Stakeholders
In turnaround situations the needs of many different stakeholders have to be considered. The sorts of questions often being asked are shown below:
| BOARD | BANK | SHAREHOLDERS |
| Will the bank continue to support us?
|
How do we ensure our position doesn't worsen? |
How do we protect our Investment?
|
|
How can someone who doesn't know our company as well as us, help us? |
Should we lend any more money?
|
How do we maximise the value of our shares? |
| What is our personal position if the company fails? |
Is there a viable business that can be saved?
|
May take a greater interest in the business?
|
| How can we afford to bring someone in when we are at our overdraft level? |
Does management need strengthening?
|
What is management doing to protect the business? |
| STAFF | SUPPLIERS | CUSTOMERS |
| Likely to know company has problems
|
Some/all may be unaware of the company's situation | May also be unaware of the company's situation |
| Will their jobs survive?
|
May wish to reduce the amount of credit given | Will want company to survive
|
| Is management displaying necessary leadership? | Will their credit insurance be withdrawn?
|
How do we ensure our own business isn't harmed? |
| Will want uncertainty minimised
|
Will be concerned at prospect of losing a customer | May seek alternative suppliers
|