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.