An effective model of the crisis-proof management mechanism at an industrial enterprise

Abstract

New economic conditions determine a new round of debate on the modern and effective economic-organizing mechanism of crisis-proof management. Sanctions imposed against Russia and difficult economic situation in the country require a new approach to management. The aim of the article is to show a conceptual approach to the improvement of the economic-organizing mechanism for crisis-proof management at an enterprise and to work out a model of such mechanism complying with the created concept. Having analyzed the activity of an enterprise (JSC “LPEC”) and the efficiency of the existing mechanism of crisis-proof management, the authors identify key measures to improve this mechanism. In addition, basing on the results of this research, the authors suggest a process model of the crisis-proof management mechanism. It contains new features, such as evaluation of the resource potential, adjustment of the organizational structure, controlling, efficiency evaluation and adjustment of the existing mechanism of crisis-proof management. The structure of this model includes a number of considerable management subsystems: management of innovations, management of logistical support, sales management, management of after-sales service. Such structure of the model allows for adapting the crisis-proof management mechanism to the dynamic environment, which improves efficiency of the management system at an enterprise, its financial and economic activity. The application of the process model presented in the article gives an opportunity to monitor adverse trends in the activity of enterprises, to make crisis more manageable and to use crisis factors for an enterprise’s qualitative development. In the period under study, net profit and profitability of the enterprise under analysis rose more than three times, which resulted both from the introduction of the process model of the economic-organizing mechanism for crisis-proof management and from the competent and reasonable policy of the enterprise’s management.

Keywords

crisis-proof management, industrial enterprise, economic-organizing mechanism of crisis-proof management, concept of crisis-proof management, crisis factors.

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