Elimination of Crisis Situation in Enterprise of Mechanical Industry

Abstract:

In modern business conditions companies are more or less characterized by complexity and fluctuation. Special economic conditions, particularly in terms of intensive processes of globalization and the global financial crisis, have shown a constant decrease profit-making of the enterprises in the machinery industry, and thereby worsening financial position. It is a kind of crisis of business enterprises in the less adaptable business-system environment. Crisis management comes to the fore a crisis, enterprises, primarily associated with the development of the situation in which the company has reached a critical point with certain characteristics. However, it is a definition of all the hallmarks of the crisis the company. In the narrower sense, the crisis of the company is to be understood as a process in which, unplanned and unwanted, endanger the fundamental economic objectives of the company - the goal of preserving invested capital, profit goal (profitability), the goal of preserving the liquidity and solvency of the company. Therefore identify four main phases of the crisis of business enterprises: strategic crisis, the crisis of profitability, liquidity crisis, liquidity and borrowing.

• Periodical: Applied Mechanics and Materials (Volume 806)
• Pages: 308-315
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.806.308
• Online since: November 2015
• Authors: Dobrica Vesić*
• Keywords: Changes, Crisis, Development, Environment, Process, Strategic Management, System

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