THE REACTION OF INDUSTRIAL COMPANIES TO CRISIS: CHANGES IN BUSINESS-MODEL AND STRATEGIC SUSTAINABILITY

Abstract

Nowadays the changes in the geopolitical situation significantly affect the conditions for doing business in Russia. The article reviews the peculiarities of the development of Russian industrial companies and the subsidiaries of foreign companies, operating in Russia, in difficult economic conditions. The contemporary consequences of global financial crisis of 2008 with respect to the industrial sector of the economy are also reviewed. The author performed an empirical study of the question of whether the companies' sustainable survival in 2014–2016 was affected by the change in the business model and whether these changes were caused by the experience of the previous crisis. The study considered the differences in the behavior of foreign and Russian companies, and the strategies, that reduce the risk of default, are defined.

Keywords

• development of industrial companies
• complex economic conditions
• sanctions
• crisis
• strategic sustainability