Indicators Of Successful Turnaround Strategy
There are certain signs/indicators, which suggest that the turnaround strategy has started or is giving positive response/ results. In other words, the overall performance of the enterprise is improving. The enterprise starts making profit in a gradual manner and starts progress in different directions. The indicators of successful turnaround process/strategy are as noted below:
(1) Increase in the volume of goods produced and regular and orderly conduct of production activities.
(2) Increase in the sales (month-wise or quarterly) or turnover.
(3) Increase in the market share of the company.
(4) Increase in the profitability of the company in place of losses in the previous years.
(5) Financial stability accompanied by loan repayment capacity as per schedule, provision of financial benefits to employees and better working conditions and proper maintenance of plant, machinery, etc.
(6) Satisfactory cash flow position.
(7) Removal of sickness and signs of healthy/stable and profitable corporate life.
(8) Visible signs of optimum utilization of available resources indicating that the unit is becoming a viable one/profitable and progressive one.
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