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This is the second of a two part case series (393-051-1 and 393-052-1). Saturnus is one of Slovenia''s most important manufacturing companies with a combined turnover in 3 ''divisions'' of approximately DM150m in 1989. It employs close to 2,000 people. Saturnus is struggling with tougher competition in each of its two main businesses - auto lights and packaging - and with a host of strategic and organisational problems rooted in the pre-reform period. The young General Manager, Mr Cuk, defines his ''strategy'' for turnaround in terms of a set of corporate and division level ''projects''. One question is whether this is the right approach; another is whether the right issues are being addressed. Mr Cuk is himself a dynamic and interesting personality. His courage, energy and persistence are evident as he struggles to work out new decision-making relationships between headquarters and ''self-management'' groups at the division level and as he tries to structure the privatisation process in a way that preserves some semblance of a Western-type corporation.