What is Turnaround Strategy?
A definition of Turnaround Strategy
“A turnaround strategy is a plan developed by a company to stabilize its financial health, regain its market position, and achieve sustainable growth after experiencing poor performance or financial distress.”
Business Glossary > What is Turnaround Strategy?
Examples of Turnaround Strategy in a Sentence:
The company adopted a turnaround strategy to recover from its losses.
Implementing a robust turnaround strategy helped the firm regain profitability.
A successful turnaround strategy requires thorough analysis and strategic planning.
Why is Turnaround Strategy Important in Business?
Understanding a turnaround strategy is critical for businesses in financial distress. By developing a clear plan, companies can address operational inefficiencies, improve management practices, and reestablish their position in the market, ensuring long-term success and viability.
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Associated Terms
Here are some associated business terms and synonyms for “Turnaround Strategy”:
- Recovery Plan
- Revitalization Strategy
- Reorganization Plan
IBM’s Turnaround Strategy
In the early 1990s, IBM faced significant financial difficulties and market share loss. Through a comprehensive turnaround strategy that included restructuring, divesting unprofitable divisions, and focusing on emerging technologies like cloud computing, IBM regained its competitiveness and profitability.
Final Notes on Turnaround Strategy
When companies are crafting a turnaround strategy, they should focus on understanding the root causes of their difficulties, realigning their operations with market demands, and implementing changes effectively to ensure a return to growth.
This has been a definition of Turnaround Strategy meaning.
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