MANAGING RESTRUCTURING PROCESSES OF SMALL AND MIDDLE SIZE ENTERPRISES
MANAGING RESTRUCTURING PROCESSES OF SMALL AND MIDDLE SIZE ENTERPRISES

Summary/Abstract: The paper presents the management model for restructuring small and middle size enterprises specifying measures for improving strategic management, rationalizing management functions as well as controlling restructuring process and assessing influence of its results on SME competitiveness. The model consists of the following phases composing the integral cycle of SME restructuring process: 1) justifying the restructuring expediency; 2) designing the restructuring strategy and its implementation programme; 3) implementing restructuring programme; 4) controlling restructuring programme implementation; 5) evaluating restructuring benefit. In order to justify SME restructuring demand it is necessary, first of all, to evaluate the current efficiency of SME activity, identifying strengths, weaknesses and possible threats for enterprise competitiveness, evaluating efficiency of enterprise current strategy and viability of its use. Having identified the demand of enterprise restructuring it is proposed to prepare the restructuring strategy following the recommended order. When making strategic enterprise restructuring decisions it is necessary to evaluate restructuring reasons as well as the objectives relying on the conclusions of SME activity efficiency evaluation. On the basis of the research results the regularities for enterprise restructuring strategic decisions making are determined and respectively are proposed. In order to make the best strategic decisions it is necessary to analyze the possible results of enterprise restructuring strategy alternatives applying technique of comparative analysis. When preparing the programme it is also recommended to use the determined regularities of application of enterprise restructuring techniques. When implementing the restructuring programme the following tasks have to be solved: a) to renew the strategic management system; b) to rationalize the management of enterprise in terms of efficiency increase of enterprise strategy and its functional strategies; c) to execute programme tasks at the level of enterprise functional departments and business units. Aiming to rationally manage the implementation of the restructuring programme and achieve the maximal benefit, it is necessary to ensure a rational implementation of restructuring measures. It is proposed to execute this task with the help of the proposed technique, which allows evaluating the benefit of measures under implementation and identifying application disadvantages and their reasons. Respective model is also presented as to evaluate the efficiency of SME restructuring. Having in mind the context the proposed model for management of SME restructuring programmes let the following: to justify the need for restructuring; to prepare the programme for SME restructuring determining restructuring strategy and ways for the increase of efficiency of enterprise activity; to control the process of restructuring, evaluating the effect of restructuring m

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