Establishing Firm Strategy in Crisis

Radka Ileva

Economic Studies journal, 2012, issue 3, 35-43

Abstract: After the accession of Bulgaria in EU, the Bulgarian market becomes part of the common European market. The internationalization of the enterprises, the development of competitive productions, the strategic orientation towards international markets, have decisive role for the future development of the economy. Very soon (historically it can be called immediately) after the Bulgarian accession in EU, a financial and economic crisis occurs, strongly reflecting on the Bulgarian economy and the conditions for developing the Bulgarian enterprises. Besides the problems of catching up development, the Bulgarian economy faces also the need of the industries and enterprises to continue their development, to maintain their market specifics, and sometimes even to manage to survive under the new conditions. The objective of the current study is to reveal the strength and direction of impact of the crisis and its influence in microeconomic plan on the firm strategy and competitiveness. The destabilization of the economy’s microeconomic structure is a dangerous threat to the state of the whole economy. Destabilization of the microeconomic system of the Bulgarian economy is recognized in the strong worsening of the state of the organizations, changes in the normal development of the live cycle of the industries, their structural and economic specifics. The drops and failures lead to disturbing the evolution and normal development of the sub-industries, production areas, particularly in the conditions of strong competitive supply on the European markets. Often restoring is impossible. The normal market presence and development of the whole production area is broken or delayed. Maintaining a balanced branch structure and economically bearable inter-branch indicators is a significant factor for reducing the unfavorable impacts on the economic units and managing the crisis. For the purposes of the analysis the paper uses three empirical studies, carried out by National Center for Studying Public Opinion, consisting of nationally significant primary information with comparable data.

JEL-codes: M11 M20 M21 (search for similar items in EconPapers)
Date: 2012
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