The second period is known as the period of crisis. At this point it is obvious that they company needs to turnaround. The third period is known as the period of recovery. This is known as a point where the company can either choose to scale back their production or return to a growth stage. At this point it is clear to the Company as to what strategy is best.
Survival is virtually impossible if nobody is willing to change.
Yet too much change can be just as degenerating. This is because the change could get confusing and not follow the desired new strategic plan. The first action taken in a turnaround strategy is to hire a turnaround artist. Due to the large number of firms, there are rarely enough skilled turnaround managers. This makes it difficult for the smaller firms to recover.