Business adaptive strategies in crisis
: the case of a wood processing company

Hubertus Joachim Thomas Handschumacher (Student)

Student thesis: Master's Thesis

Abstract

This thesis is presented as a case study and follows the framework of a German corporate law standard, IDWS6, which applies to the restructuring of firms in financial distress. The subject of the study is a wood processing company that produces three main product categories: sawn timber cuts, customized cuts, and pellets. With high-quality products, advanced equipment, and effective management, the company had maintained a stable market position and high customer satisfaction for many years. However, this case study examines how an expansion investment exposed the business to the risks of highly volatile selling prices. As profit margins plummeted to unsustainable levels and liquidity became insufficient, the company faced a threat of bankruptcy. In response to the crisis, creditors commissioned the preparation of an IDWS6. This thesis presents the strategic components of the IDWS6, structured and conducted in alignment with the methodologies employed by the consultancy firm tasked with drafting the report. The case study highlights the critical importance of frameworks like the IDWS6. Through this approach, auditors were able to identify the root causes of the crisis, conduct comprehensive internal and external analyses, and develop a forward-looking business model. Ultimately, the goal of this thesis is to provide students with a practical example of an IDWS6 in action. Additionally, it aims to help students enhance their skills and knowledge needed to work on such report like the IDWS6.