The purpose of this paper is to demonstrate key strategic decisions involved in turning around a large multinational operating in a dynamic market.
The paper is based on analysis of archival documents and a semi‐structured interview with the chairman of the company credited with its rescue.
Turnaround is complex and involves both planned and emergent strategies. The progress is non‐linear requiring adjustment and change in direction of travel. Top management credibility and vision is critical to success. Rescue is only possible if the company has a strong cash generative business among its businesses. The speed of decision making, decisiveness and the ability to implement strategy are among the key ingredients of success.
Turnaround is an under‐researched area in strategy. This paper contributes to a better understanding in this important area and bridges the gap between theory and practice. It provides a practical view and demonstrates how a leading executive with significant expertise and successful turnaround track record deals with inherent dilemmas of turnaround.
