TITLE:
Strategic Partnership and Equity Alliances in the Function of Crisis Prevention and Elimination
AUTHORS:
Drago Dubrovski
KEYWORDS:
Crisis, Crisis Management, Restructuring, Strategic Partnership, Equity Alliance
JOURNAL NAME:
Modern Economy,
Vol.7 No.12,
November
1,
2016
ABSTRACT: Crisis management comprises planning, organizing,
directing and monitoring companies experiencing difficulties that directly
endanger their existence and further development and its purpose is to stop
negative trends by achieving a drastic change and providing the foundation for
redevelopment. The short-term measures of crisis management that put an end to
negative movements (survival) in the first phase, must be followed in the
second phase by middle- or long-term measures of ensuring development that are
mostly connected to revolutionary changes. In regard to a corporation’s situation from its
endangerment or the prospects point of view, restructuring as a method of
revolutionary changes can have the different roles in crisis solving, crisis
prevention, accelerated development of a corporation, insolvency procedures and
business and equity alliances. For many companies or even industries, the
inclusion into a strategic partnership at a certain level of development is not
only a strategic possibility and opportunity, but also a business necessity, as
this is the only way to preserve a competitive market position and prevent the
occurrence of acute crisis in the future. On the other hand, it is also
possible to heal a company crisis with strategic connections and equity
alliances; whereby available assets and partner companies’ capabilities are also included
into the healing process, which is also in search of synergy effects. Based on
the theoretical discussion and empirical findings from the author’s research,
two statements that were set forth in advance were confirmed. Strategic partnerships
and equity alliances are often in the function of crisis prevention and management
and they are inseparably connected with revolutionary changes, as positive
effects cannot be achieved otherwise.