Sharpbender

Type of Turnaround Strategy

Companies experiencing recovery exhibit four types of Sharpbender

• 1. Early Recovery - Firm anticipates decline and never reaches minimum level of performance (MLP)
• 2. Intermediate - Takes action to recover to MLP but only tackles symptoms and not causes and declines again M&S 2000's
• 3. Firm C reacts late and is on brink of disaster - takes drastic action and sustained recovery is achieved - IBM / Apple
• 4. Firm D - never perceives threat of extinction and fails. BCCI

Reasons for decline include

• 1. Poor management
• 2. Inadequate financial controls- WorldCom
• 3. New Competition - IBM
• 4. Structural changes in the market - Blockbuster
• 5. Over expanasion - Marconi

• See Also Turnaround Strategies
• See Also Five Generic Strategies of Recovery