Turnaround Strategy

Meaning :
Strategies adopted by the management to
reverse the deteriorating trends of the
performance of a business are termed as “
Turnaround Strategy ”.
Turnaround means turning the loss making unit
back into profitability.
Turnaround involves taking an “U” turn to the
declining fortunes of the company and making
it viable again.
Definition :
According to Dictionary of Marketing ( edited by P. Collin )

“ Turnaround means making the company profitable again.”

Features of Turnaround Strategy :
Strategy focuses on enhancing the performance

of a loss - making unit through resource

optimization, not selling or disposing of it.

Turnaround is one type of long term strategy

and does not aim at providing temporary relief

or short cut method to company problems.

Its effectiveness is not universal.

Youtube - Domino’s “Oh Yes we Did It” Marketing Campaign
Case Study - Think School (Source)
https://www.cnbc.com/2023/04/14/burger-kings-turnaround-plan-boosts-sales-customer-satisfaction.html

Source - Think School (Youtube)

Integration Strategy
Integration - Meaning
Integration means combination of business units that

are separate but complementary to one another.

It may also refer to coming together of business units

that are competing with one another.

When business units join hand to accomplish certain

well defined goals or objectives, it is called as

integration.

It may between the firms from the same industry or

from different industries.

Advantages of Integration
It gives a firm better control over its raw materials,

processes or finished products as well as marketing

depending upon the type and extent of integration.

It leads to economical operations.

It also helps in having efficient working.

It lowers the level of competition

It ensures better utilization of Resources

Limitations of Integration
If there's a problem in one part of the

integrated system, like a manufacturing plant,

it can slow down the whole production process

or make the final product less good.

A very high degree of coordination is required

to keep the activity flow smooth.

Horizontal Integration
Under this method, business firms from the same type of business or

producing same product come together to form a group .

It is an integration of two or more units engaged in the same activity.

Thus, two producers may combine in order to reduce competition.

The companies can merge synergies, product lines, and enter new

markets.
Example of Horizontal Integration

Adani's acquisition of Ambuja and its subsidiary ACC

Ltd, both major players in the Indian cement industry,

exemplifies horizontal integration as it enables Adani to

expand its presence and control over the sector by

combining multiple companies with similar production

capabilities under its ownership.

Vertical Integration
This is also called as process or industry integration.

Vertical integration is a strategy that allows a company to

streamline its operations by taking direct ownership of

various stages of its production process rather than relying

on external contractors or suppliers.

Companies can achieve vertical integration by acquiring or

establishing their own suppliers, manufacturers,

distributors, or retail locations rather than outsourcing

them.
 Backward Vertical Integration

Backward vertical integration is a business strategy in which a company expands its operations by

acquiring or integrating with businesses that are positioned earlier in the supply chain.

In other words, a company engages in backward vertical integration when it takes control of suppliers or

sources of raw materials.

 Forward Vertical Integration

Forward vertical integration, in simple terms, means a company is getting involved in steps

that happen after its main business.

It's like moving forward in the production or distribution process.