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Submitted to, Mr. R.R. Srivastava

Submitted by, Akhil Ravi IV th Sem PIMS

TURN AROUND Meaning  It is a type of strategy specifically developed by the management to improve operational efficiency and productivity with a view to increase overall profitability of business. Definition  According to Dictionary of Marketing “ Turnaround means making the company profitable again.” .

FEATURES OF TURNAROUND Objective:.  Scope of Turnaround:.  Requires Cooperative effort  Involves restructuring  Permanent effect  Optimum utilization of resources  .improve the performance of the unit by rearranging the available resources. It studies the problem indepth and tries to solve it forever.It is effective in case of loss making units but having growth or future prospects.  Long Term Strategy :-.

Liquidation of a company is the permanent closing down of the business of a company.” . Definition  According to Prof Gower “ winding up of a company is a process whereby its life is ended and its property administered for the benefit of its creditors and members.LIQUIDATION Meaning  Liquidation is the final decision or withdrawal of commercial activities of the firm forever.

REASONS FOR LIQUIDATION OF A BUSINESS FIRM Lack of Proper Inventory Control  Weak Competitive Position  Low Sale Values  Disaster  .

 . salary and other benefits.  The immediate effect of closure is one employees who lose their jobs.EFFECT OF LIQUIDATION Liquidation affects shareholder. consumers. employees.  Shareholders fund get blocked without appreciation in value. government and society at large.

The dropping of activities or businesses can be attained under through sale or liquidation.DIVESTMENT Meaning  This strategy involves dropping some of the products. . markets or functions. Selling a division or part of an organization is called divestment.

 . which no longer brings good returns to the firm  High competition in the market  Negative cash flows  Technological up gradation is required for survival of the business  A firm may find it difficult to manage growing business. and therefore it may divest non-core business to concentrate on core business  A firm may find a better alternative to invest.REASONS FOR DIVESTMENT Outdated products.

A particular business can be divested into a separate independent company and the parent company may or may not retain partial ownership.APPROACHES TO DIVESTMENT Firm may choose to divest in two ways. .  2.  1. A particular business may be sold outright to another firm.