The follow-up steps to be taken for turnaround strategy are as briefly noted below:
(1) Providing financial backing: In order to introduce the plan for turnaround, it is necessary to give attention to financial problems of the enterprise. Turnaround process will not move without financial backing. Naturally, the management must provide adequate financial support.
(2) Identification of problems faced by an enterprise: The problems faced by the enterprise must be identified clearly for the introduction of turnaround strategy. For this, analysis of product line, market, production processes, market competition and relevant problems is essential.
(3) Preparation of comprehensive action plan: Identification of problems should be followed by suitable comprehensive action plan for dealing with all problems due to which turnaround strategy is essential.
(4) Execution of action plan: Finally, the action plan should be implemented properly. For effective execution of the action plan, enlightened, democratic and expert leadership is necessary at the top level. Such leadership may be provided by the existing chief executive or by a turnaround specialist. It is also desirable to keep adequate watch on the execution of action plan so that different area-wise targets fixed are achieved within the time limit.           .
It is desirable to get the unit declared a sick unit before the    introduction of turnaround package. This facilitates negotiations with the financial institutions and banks for necessary financial assistance.
0 Comments