Принятие финансовых и стратегических решений в компании (международной) в период кризиса

The finance and accounting professionals will play different key roles like strategy, steward etc., to be a forward and later thinker for the welfare of the organization in future.

2.2 Cost of business as the basic indicator of strategic financial management

Modern enterprise management system include various elements: technology, financial and economic reporting, taking into account, a description of the rules of internal business processes, interaction with the outside environment. The result of using this set of interrelated components to be more efficient operation of the enterprise. Evaluation of the effectiveness of business entities was relevant in different periods of the historical development.

Nevertheless, scientific research and practical experience of foreign companies show that success in competitive struggle is possible through integration and consistency of heterogeneous processes and various businesses direction focused on value creation. As an analytical innovations this concept provides a paradigm shift evaluation companies, introduction of new analytical algorithms, criteria and indicators for measuring the results. As management innovation this model assumes that sustainable business growth adjusted progressively develop policies and procedures, strategic analysis, planning and budgeting, financial responsibility centers and systems of remuneration.

Combining previous experience of management concepts, cost-based approach reflects a qualitative leap in the ideology of assessment and management decisions. Management moves to long-term forecast cash flows and continuous monitoring of the leading non-financial indicators. The main object is maximizing value of the company and the main distinguishing feature. Cost Management is the management of the future. The conceptual framework of sophisticated construction supports the basic principle of corporate finance: company value is determined by its discounted future cash flows.

Therefore, the main advantage of the concept of financial management, value-oriented business is that the cost is the generic criteria to assess the effectiveness of the company, as well as quality management decision. Business assessment help to determine the most effective investments in terms of maximising income and the main goals of financial management.

Business valuation in financial management system performs two major functions:

combine data about the company, reflecting the efficiency of accumulation and distribution of financial resources; reflect the interests of the owners of capital as a key actor systems of financial management.

Business valuation for the purposes of financial management is an advanced methodological problem, the first step towards its decisions is to select the type of value. From a marginal utility theory point of view value is determined by the revenue cash flow as a manifestation of demand from owners of capital value. This lets us to select a business characteristic as an assessment and management object that presuppose that business has a value not being directly involved in the process of sharing, unlike other objects evaluation. Outside the market, demand and supply, where the value of an object is expressed, there is no way to judge the value of the object of an business estimation. Since the usefulness of the business is monetized, its value can be defined as a sale transaction, and by analysing of profitability.

Since the main objectives of financial management is to ensure the most efficient use of financial resources it is advisable to use the following definition of the value of the business: business value is the monetary equivalent of the claimed utility business, expressed in its ability to generate income for stakeholder groups. Choose the type of value used for the purposes of financial management, based on the following criteria: a way to generate income and a subject of financial management.

There are several types of value cost of an operating business, market cost and salvage value, which includes income from primary activity, the sale of business or its assets separately.

From the subject of financial management point of view are two types of costs:

cost to shareholders (Shareholder value) is a type of value that reflects the interests of the business owner (shareholder);

cost to all interested groups (Stakeholder value) is a type of value that reflects the interests of all stakeholders of the company parties (e.g., management companies, staff, contractors).

Business cost as an indicator of efficiency of corporate management has following advantages:

Abstraction from specificity of business, its subject orientation;

Comparison possibility as developments of the separate company at stages of its activity, and comparison of the companies among themselves;

Possibility of the sources of growth cost analysis with allocation of key directions of success.

Real cost of business considers ability of the company to make profit, and the purpose of modern management consists in constant increase in business cost.

Construction of operational model of company activity allows to analyse the factors affecting size of company cost (various components of model of cash flow), to define sensitivity of quantitative size of cost to change of this or that factor and to develop an optimum variant of re-structuring of the company. Three basic strategy of internal re-structuring are thus used: operational, investment and financial.

Within the limits of operational strategy the administrative decisions influencing efficiency of current activity of the company are considered, including:

management of assets with an ultimate goal of optimization of their structure and turnover terms;

management of cash for the purpose of maintenance of steady solvency of the company in long-term period;

management of costs of the enterprise for the purpose of a maximum level of return from used resources.

In the process of the analysis of possibilities of use of this or that investment strategy it is considered as activity expansion (first of all increase in release of the most profitable kinds of production), and its reduction with sale of superfluous actives.

Consideration of financial strategy of internal re-structuring allows to model influence of various ways of financing.

Besides internal strategy of re-structuring, it is necessary to estimate influence of possible various variants of external re-structuring (merge, acquisition, allocation of «growth cents», liquidation of unprofitable divisions etc.) from the point of view of an increment of company cost.

Speaking about crisis in economic instability there is a problem with liquidity, so the companies reduce the abilities to generate a cash flow, sales fall, reduce sales revenue and ability to create money. Crisis has influence to value of assets cost in different way. For example, it can be sold in connection with reduction of sales and a company turnover. It can be partial sale of actives.

Comparing today’s situation in business with situation before crisis, we can definitely say that market condition has changed. Market cost of business is less than that which would be before crisis

Absence of working capital for business maintenance, having not profitable actives, credits owner face with other problems. If imagine that in crisis, there will be selling several companies working in one segment it becomes one more factor of depreciation of the enterprises in the conditions of rigid competitive struggle. Positively debts re-structuring can affect company cost.

Increasing business cost is possible by investment. But this method is very risky in crisis. It is difficult to predict, in what volume and when the enclosed investment will bring planned return. And it is impossible to be assured that the invested capital considerably will increase business cost. Therefore it is necessary to concentrate on ending of the begun projects, instead of to be put in the new.

Now in possess of estimation there are carry out careful analyses and researches of that branch in which business is presented. On the basis of indicators of reports forecasts on business estimations also are under construction. There is still a psychological aspect of a problem when buyers wait for the maximum falling of the price, and sellers of business wait for cost growth. The given phenomenon is non-standard for the market, it is peculiar only to the given economic situation. In general, the buyer has enough influences on business costs.

Before Crisis Company presumed to put up money in expensive ЕRP-системы during the difficult economic period such projects either are frozen, or are carried out by very slow rates.

Thus in crisis, business cost is influenced by some factors: productivity of business, interest of sellers and buyers, a difficult situation in the market in crisis. Business cost in crisis is influenced by many criteria, but it is not necessary to forget that each business is individual, therefore its cost even in crisis can change depending on a situation and the developed circumstances. Interesting ideas and original decisions in business always raise its cost without dependence from various economic cataclysms.

It is well known, that among experts the relation to fair cost is controversials — exist both supporters, and opponents of the given concept. The financial crisis which has begun in 2008, has aggravated discussion about fair cost. In the western periodical press for the second half of 2008 a number of observers name the account at fair cost among the reasons of financial crisis as a result of a collapse of the financial markets holders of the depreciated financial actives considering them at fair cost, have been compelled to write off hundred millions dollars at the expense of profit. It has weakened financial reports, has led to losses, has reduced reserves, has increased risks and finally has lowered cost of the companies that has entailed a train of bankruptcies. As a result of an estimation at fair cost have aggravated and without that a difficult situation.

In these conditions companies considering underestimated cost of the financial tools, suggest to terminate temporarily estimation rules at fair cost and to allow to use internal estimations about true future cost of their actives or cost on which actives have been got.

As a result of the current situation analysis in development of the concept of fair cost it is possible to draw following conclusions:

1. Using fair cost model in the financial reporting is a new phenomenon, however for the account of securities fair cost is used for a long time. Therefore, even if opponents of the concept don’t agree with the full account at fair cost, updating of cost of financial actives in the growing both falling markets and the account of results in profit of the period more than centuries are successfully put into practice.

2. In financial crisis markets have ceased to be active, therefore it is necessary to do estimations with application of models and to report the additional information on the used models. However, according to developers of standards, even such estimations give more pertinent and a solid data, than the alternatives which are not considering current economic conditions (such, as a liquidity lack).

Studying of advantages and lacks of fair cost has allowed to reveal and systematize areas of key disagreements between supporters and opponents of an estimation at fair cost (see the table 2.

2.1).

Table 2.

2.1

Key disagreements between supporters and opponents of an estimation at fair cost

Area of disagreements Description Arguments supporter of the concepts Arguments opponent of the concepts Reliability To Users of the reporting need trustworthy information about current cost Fair cost shows an authentic estimation of real value of assets/obligations (an objective estimation) In the absence of the active markets there is no well-founded calculation of fair cost (value judgment) ways of definitions Fair cost can be found in the active market. If the market is absent, for its definition estimation models Even if there is a certain degree of unreliability in the cost received it is useful to decision-making because reflects an economic reality Assumptions inherent in models (the discounting rate, probability of events, etc.), can differ between the organizations and kinds of actives/obligations that leads to incomparability of the information Influence

on profit Market prices influence profit for the period which becomes dependent on internal and external (market) factors Acquisition of the actives which cost falls, specifies in inefficient work of management that should be recognized in expenses in the report on profits (and on the contrary) Variability of profit complicates an estimation of efficiency of activity on company management Understanding by investors the information on market cost of the company is essential for investors On market cost can to influence different factors. The financial reporting is one of sources of information for a business estimation Even if a net wealth is estimated at fair cost, this cost won’t be equal to company cost as a part of actives it is not considered goobwill Possibility of

the independent Information on cost should be confirmed by auditors There should be f appropriate disclosings about the used methods of an estimation Cost difficultly gives in to audit and can be confirmed only in the presence of the active markets It is obvious that the concept of fair cost as it stands isn’t complited, but at the same time return to historical estimations won’t solve existing problems in the markets and won’t lower probability of the future financial crises. Instructions by definition of fair cost of actives and obligations in various situations will allow to improve the estimation concept at fair cost.

2.3 Evaluation (comparative analysis) of the management estimation during the financial crisis

Methods of cost estimation of actives during crisis and in the conditions of stability don’t differ. Differs, more likely, is in approach that investors choose. It is known, there are three basic approaches to cost enterprise estimation — cost-based, profitable and comparative. In crisis the forecasting method is a little interesting to the investor because situations in the companies change today fast rates and to be assured in something it is impossible. Besides, it is difficult to predict and exchange rates.

Drawing 2.

3.1 Management efficiency indicators

Drawing 2.

3.2 Traditional business estimation methods

Table 2.

3.1

Structure of approaches and methods to a business and company estimation

Business estimation The Estimation of a property complex Methods of the market approach:

" A golden section" rule;

Comparison of sales;

The animator the price of a share of company/income The market or analog approach is based on comparison of estimated object with the analogs which market price is known, and has the following sequence:

1. Studying of the market and information gathering under transactions with objects-analogs;

2. Check of reliability of the received information;

3. Comparison of estimated object with each analog and revealing of differences;

4. Calculation of a project cost by updating of the prices of analogs. Methods of the profitable approach

the animator of the income);

capacity of dividends);

The superfluous income;

The discounted cash flow. The profitable approach is based on calculation of the future receipts from operation of object of an estimation and definition of their current cost. At realization of the given method operation of object of an estimation is considered as the project which efficiency is defined by means of an indicator of the pure discounted income. Methods of the approach on the basis of actives:

Pure balance cost;

Pure market cost of material (tangible) actives;

Replacement cost;

Liquidating cost;

. This approach consists of four stages

1. The analysis of structure of object of an estimation and allocation of its components on which the estimation will be made;

2. A choice of the most suitable way for each element of structure of object of an estimation and realization of calculations;

3. An estimation of the saved up deterioration of elements of object of an estimation;

4. Calculation of residual cost of elements and total estimation of cost of all object.

The saved up deterioration is defined as reduction of regenerative cost which can result from physical destruction, moral obsolescence, external obsolescence or a combination of these sources.

The basic idea of the profitable approach that business cost is equal to current cost of all cash flow which business is capable to bring to its proprietor. For calculation of this cost the method of the discounted cash flow (discounted cash flow, DCF) is used. Cash flow are at the disposal of majority shareholders of business which can count on not only in the form of dividends.

Many experts prefer to define market value growth using application of other approach — comparative. But such forecast can be made and using the same method DCF. In this case it is necessary to use key indicators (the rate of discounting, cost of cash flow).

Using approach in the conditions of crisis. Firstly, for company estimation it is necessary to analyse available reports. So the reasons of fluctuations of operational and financial indicators are established, conformity of the basic factors of profitability, liquidity and industry average debt loading is checked. Further it is necessary to predict cash flow, considering following factors.

demand for the goods, works, services are reduced. Hence, it is necessary to consider the falling of a margin dictated by necessity of reduction of prices.

there Is an cash outflow because of necessity of preschedule repayment of obligations and growth of interest rates. Therefore it is recommended to put in model the rate less than 20% annual in intermediate term prospect.

the requirement for working capital increases. It is offered to increase requirement of the company by 30−50% in comparison with the former data.

In practice well known cases when the essential positive cash flow of the company after entering of the specified updatings changed to negative. One of variants adapted for financial crisis is the method of real options. This method assumes difficult calculations.

The second classical approach to estimation of companies cost is comparative. It defines cost of the enterprise on the basis of comparison with the price of similar actives in the market (proceeding from last public transactions). According to the experts, today some investors start to be guided by this method (as operations on resale of actives becomes to spend enough necessary comparison) more frequently. However, specialists underline that in crisis this method starts to work as starting mechanism of market falling.

In usual practice as business cost estimation we understand estimation of cost of shares of company. However today it is recommended to consider other indicators, applying the comparative approach to an estimation of investment appeal of the company. First of all should be used indicators which it is possible to take from the aggregated balance of the company (debt loading, own capital and etc.).

U se of this approach in crisis. F or example, it is possible to use the information about indicator that reflect the relation of companies-analogs cost to an indicator of efficiency of their activity (for example, EBITDA). K nowing a similar indicator of the estimated company, will easily calculate cost of estimated business, having corrected the received figure on necessary norm of profitableness. T

hus it is better to do an estimation on several animators (for example, EV1 / EBITDA, EV / Sales). B esides, it is necessary to do amendments on values of specialized animators. F or example, for a retail it is relation of business cost to sales area or quantity of shops, and for extractive industries it is volumes of the reconnoitered stocks. The basic assumption of the given method is the assumption that the look-ahead period cash flour will be close to the zero in crisis.

At last, the third approach in an estimation is cost-based. It considers a stock value of the company from the point of view of the costs. The stock value admits to equal cost of actives of the enterprise which have remained after repayment of all obligations. This approach in the conditions of a global economic crisis is named as the only one as comprehensible. This method of a net wealth (an estimation of market cost of all actives minus market cost of all obligations proceeding from the assumption of preservation of activity of the company) and a method of liquidation cost (an estimation of market cost of all actives proceeding from the assumption of their rational sale in the course of liquidation minus the expenses connected with liquidation of the company).

This approach is considered for the buyer as the least risky (because company cost is defined after a deduction of all obligations) and the easiest for calculations (in comparison with others). According to experts strategic investors will be interesting in further developing the enterprise, profitable approach will be the most comprehensible. Accordingly, they will pay attention to the prospective size of the future profit of the company, its requirement for the capital and the strategic importance of object of purchase in scales of all business.

At calculation of business cost it is necessary to consider following factors.

Capital asset.

Stocks

the Debt receivable

Financial investments

Cash

Credits and loans

Practically always, and in crisis especially, there are considered not only the traditional methods of an estimation, but also psychology of price expectations which can be formed at potential buyers.

Expectation of possible further reduction of price forms at the buyer steady intention to wait «bottom», and at the seller — to be «elastic at the price», that is to go on price concessions to the buyer, to sell more expensively today, than in the future.

Besides the psychological moment during business cost estimation it is necessary to take into consideration size of such non-material active of the company, as «brand» .

The comparative analysis of advantages and lacks of estimation business methods

The approach Market profitable accumulation of actives Advantages Completely market method Unique method considering the future expectations Is based on real-life actives Reflects present real practice of purchase Considers market aspect It is especially suitable for some kinds of the companies Considers economic obsolescence Lacks It is based on the past, there is no account of the future expectations Labour-consuming forecast Often doesn’t consider cost of non-material actives and goodwill (business reputation) A number of amendments is essential Partially it has likelihood character Is static, there is no account of the future expectations The remote data Doesn’t consider levels of profits Thus, business cost is measured in three ways. This system doesn’t differ from that existed before crisis. More likely that today there is a tendency of change of priorities of approaches from the investment point of view.

The first way of business estimation is the discounted cash flow. Discounted cash flow is a present’s estimation of cash flow that is expected in the future time. So this method is based on forecasting. In crisis the forecasting method is least interesting to the investor because situations in the companies change quickly and investors can not be assured in present situation. Besides, it is difficult to predict and exchange rates.

The second way is measured by cost of actives of the company, that is estimated by professional appraisers. Here we mean the real cost of a company. The urgency of the given way in crisis also is exposed to doubts.

And the third way is a stock value of the company if, for example, it is quoted at a stock exchange. An indicator of liquidity influences on cost. The higher liquidity, there is higher cost of a security of the company, hence, higher business cost. Securities are estimated on the capital market, a net wealth and dividends. In this case business cost is defined when structure of shareholders or sales of shares is changed when business is bought by other companies.

3Company's strategy during the crisis

Doing things today — make us better tomorrow, because the future belongs to those who make the hard decisions today.

Having analyzed the behavior of the Russian companies during the crisis, I remembered the words of George David:" If you don’t invest for the long term, there is no short term." These words appeared in my head not randomly, because during the analysis there became clearer the similar tendency in all the companies, all of the companies use strategies of developing, especially: Product development, Market penetration, Market development, Forward integration strategy

Let’s look how companies implement their strategies.

T he first company that was taken into analysis is Aeroflot — well known Russian Airlines. A ccording to strategic planning of the company it uses several strategies: Product development and Market penetration. I n order to adopt Product development strategy Aeroflot implement its own flight safety management system (at the same time optimizing their production costs), improving efficiency through route network improvement, improving the corporate management system, including increased number of independent directors in the subsidiaries' Boards of Directors, better fleet arrangement, application of micro season’s technique in scheduling, interlining improvement. A dopting Market penetration strategy Aeroflot decided to substantially enhance its charter traffic, at the same time retaining its regular flights network.

T otally Aeroflot seeks increased sales by improving and modifying present services. P roduct development usually entails large research and development expenditures, while Aeroflot has a great experience and on the basis of it, Aeroflot develop its strategies. The main objectives of Aeroflot are: Charter-low-cost product and modernization of already existing services.

The second company was GAZ -is Russia’s largest producer of commercial, construction and road-construction vehicles. This company decided to choose Product development and Market penetration strategies. In order to adopt Product development they use such techniques as: streamline assets and management systems, implementing most effective projects with the shortest possible return on investment terms. And talking about Market penetration — focusing on high-profit margin products at the same time, prepared to make a special «anti-crisis offer» — low-cost products, reducing operating cost, reducing cost of ownership, special discounts. Totally, after the crisis GAZ will have new products which lay be the foundation of their long-term competitiveness.

The next very interesting example is KAMAZ-Diesel Inc — company producing power units, engines for trucks and spare parts for them. They use several even 3 types of strategies: Market Penetration, Market development, Product development. In order to implement Market development they made really unexpected step, they switched to another customer, getting orders from the Ministry of Defense, big stable customer. What concerning: Market Penetration and Market development KAMAZ continue to re-engineer production, train all the employees, developing of diversification products, development and realization of new production, operating cost reductionlead to availability of discounts.

And very interesting technique that was used — Kaizen activity, that twice increased the efficiency of chosen strategies. Thus adopting this technique KAMAZ: train all the employees, instead of mass-scale redundancy, KAMAZ and their plant introduced a short working week,, regular meetings of the administration with the employees (workers' economic condition won’t improve after such meetings, but an informed person won’t feel that he or she is left to the mercy of fate), extra money for worker’s suggestions that lead to economic effect.

Totally: Under conditions requiring a survival strategy, KAMAZ increased a share in the truck market and entered new markets. Finally, KAMAZ kept its main human resources. It gives hope that KAMAZ have stored potential in order to become even stronger in a competitive struggle in the future. Cost reduction, modernization, HR-policy (PERFECT!!!), orientation on the new markets.

Another one company is MTS that used Forward integration & Backward integration, Market penetration, and Product development strategies. While adopting Market penetration & Product development such techniques as building of 3G network, operating cost reduction, investments in mobile contents, improving the quality and the level of services were used. What about Forward integration & Backward integration is — introducing its own shops (firstly selling mobiles, secondly tariffs), signing contract with Vodafone (getting discounts on mobile phones).

A nd the last one company was Lukoil, that use Market penetration, Market development, Product development. W hat was done: objective of personnel management consists in retaining the existing workforce, attracting new up-and-coming workers, and shaping an approach to the workforce as a strategic resource. M ost interestingly, a new generation of specialists will be trained to provide for effective activities in the future, with the economy on the rise.

worthy of note are projects that involve job creation. F or instance, the future development of offshore fields in the Northern Caspian. Totally: Cost reduction, investing in HR!!, new projects and improving the level of previous ones.

GK «AvtoSpetsTsentr» conducted the careful investment policy, didn’t go to regions because of the low profitability and controllability business localization. Also even in general orientation time service sales brought more than 50% of profit whereas the majority of competitors have no more than 15−20% from the total profit. Now the service share in the total profit has grown up to 70%. Such steadfast attention to efficiency of processes and service also has became a pledge of stability of the company during the crisis period. When sales fall, AvtospetsTsentr continues to earn successfully on service.

I n crisis many companies have faced with the problems of cash shortage. T he pre-crisis policy of working with banks has yielded the results. I nitially iAvtoSpetsTsentre top management have decided that they don’t want to change banks as gloves, and have chosen partners and have established the reliable confidential relationship with them, and didn’t give in on temptations from other potential partners. A

s soon as crisis has begun, they have supported one of the bank partners in a hard time, and it was generously repaid when it was necessary crediting, banks considering their loyalty, have offered such conditions that were not available for anybody. A s soon as first signs of crisis are appeared all measures on disposal of warehouses and work with a clients debt receivable have been taken. P ositively influence was rendered by specificity of the international business during the crisis period.

W e will remind that the company «Atlant of M» is presented in Ukraine, Russia and Belarus. I n pre-crisis times distribution was a weak point, as didn’t allow to concentrate on concrete region to receive a worthy share of the market. But in crisis it is distribution allows to hold the company afloat.

The company develops new project such as Trade In.

The company human resource policy has changed as well. Employees combine functions, without asking surcharge as it was earlier. The company has raised its efficiency at the expense of optimization of all processes.

The diversification has allowed Subaru company to keep sales. Unlike other car producers thanks to new models sales not only haven’t decreased, but even have a little increased, despite financial crisis. The company struggles for reduction of quantity of cars that were imported into Russia under orders of last year. On the other hand, despite sales recession approximately in a half the company has kept on an average for the market level at the expense of vast stocks in 2008. Company changed the price policy several time during that period.

O ne of the reasons of demand reduction I see in disappearance so-called «cheap money». I t concerns the Russian economy as a whole. B y 2008 «cheap money» was accessible from abroad to financial institutions of the Russian Federation, but since August-September 2008 serious outflow of the foreign capital has begun, and companies had to search other source. T

he company has found new strategic partner ВТБ 24. T he new program of preferential crediting has been started. Wide advertizing campaign stimulates the sales.

As a whole for maintenance of the dealers company try to offer delivery terms or assisted in promotion in particular city. Concerning about opening new points of sale, many projects have been frozen. The exception is made for project in a finishing stage of building.

The most destructive consequences of world financial crisis were reflected in capital-intensive branches of economy, such as construction. The companies focused on economy growth and increase of demand and the prices for real estate, weren’t ready to market recession.

The company Peak with the crisis beginning has faced numerous judicial claims from the creditors. The company management has made the decision on debt re-structuring. The building holding company has received from VEB the credit for refinancing to foreign banks, term — one year, pledge — 25% of actions PEAK. Thanks to this re-structuring the company could transfer debts repayment on long-term and intermediate term prospect.

Settlement of debt claims has opened the company access to new credit resources. In the end of May, 2010 PEAK declared the beginning of credit line disbursement given by the SberBank ($ 411 million). First of all the received resources have been directed on financing of current and perspective developer projects.

The second place, after credit portfolio re-structuring, the anti-recessionary strategy of the company was occupied with a problem of increase of business efficiency.

T he diversification also has yielded the results. T he company has focused on real estate sector. F or needs of the Minister of Defence of the Russian Federation in Podolsk situated near Moscow the company has received the favourable state order. T

he similar business model has already proved the efficiency. M ortgage lending revival supports the company. A

t the same time the PEAK turns off the projects in not profile sectors such as office, elite and trading real estate. Strategy of regional development of «PEAK» has been temporarily frozen.

In addition for support of financial indicators the company has spent optimization of the activity, has cut down unprofitable and administrative expenses. Number of the personnel has decreased on 21%. Besides, the company reduces volume of the apartments realized through barter agreements with contractors

The company in crisis simultaneous develops strategy of risks decrease.

Group PEAK realizes a number of competitive advantages. The technology of building with use of ready building panels is cheaper than businessand an elite class building where basically concrete and a brick is used. Application of technology of panel building allows cutting expenses on 25−30%, and erection terms — on 35−40%.

Thus, during crisis PEAK has got the new strategic shareholder and it has given «green light» to company development. PEAK has decided to concentrate the efforts to the Moscow region, on the most demanded segment: econom-class. Moreover, the company has solved the problems with creditors.

Rostelecom anti-crisis measures provided reduction of direct cost. Thus the company hasn’t increased the personnel reduction in comparison with planned level. Moreover Rostelecom worked over a diversification of tariffs of MG/MN-COMMUNICATION. In previous period discount extended on all directions during crisis the company stimulated the traffic on one direction, reducing the prices, and simultaneously raised cost of conversations on other directions.

" Rostelecom" hasn’t refused investments. Investments remained at level of last year: 8,5 — 9 mlr rbl. The management considers that reduction of investments can not lead to situation improvement, Rostelecom hasn’t refused purchases in Russia regions. Development strategy assumes developing broadband service to 35 Russia largest cities, instead of DSL.

Strategy has been directed on orientation not on absolute financial indicators, and on the relative. The target indicator of profitability was up to standard of 20%.

H enkel vs Unilever also pursued a direct cost reduction policy. T he first reaction in November-December, 2008 among the majority of the companies was protective. T he company didn’t reduce permanent staff, however has changed structure of some departments.

A s to time employees, situation were slightly another — the contract on manufactures couldn’t prolong for temporary jobs. A lso in the spring working week has been reduced to 20% for two months, additional agreements with workers have been signed. Also for expenses optimization it was made a decision to suspend some training programs for three months.

Strategy of company development hasn’t exchanged during crisis and remained extensive, absorption give the chance to strengthen the positions on those or other markets, to strengthen position of those or other brands or production line. Innovations have certainly, priority value. The basic efforts have been concentrated on innovations, improvements of services quality that the company offers to the distributor in retail trade, the decision of other priority problems.

E ssential support to company UK «Alpha capital» was rendered by the fact that business is constructed not on one-two market segments, and more. T o the beginning of crisis the company had diversified product line on segments and client groups.

T o retail block directions a corporate, institutional and well-founded clients were added. S o, company has seen in advance displacement of demand towards a well-founded category with the investment capital from 100 thousand dollars and 1 million dollars and above. T hey were ready to moderate risk and, being based on examination and the offer of interesting investment ideas and tools, were able to earn well. Reputation has worked, and the company has received a considerable quantity of new clients, having grasped almost 25% of this segment.

Thus, the companies during crisis have faced similar difficulties:

Decline in customer demand

Late payments and bad debts

Financing declining

The company develops the innovative projects, competitive grocery novelties which will be deduced in the fullness of time.

First of all the majority of the companies were reduced costs, but all have different approaches. The companies introduced a diversification strategy of the goods and markets, product development, strategy implementation focuses on efficiency, restructuring. The most flexible companies that have realized that long-term consists of short-terms, the personnel is the most important have managed to survive in crisis.

Crisis may become an opportunity for the company to increase operating efficiency, product quality, market share, implement innovation and restructuring. We need to specify the importance of the individual conditions and their impact on the company’s ability to overcome the crisis and to exploit the opportunity.

Conclusion

The major value have introduction of new forms; and management methods; orientation to strategic management in crisis.

The strategic analysis, strategic planning, strategy realization; control of performance of strategy are the major functions of the most companies. It makes a whole as represent the interconnected stages of uniform process of movement to achievement of the basic company’s purposes; process that establishes and supports conformity between the purposes • both possibilities of the enterprise and changing environmental conditions.

Strategic process is always carried out in the conditions of the incomplete information, and its stages belong to sphere of decisions preparation of qualitative character, the generalized sight, absence of details: Practically all stages of strategic process are difficult, it is a badly formalizable problems that do not have the exact decision, described by qualitative, ambiguous characteristics;

As a result of the conducted research the basic strategies that have been used by the companies for crisis overcoming have been allocated. Some companies not only has coped with crisis, but also have managed to increase profitableness. Crisis began an occasion to reconsider and optimize existing strategy for these companies. So, the basic strategy for crisis were a diversification strategy of the goods and markets, product development, strategy implementation focuses on efficiency, restructuring. The slogan of the successful companies is a phrase «Doing things today — make us better tomorrow, because the future belongs to those who make the hard decisions today».

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