Question

​Cedarmont Clothing Limited is rapidly losing its market share to more aggressive competitors and its CEO want to turnaround the fortunes of the company. As a strategic management consultant, describe turnaround strategy and explain three ways that this strategy can be employed.

Answer 1

Turnover strategy also referred to as retrenchment strategy is a strategy used by the business organisations to revive the business from failing or loosing. It is used when the business realises that the initial decision made by the organization has proved wrong and thus try to redeem the position through transforming and modifying the operations of business to turn the business from loss making to profitable business enterprise. In other words this strategy aims at corporate renewal and development of a troubled or complex organization through rectifying the mistakes done in past to promise the better future.

As a management consultant of Cedarmont Clothing Limited I will use turn around strategy to ensure that business organisation is able to recover and sustain in the environment of Intense competition. For gaining the market share back, I would suggest the business following

1) Products and Process Improvement:  

The first important method through which I will use to employ turn around strategy in the business would be improving the products and processes of business so that both align with the customer requirements, match with the market standards and are able to survive the competitors moves. In other words the processes of business will be modified through incorporating latest practices in order to ensure that they are either equally efficient or even better than the competitors resources. Product modifications, process renovations and constant upgradations would be required to ensure that processes are not obsolete or old and products are attractive enough to appeal to the customer base.

2) Change management and Innovation :

The another most important method which I will use to employ the turnover strategy would be to incorporate the change management strategy in the business. I will encourage marketing department to undertake constant marketing research to keep a constant eye on the new marketing trends, changing preferences, likes and dislikes of target market, competitors strategies etc so as to ensure that business is able to keep up with these changes through continuously adopting and accommodating to them. I will promote diversity and flexibility in the organization to evolve and easy incorporate the changes through challenging the status quo. Diversity will help to bring innovation and creativity in the organization to make products more better in performance and appearance to gain competitive edge.

3) Becoming Digital and Customer retention :

I will promote the online presence and digital efficiency of business through encouraging the workforce to use various digital platforms to advertise the products. I will start an online application of organization to showcase the beautiful and variety of inventory so that the potential customers are reached and existing customers are retained. Offering loyalty programs, incentives for repeat purchases and other such offers will help in customer retention. Incorporating the use of social media , websites and other such platforms will help business to widen its reach.

.

. Thanks dear student.. Hope this helps.. Good luck.. Rate if satisfied :)