Turnaround strategies for businesses in crisis are as given below:

1. Turnaround strategies are needed when a business worth rescuing goes into crisis; the objective is to arrest and reverse the sources of competitive and financial weakness as quickly as possible.
2. Management’s first task in formulating a suitable turnaround strategy is to diagnose what lies at the root of poor performance. The next task is to decide whether the business can be saved or whether the situation is hopeless.
3. Some of the most common causes of business trouble are: (1) taking on too much debt, (2) overestimating the potential for sales growth, (3) ignoring the profit-depressing effects of an overly aggressive effort to buy market share with deep cost cuts, (4) being burdened with heavy fixed costs, (5) betting on R&D efforts but failing to come up with effective innovations, (6) betting on technological long-shots, (7) being too optimistic about the ability to penetrate new markets, (8) making frequent changes in strategy, and (9) being overpowered by more successful rivals.   
4. Transparent Technologies’ Turnaround Strategy: Slow to Produce Results, shows the story of the turnaround at the Lucent Technologies.
5. A landmark study of the 64 companies found no winning turnarounds among the most troubled companies in the eight basic industries.
6. A current study found that troubled companies that did nothing and chosen to wait out hard times had only a 10 % chance of recovery. Modifications to the turnaround strategy enhanced this percentage.