What Is Crisis Management

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What Is Crisis Management
What Is Crisis Management

Video: What Is Crisis Management

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Video: What is Crisis management? What is Crisis? Crisis Management Plans. 2023, January
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Anti-crisis management - this concept is becoming more and more famous among directors and top managers. The constantly changing economic situation, which sometimes leads to instability in the market, as a rule, puts companies in front of the need to take care of creating a strategy for managing the enterprise in the harshest conditions.

What is crisis management
What is crisis management

Instructions

Step 1

Crisis - this term has firmly entered the vocabulary of the inhabitants of Russia, among whom there are workers for hire, as well as managers and owners. If employees can usually simply change jobs in the event of a crisis in their own company, then it is not so easy for directors and owners to leave their ship, and they do not want to. Any negative situations, ranging from interference in the work of certain areas of activity and ending with the possible liquidation of the company, are considered crisis situations.

Step 2

For any situation, including a crisis one, a different development of events is possible, which is usually largely determined by the management model. If this model leads to the fact that the economic condition of the company continues to deteriorate and ends in bankruptcy, then this suggests that the appropriate measures that could save the situation were not provided. The combination of these measures is called anti-crisis management.

Step 3

Anti-crisis management can be applied by a separate company, which seeks to protect itself from possible negative consequences, then this is a category of microeconomics. Also, anti-crisis management can be part of state policy, in which case it is called regulation, it already refers to macroeconomic concepts.

Step 4

There is a stereotypical opinion that anti-crisis management is a system of actions aimed at avoiding the consequences of a company's bankruptcy when it is already inevitable. But this is only one side of the issue. The category of anti-crisis management also includes preventive measures that should be taken to improve the recovery of the company long before the onset of a hopeless situation. This includes a whole range of actions, which includes analysis, planning and reorganization of the main parameters of the company's functioning.

Step 5

The goal of anti-crisis management is to introduce changes in the structure of the company so that it meets the criteria of the market and can survive on it. This is a whole sequence of tasks of various levels, which sometimes includes the liquidation of unpromising and unprofitable divisions and subsidiaries that do not have the proper solvency.

Step 6

The tasks of anti-crisis management include a number of processes. First of all, this is an analysis of the current financial situation in the company and making a forecast for the future. Then this is the detection of unstable elements that can lead to critical situations. A study of the company's activities and the behavior of the target audience for its products is carried out in order to find out if there are mistakes in the very strategy of its existence in the future. It happens that the reason for instability in the future is the market situation, and not at all the company's management model.

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