BUSINESS RESTRUCTURING AS A STRATEGY FOR ENTERPRISE ADAPTATION TO CHANGES IN WAR CONDITIONS
Authors:   Ternopil Ivan Puluj National Technical University, Ternopil, Ukraine, Zavidna Liudmyla , Mykolaichuk Iryna ,   State University оf Trade and Economics, Kyiv, Ukraine, Namliiev Yevhen ,   Higher School of Social and Economic, Przeworsk, Poland
Published: June 2024

The full-scale war in Ukraine had a significant impact on the business environment. Modern enterprises operate under high uncertainty, significant variability, and unpredictability of the surrounding factors. Within the financial and economic crises, inflationary processes and problems with payment discipline further complicate their economic situation. According to FinStream research, the war dealt a devastating blow to Ukrainian businesses, which operated in survival mode in 2022; the losses of SMEs amounted to more than 83 billion US dollars. In 2023, on average, about 17,000 business companies closed down within a month. It is evident that it is necessary to adapt or create entirely new business management standards in such conditions. Among the methods used to optimize business processes, restructuring occupies a special place today. This process is complex and multifaceted, and it is triggered by changes in the enterprise's external and internal environments. Objective. It is about the theoretical generalization of scientific approaches to the content and role of restructuring as a strategy for changes in the activities of modern enterprises and the development of methodological recommendations for implementing enterprise restructuring processes in martial law conditions in Ukraine. Methods. The most important goals of enterprise restructuring can be the following: improving the balance sheet of the enterprise by removing unprofitable divisions from the main activity; staff reduction by closing or selling an unprofitable part; introducing changes in corporate governance (share capital, forms, and structure of ownership, etc.); disposal of unused assets - brands to patent rights; transfer of operations; reorganization of marketing, sales, and distribution functions; renegotiation of labor contracts to reduce overhead costs; debt refinancing to minimize interest payments; conducting public relations campaigns, in general, to change its position and reputation among consumers. Results. Aspects of the restructuring of domestic enterprises are proposed, which may vary depending on specific conditions and goals of restructuring, as well as on the field of research and specific interests of researchers. Considering the current trends related to the economic, political, and socio-cultural situation in Ukraine, it is proposed to generalize the trends towards restructuring enterprises, which reflect the attempts of domestic enterprises to adapt to the modern business environment and ensure stability and prosperous development under challenging conditions. External global factors of change and intra-organizational irritants, which cause the need to develop a strategy for restructuring enterprises in Ukraine, are determined. Scientific novelty. A step-by-step implementation of the enterprise restructuring process is proposed based on diagnosing competitive potential and ensuring the enterprise's competitiveness as a whole. Practical significance. For the successful implementation of structural changes, a part of which will be the actual restructuring process, the "Business Transformation Model" is proposed for use. Keywords: restructuring, enterprise, business, business restructuring, enterprise restructuring, changes, corporate restructuring, enterprise adaptation to changes, restructuring strategy.