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Turnaround Strategies

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Turnaround Strategies

  1. 1. Turnaround Strategies Time is Right !! Anand Subramaniam
  2. 2. <ul><li>“Don't judge each day by the harvest you reap, but by the seeds you plant.” </li></ul><ul><ul><li>- Robert Louis Stevenson </li></ul></ul>
  3. 3. Highlights <ul><li>SWOT / TOWS Analysis </li></ul><ul><li>Information / Data Sources </li></ul><ul><li>Types of Turnaround Strategies </li></ul><ul><li>Road Map </li></ul>
  4. 4. SWOT / TOWS Analysis
  5. 5. SWOT Profile Aggressive Strategy Reconfigure Strategy Turnaround Strategy Diversify Strategy S W T O
  6. 6. Why Turnaround Strategy? <ul><li>Declining in Market Share </li></ul><ul><li>Falling Gross and Net Margins </li></ul><ul><li>Increasing Cost and / or Loss </li></ul><ul><li>Falling Revenue and / or Profits </li></ul><ul><li>Declining Performance Measures </li></ul><ul><li>Changing Structure (Industry, Competition) </li></ul><ul><li>Falling ROCE (Return on Capital Employed) </li></ul><ul><li>etc </li></ul>
  7. 7. Information / Data Sources
  8. 8. Sources <ul><li>Internal Sources </li></ul><ul><li>Defects in Management </li></ul><ul><li>Neglect of key tasks </li></ul><ul><li>Failure to change </li></ul><ul><li>Over expansion </li></ul><ul><li>Poor integration </li></ul><ul><li>Lack of resources </li></ul><ul><li>External Sources </li></ul><ul><li>Competitive forces </li></ul><ul><li>Economic Change </li></ul><ul><li>Political Change </li></ul><ul><li>Changes in Demand </li></ul><ul><li>Lifestyle Changes </li></ul><ul><li>Changes in Technology </li></ul><ul><li>Consumer Confidence </li></ul><ul><li>New Products </li></ul>
  9. 9. Types of Turnaround Strategies
  10. 10. Types of Turnaround Strategies Operational The focus is on finding ways to improve the operation of the business and designed to halt the decline. Strategic The focus is on adjusting the strategic focus of the business in terms of its Product/Market profile and halt the decline.
  11. 11. Examples <ul><li>Cost Reduction Strategies </li></ul><ul><li>Asset Reduction Strategies </li></ul><ul><li>Revenue Increasing Strategies </li></ul><ul><li>Financial Restructuring Strategies </li></ul><ul><li>Product/Market Redefinition Strategies </li></ul><ul><li>Management & Cultural Change Strategies </li></ul>
  12. 12. Turnaround Stages <ul><li>Inaction by management </li></ul><ul><li>Crisis or moment of truth </li></ul><ul><li>Fire fighting by senior management </li></ul><ul><li>Refocusing - the strategic direction of the business </li></ul><ul><li>Sustainable recovery - recapturing of competitive advantage </li></ul>
  13. 13. Road Map
  14. 14. Sequence of Events Preparatory Stage Short Term Fix Growth Stage Restructure / New Leadership Team Organisational Culture Financial Restructuring Cost Reduction Asset Redeployment Value Chain rebuilt Selective Product / Market Strategy Repositioning Strategy Revenue / Profit Increasing Strategy New Marketing / Channel Strategies
  15. 15. <ul><li>“ The human heart feels things the eyes cannot see, and knows what the mind cannot understand.&quot; </li></ul><ul><ul><li>- Robert Vallett </li></ul></ul>
  16. 16. <ul><li>Good Luck </li></ul><ul><li>http://www.linkedin.com/in/anandsubramaniam </li></ul>

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