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Tanya Sheptun

Faculty of еconomics

Department of Enterprise Economy

Speciality Innovation management

Innovative maintenance of crisis management in the enterprise

Scientific adviser: Ph.D., Fishchenko Oksana

Resume Abstract

Abstract on the Theme of Master's Thesis

Contents

• Introduсtion
• 1. Actuality
• 2. The purpose of the study
• 3. Object and subject of study
• 4. Main contents
• Conclusion
• The list of the used sources

Introduction

1. Actuality

Relevance of the chosen theme is that in an unstable economic situation in Ukraine, which is characterized by a high dependence on the influence of political factors, increased levels of competition, the variability of the business environment, companies need to form an effective anti-crisis policy to ensure competitiveness.

Considerable attention to the problems of crisis management paid by scholars such as: Form I. A., Bobyleva A. Z., Vasilenko V. O., Hraznova A. G., Komarnicki I. F., Ligonenko L. A., Makarenko Y. P., Ryakhovskaya A. H., Tereshtchenko A. A., Khilenko A. A., Chernyavskii A. D., Shapurovo A. A., Shilov O. Yu. and others.

2. The purpose of the study

The aim is to develop theoretical propositions and develop guidelines for providing innovative enterprise crisis management. To achieve the goal the following objectives:

• expand the theoretical foundations of innovative enterprise software crisis management;
  
• assess the status and prospects of the enterprise crisis management;
  
• set goals and functions of the enterprise crisis management;
  
• select the basic elements of crisis management innovative company;
  
• analyze existing methods for assessing the effectiveness of crisis management now;
  
• justify the need for crisis management in the modern enterprise operating conditions;
  
• offer practical advice on crisis management enterprise;
  
• effectiveness analysis developed in the diploma provisions for crisis management and implementation of innovative enterprise recommendations developed on the basis of theoretical studies.
  

3. Object and subject of study

Object of study: business management processes.

Subject of research: methods of crisis management.

Practical significance analysis of the causes of the crisis on energy companies will create conditions for advancing a state of crisis management in the development and implementation of the enterprise; results of the thesis may be submitted for practical use in the form of guidelines.

The methodological basis of the thesis made dialectical system, historical approaches.

Using the methods of analysis were used to summarize the foreign and domestic experience of building an effective of innovative enterprises. Systematic approach has allowed to determine the nature and principles of effective enterprise. Methods of statistical analysis and modeling, graphical methods, methods of expert assessments provided an opportunity to diagnose and assess the potential activity of the enterprise as a whole.

As an information security are: Ukrainian and foreign statistical abstracts of theses and dissertations, official reports and analytical publications leading international economic organizations, Internet resources, Ukrainian laws, decrees of the President of Ukraine, the Cabinet of Ministers of Ukraine.

4. Main contents

The concept crisis – one of the most difficult who has many semantic shades of interpretations and intrinsic characteristics. The term crisis occurs from Greek crisis is interpreted by dictionaries as the decision, a turning point, a sharp cool change, a difficult situation [4]. The term «crisis» gained distribution and recognition in economy first of all in connection with development of the concept of recurrence of development of economic systems which belongs to fundamental making the categorial device of the economic theory and more than hundred years one of the central places in researches of various schools of sciences and the directions of economic science borrows. In microeconomics use the term enterprise crisis.

Crisis of the enterprise is such situation as a result of which there are considerable failures in its work which can break its viability.

The main reasons of emergence of crisis of the domestic enterprises:

1. Insufficient level of knowledge of opportunities of a prediction of crisis.
   
2. Low level of functioning and interrelation between such important mechanisms as socially – political, hozyaystvenno-economic, cultural and psychological.
   
3. Poor leadership, which is the primary internal factor and the main root cause of development of the crisis (lack of knowledge management; unbalanced administrative team, the lack of a strategic approach, weak discipline, immorality and lack of enthusiasm).
   
4. lack of control manifests itself in three aspects: the lack of planning, decision-making unfounded, random deviations, mistakes and miscalculations (engineering, administrative, political).
   
5. Improper performance of financial services functions assigned to them, in particular – lack of flexible financial planning and analysis, risk management, and more.
   

The problem is that most entrepreneurs do not know the factors of the crisis in the enterprise and conduct timely and comprehensive diagnosis of the condition of the enterprise modern methods.

Therefore, one of the important factors in achieving positive results and exit from the crisis is to determine the reasons for its occurrence. The causes of the crisis affects many different factors. There are two main groups of factors:

1.  External factors (factors that are the result of changes in the external environment: market, political, environmental, social, etc., then there are factors beyond the control of the enterprise).
   
2.  Internal factors (arising from internal activities of the enterprise).
   

Possible consequences of a crisis condition of the organization:

1. Positive:
   
   • weakening of the crisis;
   
   
   • financial Rehabilitation Organization (overcoming the crisis situation);
   
   
   • conservation of the organization as a legal entity;
   
   
   • restructuring (transformation) of the organization.


2. Negative:
   
   • strengthening of the crisis – the transition to a new crisis;
   
   
   • elimination of the organization (the sale of property organizations); 
   
   
   • change of ownership.

Modern crisis management should be considered as management which is capable to advance or soften crises, and also to hold enterprise functioning in a survival mode during this period and to bring him out of a crisis state with the minimum expenses. Makarenko Yu.P. defines crisis management as a control system in the conditions of crisis with an answering specification to the purpose, the principles and the elements providing its functioning [1]. According to such interpretation, the policy of crisis management is part of the general financial strategy of the enterprise and consists in development of the system of means of preliminary diagnostics of threats of bankruptcy and involvement of the mechanism of financial improvement of the enterprise, provides its sustainable development [3]. Crisis management significantly differs from traditional management of the enterprises, has the specifics which are connected with essential changes in conditions of activity of the enterprise, and also with unpredictability of a situation and new administrative problems. Problem of recovery from the crisis and increase financially – economic stability of the enterprises can't consider as short in time one-time business reception, or as a set of necessary active actions of management with use of tools elimination of insolvency of the debtor. It is dynamic process in which management of the enterprise after crisis has a separate functional purpose. 

The most complex challenge of crisis management is selection of indicators of threat of bankruptcy and definition of criteria of their interpretation to which it is necessary to carry the market indicators, allowing to reveal tendencies in the markets in which the enterprise carries out the activity; the all-economic indicators allowing in due time to reveal changes in tendencies of development of an environment of economy as a whole; political indicators of influence on activity of the enterprises; technological indicators; social indicators; internal indicators of activity of the enterprise. If internal threats the first stage influence activity of the company and its stability, and then can affect the market as a whole, external – are generated by the general actions of all participants influencing safety of the state, its financial system, real sector of economy and, at last, on safety of the separate enterprise.

The important factor in ensuring stable activity of the separate enterprise, as well as any other enterprise, legislatively fixed an obligation of institutes of the power to create mechanisms of protection of financial and economic interests and to counteract influence of external and internal threats. The Ukrainian economists determine by objects of an anti-recessionary component unstable microeconomic systems which through administrative mistakes, inopportuneness or incompetence, and, probably, and through evil intentions of the made decisions get to a crisis state that can result in bankruptcy or liquidation of the enterprise. There are authors insist that crisis at the enterprise in 80% of cases is caused by errors of the highest administrative personnel.

Internal indicators of financial stability threats generated inadequate financial – economic policy of the company; errors, abuse structural units and individuals; lack of control over the safety of financial information; errors in the financial management of the company, as well as poor management and marketing, not enough diversified range of products. Modern economic prospects of Ukraine bind with high-tech and competitive enterprises, economic activities which would create synergies with the national economic system.

Abstract