The economic conjuncture changing in parallel with the economic developments in the world and in our country has accelerated the companies’ need to expand to the international markets and their efforts to improve their organization structure and create their corporate identity. Many Turkish companies have started to establish solid relations with developed countries both for business development and trade purposes and for the purposes of using commercial and foreign credits, and these corporate relations have made it mandatory to review and assess the internal structures, compliance with the corporate management principles and the corporate identities of the companies.

 

The growth of the companies in line with the expanding trade volumes and the rapidly increasing number of medium and large scale companies has caused those companies in our country which have traditional and non-corporate structure to seek solutions to adapt themselves to the current situation.

 

The desire to have a more professional and competitive organizational structure and acquire a corporate identity as an international player has become a mandatory requirement for companies due to the globalization process. Adoption of the foregoing relies largely on restructuring of the conventional organizations and improvement of the performance of the company units.

 

In this respect, the criteria related to effectiveness of the companies and evaluation of the obtained effectiveness results and the performance measurement systems of companies have been subjected to substantial radical changes. Such concepts as EVA (Economic Value Added) have gained importance. From this point on, the management organizations should not only focus on such issues as profitability, turnover etc. but also on increasing the “shareholder value”.

Today, it is of vital importance for the companies to establish a sustainable competitive power in the global world and in our own country. The only way to make this happen is to use and improve the knowledge and technology provided us by the Global World.

 

As a result, the companies should always be in a process of continuous change to establish institutionalism and ensure sustainable growth. The motto “THE ONLY THING UNCHANGING IS THE CHANGE ITSELF” must always be kept in mind.

The Turnaround Management involves acting as a mediator in the “improvement” process required by the financially distressed companies to achieve their long-term goals and/or maintain their existence and taking active role in developing strategies for change.

The reasons underlying the distress incurred by the companies may appear in different ways regardless of the general economic situation. The Turnaround Management deals with the matter as a whole along with the underlying reasons, analyzes the problem, determines the strategy required by the company and implements the improvement plan.