Turnaround Strategy & Case Study

1. Strategic Management
Turnaround Strategy & Case Study

2. Introduction
 Definition: According to Dictionary of
Marketing by P.H.Collin “Turnaround Strategy
means making the company profitable again.”
Meaning: turnaround Strategy is strategy to
convert a loss making unit into a profitable
one.
Basically to improve declining sales, market
share, profit effected due to internal and/or
external factors.

3. Significance or need
 Liquidation Problem
Shortage of cash or liquid assets may
be due to less inflow or increasing
out flow.
 Fall in market share
This is due to heavy competition,
ineffective marketing & distribution.

4.  Decline in profits
The profits decline & may also incur losses due
to rise in cost or fall in revenue.
 Under utilization of resources
Underutilization of resources needs turn around
strategy to make it optimum.
 High inventory
When the inventory starts to pile up it shows a
decline in sale.

5. Essentials
 Communication
Good communication can make the TA more
effective, it should be quick clear & complete.
 Availability of resources.
An effective TA requires cash for working capital&
fixed assets, skilled human resource to handle new
technical job.
 Leadership
A leader must be dynamic & creative person to
effectively perform the TA, must be committed &
dedicated to management.

6.  Long term approach
The approach of TA shouldn’t be only for short
term but for a long term impact.
 Review of the situation
Having a review of internal & external situation,
knowing SWOT helps in TA.
 Support from various parties
To make a TA effective support from employees,
suppliers, shareholders, dealer, government,
financial institution.

7. • Viability of business
A business without prospects cannot revive it
needs to shut down otherwise.
• Planning & control
To make TA effective, planning internal &
external environment and controlling financial &
non-financial is essential.

8. Steps
Setting up of a turn around committee
A TA committee can be formed consisting of top
level management personnel & they can appoint
a new CEO.
Identifying the causes of losses
The cause of losses may be internal or external
factors that must be identified.

9. Investigation of causes
After identification investigation is held either
customer research or dealers surveys to know
the cause.
Alternative solutions
Alternative plans like downsizing, divestments,
debt-equity swap etc. can be formed.
Analysis of alternative
There must be analysis of benefit & cost of all
alternatives.

10. Selection of best alternatives
A mix can be selected or two three best
alternatives on the bases of current situation.
Communication of turnaround strategy
For implementation of a TA communication is
must.
Organization & allocation of resources
To implement the TA required resources must be
organized.

11. Implementation
To implement the TA successfully there must be
continuous dialogue between TA team &
employees.
Review
This is monitoring of implementation, here
additional measures can be taken to overcome
TA.

12. THANK YOU

13. -BY
HARSHA PAUL
M.COM PART 1
A 43
VALIA COLLEGE