engleski

The Phoenix Effect on Croatian Corporate Case: Where Are the Limits for Corporate Crisis Management Attempts?

This paper is dedicated to the question about the possibilities for a distressed company to reanimate its business in a short period, to unfreeze the company's resources, to de-blockade the corporate account and to regain liquidity status: in other words to achieve corporate turnaround with a radical and an almost unexpected change. In order to reach these possibilities - all at a highly advanced chronic crisis stage - it is necessary to achieve the Phoenix effect in extremely uncertain conditions. The paper presents the results obtained by the author participating in a crisis management team in regeneration of the business process of a Croatian corporation. In the analysed case the corporate turnaround was achieved by using the crisis as an entrepreneurial challenge - by establishing new activities, starting from scratch and implementing a new core business within the organisational and financial structures of a dying corporation. The results reveal that some characteristics seem to be important ones ; they illustrate ideas and provide arguments, for both academics and practitioners, on how to effectively manage and overcome a chronic business crisis, and even how to save a distressed corporation that is near extinction.

Corporate crisis management; battle for survival; sustainable turnaround; distress symptoms; corporate revival

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