How to Identify Timely the Beginning of the Crisis in a Company  Cover Image

Kako blagovremeno prepoznati početke krize u preduzeću
How to Identify Timely the Beginning of the Crisis in a Company

Author(s): Marko Šarčević
Subject(s): Economy
Published by: Ekonomski fakultet Pale - Univerzitet u Istočnom Sarajevu
Keywords: Reproduction cycle; the edge economy; the engagement and reproduction coefficient; capacity; cost; areas of employment.

Summary/Abstract: The crisis is not created suddenly, it is a constant companion of a company business, except that once it is expressed to a smaller and sometimes to a greater extent. At all stages of growth and development of companies, the crisis manifests itself as the management crisis, marketing, engagement of factors or is caused by some government measures. Small and medium-sized, as well as large companies encounter the management crisis in their development, especially in initial, and sometimes in the mature stage of growth and development. Here we are not talking about the causes of the crisis, nor about measures to overcome it or about measures to reduce the crisis within tolerable limits, but primarily we would like to point to some indicators that may signal the early onset of the crisis in the company. Since it is known that a company abounds with periods of successful or less successful business, the task of management is to identify indicators that signal the markups. Early identification of the origin of the management crisis gives more chances to successful remedy for the crisis, to make it bearable and keep business operations, as long as possible, in the zone of the company optimum or above the threshold of the company cost-efectiveness. The length of reproduction cycles, the amount and structure of the involved resources-capital, the ratio of engagement and reproduction of capital, the coefficient of costs reagibility, the areas of employment capacity, costs remanency, company balance (equalization of revenues edge and edge costs), edge cost-efectiveness and others are the indicators, among others, that significantly contribute to early recognition of the crisis. If these indicators are regularly monitored and analyzed, they can help the company management to maintain the company’s business successful for a long time, together with other measures and activities.

  • Issue Year: 2010
  • Issue No: 4
  • Page Range: 59-84
  • Page Count: 26
  • Language: Bosnian