IMPORTANCE OF TURNAROUND :
PROCESS OF TURNAROUND:
- Change in leadership.
- change in strategy.
- upgrading technology.
- retrechment of assets and people.
- financial restructuring.
- organisational change.
In 1995, Titan Industries, India’s leading manufacturer of watches, launched the Tanishq range of gold watches and jewellery.Tanishq performed very badly in the next three years, posting a huge loss in 1997-98. Jacob Kurian, Tanishq’s chief operating officer admitted, “Tanishq, as a concept, was far too ahead of its time. At this point, Tanishq took various steps to correct the mistakes it had committed and very soon, posted its first ever operating profit in 1999. In 1999-00, sales doubled to Rs 1532 million against Rs 743.8 million recorded in 1998-99 and reached Rs 2000 million in 2000-01.
SETTING THINGS RIGHT WITH TURNAROUND MGT :-
Tanishq found out that it had gone wrong mainly in two areas – The product proposition and retailing. Initially with a focus on the export market, its designs were Western, and the same line of jewellery was sold in India as well. However, when it shifted its focus to the domestic market, it was unable to sell these designs. Therefore the first step was to change the brand positioning from that of the Westernized offering to a more mainstream, Indian one. The 18-carat jewellery range was expanded to include 22 and 24 carat ornaments as well. Tanishq also made attempts to redefine traditional styles in its designs. Tanishq realized that, given the diverse nature of Indian ethnicity, it would have to cater to tastes of all regions.Tanishq realised that it must design customised product as per the needs of indian customers.so here we can conclude that turnaround management is like a medicine for the sick companies or units.