Construct of the Model of Crisis Situation Diagnosis in a Company

Algimantas Sakalas, Ruta Virbickaite


The paper points out the construct of the model of crisis situation diagnosis in a company, emphasizing the importance of crisis situation diagnosis for a company's successful performance. Applying a systemic analysis of the variety of crisis situation concepts, the authors generalize the different crisis situation definitions found in the scientific literature and define the conception of crisis situation in a company. Though a crisis situation is often described as a negative phenomenon, however, the authors emphasize its positive influence on the further company's performance focusing on the importance of the diagnosis of a crisis situation in its primary stage. It shows the complexity of the scientific research object. Obviously discussed object brings meaningful input to the analysis of crisis features in a company. In the paper crisis situation diagnosis has been defined as the application of different methods to unfold the features of the diagnosing phenomenon. The importance of crisis situation diagnosis in a company's management system is huge because it lets estimating the state of a company and making decisions for further its performance. The paper aims at presenting the model of crisis situation diagnosis in a company (CSDC). The realization of the model involves three stages: analysis of the factors determining crisis situation in a company; crisis diagnosis and its depth estimation; analysis of the crisis causes, and the definition of further company's goals and decision making. The CSDC model describes a general crisis situation diagnosis process in a company, emphasizing the necessity of a new method integrating artificial neural network (ANN) application together with the widely known traditional methods. The presented CSDC model unfolds additional advantages in a crisis diagnosis process: it enables to evaluate crisis depth in a company, to estimate crisis diagnosis results in dynamics, to use the dynamic rates which estimate internal and external environment changes and to do calculations quickly and in details. The interpretation - positivistic methodological approach has been chosen to solve the described problem what enables to reveal the subjective assessment of the phenomenon and point out the researchers' attitude to the analyzed problems. The results of the model application have been summarized and further application perspectives as well as its improving possibilities have been pointed out. Having carried out the theoretical research and empirical analysis on the model of crisis situation diagnosis in a company, its advantages and disadvantages were emphasized.


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

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