The Company in the Decline Stage: Diagnosis, Alternative Scenarios and Reorganization
Author(s)
Alberto Di Bona , Carmelo Intrisano , Giovanni Palomba , Anna Paola Micheli ,
Download Full PDF Pages: 107-112 | Views: 677 | Downloads: 208 | DOI: 10.5281/zenodo.3613284
Abstract
The crisis and the restructuring of companies are very important and current issues.The life of a company is characterized by different phases that have different characteristics and peculiarities. The company in the process of decline, after a careful diagnosis, must choose whether to restructure or continue to work without hoping to obtain economically satisfactory results. Until now, scientific studies have not investigated the issues of the diagnosis of companies in the phase of decline while the methods of business evaluation have been extensively studied in order to identify the indicators of the crisis. The objective of this paper is to focus attention on the preliminary business diagnosis activities in companies in crisis and on the study of alternative scenarios in order to trace the guidelines for a restructuring plan. After reviewing the literature, an analysis was carried out on the phases of corporate diagnosis; in addition, the second level of analysis was carried out to examine the possible alternative scenarios and finally the issue of the recovery plan was examined in depth
Keywords
Business diagnosis, decline, alternative scenarios, reorganization
References
i. Acharya VV., Richardson M., Causes of the financial crisis, Critical Review, 2009
ii. Adizes I., How to solve the mismanagement crisis: Diagnosis and treatment of management problems, 1985
iii. Bowman EH., Singh H., Corporate restructuring: Reconfiguring the firm, Strategic Management Journal, 1993
iv. Campello M., Graham JR., Harvey CR. The real effects of financial constraints: Evidence from a financial crisis, Journal of financial Economics, 2010
v. Gerlach N., The business restructuring genre: Some questions for critical organization analyses, Organization, 1996
vi. Kash TJ, Darling JR., Crisis management: prevention, diagnosis and intervention, Leadership & Organization Development, 1998
vii. Kirkpatrick G., The corporate governance lessons from the financial crisis, OECD Journal: Financial Market Trends, 2009
viii. Minnie T.E., Economic Crises, Journal of Political Economy, 1913
ix. Ooghe H. , De Prijcker S. , Failure processes and causes of company bankruptcy: a typology, Management Decision, 2008
x. Rancière R., Tornell A., Westermann F., Systemic Crises and Growth, The Quarterly Journal of Economics, 2008
xi. Slatter S., Corporate recovery. A guide to turnaround management, Penguin Book, 1994
xii. Useem M., Business restructuring, management control, and corporate organization, Theory and Society, 1990
xiii. Waddell P., Shukla V., Employment dynamics, spatial restructuring, and the business cycle, Geographical analysis, 1993
xiv. Wilson N, Altanlar A, Company failure prediction with limited information: newly incorporated companies, The Journal of the Operational Research Society, 2014
xv. Zilka C., Business restructuring: an action template for reducing cost and growing profit, 2009
Cite this Article: