Influence of strategies to determine the significance of the crisis by the managers of small and medium-sized enterprises
Abstract
Small and medium-sized enterprises play an important role in the European economy as a source of entrepreneurial skills, innovation and employment. Strategic management is vital for long-term competitiveness of these organizations, and even more significant when struggling with a crisis. Enterprises with strategic management are able to look into their future and their managers are able to recognize upcoming issues in advance so they are much better prepared for them. Crisis is then perceived as a phenomenon which is more common than rare. It is therefore essential that businesses reflect the aspects and impacts of the crisis in a corporate strategy and managers learn to manage crises effectively.
The article deals with a partial research of the management of small and medium-sized enterprises in the Czech Republic. It is focused on defining a strategy by the managers of these organizations and the assessment of the significance of crises. Only about 25% of the companies formulated a strategy for the future direction of the organization. The crises happen in all organizations, varying in degrees and intensity. The importance of crisis is evaluated by the managers by an average rate of 3.4 (where the highest rate was five). The aim of the article is an assessment of the importance of crisis as seen by the managers in strategically managed organizations structured according to sectors of the economy. For primary data collection, the questionnaire method was used.
References
Ambrosini, V., & Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11 (1), 29–49.
Andrews, K.R. (1971). The Concept of Corporate Strategy. New York: Dow Jones-Irwin.
Booth, S.A. (2015). Crisis management strategy: competition and change in modern enterprises. Boston, USA: Routledge.
Budíková, M., & Králová, M. (2010). Guide to basic statistical methods. Praha: Grada.
Coomgs, W.T. (2004). Impact of past crises on current crisis communication. Journal of Business Communication, 41, 265-289.
Deros, B.M., Yusof, S.M., & Salleh, M.A. (2006). A benchmarking implementation Framework for automotive manufacturing SMEs. Benchmarking International Journal, 13, 396-430.
European Commission (2008). Putting Small Businesses First: Europe is Good for SMEs, SMEs are Good for Europe. Luxembourg: European Commission Publications Office.
Faulkner, B. (2001). Towards a framework for tourism disaster management. Tourism Management, 22(2), 135–147.
Fialova, H., & Fiala, J. (2006). Small Economic Dictionary with the interpretation of terms in Czech and English. Prague, Czech Republic: A plus.
Floyd, D., & McManus, J. (2005). The role of SMEs in improving the competitive position of the European Union. European Business Review, 17, 144-50.
Freeman, R.E. (2010). Strategic management: A Stakeholder approach. Cambridge, UK: Cambridge university press.
Freund, R. J., Wilson, W., J. (2010). Statistical methods. Prague, Czech Republic: Academic Press.
Friedrich, V., Majovska, R., (2010). Selection of economic statistics. Prague, Czech Republic: Wolters Kluwer.
Gonzales-Herrero, A. & Pratt, C. (1998). Marketing crises in tourism: Communication strategies in the United States and Spain. Public Relations Review, 24 (1), 83–97.
Heath, R. (1998). Crisis management for managers and executives. London, UK: Financial Times Management.
Johnson, G., Scholes, K. (1993). Exploring coporate strategy. Oxford, UK: Butterworth-Heinemann.
Kash, T.J., & Darling, J. (1998). Crisis management: Prevention, diagnosis and intervention. Leadership & Organization Development Journal, 19(4), 179–186.
Keown-McMullan, J. (1997). Crisis: When does a molehill become a mountain? Disaster Prevention and Management, 6(1), 4–10.
Lednicky, V. (2006). Strategic management. Ostrava, Czech Republic: Repronis.
Lee, Y.F., & Harrald, J.R. (1999). Critical issue for business area impact analysis in business crisis management: Analytical capability. Disaster Prevention and Management, 8(3), 184–189.
Lerbinger, O. (2012). The crisis manager. Abingdon, UK: Routledge.
MPO. Report on SME Development and support in 2014. Cit. online: http://www.mpo.cz/dokument164106.html
OECD, Eurostat indicators on High-tech industry and Knowledge - intensive services. Annex 3 – High-tech aggregation by NACE Rev. 2. Cit. online: http://ec.europa.eu/eurostat/cache/metadata/Annexes/htec_esms_an3.pdf
Porter, M.E. (1996). What is Strategy? Harvard Business Review, November/December 1996, 61–78.
Rais, R. (2007). Specifics of Crisis Management. Ostrava, Czech Republic: Key Publishing.
Ritchie, B.W. (2004). Chaos, crises and disasters: a strategic approach to crisis management in the tourism industry. Tourism management, 25(6), 669-683.
Řehoř, P. (2016). Change management. Ceske Budejovice, Czech Republic: EF JCU.
Řehoř, P. (2013). Municipal management strategies of regional development and quantification the position of regions. Journal of Central European Agricultere, 14(3), 197-208.
Řehoř, P. (2015). Changes in the strategic management of municipal development in Czech Republic. International Journal of Humanities social sciences and education, 2(6), 29-35.
Smallman, C. (1996). Challenging the orthodoxy in risk management. Safety Science, 22 (1-3), 245–262.
Springer, C. G. (2008). Strategic management of crises. PA Times, 31(7). Cit. online: http://digitalscholarship.unlv.edu/sea_fac_articles/333
Thompson, J.L., & Martin, F. (2010). Strategic management. Awareness and change. Nashville, Tennessee, USA: South-Western publishing.
Vargo, J., & Seville, E. Crisis strategic planning for SMEs: finding the silver lining. International Journal of Production Research, 49(18), 5619-5635.
Vodacek, L., & Vodackova, O. (2009). Modern management in praxe. Prague, Czech Republic: Management Press.
The Author wishes to submit the Work to SJM for publication. To enable SJM to publish the Work and to give effect to the parties’ intention set forth herein, they have agreed to cede the first right to publication and republication in the SJM Journal.
Cession
The Author hereby cedes to SJM, who accepts the cession, to the copyright in and to the paper.
The purpose of the cession is to enable SJM to publish the Work, as first publisher world-wide, and for republication in the SJM Journal, and to grant the right to others to publish the Work world-wide, for so long as such copyright subsists;
SJM shall be entitled to edit the work before publication, as it deems fit, subject to the Authors approval
The Author warrants to SJM that:
- the Author is the owner of the copyright in the Work, whether as author or as reassigned from the Author’s employee and that the Author is entitled to cede the copyright to SJM;
- the paper (or any of its part) is not submitted or accepted for publication in any other Journal;
- the Work is an original work created by the Author;
- the Author has not transferred, ceded, or assigned the copyright, or any part thereof, to any third party; or granted any third party a licence or other right to the copyright, which may affect or detract from the rights granted to SJM in terms of this agreement.
The Author hereby indemnifies the SJM as a body and its individual members, to the fullest extent permitted in law, against all or any claims which may arise consequent to the warranties set forth.
No monetary consideration shall be payable by SJM to the Author for the cession, but SJM shall clearly identify the Author as having produced the Work and ensure that due recognition is given to the Author in any publication of the Work.
Should SJM, in its sole discretion, elect not to publish the Work within 1 year after the date of this agreement, the cession shall lapse and be of no further effect. In such event the copyright shall revert to the Author and SJM shall not publish the Work, or any part thereof, without the Author’s prior written consent.