Wolves boss Nuno Espirito Santo accepts his side are underperforming and must improve quickly after they lost their opening Europa League Group K game at home to Sporting Braga.
Ricardo Horta’s second-half strike gave the Portuguese visitors a 1-0 victory.
It was a third defeat in a row for Wolves, who are winless in the Premier League this season and sit second-bottom of the table.
“We realise the situation that we are in,” said Nuno.
“This is important. We face the reality and the reality says we not performing well so we have to analyse it and find solutions in the team to improve.
“We must react immediately. We have to take decisions and find solutions for the team because we have to come out of this situation and improve our performance so we can bounce back.”
Wolves were playing in the main stage of a major European competition for the first time since 1980 on Thursday and, after a nervous start, they grew into the game.
Patrick Cutrone and Leander Dendoncker both had good chances either side of half-time for the hosts but ultimately a defensive mistake by Ryan Bennett – hitting a pass straight at Wenderson Galeno – proved costly as the Braga forward set up Horta to grab the winner.
“We are all disappointed,” added Nuno.
“We didn’t allow many chances and they had one chance and scored. That’s the history of the game. The boys worked hard but this is football.”