Elements of Feasibility of recovery:

Slatter (1984); Four types of recovery

  1. Realistically non-recoverable
  2. Initially successful retrenchment but not sustained turnaround
  3. Sustaines survival
  4. Sustained recovery


In a crisis stage change is essential but might not be feasible due to industry competitive situation or alike.


Weitzel & Johnson (1989); Decline in organisations, related to the Four types of recovery 1-4.
The later a recovery from downward trend, the more difficult

Slatter, 1984 – little chance of survival: – non competitive in cost (high cost country), lack of diversity or resources, decline in demand

Slatter, 1984 – main features of sustained recovery:

  1. assets reduction
  2. new strategic leader, restructure organisation, new strategies, new roles and policies
  3. better financial control systems

Retrenchment strategies: Organisational change (leadership), Financial change (cost and CF control), Cost reduction, Asset reduction, Revenue generation.

Turnaround strategies: Changing price, Refocusing (markets/products), Product development, Rationalizing product line, Selling and advertizing


To determine recovery challenge

Source of Feasibility of recovery:

Slatter and Lovett (1999)