Turnarounds

Question 1

2 steps to consider in turnarounds

Answer 1

1. Analyse the company and industry

2. Possible actions

Question 2

Analyse the company and industry (4)

Answer 2

1. Why is it failing? Bad products, management or economy?
2. Are our competitors facing the same problem?
3. Do we have access to capital?
4. Is the company publicly traded or privately held?

Question 3

Possible actions (8)

Answer 3

1. Learn as much possible about the company and its operations
2. Analyse services, products and finances
3. Secure sufficient financing so your plan has a change
4. Review the talent and temperament of all employees
5. Determine short-term and long-term goals
6. Devise a business plan
7. Visit clients, suppliers and distributors - assure them
8. Prioritise goals and get some small successes under your belt ASAP to build confidence