Aarti Maurya
Quick Summary
Potato seems bit dull until it gets transformed to crispy and spicy fries. This same theory applies in our management and business. When we follow same traditional business tactics in this modernized world growth of our business comes to an end. But its not always an end, sometimes it bring new b
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FAQ :
A turnaround strategy is a type of retrenchment strategy where a loss-making company transforms itself into a profit-making one by undoing decisions that negatively impact its growth.
A company might adopt a turnaround strategy when facing negative cash flows, uncompetitive products, overstaffing, mismanagement, a declining market share, or the adoption of wrong corporate strategies.
The key steps include assessing current problems, analysing the situation and developing a strategic plan, implementing an emergency action plan, restructuring the business, and finally returning to normal operations.
The first step is to assess the current problems, get to the root causes, and understand the extent of the damage. Resources should then be focused on areas essential for correcting immediate issues.
Important elements include changes in top management, revenue generation, quick cost reduction, neutralising external pressures, and internal coordination.
Yes, well-known examples of companies that have successfully implemented turnaround strategies include Apple, FedEx, Reddit, Marvel, and Starbucks.
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