Planning believes that the causes of the decline of businesses are linked to a set of internal and external causes.

Internal Causes

  • Inadequate financial control
  • Poor working capital management
  • High costs
  • Large projects with inadequate planning
  • Inadequate financial policy
  • Organizational inertia

External Causes

  • Changes in market demand
  • Competition
  • Adverse movements in commodity prices
.

To deal with the causes of decline, it is necessary that the company run through the turnaround. The successful turnaround requires action in the following areas:

Financial

  • Stabilize the cash flow
  • Strengthen the company’s balance sheet

Strategy

  • Develop strategy
  • Communicate strategy

Staff

  • Recovering company’s culture
  • Clarify the factors of success