Question

This is for Accounting for Managers course. I need to create a presentation that will show a company that was not doing well or was in crisis before but later it completely turnaround the situation and started making lot of profit. In this case i need to use current as well as few previous years company data to show these crisis to turnaround journey(so please inlude the money sheets as well in the ppt). Please include some basic accounting concepts to show numerical calculations(calculations are necessary to be there) and please include pie charts, graphs etc to make it more appealing. Compare this company with its competitors using graphs etc. Some companies that did this turnaround are like Starbucks, Spicejet etc. I need it on urgent basis please help me out soon. For Informations related to the accounts or balance sheets please try to get it online using money control or other sources. I am new to accounting so hardly have a knowledge to find the right sources to the get the content.

I am unable to reply back for the comments. Could you please let me know what infromation about the company is required here? I am ok with any company that did the turnaround and i am not specific about one company, So i guess if you choose sturbucks then the data for it will be available online.

Answer 1

The key to achieve organizational success has been subject of much discussion throughout the years. Many theories tried to explain it, from the industrial organization model to the resource-based view. Still, there was a gap regarding how companies succeeded in dynamic markets

Considering present times, and given the global economy reality, it is quite relevant to devote our attention to the dynamic capabilities concept. The firms’ exposure to multinational markets, undergoing fast and systematic changes throughout a very wide and dispersed geographical reach, creates the need for them to embrace this view. High velocity environments, by nature, are linked with a more frequent occurrence of change and the average period that a firm is able to sustain its competitive advantage is shown to be decreasing over time, which therefore leads to a need for achieving successive competitive advantages

Around 2006, Starbucks’ performance started decreasing. What issues led such a strong company to fail? What factors were crucial to the subsequent turnaround? How did strategic decisions translate into changes in the resource base?

When Starbucks opened its doors in 1971 in Seattle as a local and humble coffee shop, no one could imagine the growth this organization would have. Howard D. Schultz was the one who, back in 1987, bought Starbucks with a dream: he wanted to bring quality coffee into the American market. Since then, Starbucks went from a small chain of 6 stores into a giant owning 17,000 shops. Starbucks made a difference through its unique identity, focusing its energies on providing a distinctive coffee tasting experience. In 2000, Schultz stepped out of his CEO position, leaving its successful 3,501 stores company in Orin C. Smith’s hands and later in Jim Donald’s. Eight years later, Starbucks was failing, and Schultz was forced to return to put the organization back on track. Stock price had dropped from $39 in November 2006 to $19 in 2008. By 2011, after numerous changes, Starbucks was back on its feet, and a proud, yet humble Schultz was reminded of “how fleeting success and wining can be”