What Is The SWOT Analysis of Typical Turnaround Companies?

The SWOT Analysis

    A turn-around involves managing a series of changes, some minor & other major. Managing change involves tactful handling of people, so that resistance may be successfully overcome. Change creates a fear of the unknown – among employees.

    Proper communication helps a great deal in achieving a smooth & successful changeover.

1. Improving Public Image –

           Public image should be improved so that more competent employees will come & work for the company. Similarly, better suppliers should be willing to do business with the company, better dealers should come forward to sell its wares. A good public image, thus, helps it great deal in raising resources, in attracting talent, & in marketing products & services.

2. Restoring Investor Confidence –

            Investor confidence in the future success of the company is essential. If investors are sufficiently enthused, they can extend a helping hand by participating in rights issues of equity shares & debentures. A good image among the investing public helps in building a strong company, particularly after completing the turnaround process.

             When evaluating business opportunities, you could apply the SWOT analysis more rigorously. This is a method which compels you to think or reason systematically & analytically, the important facts of;

             Strengths                  Weakness

             Opportunities               Threats

               Strengths & weaknesses are always related to the individual or an organization interested in a business. Opportunities & threats are usually related to the outside environment.

           The opportunities & threats as perceived by the same individual could be as under;

         Opportunities                                                   Threats

        With the analysis it will now be possible for the individual to access the implications of all the four factors – strength, weaknesses, opportunities, & threats – in a total & integrated way. He / she can, thus, arrive at a reasoned decision on converting this opportunity to a business or not. It should be emphasized that this analysis will be different when undertaken by different individuals.

       If you try to identify each of the above associated with each opportunity, it would enhance your reasoning process. Often, it helps to ask a friend to assist in recognizing weaknesses & threats as you may be too excited about the idea to notice. This is called the role of the devil’s advocate in some circles. Once you have a fair & Irll.ive list of each, you can then weigh the strengths & opportunities against weaknesses & threats & see if the positives outweigh the negatives. It also enables you to think of ways to overcome the risks or threats.

        A brief summary of corporate analysis, based on strengths, weakness, opportunities, & threats associated with turnaround companies is commonly known SWOT analysis. Strengths & weaknesses are primarily internal to the organization, whereas opportunities & threats are related to the external environment in which these turnaround companies operate.

        What we are presenting here is an overview of SWOT analysis of typical turnaround companies. All these features need not be present in every company, & some companies may have very peculiar features which may not find a reference here. The SWOT analysis is a powerful tool to assess the internal & external situation of any particular company. Investors can use the SWOT analysis for investment & disinvestment decisions with the help of the chat.