Operating turnaround strategies during crisis periods: a research on manufacturing firms

Crisis management: Planning for the inevitable

“…Based on the results of our survey, cost reduction is one of the most important factors influencing preparation of crisis management followed by revenue increase and change in strategy. The results of our survey are consistent with findings of Mitroff (2005), Tikici et al (2011), Ucaktürk et al (2011) and Frandsen and Johansen (2011). Crisis is not always a threats and we may turn it into positive consequences.…”

“…As an alternative strategy to the times of crisis, operating turnaround strategies are targeted to include a company's chances of ending the threat and reaching sustainable performance recovery. Tikici et al (2011) determined whether or not operating turnaround strategies were applied by manufacturing companies operating in Malatya to cope with recent global crisis. According to Valackiene (2011), to manage the crisis within business environment, it is necessary to consider the process of crisis planning, as well as strategy management within a particular firm.…”

Theoretical Review of Turnaround Strategy and Its Organizational Outcomes

“…Asset retrenchment strategies involve net reductions in long-and short-term assets so that the firm has only adequate assets to operate with. Revenue generating strategies are undertaken by the firm through focusing on its existing lines of products, initiating price cuts and increasing marketing expenditures in order to stimulate demand (Hofer, 1980;Tikici et al, 2011).…”

“…This understanding of the construct of turnaround strategy is explained by the various aspects that include diverse conceptualizations, definitions, components and perspectives that support the extraction of relevant indicators. From the literature, turnaround strategy can be operationalized through five major indicators: cost reduction strategy, revenue generation strategy, asset retrenchment strategy, repositioning strategy and reorganization strategy (Hofer, 1980;Sudarsanam & Lai, 2001;Boyne, 2004;Tikici et al, 2011).…”

“…Turnaround research recognizes a number of dilemmas that surround the adoption and application of turnaround strategies including the firm's capability to adapt to the environment, management skills for the crisis, the structure of the organization, resource dependency, alternative strategies, and the external and internal impacts of the crisis that are considered very critical for reversing the poor performance. The failure to adjust to these environmental factors have the effect of deteriorating the firm's performance (Tikici, Omay, Derinc, Seckin, & Cureoglu, 2011) Turnaround strategies require firms to undergo increased market analysis so as to undertake risky actions in order to effect an organizational recovery (Whitney, 1987;Morrow, JR., Sirmon, Hitt, & Holcomb, 2007). The understanding of the company strategy in the phase of crisis therefore requires the business managers to understand causes of decline, turnaround strategy and the required responses to the decline since turnaround strategies must depend upon the source of decline and the need to acknowledge both the internal and external problems of the firm (Pearce II & Robbins, 1993;Kazozcu, 2011;Santana, Valle, & Galan, 2018).…”