Peculiarities of Managing a Company in Crisis

A company crisis can be defined as a short-term, undesired, unfavourable and critical state in the company, which has derived from both internal and external causes and which directly endangers the further existence and growth of the company. As the functioning and behaviour of the company in the state of crisis differs from the one that is present during a period of planned growth, the techniques and methods used by management need to be different. Crisis management follows two basic objectives: (1) stopping adverse trends and handling the crisis situation (survival) and (2) reaching a turning point (redirectioning) and ensuring the foundations for new development.