Employees do not trust the company's intentions and motives. Product mix is composed of low growth brands. Equipment reliability is poor. Packaging materials quality is poor. Employees do not discern any stake or personal commitment to the company.
People are competent and have a lot of untapped potential.
They are misled and weakened by an autocratic leadership style. The selection of a turnaround strategy should depend on the situation, and the business's closeness to breakeven in particular. This approach is sought in order to replace the Chief Executive of an ailing corporation by a new Chief. The product mix is revamped, obsolete machinery is replaced, research and development is stepped up, marketing is strengthened, controls are toughened, accountability for performance is highlighted, and so on. This involves negotiated and humane layoffs and divestiture.