Turn around strategy, GE 9 cell planning and BCG matrics

1. Submitted to: dr. Vijaykumar Dannur
Presented by: pradeep Belagali
USN: 2VX18MBA55

2. Turnaround
Strategy
Meaning
The Turnaround Strategy is a retrenchment
strategy followed by an organization when it
feels that the decision made earlier is wrong and
needs to be undone before it damages the
profitability of the company
Turnaround strategy is backing out or retreating
from the decision wrongly made earlier and
transforming from a loss making company to a
profit making company.

3. Turnaround
Strategy
When?
• Continuous losses
• Poor management
• Wrong corporate strategies
• Persistent negative cash flows
• High employee attrition rate
• Declining market share
• Uncompetitive products and services

4. Turnaround
Strategy
When?
Also, the need for a turnaround strategy
arises because of the changes in the
external environment Viz, change in the
government policies, saturated demand for
the product, a threat from the substitute
products, changes in the tastes and
preferences of the customers, etc.

5. Turnaround
Strategy
Example
Dell is the best example of a turnaround
strategy. In 2006. Dell announced the cost-
cutting measures and to do so; it started selling
its products directly, but unfortunately, it
suffered huge losses. Then in 2007, Dell
withdrew its direct selling strategy and started
selling its computers through the retail outlets
and today it is the second largest computer
retailer in the world.

7. BCG matrix
Meaning
The Boston Consulting Group developed a matrix for
assessing the product lines of a company, called the BCG
Matrix.
BCG matrix (also referred to as Growth-Share Matrix) is a
portfolio planning model which is based on the observation
that a company’s business units can be classified into four
categories:
• Cash Cows
• Stars
• Question Marks
• Dogs
It is based on the combination of market growth and market
share relative to the next best competitor.

8. BCG matrix

9. BCG matrix Stars
High Growth, High Market Share
Star units are leaders in the category. Products located in this quadrant
are attractive as they are located in a robust category and these
products are highly competitive in the category.
Question Marks
High Growth, Low Market Share
Like the name suggests, the future potential of these products is
doubtful. Since the growth rate is high here, with the right strategies
and investments, they can become Cash cows and ultimately Stars. But
they have low market share so wrong investments can downgrade
them to Dogs even after lots of investment.

10. BCG matrix
Cash Cows
Low Growth, High Market Share
These products or services generate interesting profits and cash but
need to be replaced because the future growth will be lower. If they
are profitable, they can finance other activities in progress (including
stars and question marks).
Dogs
Low Growth, Low Market Share
Dogs hold low market share compared to competitors. Neither do
they generate cash nor do they require huge cash. In general, they
are not worth investing in because they generate low or negative
cash returns and may require large sums of money to support. Due
to low market share, these products face cost disadvantages.

11. GE nine cell
model
Meaning
GE-McKinsey nine-box matrix A systematic approach for
the multi business corporation to prioritize investments
among its business units
The nine-box matrix offers a systematic approach for the
decentralized corporation to determine where best to
invest its cash.
the company can judge a unit by two factors that will
determine whether it's going to do well in the future: the
attractiveness of the relevant industry and the unit’s
competitive strength within that industry.

12. GE nine cell
model
Meaning