• insufficient cash
• poor management
• poor financial control
• competition
• high cost structure
• changes in market demand
• adverse movements in commodity prices
• lack of marketing effort
• big projects
• acquisitions
• financial policy
• over-trading

According to circumstances, different strategies will be appropriate in different situations, depending upon:

• The causes of the crisis
• The severity of the crisis
• Attitudes of stakeholders
• The historical legacy
• The industry characteristics
• The firm's cost-price structure

The ten generic turnaround strategies are:

• Change of management
• Strong central financial control
• Organisational change
• Product/market orientation
• Improved marketing
• Growth via acquisition
• Asset reduction
• Cost reduction
• Investment (where firm has been acquired)
• Debt restructuring

Circumstances suggests seven steps which are needed in turnaround situations with the complication of enormous time pressures under which decisions have to be taken and implemented if the firm is to survive:

• Gain management control
• Establish credibility with stakeholders
• Assess/replace existing management
• Evaluate the business
• Action planning
• Organisational change
• Motivate employees

Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.