Construct of the Model of Crisis Situation Diagnosis in a Company

Algimantas Sakalas, Ruta Virbickaite

Abstract


The paper points out the construct of the model ofcrisis situation diagnosis in a company, emphasizing theimportance of crisis situation diagnosis for a company‘ssuccessful performance. Applying a systemic analysis ofthe variety of crisis situation concepts, the authorsgeneralize the different crisis situation definitions found inthe scientific literature and define the conception of crisissituation in a company. Though a crisis situation is oftendescribed as a negative phenomenon, however, the authorsemphasize its positive influence on the further company’sperformance focusing on the importance of the diagnosisof a crisis situation in its primary stage. It shows thecomplexity of the scientific research object. Obviouslydiscussed object brings meaningful input to the analysis ofcrisis features in a company. In the paper crisis situationdiagnosis has been defined as the application of differentmethods to unfold the features of the diagnosingphenomenon. The importance of crisis situation diagnosisin a company‘s management system is huge because it letsestimating the state of a company and making decisions forfurther its performance. The paper aims at presenting themodel of crisis situation diagnosis in a company (CSDC).The realization of the model involves three stages: analysisof the factors determining crisis situation in a company;crisis diagnosis and its depth estimation; analysis of thecrisis causes, and the definition of further company‘s goalsand decision making. The CSDC model describes ageneral crisis situation diagnosis process in a company,emphasizing the necessity of a new method integratingartificial neural network (ANN) application together withthe widely known traditional methods. The presentedCSDC model unfolds additional advantages in a crisisdiagnosis process: it enables to evaluate crisis depth in acompany, to estimate crisis diagnosis results in dynamics,to use the dynamic rates which estimate internal andexternal environment changes and to do calculationsquickly and in details. The interpretation – positivisticmethodological approach has been chosen to solve thedescribed problem what enables to reveal the subjectiveassessment of the phenomenon and point out theresearchers‘ attitude to the analyzed problems. The resultsof the model application have been summarized andfurther application perspectives as well as its improvingpossibilities have been pointed out. Having carried out thetheoretical research and empirical analysis on the modelof crisis situation diagnosis in a company, its advantagesand disadvantages were emphasized.


Keywords


crisis situation, crisis situation diagnosis, model of crisis situation diagnosis in a company (CSDC), artificial neural network (ANN).

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