Corporate Crisis And Crisis Strategy Implementation
Crisis creates or can create undesirable outcome for corporations. Corporation's most often response to a crisis is implementation of a radical change, which represents management's reaction to a direct and for survival of the company dangerous threat. Management, that implements crisis strategies, must be able to manage change during crisis. Based on the estimation of the corporation's condition and desired outcome, strategies implemented during crisis can end up with two diametrically opposite effects -- corporate survival or leaving the business. Business failure is not the only solution for a company in crisis. Successful turnaround and crisis solution are a possible option, but a possibility of an option doesn't guarantee that it is a most probable option. Successful turnaround and crisis solutions don't occur spontaneously; they are triggered by corporate management, its creativity and courage to implement radical change. This research is based on investigating internal and external sources of corporate crisis and a role of major stakeholders in the process of corporate recovery. The research includes investigation of corporate response during crisis and this could broaden our basic understanding of strategy implementation role in the extremely delicate moment of company's life. Since corporate crisis negatively affects company's goals and can lead to corporate breakdown, this research is offering results of an empirical investigation that determines modes how companies in a crisis manage change and how managers choose and implement offensive and defensive strategies suitable to crisis conditions.
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