Turnaround strategy aims to make an unprofitable company profitable again by improving declining sales, market share, and profits affected by internal and external factors. Essentials for an effective turnaround include good communication, available resources, strong leadership, and long-term approach. Steps involve setting up a turnaround committee, identifying causes of losses, investigating alternatives, selecting the best alternatives, communicating the strategy, implementing it, and reviewing progress.

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