Strategic Partnership and Equity Alliances in the Function of Crisis Prevention and Elimination

Crisis management comprises planning, organizing, directing and monitoring companies experiencing difficulties that directly endanger their existence and further development and its purpose is to stop negative trends by achieving a drastic change and providing the foundation for redevelopment. The short-term measures of crisis management that put an end to negative movements (survival) in the first phase, must be followed in the second phase by middle- or long-term measures of ensuring development that are mostly connected to revolutionary changes. In regard to a corporation’s situation from its endangerment or the prospects point of view, restructuring as a method of revolutionary changes can have the different roles in crisis solving, crisis prevention, accelerated development of a corporation, insolvency procedures and business and equity alliances. For many companies or even industries, the inclusion into a strategic partnership at a certain level of development is not only a strategic possibility and opportunity, but also a business necessity, as this is the only way to preserve a competitive market position and prevent the occurrence of acute crisis in the future. On the other hand, it is also possible to heal a company crisis with strategic connections and equity alliances; whereby available assets and partner companies’ capabilities are also included into the healing process, which is also in search of synergy effects. Based on the theoretical discussion and empirical findings from the author’s research, two statements that were set forth in advance were confirmed. Strategic partnerships and equity alliances are often in the function of crisis prevention and management and they are inseparably connected with revolutionary changes, as positive effects cannot be achieved otherwise.