According to Nemannova (2012), the experience in the field of crisis of enterprise shows that are caused by subjective factors, especially in management. Only a small part of them is caused by objective factors arising from the business environment and the enterprise can not directly influence them. The ratio of these subjective and objective factors is estimated to be 80: 20, or 70:30, the greater part cases in both the subjective factors. As the main cause of the crisis of enterprise were identified by research focused on enterprise crisis management (Wang, 2007) following three groups of factors:
1. company management,
2. the internal economic structure of the company, 3. the external economic environment.
In the first group, there are mistakes of management, but also some conscious fault of the crisis situation in the enterprise. These reasons are identified in 40- 50% of crisis situations in enterprise (Herbane, 2010). Thus is clear that the proper management has a big influence on the results of a whole enterprise. Due to the large impact of this group of factors is necessary to further subdivide this group into partial reasons. (Pavelka, 2009)
According to Neumannova (2012) are partial problems of bad business management, in particular:
1. the owner and the manager in one person, 2. weaknesses of managers,
3. megalomania of business owners.
In business environment the term crisis usually means the financial crisis, but in real the enterprises have to face not only to a financial crisis. According to research of Institute for Crisis Management based on informations from more than 100 000 cases of enterprises during 1990–2009 top six reasons of the crisis in the enterprise are:
• white collar crime, • disputes with employees,
Figure 2: PEST analysis
Economic factors
Political factors Social factors
Enterprise
Technological factors
• poor management, • consumer activities, • fatal accidents, • production defects.
These facts and their trend over the period 1990 - 2009 is illustrated in the following figure.
Figure 3: The trend of the main reasons of the crisis in enterprise
Source:http://crisisconsultant.com/crisis-intel-reports/icm-annual-crisis-reports/2009-crisis-report- download/
The results of the research on crime of business administration realized in 2014 are illustrated in the figure below.
Figure 4: The trend of White Collar Crime
Source: http://crisisconsultant.com/crisis-intel-reports/icm-annual-crisis-reports/2009-crisis-report-download/
Unlike the other reasons identified by previous research, for these reasons for the crisis in enterprise,there is possibility of their elimination if the management of these risks will pay sufficient attention As appropriate we consider the use of business diagnostics as part of a financial management in the enterprise (Rajcani, 2011). Enterprises in this area have two options, either the risk of managing and face the crisis and its negative repercussions or risk manage the crisis and to try to avoid the crisis. According to Tomsik (Tomsik ,2010), we can distinguish 5 levels of risk management:
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2001 2007 2008 2009 Poor management White Collar Crime
0% 5% 10% 15% 20% 25% 30% 35% 40% 2009 2011 2014
2. preparation for crisis management, 3.recognition of the crisis,
4. grounds crisis, 5. solving the crisis.
Following figure outlines the ways how can be the froud in the enterprise detect. The results of the research are divided into two groups – results from Slovakia and world results.
Figure 4: Ways of the fraud detection
Source: http://www.pwc.com/gx/en/ceo-agenda/ceo-survey/download.html
As we mentioned, if we want to prevent the crisis in enterprise, we have not only to be experienced from the past, but we should have a various ways how to detect them in the enterprise. Used researches are based on experiences from more than 1000 CEO in 77 countries. In previous figure, there are shown the ways how can be the froud (as one of the main reasons of crisis in enterprise) detect. (Mizla, Pudio, 2012)
Conclusion
Medicine is not the only field of study where we can apply the rule that prevention is better, and in many cases cheaper, than the treatment To take the appropriate and effective preventive
14% 9% 9% 5% 5% 0% 5% 9% 0% 14% 0% 0% 27% 4% 7% 1% 9% 13 % 10% 4% 6% 9% 2% 3% 4% 4% 0 5 10 15 20 25 30 Other Internal audit Electronic and automated reporting
of suspicious transactions Enterprise Security Data analysis Staff rotation Internal warning External warning Whistle-blowing Randomly Notification by law enforcement
proceedings
Investigative media Risk management
World Slovakia
measures, it is necessary to recognize problem areas in the enterprise. The research results mentioned in the article indicate that the biggest problems and main mason of the crisis is poor management and white collar crime. Both of these areas belong to the group of subjective factors which can be influenced by enterprise. From my point of view there is the possibility to improve the current situation mainly through increased attention to this issue by the management in the enterprise.
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