strategy
Assignment Of Strategic Management
Submitted To: Gaurav Sir
Submitted By:
Date: 24th Feb’2014
Topic: Case study of 10 companies who used turnaround strategy to improve
Definition Of Turnaround Strategy
The overall goal of turnaround strategy is to return an underperforming or distressed company to normal in terms of acceptable levels of profitability, solvency, liquidity and cash flow.
Turnaround strategy is described in terms of how the turnaround strategy components of managing, stabilising, funding and fixing an underperforming or distressed company are applied over the natural stages of a turnaround.
To achieve its objectives, turnaround strategy must reverse causes of distress, resolve the financial crisis, achieve a rapid improvement in financial performance, regain stakeholder support, and overcome internal constraints and unfavourable industry characteristics.
1. Anu Aga Director and Former Chairperson, Thermax
The biggest challenge for Anu Aga, director and former chairperson of Theramax was to change the preset attitude towards the company’s “satisfactory underperformance".
The kick off for Anu was an anonymous letter from one of the shareholders who blamed the company for its inactiveness about the situation.
Anu completely restructured the strategy of the company and divested the company into six core businesses in energy and environment sectors.
“By downsizing and improving our operational efficiency, we were able to bring down our employee cost from 16 per cent of turnover to less than 7.5 per cent, on a larger sales base. We also brought in a performance culture”, said Anu.
2. Bhavarlal H. Jain Founder of Jain Irrigation Systems
The initial judgments made by the company board had put Jain Irrigation Systems into deep financial trouble around late 90s. Bhavarlal H. Jain however shoved off all the market allegations and restarted and ventured into non-core
Submitted To: Gaurav Sir
Submitted By:
Date: 24th Feb’2014
Topic: Case study of 10 companies who used turnaround strategy to improve
Definition Of Turnaround Strategy
The overall goal of turnaround strategy is to return an underperforming or distressed company to normal in terms of acceptable levels of profitability, solvency, liquidity and cash flow.
Turnaround strategy is described in terms of how the turnaround strategy components of managing, stabilising, funding and fixing an underperforming or distressed company are applied over the natural stages of a turnaround.
To achieve its objectives, turnaround strategy must reverse causes of distress, resolve the financial crisis, achieve a rapid improvement in financial performance, regain stakeholder support, and overcome internal constraints and unfavourable industry characteristics.
1. Anu Aga Director and Former Chairperson, Thermax
The biggest challenge for Anu Aga, director and former chairperson of Theramax was to change the preset attitude towards the company’s “satisfactory underperformance".
The kick off for Anu was an anonymous letter from one of the shareholders who blamed the company for its inactiveness about the situation.
Anu completely restructured the strategy of the company and divested the company into six core businesses in energy and environment sectors.
“By downsizing and improving our operational efficiency, we were able to bring down our employee cost from 16 per cent of turnover to less than 7.5 per cent, on a larger sales base. We also brought in a performance culture”, said Anu.
2. Bhavarlal H. Jain Founder of Jain Irrigation Systems
The initial judgments made by the company board had put Jain Irrigation Systems into deep financial trouble around late 90s. Bhavarlal H. Jain however shoved off all the market allegations and restarted and ventured into non-core