Recurrent themes behind inadequate operating performance...
Unclear Business Definition - Lack of focus- Too many business units, plants or divisions
- Inappropriate customer mix
- Excessive product/service offerings
- Management inaction
- No strategic outlook
- Many "sacred cows"
- Balance sheet cluttered with heavy debt, covenant violations, old inventory, bad receivables
- Price discounting and/or declining margins
- Cash flow very tight, excess overhead
- Financial reporting not timely, key indicators not tracked
- Unwieldy, outdated bills of material
- Inconsistent/weak business processes
- Seasonality - you have it or you don't
- High exit/low entry barriers of competitors
- Low cost foreign competition
- Technological changes that require substantial investments in physical plant or processes
- Overcapacity in the plant and/or industry
- Powerful customers
- Powerful suppliers
- Government regulations
