The two broad turnaround strategies that may be followed by Public and Private companies are Strategic and Operating. Strategic turnarounds can be branched into activities that comprises of a change in business strategy for competing in the same business and those that involve for entering a new business or businesses. Operating strategies does not involve altering the business level strategies and usually focuses on increasing revenues, decreasing cost, decreasing assets or a combination effort. Our research work mainly focuses on existing corporates that applies Strategic turnaround strategies to reverse a major decline in their performance.
Repositioning is an entrepreneurial strategy that puts its emphasis on growth and innovation. This strategy answers the declining situation in an organization by devising out a new definition of the mission and its core activities. The organization can choose to stay and become more dominant in the existing market or by diversifying itself into new markets and products. In some of the cases the management may think that the current resource capabilities of a company can achieve a greater competitive advantage, if applied to a new market segment by successfully integrating and making a fit between the capabilities of the firm and the external environment. The repositioning strategy acknowledges the notion of diversification and provides an opportunity for a firm to leverage on it existing resources such as financial and technical capabilities to come up with related or unrelated products. However, the success of this strategy is highly dependent on the management to effectively select the right portfolio mix. Nike was successful in pursuing related diversification when it decided to launch beach styled sport clothing (Hurley) as a business line. The impact of this entrepreneurial strategy applied in the private sector has been researched in 11 empirical studies. Out of 11, only two of these find...
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