Enterprise Crisis Management Algorithm Cover Image

Алгоритм антикризового управління підприємства
Enterprise Crisis Management Algorithm

Author(s): Roman Sharanov
Subject(s): Economy, National Economy, Business Economy / Management, Micro-Economics, Socio-Economic Research
Published by: Центральноукраїнський національний технічний університет
Keywords: crisis; crisis management; enterprise; strategy; small business; medium business; big business;

Summary/Abstract: The article devotes to the study of the enterprise crisis management process. In recent years, a large number of enterprises in Ukraine have suffered losses. This result related to both the internal problems in the country and the emergence of a new coronavirus crisis. Thus, in the conditions of unstable development of both world and domestic economy, the formation of the crisis management system is important for enterprises.Thus, the enterprise crisis management algorithm offered, which takes into account the peculiarities of the activity of small, medium and large business entities. The algorithm consists of the following stages: diagnostics of the business entity (small, medium, large), determining the crisis and its causes, developing a strategy to eliminate the threat, developing crisis measures to eliminate the threat, implementation of selected measures and monitoring their implementation, identifying the reasons for the ineffectiveness of measures (in case of overcoming the crisis) and eliminating the threat.There is a significant difference in crisis management between different businesses at the diagnostic stage. For small businesses, the diagnosis consists of assessing revenue, profitability, working capital. Diagnosis of medium-sized enterprises should be comprehensive and cover all areas of enterprise activity. Diagnosis of large enterprises consists of both comprehensive diagnostics and models for assessing the level of bankruptcy. Crisis management strategies and measures for small, medium and large businesses are common; however, the choice should take into account the possibility of their implementation in a particular enterprise. Depending on the stage of the crisis, the recommended strategies and crisis management measures.In consequence of the proposed algorithm, the company will be able to timely identify and overcome threats, and ensure continuous monitoring of its activities. It was indicated the practical significance of the above algorithm, which consists in early detection and consistent overcoming of problems in the activity of domestic enterprises in an unstable economic environment.

  • Issue Year: 2021
  • Issue No: 6 (39)
  • Page Range: 288-296
  • Page Count: 9
  • Language: Ukrainian