Review article
The risks of company management crisis in marine industry
Ivo Domijan Arneri
; University of Dubrovnik, Croatia
Nikša Dubelj
; University of Dubrovnik, Croatia
Abstract
Shipping companies, as well as any other commercial entities, might encounter a specific state, otherwise known as trading crisis, in which the process of development is being slowed down and restricted. The companies go through various phases during their development. In that respect, every transition between the phases is critical, because it signifies the change for the company and the emergence of crisis. Just in those transitory phases of the development, the shipping companies generate the risks of trading crisis. Such risks manifest themselves through various problems in business, such as lower income and reduced liquidity. Generally, it might be said that crisis occurs as a result of different circumstances of a company and its changes in relation to the market as well as changes in the market in relation to the company. Such changes require preparedness of the company’s management and its effective response to the situation at hand. The higher the lack of preparedness in question, the more exacerbated the crisis. The risks of trading crisis are generated with the management crisis and they mostly originate in the area of company organization. If management fails to take corrective actions at an early stage, problems accumulate and a trading crisis is likely to worsen. Causes of a trading crisis stem from the organization and wrong decision-making and company management business policies.
Keywords
shipping company; risks; trading crisis; development; management; decisions; managing business
Hrčak ID:
75534
URI
Publication date:
30.12.2011.
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