How to turn around a company in decline: A case study approach

 There  is  a  growing  body  of  research  on  turnaround  management  due  to  adverse global  economic  circumstances. Research  on  turnaround  management  aims  to reduce/eliminate   business   decline.Reviewing   the   turnaround   management literature  revealed  that  it  has  not  yet  been  able  to  provide  managers  and practitioners with reliable guidance,or a step-by-step guide to assist them through the  turnaround  process. This  research  aims  to  identify  the key  stages  of  the turnaround  process  and  to  select  appropriate  turnaround  strategies  in  relation  to particular factors, e.g. causes of decline. A  phenomenological  perspective  was  adopted  in  this  study  to  investigate  the  key turnaround  management  issues  in  two  multiple  case  studies, followedbya feedback  analysis  from  interviews  with  a  panel  of  experts. The  first  case  study comprised  of  14  large and  medium sized UK  food  manufacturing  companies  and used  secondary  sources  of  evidence. The  second in  depthcase  study  involved three  companies,using  primary  evidence  through  semi-structured  interviews.Interviews   with   turnaround   and   insolvency   practitioners   were   conducted,to investigate  the  key  issues  of  the  revised  model  of  successful  turnarounds  in  the light of their daily practices and models.A   general   model   and   step-by-step   guide   on   how   to   manage   a   successful turnaround was developed. The modelidentifies four key stages (i.e. first, decline; second,  analysis  of  decline;  third,  formulation,  implementation  and  stabilisation  of the  turnaround  planandfourth,  recovery  and  return  to  growth).   Once  decline  is recognised,a  leadership  decision  is  made  to  initiate  the  turnaround  process, identify  major  obstacles/problems  and  select  the  best  actions  to  stop  decline  and return  to full  recovery.The  turnaround  model  can  assist  turnaround  managers  in evaluating   the   viability   of   a   company.   It   also   helps analyse  a  company’s weaknesses and develop strategies: in the short-term to stopdecline and stabilise the situation; in the longer-term,to identify a company’s strengths and enhance its competitive advantage to achieve recovery and return to growth