Every company is unique in the face of crisis and will respond differently depending on the situation at hand. In light of China’s unique business culture, differences in recognizing corporate decline and approaching the associated processes in conducting a turnaround exist between China and the West.  Foreign firms will need to recognize these differences and tailor their actions at different stages of the turnaround process to suit.

Spotting a turnaround situation

Although corporate recovery discussions and articles often focus on the latter stages of the turnaround process such as restructuring, a vital step towards corporate recovery is first recognising and acknowledging signs of crisis and decline, and subsequently deciding to take action and make changes.