TRANSACTION PAPER

Strategic factors and a model of enterprise restructuring in the coal industry in Europe with emphasis on experiences in a Slovenia-Velenje coal mine case

E. Dervarič^I; M. Medved^II; V. Malenković^III

^IUniversity of Ljubljana, Faculty of Natural Sciences and Engineering , Slovenia
^IIPremogovnik, Velenje, d.d., Velenje, Slovenia
^IIIHTZ, IP., d.o.o., Velenje, Slovenia

SYNOPSIS

The main purpose of this paper is to introduce the main strategic restructuring aspects of companies that are directly (coalmines) or indirectly (companies that depend on coalmines) linked to coalmining. An attempt is also made to determine the principal factors required for the successful execution of a restructuring process in companies focused on the basic activities of coalmining, such as companies that provide supporting activities.
The restructuring process exerts an influence on the whole area that relies on coalmining. So coordination of activities among the government, the local community, and the coalmine is very important. This is the major premise of this paper.
The first section of the paper focuses on identifying and analysing the key factors in restructuring and a selection of key methods, drawing on past and present practice. The key factors to be considered in a model of enterprise restructuring in the coalmining sector are considered.
The second section is dedicated to the actual design of the model of enterprise restructuring in the coal industry. The proposed model is based on positive experiences in the restructuring of coalmining companies in Europe, with an emphasis on Slovenia, successful approaches to crisis management in corporations, and identifying key areas in bringing about a strategic turnarounds in company operation.
To support the argument for the key business areas, a brief summary of empiric findings has been included to demonstrate the applicability of the proposed model and the restructuring process. The summary is based on the survey done in both Slovenian coalmining companies (especially in Velenje Coal Mine) and their subsidiaries. The conclusion integrates key findings and outlines issues for further consideration and discussion.

Keywords: restructuring, coalmining, Velenje Coal Mine, strategic factors, restructuring model

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