What Is Turnaround Strategy? Meaning, Definition, Examples

Meaning of Turnaround Strategy

Following diagram depicts the pith pregnant of turnaround strategy.

The concept or pregnant of turnaround strategy covers next points:

1. Turnaround strategy way to convert, modify or transform a loss-making companionship into a profit-making company.
2. It way to brand the companionship profitable again.
3. The top dog role of implementing a turnaround strategy is to plow the companionship from a negative cry for to a positive one.
4. If a turnaround strategy is non applied to a sick company, it volition closed down.
5. It is a remedy for curing blogspot.com//search?q=what-is-industry-meaning-classification">industrial sickness.
6. Turnaround is a restructuring strategy. Here, a loss-bearing companionship is transformed into a profit-earning company, yesteryear making systematic efforts.
7. It tries to withdraw all weaknesses to aid a sick companionship in 1 lawsuit once again croak strong, stable in addition to a profit-making institution.
8. It tries to opposite the seat from loss to profit, from declining sales to increasing sales, from weakness to strength, in addition to from an instability to stability.
9. It aids to cut down the brought forrad losses of the loss-making company.
10. It helps the sick companionship to stand upward in 1 lawsuit once again inwards the blogspot.com//search?q=what-is-industry-meaning-classification">market.
11. It is a consummate U-turn of a planned strategic economical transition.

Definition of Turnaround Strategy

The definition of turnaround strategy w.r.t dissimilar senses is depicted below.

blogspot.com//search?q=what-is-industry-meaning-classification">financial, commercial, corporate or from a blogspot.com//search?q=what-is-industry-meaning-classification">business perspective, the turnaround strategy tin laissez passer the sack hold upward defined equally follows.

“Turnaround Strategy is a corporate activity that is taken (performed) to bargain amongst issues of a loss-making (sick) companionship similar increasing losses, lower provide on blogspot.com//search?q=what-is-industry-meaning-classification">capital employed, in addition to continuous decrease inwards the value of its shares.”

Finally, from an academic cry for of view, its definition tin laissez passer the sack hold upward stated equally under.

“Turnaround strategy is an analytical approach to solve the beginning displace failure of a loss-making companionship to cause upward one's heed the virtually crucial reasons behind its failure. Here, a long-term strategic computer programme in addition to restructuring plans are designed in addition to implemented to solve the issues of a sick company.”

Examples of Turnaround Strategy

Some examples of turnaround strategy are depicted below.

blogspot.com//search?q=what-is-industry-meaning-classification">bank ‘A’ is suffering from losses due to blogspot.com//search?q=what-is-industry-meaning-classification">non-performing assets (NPA). NPA is loan given only non soundless recovered. This banking venture ‘A’ volition follow turnaround strategy in addition to assay out to recover its loans yesteryear appointing recovery agents.

Manufacturing companionship say ‘XYZ’ is suffering from losses due to excess idle fourth dimension taken yesteryear labour to consummate their jobs. The manufacturing companionship ‘XYZ’ volition follow turnaround strategy to cut down labour inactivity yesteryear installing modern machines (automation) to send on the same move or job.

Educational institution, for example, ‘C’ is suffering from losses due to non-registration of students inwards their courses. This establishment ‘C’ volition follow turnaround strategy to cut down losses yesteryear providing facilities similar e-Registration, conducting online classes, etc. to attract students.

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