From survival to business prosperity: the financial aspect of managing an organization in a crisis

Abstract

The article is about revealing the content and role of finance capacity and financial and economic results of enterprises activity under the crisis. The article provides an understanding of crisis results at the enterprises activity in conditions of poor management and weak financial strategy. It is analyzed current business situation, including results of the companies due to the coronavirus. It is established that not only the crisis management system (if it exists at the enterprise), but also the financial management system at the enterprise has great importance during a crisis and ensures its stable functioning afterwards. With unstable financial flows and their inept coordination, a crisis for an enterprise can come much earlier (due to internal disruption) than for the whole country or the world economy as a whole. The results are based on theoretical scientific researches and financial and economic data of enterprises activity. Based on system analysis, a number of features have been identified as the building elements for the formation of understanding how to manage an organization in a crisis taking into account the financial aspect. A logical sequence of factors and their interrelationships was established within the entire process of enterprise management during a crisis. Identified elements indicate the directions that need to be implemented at the enterprise for its stable functioning even in times of crisis. According to the analyzed data, most companies used their financial reserves and were able to improve their positions. It is investigated the main common ways to reduce costs in crisis: reducing the production capacity (including the number of purchases, storage), changing the schedule of employees working day (taking into account daylight hours), reduction (closure) of sale points (which, among other things, provokes staff reduction also). It is declined ways of manager’s behavior as decide with speed over precision, adapt boldly, reliably deliver, and engage for impact, which help them to manage company effectively.

The impact of covid-19 on financial management: evidence from Romania

“…Nonetheless, Bieliaieva et al (2020) analyze the current business situation and state that for enterprises, crisis may arise earlier than for the entire country or world economy, due to internal disruption. Their paper focuses on crisis management as a solution to overcome crisis, with long term effects upon a company's sales and profits.…”

Development of remote identification the enterprises by digital technologies

“…Mainly from March 2020 enterprises all over the world stopped their activity, employees were left without work or were proposed to work remote. In general, the restrictions all over the world affected about a third of the world's population [22].…”

Covid-19 Pandemisi Sırasında Stratejik Yönetim Literatüründe Neler Söylendi?

“…Since two concepts are related to each other and are highly critical for the survival of firms under pandemic conditions, it is reasonable to attempt to understand these concepts. Topics like the fragility of financial structures (Hammerschmidt, et al, 2021), finance capacity (Bieliaieva, et al, 2020), challenges, and opportunities for financial performance (Weaver, 2020), and risk-return performance (Camlibel, et al, 2021) were discussed. Moreover, concepts like accounting data (Tingey-Holyoak and Pisaniello, 2020), entrepreneurial finance (Brown, et al, 2020), financial disparity (Wilson, et al, 2020), fraud (Valesco, et al, 2021), SMEs financing (Eggers, 2020), and sustainable finance (Zhan and Santos-Paulino, 2021) was talked over.…”