Navigating the Abyss: A Strategic Turnaround Journey for XYZ Corporation in the

South African Business Landscape

Introduction

XYZ Corporation, a once$-$thriving company in South Africa, now finds itself on the precipice

of business failure. Over the past few years, the company has weathered a storm of

challenges, including a steady decline in sales, escalating operational costs, and a

tarnished brand image. The shifting dynamics of the market have further exacerbated these

issues, pushing XYZ Corporation to the brink of survival.

Background

XYZ Corporation, a stalwart in the South African business scene, had enjoyed years of

success until a series of setbacks began to unravel its foundations. The once$-$booming

sales figures dwindled, plagued by changing consumer preferences, increased

competition, and a general economic downturn. Simultaneously, operational costs soared,

creating a financial strain that further crippled the company's profitability. The brand image,

once synonymous with quality and reliability, suffered due to a failure to adapt to the

evolving industry landscape.

$7$

Challenges

Sales Decline: XYZ Corporation witnessed a consistent decline in sales, attributed to a

combination of shifting consumer preferences and intensified competition within the

industry.

Escalating Operational Costs: The company faced a significant increase in operational

costs, leading to financial instability and an inability to compete effectively in the market.

Tarnished Brand Image: The once$-$pristine brand image of XYZ Corporation suffered due

to a failure to adapt to changing consumer expectations and market trends.

Failure to Adapt to Market Dynamics: The company struggled to navigate the evolving

industry landscape, resulting in an outdated business model that no longer resonated with

the target market.

Source: Examiner$$s own compilation

Question $10\mathrm{.}1[4$ Marks$]$

Detailing the forces driving XYZ Corporation toward business failure involves elucidating two

internal and two external factors contributing to its precarious situation. Explain these four

factors $($internal and external$).$