Reengineering

Abstract

In Bohemia most companies were founded in the 90s when the aggregated demand was strong, which enabled easy development. A large number of subjects showed many needs and the businesses did not feel the stagnation. This enabled stable growth and profit in a competitive environment. However, the wave of aggregate demand gradually exhausted itself and stabilized at the natural rate. It led to the fact that enterprises have ceased to have such a big volume of orders and requests. As the result there was either a reduction of activities, of employees, or a reorganization or closure. These factors were accompanied by the first recession around 1998, which in some areas caused bankrupts of many companies. Similarly, various influences unfolded after 2000, particularly through the financial crisis in 2008. This shows that many companies have been successful mainly due to the use of strong demand at the time, when the Czech Republic had been transformed, and this strategy was successful until the demand weakened, competition increased and recessions took place. The bankrupts or survival with an uncertain future are an unfortunate consequence of this situation. In such a situation it is necessary to focus on certain managerial leadership that will transform the form and continue functioning in co-ordinance with the newly created market conditions. This is the right situation for reengineering. Reengineering