What is the purpose of a turnaround strategy?

A turnaround strategy is specifically designed to address a company's decline in performance and financial instability. The primary objective of this strategy is to reverse negative trends, stabilize the business, and ultimately restore profitability. This entails various actions such as cost-cutting measures, operational improvements, restructuring debts, and re-evaluating the company's market positioning.

In contrast, options that suggest expanding product lines, increasing competitive pricing, or diversifying into unrelated markets do not align with the immediate focus of a turnaround strategy. These approaches, while potentially beneficial in other contexts, do not specifically aim to address the urgent need for recovery from a decline. Instead, they are more aligned with growth or expansion strategies rather than rehabilitation. Therefore, focusing on returning to profitability is at the heart of a turnaround strategy, making it the correct answer.