The Phoenix arose The period of business stabilisation begins after

The phoenix arose the period of business

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The Phoenix arose The period of business stabilisation begins after successfully terminating the battle for survival: it is a clean-up period after terminating the chronic crisis stage. Crisis resolution resulted in total corporate renewal (see Table 3). In the period immediately after overcoming the crisis, the business was completely stabilised and the corporation was taken over (2005) by a strategic partner, who bought at stock market about 74% of shares. A benefit from crisis resolution is that it helps a corporation to improve poor performance, pursue new strategic opportunities, attain credibility on the market and create value for shareholders. Market share price today (April 2007) is between €6,8 - €7,5 per share. Table 3: Some indicators about the corporate health in the period of business stabilization Balance Sheet as at September 30th 2006 (Millions of EUROS) - short review 1. Tangible assets 2. Inventories 3. Trade receivables 4. Financial assets 5. Cash and cash equivalents 6. Other assets TOTAL ASSETS 5,18 0,81 0,25 0,07 0,04 0,01 6,36 1. Shareholder's equity 2. Accumulated losses 3. Current liabilities towards creditors 4. Current trade payables 5. Other current liabilities 6. Long-term debt 7. Other long-term liabilities TOTAL LIABILITIES & EQUITY 9,23 (4,58) 0,16 1,02 0,34 0,07 0,12 6,36 Source: Company quarterly report. In the process of carrying out all the crisis management activities, the role of the crisis leadership is very important. It requires a leader to possess the ability to plan and foresee the future and primarily the ability to resist the emotional pressure of the crisis situation. Leadership style is one of the most significant success factors in the process of carrying out the whole range of activities related to the corporate stage of radical turnaround. Based on the experience of the analysed case, it is to be singled out that direct contact between the leader and the employees and that the leader's permanent tackling of the problems, rather than waiting for the consequences to arise proved to be very important. The leadership style focused on achieving a rapid and discernible turnaround, which can also be characterised as a symbiosis of charismatic and transformational leadership style, is dominated by self- confidence, visionary features and the potential to provoke changes along with the tight control of financial flows, expenses, realisation of planned strategies and work discipline.
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In the period of business stabilisation, the problems of insolvency and account blockade didn't occur, and the corporation today is doing business in relatively normal conditions: liabilities towards suppliers, creditors, employees and tax duties are paid regularly, which illustrates sustainable recovery and survival of the crisis, with corporate prerequisites for growth. The Phoenix arose. CONCLUSION Transition economies, the Croatian economy being one of them, paid a high price for adjusting to the new social and market conditions; they usually caused liquidation of numerous companies and a significant number of job losses. Corporate crisis is no longer a rare or episodic event that happens to someone else - it has become a significant event in many companies and in the professional lives of numerous managers. Analysing the example
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