Scribd Logo
Upload

Welcome to Scribd!

  • 206 views

    What Is Turnaround Management

    Uploaded by

    Aakash Shah
    Corporate turnaround involves formulating and implementing a strategic plan and set of actions for corporate renewal during times of severe financial distress. With help from consultants, a root cause analysis is performed and turnaround plan devised and executed, assuming the firm can return to profitability. Typical root causes include poor vision/strategy, business model flaws, and triggers like losses, liquidity issues, or strong competitors. The turnaround process generally involves assessing viability, implementing emergency measures, developing a survival plan, restructuring, returning to growth, and preparing for the turnaround manager's departure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    What Is Turnaround Management

    Uploaded by

    Aakash Shah
    206 views3 pages
    Corporate turnaround involves formulating and implementing a strategic plan and set of actions for corporate renewal during times of severe financial distress. With help from consultants, a root cause analysis is performed and turnaround plan devised and executed, assuming the firm can return to profitability. Typical root causes include poor vision/strategy, business model flaws, and triggers like losses, liquidity issues, or strong competitors. The turnaround process generally involves assessing viability, implementing emergency measures, developing a survival plan, restructuring, returning to growth, and preparing for the turnaround manager's departure.

    Original Title

    What is Turnaround Management

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Corporate turnaround involves formulating and implementing a strategic plan and set of actions for corporate renewal during times of severe financial distress. With help from consultants, a root cause analysis is performed and turnaround plan devised and executed, assuming the firm can return to profitability. Typical root causes include poor vision/strategy, business model flaws, and triggers like losses, liquidity issues, or strong competitors. The turnaround process generally involves assessing viability, implementing emergency measures, developing a survival plan, restructuring, returning to growth, and preparing for the turnaround manager's departure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    206 views3 pages

    What Is Turnaround Management

    Uploaded by

    Aakash Shah
    Corporate turnaround involves formulating and implementing a strategic plan and set of actions for corporate renewal during times of severe financial distress. With help from consultants, a root cause analysis is performed and turnaround plan devised and executed, assuming the firm can return to profitability. Typical root causes include poor vision/strategy, business model flaws, and triggers like losses, liquidity issues, or strong competitors. The turnaround process generally involves assessing viability, implementing emergency measures, developing a survival plan, restructuring, returning to growth, and preparing for the turnaround manager's departure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    c 

    
         
    

     
          involves the formulation and implementation of a strategic plan and
    a set of actions for corporate renewal and restructuring, typically during times of severe
    corporate financial distress. Often with the help of outside  
     
      or strategy
    consultants, a Root Cause Analysis is made and a  
      is devised and executed,
    assuming that the firm still offers the potential to return to financial solvency, profitability and
    strategic viability.

    
      

    There are just a limited number of 

    
    
    
      

    1. Acts of God - Certain risks may occur and cause irreparable damage (despite proper
    anticipation and thorough preparation).
    2. Poor Vision / Understanding of the Market
    3. Poor Strategy
    4. Poor Business Model / Execution


     
      

    Typically, when these root causes are not dealt with properly, they will cause a range of
    problems, which can then trigger a corporate crisis:


    ack of expertise, experience or education, weak management

    Market circumstances, weak economy

    Business economical reasons, earnings crisis

    Bankruptcy of holding company

    Board level arguments

    -raud, insufficient financial controls

    Overly optimistic sales projections

    -inancing problems, liquidity crisis, excessive debt burden, undercapitalization

    Operating cost levels too high

    Very strong, successful competitor

    Overinvestment

    ènsufficient resources, underinvestment

    Often these triggers are interrelated, and several causes are involved. Slywotzky and Drzik have
    categorized these triggers in 7 Classes of Strategic Risk.

      
     
    
    The first step in a  
     
     is often to change the top management or leadership of
    the business and to appoint an experienced turnaround manager. Often strong, Commanding
    eadership or even Charismatic eadership is exerted. The turnaround process typically consists
    out of the following key steps (in approximate chronological order):

    1. Assess the situation and future business viability


    2. èmplement emergency steps (stop the bleeding)
    3. Develop strategic survival plan
    4. èmplement the plan, restructuring the business. Survive the crisis
    5. Return to normal operations, profitability and growth
    6. Prepare for departure of turnaround management

    Ñ 

         
      
     
     
       
          

    turnaround managenent deals with the subject diagnosis of apparent business decline and taking on
    mitigative measures.of importance is the timely sighting of potential or actual
    signals/pointers/indiactors and proactively enganging them to gain business success.Research in
    information requirements,legal framework as well as a generic structure for turnaround management. it
    is also my idea that proactive turnaround management can be achieved through identification of key
    indicators to guide managers on when this strategy can be implemented.Could it be possible to
    incorporate T/A as part of corporate starategy?Could T/A managers/experts be outsourced such that
    they are always available for consultation?could T/A practise be acceptable as day to day process such
    that T/A experts do not send cold shivers(once on site) across the business fraternity thus injuring
    business goodwill?

    Imp linls

    http://www.corporateturnaroundexpert.com/

    http://breakthroughnpd.com/services/turnaround.html

    http://www.csuchico.edu/mgmt/strategy/module7/sld049.htm
    http://www.healthquotessite.com/blogs/permalinks/1-2010/finding-investors-for-turnaround-
    funding.php

     !

    Jet Airways is the No.1 airline in èndia, with a market share of 27 per cent. While Jet Airways
    has a market share of 19.5 per cent, its subsidiary Jetite has a share of 7.5 per cent. Jet Airways
    has also seen the the highest on-time performance of 94 per cent.

    Meanwhile, Jet Airways received 4.7 complaints per 10,000 passengers and Jet ite received 3.5
    complaints, with the highest number of cancellation of flights at 10.5 per cent. Jet Airways saw
    6.6 per cent cancellation of flights in August.

    Jet Airways commenced operations in èndia in 1993. èt operates flights to 23 international


    destinations and 43 destinations within èndia.

    Jet Airways and Jet ite together flew flew 55.88 lakh (5.588 million) passengers from January
    to July 2010 in the domestic sector

    Naresh Goyal is the founder chairman of Jet Airways.

    Jetite is a wholly owned subsidiary of Jet Airways èndia td. èt operates 110 flights on a daily
    basis connecting 25 domestic and 2 international destinations.

    Click * to read more . . .

    You might also like