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Introduction Often once highly successful companies find that they lose their competitive advantage, and rivals overtake them. As their sales stutter, they lose market share, and faced with excess capacity their costs rise. Profits evaporate and soon they report massive losses. Their decline is the stuff of headlines and dominates the business pages. Usually the incumbent CEO makes minor adjustments when a much more radical approach is required to restore the company to good health. Eventually the CEO who oversees this withering decline is sacked, and a new CEO is appointed. The new CEO is afforded a limited period to prove his/her worth. The new CEO has in fact been appointed to execute a successful turnaround strategy. This new CEO may often be an outsider because the company recognizes the need to appoint a dispassionate outsider who will tackle the "sacred cows" of the organization. 2. Features of a Turnaround Strategy One of the most successful turnaround strategies of all time occurred at Apple Computers (i.e. Apple) in the late 1990s. As the company was headed towards bankruptcy, various new CEOs had failed to deliver success, and Steve Jobs was invited back to head the company he co-founded. So what did Jobs do? He slashed costs (and jobs) by outsourcing production to Asia. He reduced the number of computer models made by the company. He persuaded Microsoft to invest in the company. This reduced costs and stopped confusing consumers. He then simply waited for the "next big thing" and recognized that the company needed to succeed in this area in order to survive. The rest is history. Today many other companies are in the midst of a radical restructuring program. Nokia is a prime example. It is still the world's number two in cell phones, but missed out on the smartphone boom. In early 2011, its newly appointed CEO issues one of the most memorable memos ever issued to employees. You should read his "burning platform" memo.  Sony in spring of 2012 reported annual losses of more than $6.0bn. The new CEO unveilled histurnaround strategy for Sony in the same month. He too wishes to see more focus on a limited number of product types, and announced 10,000 job losses. Already many are commenting that Sony will never recover until it experiences a major internal culture change: stop obsessing about products and focus on delivering a unique customer experience. Many U.S companies and other international companies are also in the midst of a turnaround strategy? Who are they? Well simply look for the following signs:

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Sales are stagnant or in decline; Profits are falling and indeed the company has reported losses; The company has announced plans to reduce capacity (whether it be manufacturing or number of stores); The company has recently appointed a new CEO.

Often the root cause of the company's decline is that it now has a flawed business model, but one that was the basis of past success. Companies can prove very reluctant and slow to concede that their once glorious business model has become a major liability. 3. Turnaround Failure If a company cannot be turnaround then it faces a very bleak future, and may eventually go bust, or be acquired in order to gain access to some patents or other valuable assets

redesigned stores. adding liaisons and committees so that they could work much more closely together. NOKIA D Shivakumar. Operations — Burger King is changing the way it deals with franchisees. wraps and much more to broaden its consumer base. Renovations — Thousands of Burger King restaurants are getting enhancements like digital menu boards. talks to ET's Sagar Malviya on how India could help Nokia regain its number one slot it lost recently to Samsung globally. salads.BURGER KING Burger King has been ailing lately. It's been . He and his crew spent a long time trying to piece together the appropriate strategy. Edited excerpts: The Indian market is one of the last bastions for growth for most companies. so it hired a team to turn things around.” Wiborg told Smart Business. But we will manage the price ladder very clearly. How much consideration did Nokia give to India while formulating your global turnaround plan last year? 'Next Billion' (a Nokia strategy to offer affordable access to internet and other applications to a billion people) is a complete India strategy in a sense and India will be the biggest contributor to that." according to Jordan Melnick at QSR Magazine. “I think you’ll be pleasantly surprised at the engagement that you get from your employee s when you make them part of the process and not just the execution part of the process. Marketing — The Burger King mascot is gone. president of Burger King North America. India is a completely open market and hence innovation and brand play a very important role here. We are in the middle of the transition and everything has happened as planned in terms of product innovation . At its helm is Steve Wiborg. Middle East and Africa (IMEA) senior vice-president of sales. revamped marketing and much more. new uniforms and new packaging. adding smoothies. so what prompted the change? We have changed price only once and that was more in line with consumer expectations in terms of what they were ready to pay for the device. That's some serious planning. They looked at every single menu item. Nokia's India. India is a very important market and is the second largest market for Nokia globally. You have already slashed prices of Lumia after its launch. You must have done the duediligence on the pricing before the launch. It is a unique market where both smart devices and feature phones are significant. He has been replaced with a bunch of celebrities like Sofia Vergara and Salma Hayek to appeal to a wider range of people. Here's the basic gist of the four-pillar strategy they came up with: Menu — It's totally redoing the menu. Exactly how long did it take? It took roughly nine months of "intensive brainstorming sessions.

Dual-SIM phones now account for more than half the total mobile phone market in India and we are now the leader. But you have to grow faster (than competition). 90 million: Total number of iPhone units sold. That's the reason we did it. $220 billion: Amount of products sold since the release of the first iPod. Our margins are steady. for example . A good Indian subsidiary will be one that maximises both. we have gone from zero share a year ago to being the market leader now. we try to make it more popular. What is the current mandate for the Indian subsidiary? It's growth in terms of value.) +951% (39. In India.524% (37. +5. #            . (A disruptive innovation. dual SIM. India has enough combination of value and volume segments in every category. revenue has grown by $60 billion (1. Competition will come and go. In the last 8 years. We cannot afford to miss a trend like.four months and as we get more scale. So talent is wide but shallow here. the brand is the same but the consumer-facing team is changing every now and then. we have seen many Chinese and Indian brands being built and all are dying right now. +821% (18. volume and in terms of profits. So is ensuring that we compete effectively at the bottom end of the market with unbranded and Chinese handsets.093% (66. In the last 3 years. What really went wrong. we have sold over 3 million Lumia handsets. Nokia lost market share whenever companies big and small became aggressive in the last couple of years. Globally. In dual-SIM market. plus Apple iPod accessories (currently $5 billion a year).7% annualized): Stock performance since Steve Jobs’ return to Apple in 1997. but we have to ensure we grow faster.9% annualized): Revenue growth since iTunes Store launch. India is a growth market. it would be the biggest in the world.000%). revenue has grown by $40 billion (165%). In smart devices. This industry is full of innovations and you have to constantly innovate. 298 million: Total number of iPod units sold. The only way to keep growing is to innovate and do it all the time. an obvious challenge will always be getting the right people and keeping them. For any company globally. Being a market leader. 2003.4% annualized): Stock performance since the launch of the iTunes Store in April. $19 billion: Apple’s cut of all sales through the iTunes Store. 60% of that growth came from iPhone sales. APPLE SOME FACTS Some fun facts about Apple’s turnaround: +8. If the cash and securities on Apple’s balance sheet (~$60 billion) was turned into a hedge fund. There is a high-attrition rate. we are one of the top two players. The market is growing.6% annualized): Revenue growth since Jobs’ return. 73% of that growth came from newly launched products. which means that the customer is the same. and how's your counter-attack strategy working? Growing smart devices is a big challenge.