Read the summary and the most important questions on Turnaround Management and Bankruptcy Law

• Summary

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• What is a turnaround?

  The recovery of a firm's economic performance following an existing threatening decline.

• When to start the turnaround process (name 5 phases)?

  1. Healthy company
  2. Strategic (assumption) crisis
  3. Earnings crisis
  4. Liquidity crisis
  5. Bankruptcy

• Causes of decline (two main branches and their subbranches)?

  
  Deterministic view
  - Industrial Organization (IO)
  - Organization Ecology (OE)
  Voluntaristic view
  - Groupthink theory
  - Upper echelon theory
  - Curse of success
  - Threat-rigidity theory (cognitive inertia)

• Causes of decline (name 4 Mellahi and Wilkinson)

  - Environmental factors
  - Ecological factors
  - Organizational factors
  - Psychological factors

• Causes of decline (name 5 Ooghe and Waeyaert)

  - Immediate environment
  - General environment
  - Management/entrepreneur
  - Corporate policy
  - Company's characteristics

• Why write a turnaround plan?

  - Focus
  - Compass
  - Performance measurement
  - Conviction and giving account

• Framework for achieving a successful turnaround (7 steps)

  1. Crisis stabilization
  2. Leadership
  3. Stakeholder management
  4. Strategic focus
  5. Organizational change
  6. Critical process improvements
  7. Financial restructuring

• Framework of a successful turnaround (4 key components)

  1. Take control
  2. Rebuild stakeholder support
  3. Fix the business
  4. Resolve future funding

• Implementing a turnaround plan (4 steps)

  1. Stabilizing (take control)
  2. Analyzing (write a well-founded turnaround plan and state clear objectives)
  3. Repositioning (initialize the reorganization and value recovery process)
  4. Reinforcement

• Business restructuring (4 key points)

  - Marketing (price, product, place, promotion, personal sales and customer support, internet, ICT and social media, segmentation, and targeting)
  - Management
  - Information
  - Efficiency