Week 2 literatuur

Question 1

Turnaround strategies have substantia differentiation depending on three important factors

Answer 1

1. External market conditions
2. The criticaliy form the company situation with regard to cash flow and how far it is away from break even point
3. The resources available, internally with regard to the balance sheet and externally with regard to the support of stakeholders

Question 2

Preconditions for high prop successful turnaround

Answer 2

• A viable core business to shrink back to
• A transformational management team to affect rapid change in company strategy
• Availability of a financial bridge to get the company a sustainable positive cash flow
• a change of the company’s culture into the winning culture

Question 3

Most turnarounds go trough these stages:

Answer 3

1. Management stage (new leaders or change in approach)
   Must the CEO be changed?
   Should the new CEO be an insider or an outsider?
   What personal characterisitcs seem to best decribe a good turnaround leader?
2. Evaluation or viability assessment
   These are the four questions to tell if turnaround [;am os succesfull
   Simple and realistic
3. Emergency action
4. Stabilization and redeployment
   5 Rejuvenation and growth