Business Entity's Preventive-Anti-Crisis Strategy Model and Possibilities of Its Implementation in Georgia
Abstract
Introduction. In terms of modern hyperactive business processes, the stability and sustainable development of businesses are much at risk for managers and founders if they do not have an anti-crisis strategy; without an anti-crisis strategy, the business is sometimes completely destroyed by any unexpected negative event, or at best, has to deal with the consequences for a long time.
Aim and tasks. The aim and objectives of the present paper are to determine the presence of anti-crisis mechanisms in the management methods of business companies operating in Georgia, the possibility of their implementation, the types of anti-crisis measures, the composition of the anti-crisis group, and the analysis of the skills of the group/members of anti-crisis management and their grouping/systematization/categorization.
Results. The article presents the results of the research, based on the study of small and medium-sized business entities in Georgia, aiming at determining whether business entities use preventive-anti-crisis plans and strategies or not, how such strategies are formed, and in general, to what extent business entities are able to implement anti-crisis strategies. In the process of preparing the present research paper, both quantitative and qualitative methodologies were involved. In particular, cases were selected based on the following criteria: a) business entities which started and terminated their activities in the last 10 years; b) selection of business entities from different cities in Georgia; c) variety of business entities’ activities; statistical analysis; comparative method; component analysis; analysis of the official documentation.
Conclusions. The types of strategies of economic entities in general have been studied and their general overview has been given. The stages and specific measures necessary for the development of individual preventive anti-crisis strategies for business entities, taking into account Georgian realities, are determined. The obtained results are analyzed and relevant recommendations are prepared on the basis of an integrated system approach.
Keywords:
business management, anti-crisis strategy, anti-crisis methodology, strategy implementationReferences
Alvin, A. (1939). Economic Progress and Declining Population Growth. The American Economic Review, 29(1), 1-15.
Broome, A. (2010). The International Monetary Fund, crisis management and the credit crunch. Australian Journal of International Affairs, 64(1), 37-54.
Filipishyna, L., Bessonova, S., & Venckeviciute, G. (2018). Integral assessment of developmental stability: cases of Lithuania and Ukraine. Entrepreneurship and Sustainability Issues, 6(1), 87-99.
Freixas, X. (2003). Crisis Management in Europe. In J. Kremers, D. Schoenmaker & P. Wierts (eds). Financial Supervision in Europe. Cheltenham: Edward Elgar, 102–119.
Garškaitė-Milvydienė, K. (2014). Anti-crisis management of enterprises as precondition of sustainable entrepreneurship. Entrepreneurship and Sustainability Issues, 1(4), 187.
Gechbaia, B., Kharaishvili, E., Mamuladze, G., & Goletiani, K. (2019). Current challenges of grocery market and key directions of development of agriculture in Georgia. Economic Science for Rural Development, 50, 52-60.
Hayek, F. (1979). Unemployment and Monetary Policy: Government as Generator of the Business Cycle.
Henderson, B. D. (1984). The Logic of Business Strategy. HarperCollins Publishers.
Hilorme, T., Perevozova, I., Shpak, L., Mokhnenko, A., & Korovchuk, Y. (2019). Human capital cost accounting in the company management system. Academy of Accounting and Financial Studies Journal, 23, 1-6.
Katamadze, G. (2020). The Analysis of Influence of the Monetary Policy carried out by the National Bank of Georgia on the Local Business Entities (Based on the Cases of Development Business). Journal of Economic, Business and Management, 8(2), 129-132.
Keynes, J. M. (2018). The General Theory of Employment, Interest, and Money. Reading Essentials.
National Statistics Office of Georgia (2022). https://www.geostat.ge/en/modules/categories/64/business-register
Parsons, W. (1996), "Crisis management", Career Development International, Vol. 1 No. 5, pp. 26-28. https://doi.org/10.1108/13620439610130614
Porter, M. (1996). What is strategy? Harvard Business Review, 74(6), 61-78.
Samuelson, P. (1975, August). Maximum principles in analytical economics. Synthese (31), 323–344.
Schumpeter, J. A. (1934). The Theory of Economic Development. Harvard: Harvard Economic Press.
Taffler, R. (1995). The use of the Z-score in practice. Working paper 95/1, A Centre for Empirical Research in Finance and Accounting, City Business School. London.
Thompson, A. A., & Strickland III, A. J. (2003). Strategic Management: Concepts and Cases (13th Edition ed.). McGraw-Hill.
Ulwick, A. W. (1999). Business Strategy Formulation: Theory, Process, and the Intellectual Revolution. London: QUORUM BOOKS.
Wang, J. (2008). Developing organizational learning capacity in crisis management. Advances in developing human resources, 10(3), 425-445.
White, C. (2004). Strategic Management. NY: Palgrave Macmillan.
If the article is accepted for publication in the journal «Economics. Ecology. Socium» the author must sign an agreementon transfer of copyright. The agreement is sent to the postal (original) or e-mail address (scanned copy) of the journal editions.
