That Help Leaders Manage a Crisis. Harvard Business Review. Available: <https://hbr.org/2020/04/4-behaviors-that-help-leaders-manage-a-crisis>. Access: 30 July 2020.
PORTOVARAS, T.; HARBAR, Z. H.; SOKURENKO, I.; SAMOILYK, Iu. (2020). Management of small business entities. Independent Journal of Management & Production, v. 11, n. 8, p. 680-694. DOI: dx.doi.org/10.14807/ijmp.v11i8.1226
SKRYNKOVSKYY, R.; PAVLENCHYK, N.; LESKІV S.; PAWLOWSKI, G. (2017) The Improvements of Enterprise Anti-Crisis Management Diagnostics in the System of Managerial Diagnostics. Path of Science: International Electronic Scientific Journal, v. 3, n. 11. DOI: http://dx.doi.org/10.22178/pos.28-5.
SOVA, O.; MOROZOV, Y. (2020) The modern paradigm of enterprise’s anti-crisis management. Scientific notes of Taurida National V.I. Vernadsky University. Series: Economy and Management, v. 31, n. 7, p. 43-48. DOI: https://doi.org/10.1080/1331677X.2019.1640625.
STACHANOVA, A. (2020) The global economy collapsed due to the coronavirus. Who could make billions on this? Economy. Available: <https://lenta.ru/articles/2020/05/18/winwin/>. Access: 21 July 2020.
TARASOVA, H.; ZAHAROV, S.; VERESKUN, M.; KOLOSOK, V. (2019) Preventive anticrisis strategy for development of industrial enterprise. Independent Journal of Management & Production, v. 10, n. 5, p. 1405-1420. DOI: dx.doi.org/10.14807/ijmp.v10i5.890
ZULKARNAINI, N.; SHAARI, R.; SARIP, A. (2020) Crisis Management and Human Resource Development: Towards Research Agenda. Advances in Human Factors, Business Management and Leadership, p. 542-552. DOI: http://doi.org/10.1007/978-3-030-20154-8_50.