Page 63 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 2, 2021, pp. 63-73

THE THEORETICAL BACKGROUND ABOUT THE IMPACT
OF STRATEGIC PLANNING ON THE EFFECTIVENESS OF
CRISIS MANAGEMENT

2
Ali Ahmed Suliman Elmahdi , Ilgar Seyullayev
1

1,2 Azerbaijan State University of Economics (UNEC), e-mail: [email protected]

Received: August 23; accepted December 08, 2021; published online December 24, 2021

ABSTRACT
Strategic planning is characterized by its preparedness to face the variables which
may happen in the future, and that it is a social activity for achieving the specific
objectives carefully. It has, also, the ability, through its mechanisms to create
conducive circumstances to accommodate the change and its management, leading
to results of positive outcomes that support the realization of the organization's
mission and maintain its existence. Modern mining companies are complex
organisations as per their organisational, management and operational structure.
They also operate in a complex business and operational environment facing
significant uncertainties related to natural, technical, technological, market,
organisational, economic, financial, political, etc., influential factors affecting their
business, management, and operations. Traditional approaches in strategic planning,
asset management and decision-making in the mining industry have been unable to
adequately grasp and address this complexity. This search proposes a new approach
in the strategic planning and asset management for mining enterprises by analysing
them as complex systems. The methods of the complexity science may help to better
comprehend the complex environment of mining organisations providing more
realistic understandings upon it. Thus, we consider that they may be useful in
designing an enhanced strategic asset management decision-making framework.

Keywords: Crisis Management, Strategic Planning, Prevention, Crisis Resolution

Jel classification: H12

INTRODUCTION
Strategic planning is the process through which an organization defines its approach,
or goal, and decides how to allocate capital to accomplish that goal. It might also
include countermeasures for directing the strategy's execution. During the 1960s,
strategic planning gained popularity in organizations, and it is still an essential part
of strategic management today.

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