Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2018, No. 1, Article 1, Year of publication: 9, March, 2018
Management of Company Recovery


Jovan Todorović, PhD*

*PhD Full Professor, University of  Belgrade, Faculty of Economics, Department of Business Economics and Management



The numerous external and internal factors influence to the vitality of firm and her management to react in proper time and way on opportunitites and threats and so overcome new critical factors of success. Namely, because of various more or less favorable circumstances or sleepy and late managament, growth and development don’t go straight and moving up line but includes stresses, frustration, as well as various misunderstanding and sterile functioning of firm. Crisis can be described as surplus of unfavorable circumstances in functioning of the firm or basicaly as decisive moment in developing of the illness ( or better or worse ). Crisis usually follows shortages of
resources and markets, entropy, sterile work, demotivation, conflicts of power and wisdom, syndrome of arrogance of success, desintegration, weak immunity on various attacks and so on. Managament of crisis, therefor, could be understood as planned, purposeful, moving firm from illness to health, from state of disfunctioning, stress, frustration and losses in state of vitality and yielding increasing returns, as well as full organizational capability and motivation of managament to be ready that effectively and efficiently realize mission in given condition of economy. As such the managament of recovery presuposes solid and on time recognition of symptoms, causes, stadiums of development of illnes, as well as new critical factors of success, repertoire of recovery strategies, operative plan of changes and plan of expecting of incomes and costs. It is unique opperations project wich should be carried on by responsible, competent and enough motivated people. So, basic goal of this paper is to, on the basis of relevant literature and consulting and research experience of author, to
acertain, recognize and point out key factors and present conceptual framework for approach to creating recovery strategy. In that sence are being given and explaind mutually connected phases such as: 1. Recognition of symptoms and causes of crisis, 2. identification of analitical indicators for diagnosis , 3. Recognition of stage of development of crisis, 4. Selection of strategic option of recovery, 5. Creating of the plan of recovering including syncronized set of actions, as well as projection of income and costs, 6. Motivation and organization of involved people. Also, it is being assumed that plan of recovery be prepared and realized having in mind necessity of building enough immunity and respecting the principles such as: anticipativnes, controlability and innovation.

Keywords: crisis, causes, symptoms, stage of crisis, critical factors os success, recovery, changes, restructuring, revision, sustainable
and optimal growths and development, mix of proccess and buisness functions, motivation and coalition of stakeholders

DOI: 10.7251/FIN1801005T

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