Turnaround Strategy Essay

4975 words - 20 pages

IntroductionIncreasing global and domestic competition, the business environment tends to be more turbulent, more and more organizations have realized the importance of reforming its future competitive competence in order to succeed in a changing environment. In practice, no matter what companies' size are, they could easily get into trouble to survive, their performances are unexpectedly unacceptable to their shareholders, creditors etc. Of course, the reasons for a company could be innumerable,it may be the internal reasons or the external reasons, or both. "Through the SWOT analysis can provide a good overview of whether a firm's business position is fundamentally healthy or unhealthy'' (Thompson&Gamble&Stickland, 2006: 85). The strengths and weaknesses of a firm are the part of the internal environment of a firm and can be controlled by the firm. Whereas, the opportunities and threats are the part of a firm's external environment that are uncontrollable factors. Both weaknesses and threats can often pose serious risks and competitive disadvantage to the firm. Thus, the firm can easily get into turnaround situation. Once this situation occurs, managers must first be able to diagnose the symptoms of the firm. Then, managers must take a series of remedial actions to cure the firm's symptoms. Finally, managers must also evaluate whether its corrective actions are properly fitting for the situation, and ensure the firm return to growth again.The concept of turnaround"A "turnaround" can refer either to a business firm that faces financial disaster or action taken to prevent the occurrence of that financial disaster" (Sloma, 1985:11). All turnaround situations not only deal with transforming any struggling firm to a profitable one again, but also deal with those firms whose performance is seriously dissatisfied by the management. Particularly, those unacceptable performances refer to a company's financial performances."According to Sloma' statement, turnaround situation can be classified into four stages, which are cash crunch, cash shortfall, quantity of profit and quality of profit" (Sloma, 1985:20). All of these four stages share two basic characteristics. First, the stages of turnarounds are unable to exist together. This is because the extent to which the financial difficulties are quite different, the time they need to change the embarrass situation should also different. Second, all stages of the turnaround situations may stem from the managers' selfishness. Because of their position in the company and ego, they are often unwilling to recognize the problems or to take the responsibilities. Thus, they may intentionally cover the truth and delay to deal with it. Unfortunately, the bad situations do not get better by themselves, but it will make the things worse.In deed, most turnaround situations could be avoided, if managers can be able to identify those early-warning signals. This is because before the turnaround situation...

Find Another Essay On Turnaround strategy

Tata Motors Group Essay

2050 words - 8 pages ) 4. Analysis of strategies of Tata Motors through ASM tools The various marketing strategies of Tata Motors have been analyzed through the use of following tools learnt in ASM module: 4.1 Ansoff Matrix The utility of Ansoff matrix lies in helping the company to gain competitive advantage in market. Ansoff Matrix is a very useful tool for crafting product strategy by the company concerned and it helps the businesses in deciding their product

Investing strategies by age Essay

1110 words - 4 pages Investing Strategies Pre-Career (16-25) – During this investment period in my life my goal is to have safety of principal while still receiving income. This is a very low risk portfolio strategy. Income will most likely be low because I will hopefully be enrolled in a post secondary education and graduate school. During this time I will be taking very minimal risks by investing in securities such as; T-bills, Canada, government and corporate

Asbcas

2317 words - 10 pages distribution channels; government policy; etc. Benchmarking: An analysis of competitor strengths and weaknesses; used to evaluate a firm's relative competitive position, opportunities or improving, and success/failure in achieving such improvement. Best Practices: The business methods and procedures utilized by firms considered the leader in an industry. Business Model: A company's business model is management's storyline for how the strategy will be

Ryanair Business Model Success Over Competitors

2083 words - 8 pages deregulation policies that came into effect.[3] Ryanair's cost leadership strategy has allowed them to target gaps in the short haul market segment flying in and out of secondary airports. Secondary and regional airports are generally less congested than major airports and, as a result, can be expected to provide higher rates of on-time departures, faster turnaround times, fewer terminal delays and less airport access and handling costs. By targeting

Six Flags, Inc.: The 2006 Business Turnaround

1706 words - 7 pages giant and the loss of a fifth of its value at the New York Stock Exchange seemed like the last nail to its coffin. Strategy Policies: The Turnaround Dan Snyder’s roots in direct marketing have been greatly attributed to his proxy fight win with the management of Six Flags. As a result, more than 57% of Six Flags shareholders voted to remove Kieran Burke as the chief executive, James Dannhauser as financial officer and Stanley Schuman from the

Toys R Us Sold

1140 words - 5 pages investment strategy are share building, growth, share increasing, hold-and-maintain, profit, market concentration, asset reduction, harvest, turnaround, liquidation, and divestiture. Toys R Us focused on asset reduction, liquidation and harvesting which was evident in the closing of divisions and stores to reduce operating expenses. In there weak competitive position they implemented a turnaround strategy and attempted to redeploy resources and

The 1 Billion Turnaround Focuses on Six Points Tesco UK

2727 words - 11 pages extension of distribution channels and marketing approach will be another excellent option for consumer. As seen from Tesco’s Annual Report 2012, Clarke might be adopting one of Hofer (1980) – in Castrogiovanni and Bruton (2000) – turnaround strategy which is sales-oriented turnaround; for the expansion of Tesco distribution channel through online shopping. Hofer (1980) had illustrated that turnaround strategies might focus on some performance

Six Flags Entertainment Corporation

1376 words - 6 pages term debt had increased that weakened Six Flags financial position. 2005 & 2006 Strategy & Operations Six Flags had a weak competitive position in its theme and water parks resulting in poor performance, sales were down and profits were becoming losses. Six Flags shareholders through Daniel Snyder decided to step in and stop the bleeding by the turnaround strategy which is part of retrenchment strategies. The major competitor of Six Flags is the

Benchmarking

609 words - 2 pages difficult, the merger proved to be successful because of the 'people strategy' used by HP ensuring employee support.Strategic Direction. (2007). A fast turnaround at Hewlett-Packard. 23(2), 25-27. Retrieved January 8, 2009, from Emerald Group Publishing Limited.McShane, S. L., & Von Glinow, M. (2005). Organizational behavior: Emerging realities for the workplace Revolution. New York: The McGraw-Hill Companies.Craven, A. (2004). People a priority at

How to Turnaround Best Buy

3809 words - 15 pages prices while maintaining cutting costs at a corporate level. “Newly appointed CEO Hubert Joly, as of 2012, also released a formal press-conference where he was reported saying “the turnaround strategy is known as Renew Blue, and initiatives include rejuvenating the consumer experience, developing a new "multi-channel shopping experience," offering new benefits and exclusive membership programs, and working with vendor partners to innovate

MARVEL ENTERPICES

1180 words - 5 pages Marketing Strategy 8050Marvel Enterprises, Inc. Case WritingbyXiaodan DongFebruary, 2008Marvel Enterprises, Inc.(b) Why was Marvel's turnaround so successful? Would you characterize that success as a fluke? Or do you view it as sustainable? Why? How?Marvel's success is not a fluke because its business model is sustainable. Marvel's new strategy monetized the content library by licensing characters for use with media products. During an era in

Similar Essays

The Global Leadership Of Carlos Ghosn At Nissan

946 words - 4 pages organized cross-functional teams to develop a new corporate culture using the best elements of the Japanese national culture. By October 1999 Ghosn was ready to announce his strategy to turn the company around with the Nissan Revival Plan (NRP). The NRP become a highly successful cultural intersection that created the most dramatic turnaround in automotive history. It was designed to address the company’s severe short-term problems and stop the

Change At Six Flags Essay

1486 words - 6 pages entirely new board of directors and appoint Mark Shapiro, a former ESPN programmer, as CEO of Six Flags (Donnelly, 2005). Neither Shapiro nor the new board had particular experience with Six Flags or retrenchment strategies, but Snyder believed this governance group would help the company recover from their sunken performance (Ryan, 2006). Shapiro outlined a turnaround strategy to attract more families to the parks, enhance their customers

Avon's Dividend Policy Essay

1705 words - 7 pages turnaround strategy towards the beauty business.•Repurchase shares. Avon will be able to support its market price which has reached the lowest level of approximately $24 by repurchasing shares. At the same time shareholders benefit from the fact that when selling shares they pay lower taxes than when they receive dividends.•Personal taxes. Money earned from dividends is considered as personal income so it is taxed.EVALUATION OF THE

Sw Airlines Essay

720 words - 3 pages research. As written during the case, Southwest used to fly only to smaller airports that are situated in less congested cities. However, this strategy was implemented to reduce turnaround time (the ten minute turnaround), gate holds and also in-air waiting, and so customers would be more rapidly served in terms of the supply of flights, and the company would be more efficient (with less costs and more profits). But more consumers started to