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Corporate Turnaround - Coggle Diagram

- - - - Take control and manage the immediate crisis; Crisis stabilisation and Leadership
      - Rebuild stakeholder support; Stakeholder Management
      - Fix the business; Strategic Focus, Organisational Change and Critical Process Improvements
      - Resolve future funding; Financial Restructuring
- - - - Internal: High Costs -> A firm that has a substantially higher cost structure than that of its major competitors is likely to be at a competitive disadvantage at all times. There are six major sources:
        
        unfavourable government policies.
        
        operating inefficiencies due to lack of investment and poor management
        
        cost disadvantages due to management style and organization structure
        
        cost disadvantages due to diversification
        
        absolute cost disadvantages which result from competitors controlling strategic variables not available to the firm itself
        
        relative cost disadvantages due to the firm's inability to take advantage of economies of scale and its lack of experience compared with competitors
    - - Internal: Big Projects -> Big projects that go wrong have large impacts on a firms sustainability. There are five ways they typically go wrong:
        
        Underestimating capital requirements
        
        Start-up difficulties
        
        Poor timing of capacity expansion
        
        High market-entry costs
        
        Poor cost-estimating and pricing decisions on major contracts