Akademik Məlumat İdarəetmə Sistemi
37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.1092-1097, (Full Text)
According to statistics, Azerbaijan's exports were valued at US $15,5 billion in 2017. This puts Azerbaijan at 76th spot among 224 countries in the world. Oil contributes 90% of all exports. Thus, oil prices in the global market have a significant effect on the economy of Azerbaijan. After gaining independence and the realization of "the Contract of the Century", signed in 1994, a new stage in the development of the country began. This lead to the establishment of global companies in Azerbaijan. They not only invested in the economy but also brought their innovative corporate management culture. A cadre of modern managers began to form. Starting from 1995, with the cash flow generated by the oil industry, economic revival has been observed in the country. Not surprisingly, a large portion of Azerbaijani population is employed by the companies started after 1995. During the time period between 2003 and 2015 there had always been an increase in oil prices, with an exception of a short decline period in 2008-2009. In 2003-2015, during the period of high oil prices in the global markets, there was a boom in the construction industry; and large-scale state level projects were implemented in Azerbaijan. The buying power of the population was quite high. For this reason, the local businesses, making an ever-increasing profit, did not see any issues with their management system. The drastic fall in oil prices in 2015, resulted in The Central Bank of Azerbaijan switching to the floating exchange rate regime. Because of a steep devaluation, US dollar saw a rise from 0.78 to 1.70 manats. This resulted in a change in the population's income, which, in its turn, caused a change in the purchasing behavior of the customers. Consequently, the businesses suffered a significant loss of income. The crisis has revealed some critical issues in the management of the local businesses. The following problems have been identified: Incorrect operation of a company's management system. Poor management of storage for finished goods and raw materials. Failure of a timely renewal of a product portfolio. Lack of price strategies. Business owners have started the implementation of reforms in the management shortly after the crisis. These include the following: Recruitment of professional managers. Recruitment of consultants to make changes in the management structures. Studying the experience of the world's leading companies. A close collaboration with universities.