Turnaround Strategies

888 Words4 Pages
The literature review section explains various turnaround strategies and their importance to an organization during turmoil conditions. With the increasing competition and emergence of new players, it is highly essential for every company to understand different turnaround strategies that help them against odds of the company also helps in the further business growth of organization, in order to respond to the growing competition. Turnaround Strategy helps in re- establishing a direction to the company which leads to operational efficiencies and non-linear growth. This section of literature review also explains the various studies published in the different journals, books, company websites and articles from independent authors on turnaround…show more content…
While most of the external signals of business failure cannot be fully controlled by the firms on the other hand the internal events are believed to be extremely important because the management has a direct control over them. Two understandings can be differentiated: a crisis is considered either as a situation or as a process. According to Hermann (1973), a crisis may be defined as a situation that surprises the respective owners or managers, threatening both company goals and personal goals and reducing the available time to react. These three general attributes of crises, i.e. the surprising effect, the threat and the time pressure, are established as typical characteristics. Different authors define crisis & turnaround management…show more content…
In fact, they rather name external factors such as economic conditions (recessions or tough market circumstances) and competitive pressure (especially coming from foreign competitors) as the most important causes of crisis. Finally, the literature review by Pandit (2000) might serve as an orientation for future research on this topic, as it examines the causes of crisis among other topics. The author provides a literature review, criticizes existing research efforts including their research designs and concludes with recommendations for further research. With regards to the investigation of the causes of crisis, for example, Pandit (2000) states that the severity of the crisis, the attitudes of stakeholders, the firm’s outer context and firm’s historical strategy should all be taken into account in future studies. In contrast to many researchers who report internal factors as the main causes of crisis, Pearce and Robbins (1993) understand the causes of crisis to be a combination of internal and external causes (see Finkin, 1985; Heany, 1985; Schendel, Patton & Riggs, 1976). According to these authors, crises develop because of several years of slight performance decline or several months of intense performance decline. They call on future researchers to consider external and
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