Corporate turnaround

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Corporate Turnaround

 

Meaning of Turnaround Strategy

 
The implementation of a set of actions required to save an organization from business failure and return it to operational normality and financial solvency.





Some factors that can cause a company’s regression requiring a turnaround intervention include:
 
 
  •     new innovations by competitors
    •
  • underestimating the cost of production
  • corrupt management
  • poor financial management leading to a shortage of capital
  • a loss of customers
  • high turnover and attitude and behavior of employees.







. In order to achieve this, there are six broad stages that a company in a turnaround situation will need to go through:

Management change
Business review
Business restructuring plan Implementation
Stabilization
Embedding the change




Successful turnarounds
A successful turnaround could be as simple as surviving a downturn with financial performance only just acceptable to the company’s various stakeholders. In other cases, the recovery could lead to the firm achieving sustainable, superior performance, which in turn could enhance its competitive position in the marketplace.



  


Location: dubai

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