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Company Turn around

Times of corporate distress present special strategic management challenges. In such situations, a firm may be in bankruptcy or nearing bankruptcy. Often turnaround consultants are brought into the company to devise and execute a plan of corporate renewal, assuming that the firm has enough potential to make it worth saving.

  • Revenue downturn caused by a weak economy
  • Overly optimistic sales projections
  • Poor strategic choices
  • Poor execution of a good strategy
  • High operating costs
  • High fixed costs that decrease flexibility
  • Insufficient resources
  • Unsuccessful R&D projects
  • Highly successful competitor
  • Excessive debt burden
  • Inadequate financial controls

Step one: One must identify the root cause or causes of the crisis. Evaluation of the most frequently encountered causes include:

  • Possible downturn of Economy
  • Sales budgets and projections
  • Sales strategy
  • Operation cost levels
  • Resources
  • R & D projetcs
  • Competitors
  • Supply chain
  • Financial debts
  • Financial controls

Step two: Before a viable turnaround strategy can be formulated it is need to Discuss the view and wish from Client.

  • What is the expectations
  • What are the current plans
  • What is in the pipe line
  • Expected changes and modifications

Step three: Evaluation and recommendations

After clarifying step 2 we will come up with an basic plan containing the following aspects of business:

  • First impressions of current business and structure
  • Suggestions for Changes and consequences
  • Recommendations for Management / client
  • Plan for improvements
  • Emergency action plan

Step four: Implementation and support

After providing sales improvement plan assistance are possible to the client in implementation and giving support to secure optimal result.

Step five: Recap and follow up

Periodically it is needed to recap and follow up on the sales development and to adapt and modify if needed and to measure the achieved result.