Strategic distress,

Definition of Strategic distress:

1. A term used in turnaround management when a company is suffering financial distress due to various circumstances. The root causes of such distress are considered 1) Acts of God or random unforeseeable events 2) poor vision or understanding of the market place 3) poor strategy or handling of business activities or 4) a poor business model. Typically this situation occurs due to lack of expertise, financial mismanagement or heavy competition.