The Сrisis Management of Small Businesses in Modern Conditions
Efashina, Sofia (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021060614566
https://urn.fi/URN:NBN:fi:amk-2021060614566
Tiivistelmä
The purpose of this study commissioned by Kozesk Mineral Water Factory was to develop crisis strategies for small businesses in modern conditions. The main objective was to develop crisis strategies for small business enterprises for the client company of LLC Kozelsk Mineral Water Factory. The study was based on the company's financial performance from 2015/2018 to 2020.
The results revealed that the probability of bankruptcy is minimal. Relevant strategies are cost reduction strategies and reorganization strategy; thus, the focus should be on new product development, product rationalization, and entering a new market. The need to increase plant capacity has emerged. There is demand, however not enough labor.
The financial model and strategies can be applied by any small business. Especially for this purpose, there were taken general accounting indicators according to European standards and peculiarities of taxation of small business from the Federal Tax Service of the Russian Federation. Crisis management strategies are additionally universal for all small businesses.
The given financial model can be modified and used for calculations of a new small business. Consequently, the entrepreneur can know in advance about the costs and profitability of the new business.
The results revealed that the probability of bankruptcy is minimal. Relevant strategies are cost reduction strategies and reorganization strategy; thus, the focus should be on new product development, product rationalization, and entering a new market. The need to increase plant capacity has emerged. There is demand, however not enough labor.
The financial model and strategies can be applied by any small business. Especially for this purpose, there were taken general accounting indicators according to European standards and peculiarities of taxation of small business from the Federal Tax Service of the Russian Federation. Crisis management strategies are additionally universal for all small businesses.
The given financial model can be modified and used for calculations of a new small business. Consequently, the entrepreneur can know in advance about the costs and profitability of the new business.