Not all companies can be turned around. Its scope depends on individual strengths and weaknesses.
Sick industries are not solely an Indian phenomenon though the number of such firms in the country as a percentage of the total number of industrial units is far above the world average. Other than the well-known economic factors, what contributes to this is a culture characterised by preservation, nonabandonment of any material object, and an emotional bond with possessions.
Organisations, like organisms, have a life cycle. They are born, grow, attain maturity, and ultimately decline and move towards extinction. However, unlike living beings, organisations do not have any standard life expectancy. Some die prematurely just because their sickness is not attended to on time. Here lies the importance of an appropriate diagnosis not only to ascertain the cause of sickness but also to assess whether a company can be effectively turned around. The word ‘effective’ refers to the cost of turnaround and its sustainability. An organisation is sick when it cannot sell its product(s) in the market with a margin of profit. If there is no market for what a company produces or is capable of producing, then it loses the significance of its existence. Availability of a market is therefore an important factor that has to be assessed before a company is revived. In India, many traditional organisations came to be known as sunset industries because the market gradually shifted away from their products.
In order to overcome the problem of inadequate demand, a company can produce alternate products that will find takers. However, this will require investment in new technology and availability of manpower capable of carrying forward the technological shift. In sick companies, these initiatives are neither easy to take nor workable on cost-benefit analysis.
この記事は Indian Management の May 18 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Indian Management の May 18 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Trust is a must
Trust a belief in the abilities, integrity, values, and character of any organisation is one of the most important management principles.
Listen To Your Customers
A good customer experience management strategy will not just help retain existing customers but also attract new ones.
The hand that feeds
Providing free meals to employees is an effective way to increase engagement and boost productivity.
Survival secrets
Thrive at the workplace with these simple adaptations.
Plan backwards
Pioneer in the venture capital and private equity fields and co-founder of four transformational private equity firms, Bryan C Cressey opines that we have been taught backwards in many important ways, people can work an entire career without seeing these roadblocks to their achievements, and if you recognise and bust these five myths, you will become far more successful.
For a sweet deal
Negotiation is a discovery process for both sides; better interactions will lead all parties to what they want.
Humanise. Optimise. Digitise
Engaging employees in critical to the survival of an organisation, since the future of business is (still) people.
Beyond the call of duty
A servant leadership model can serve the purpose best when dealing with a distributed workforce.
Workplace courage
Leaders need to build courage in order to enhance their self-reliance and contribution to the team.
Focused on reality
Are you a sales manager or a true sales leader? The difference, David Mattson, CEO, Sandler® and author, Scaling Sales Success: 16 Key Principles For Sales Leaders, maintains, comes down to whether you can see beyond five classic myths that we often tell ourselves about selling.
