Lepina Evgenia

Resume Abstract

Summary of the final work

"Formation of the strategy of crisis management of the economic system"

Content

• Introduction
• Topicality
• Aims and Objectives of Crisis Management
• 1. Theoretical foundations of crisis management of the economic system in strategic perspectives
• 1.1 Essence, objectives and principles of a crisis management strategy
• 1.2 Features of the formation of a crisis management strategy
• 1.3 Issues of forming a crisis management strategy for an economic system
• List of sources

Introduction

In a market economy, the creation of a crisis management system is necessary not only at the stage of the enterprise crisis, but also long before its occurrence.

Relevance of the topic

In the modern world, in a situation of economic recession and crisis, the role of strategic management is greatly enhanced, since the lack of uniform patterns and trends in the business environment, as well as the significantly increased level of uncertainty and heightened competition, make it necessary for the company to survive the use of mechanisms suitable for this period management.

The purpose and objectives of the study, the planned results

The purpose of the work is the formation of a crisis management strategy for an economic system based on theoretical methods and analogous studies of strategic management in modern conditions.

In connection with the goal of the research it is necessary to solve the following tasks:

1. perform theoretical and methodological research of the strategic management of the enterprise in a crisis;
2. on the basis of macro-, microanalysis of the development of the metallurgical industry to draw conclusions about the problems and prospects of the development of the economic system;
3. complete the formation of a strategy for managing the economic system, taking into account the conditions and factors influencing the external environment.

   The object of study is the crisis management processes of the economic system from a strategic perspective.

   Subject of research economic systems, methodological, resource support research and implementation of management strategies for a specific economic system.

Section 1 Theoretical Foundations of the Crisis Management of the Economic System in Strategic Perspectives

1.1 Essence, objectives and principles of crisis management strategy

Crisis management is carried out in anticipation of a possible crisis, as well as in a crisis, and should ensure the development of the enterprise (the socio-economic system). Anti-crisis development is a controlled process of preventing or overcoming a crisis, corresponding to the objectives of an organization to objective trends in its development.

Thus, crisis management can be defined as a type of management in which controlled processes of crisis prediction, mitigation of their consequences and the use of crisis factors for the development of an organization take place.

Goals and objectives of crisis management. [1]

1. Anticipation of the crisis and adequate (in accordance with the degree of threat) preparation for it;
2. Preventing the occurrence of dangerous factors of crisis;
3. Managing the dynamics of the development of the crisis (accelerate, slow down, soften, strengthen);
4. Ensuring the life of the organization in a crisis state;
5. Reducing the negative effects of the crisis;
6. The use of factors and consequences of the crisis for the development of the organization.

As in any kind of management in the crisis management there are objects and subjects of management. [2]

The socio-economic systems that are the objects of crisis management include organizations and enterprises, as well as regional economic structures - municipalities and subjects of the federation. The possibility of holding anti-crisis measures in relation to regional structures is provided for, for example, by budget legislation.

Crisis management is characterized by the following basic principles:

1. early diagnosis of crisis. Since a crisis threatens the existence of a system or organization, property loss by owners, negative social consequences, the sooner phenomena are discovered, the more time is available and the easier it is (crisis phenomena) to neutralize;
2. the urgency of responding to crises. If a phenomenon is detected, then we must act, and not wait, because crisis phenomena tend to grow and deepen;
3. Adequacy of response to the degree of real threat. Crisis management is associated with costs and losses;
4. therefore, they should be commensurate with the degree of real threat from the crisis phenomena;
5. if the action is not strong enough, then the threat will not be eliminated, if too strong, then the losses may be unjustified, if not greater than the threat itself;
6. the complexity of the response is to use a variety of diverse internal and external resources to improve the situation.

The control mechanism characterizing the means of influence also has its own characteristics. Not always the usual means of influence give the desired effect in a pre-crisis or crisis situation. [3]

A significant factor in the effectiveness of crisis management is a system for monitoring crisis situations. It is a specially organized action to determine the likelihood and reality of the onset of a crisis and is necessary for its timely detection and recognition. Moreover, the use of computers and the work of specialized operators can be very effective here. [4]

1.2 The essence and content of innovative crisis management

In accordance with foreign theory, the competitive development of the country is based on the factors of production, investment, innovation and welfare. The countries that make up the world technological core (USA, Japan, Germany, Great Britain, France) are currently developing mainly on the basis of increased innovation activity. The Russian economy at this stage seeks to cope with the innovation crisis and move to the third level of development - based on innovation.

In the conditions of the modern market, the socio-economic system, which underestimates the role of the innovation potential, weakens its position in the markets, loses consumers, reduces the size of profits. All this contributes to the emergence of a crisis situation, the company falls into an insolvency (liquidity) crisis and, as a result, insolvency (bankruptcy) and the collapse of the entire system. Thus, the development of innovations and the innovation sector, respectively, should become a priority for both enterprises and government policy in the context of the desire of society and the state to reach a qualitatively new level of development.

With this in mind, the search for possible solutions to the problems of managing innovation processes and projects is becoming one of the most important tasks of crisis management. In addition, it becomes necessary to take into account such an element of crisis management, as an assessment of the possibilities for the effective use of the innovation management experience acquired by both Russian and foreign researchers.

Any socio-economic system reaches its development if it is in a state of consistent and steady development. Development is the acquisition of a new quality that determines the strengthening and sustainability of the life of the enterprise, its growth. Innovative development has a great impact on the competitiveness of the enterprise. The effect of the innovation activity of an enterprise in terms of its competitiveness has three components:[5]

1. improving the competitiveness of the product, creating a competitive advantage in the short and medium term;
2. inculcating new needs, creating competitive advantages for the long term;
3. increase of production efficiency, transforming the competitiveness of the commodity mass in the competitiveness of the enterprise.

If the management of the company is not focused on the development of new technologies that allow to produce new types of products of higher quality and with the lowest cost, the company at a certain time runs the risk of becoming uncompetitive, which means weakening of positions in the markets, loss of consumers of products and a decrease in profits . All this contributes to the emergence of a crisis situation and can cause bankruptcy.

Thus, innovation is one of the most radical means of overcoming a crisis situation.

As A. Idrisov emphasizes, one of the conditions for the successful functioning of an enterprise is its innovative potential. In turn, the innovative potential contributes to the emergence of new more effective strategies and allows the company to develop, updating its structure, respectively, the influence of the external environment. [6]

K. Freeman considered innovation potential as a concept meaning an opportunity, an internal resource of a system, energy that can be mobilized for certain purposes under certain conditions.

A. Nikolaev views the innovation potential as a “system of factors and conditions necessary for the implementation of the innovation process,” which greatly simplifies the reality and also narrows the sphere of use of this important category. V. Kalashnikov has innovative potential - “the ability of different areas of the national economy to develop high-tech products that meet the requirements of the world market,” this category is tied to a specific level (national economy), which also narrows the scope of its use. In addition, in this case, organizational innovation and service innovations drop out of consideration.

In one case, the focus is shifted to institutional structures or means of building capacity, the other is tied to a specific level (enterprise, national economy, and so on). In the definition given by D.I. Kokurin, according to which “the innovation potential contains unused, hidden opportunities for accumulating resources that can be put into action to achieve the goals of economic entities”, there is also ambiguity in understanding the essence of the innovation potential. This circumstance greatly complicates the development of practical recommendations on the methodology for assessing innovation potential and, thus, negatively affects the final results of innovation activity. [7]

The concept of innovation potential is considered at the micro, meso and macro levels - from an extremely narrow understanding of how annual production is possible under the conditions of full use of the enterprise’s production capacity at the existing organizational and technical level, as capacity, internal system resource, energy, which can be mobilized to achieve certain goals under certain conditions (I. Romashova) and even to global categories - as a socio-economic system (G. Kleiner).

            

According to him, G.I. Zhitsa - innovative potential is understood as the amount of economic resources that society can use at any given moment for its development. These resources are distributed among the three main sectors (segments, directions) of the macro system: scientific, technical, educational, and investment. As a result of this distribution are formed: scientific and technical potential (segment or complex), educational potential (segment or complex), investment potential (segment or complex).

            

Advertising is giving way to direct marketing and PR. Budget funds are redistributed in favor of BTL tools, pushing ATL to second roles.

            

Thus, the innovative potential of an enterprise is influenced by both internal factors and external factors: if technical and organizational (almost completely), and the economic and social (partially) elements of the innovative potential of an enterprise directly initiate, create and use, they only use the economic, social and legal components.

            

It is the creation of innovations, the use of innovations that make up the essence of the realization of the innovative potential of an enterprise. At the same time, the realization of the innovation potential is possible only with sufficient investment resources. Therefore, at the present stage of management, the active realization of the innovation potential in specific areas (Fig. 1.1) acquires priority importance. [8]

We can distinguish three main blocks, which include the direction of the implementation of the innovative potential of the enterprise: scientific and technical, organizational and investment.

           

It is possible to characterize the object under study by isolating its various types using classification. Nevertheless, with respect to the innovation potential, it is necessary to point out that the ambiguity and complexity of this category complicates the identification of its independent types and, thus, makes it impossible to form a clear unified classification. A complete enumeration of all possible elements of the innovation potential in the form of a classification, as well as directions for its implementation, is impossible. Each company itself (depending on the purpose and conditions of operation) has the right to form its own classification, the greatest measure close to reality and tasks.

1.3 Problems of formation of crisis management in the enterprise

            

At any moment there is a danger of crisis, even when there is no crisis, when there is practically no one. There is always a risk in management that the socio-economic system develops cyclically, that the ratio of controlled and uncontrolled processes changes, the person, his needs and interests change.

            

The management of the socio-economic system to a certain extent should always be anti-crisis.

            

Crisis management is a management in which a certain way of anticipating the danger of a crisis, analyzing its symptoms, measures to reduce the negative effects of a crisis and using its factors for subsequent development is put in place.

            

The possibility of crisis management is determined primarily by the human factor.

            

Conscious human activity allows you to search and find ways out of critical situations, concentrate efforts on solving the most difficult problems, use the accumulated experience of overcoming crises, adapt to emerging situations. [9]

            

Thus, crisis management is a managed process to overcome the crisis.

            

The development of management processes occurs cyclically with increasing complexity. Moreover, the development process takes place on the logistic curve of the form:

            

There are four stages of development management:

            

The first group includes the problem of recognition of pre-crisis situations. This is not an easy task - to see the onset of the crisis in a timely manner, to detect its first signs, to understand its nature. Crisis avoidance depends on it. But not only from this. Crisis prevention mechanisms need to be built and launched into action. And this is also a management problem.

            

But not all crises can be prevented, many of them must be overcome, overcome. And this is achieved through management. It solves the problems of the life of the organization during a crisis, contributes to overcoming the crisis and eliminating its consequences.

            

The second group of problems of crisis management is associated with key areas of the organization. These are, above all, the methodological problems of its vital activity. In the process of solving them, the mission and purpose of management are formulated, and the ways, means and methods of management in crisis situations are determined. This group includes a set of problems of a financial and economic nature. For example, in economic crisis management there is a need to determine the types of diversification of production or conversion. This requires additional resources, finding sources of funding. There are also problems of organizational and legal content, a lot of social and psychological problems.

            

Problems of crisis management can be represented in the differentiation of management technologies (the third group of problems). It includes, in the most general form, problems of forecasting crises and variants of behavior of the socio-economic system in a crisis state, problems of finding the necessary information and developing management decisions. Problems of analysis and evaluation of crisis situations are also of great importance. There are many time limits, staff qualifications, insufficient information, etc. In the same group, problems of developing innovative strategies that help lead an organization out of a crisis can be considered.

            

The fourth group of problems includes conflict management and personnel selection, which always accompanies crisis situations.

            

We should not lose out of the structure of crisis management and the problems of investing anti-crisis measures, marketing, as well as the problems of bankruptcy and rehabilitation of enterprises.

            

Crisis management of the composition of its typical problems reflects the fact that it is a special type of management, possessing both common traits for management and its specific characteristics.

List of sources

1. Pytkin A.N., Ponosova E.V. Effective model of crisis management of an industrial enterprise // Russian Journal of Entrepreneurship. - 2013. - № 6 (228).
2. Crisis Management: Tutorial / Ed. E. M. Korotkov. - M .: INFRA –M, 2000. - 432 p.
3. Crisis Management / Ed. EM. Korotkov. - M .: INFRA-M, 2000. - 432 p.
4. Lapygin Yu. N. Assessment of the effectiveness of project management // Economic Analysis: Theory and Practice. 2011. N 15. p. 50-53.
5. Theory and practice of crisis management: A textbook for universities / Ed. S.G. Belyaev and V.I. Koshkin. M., 2006.
6. Pigalov V. Secrets of the successful management of the project team // BOSS. Business: organization, strategy, systems. 2011. N 7. S. 64-65.
7. Kuzin B.I., Gradov A.P. Strategy and tactics of crisis management company. M., 2006.
8. Konokov A., Rozhkov K. How to get out of the crisis to large enterprises // Problems of management theory and practice, 2004. №4.
9. AM Korotkov Crisis management: Textbook. 2nd ed., Ext. and pererabat. M .: INFRA-M, 2005. 620 p.