Sharpbender: Difference between revisions
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==Type of Turnaround Strategy== | ==Type of Turnaround Strategy== | ||
Companies experiencing recovery exhibit four types of '''Sharpbender''' | Definition: ''an organization that has been underperforming its competitors but suddenly becomes more successful, often as a result of new management or changes in its business strategy'' | ||
Companies experiencing recovery exhibit four types of '''Sharpbender''' | |||
*1. Early Recovery - Firm anticipates decline and never reaches minimum level of performance (MLP) | *1. Early Recovery - Firm anticipates decline and never reaches minimum level of performance (MLP) | ||
*2. Intermediate - Takes action to recover to MLP but only tackles symptoms and not causes and declines again '''M&S''' 2000's | *2. Intermediate - Takes action to recover to MLP but only tackles symptoms and not causes and declines again '''M&S''' 2000's | ||
Revision as of 21:25, 29 October 2011
Type of Turnaround Strategy
Definition: an organization that has been underperforming its competitors but suddenly becomes more successful, often as a result of new management or changes in its business strategy
Companies experiencing recovery exhibit four types of Sharpbender
- 1. Early Recovery - Firm anticipates decline and never reaches minimum level of performance (MLP)
- 2. Intermediate - Takes action to recover to MLP but only tackles symptoms and not causes and declines again M&S 2000's
- 3. Firm C reacts late and is on brink of disaster - takes drastic action and sustained recovery is achieved - IBM / Apple
- 4. Firm D - never perceives threat of extinction and fails. BCCI
Reasons for decline include
- 1. Poor management
- 2. Inadequate financial controls- WorldCom
- 3. New Competition - IBM
- 4. Structural changes in the market - Blockbuster
- 5. Over expanasion - Marconi
- See Also Turnaround Strategies
- See Also Five Generic Strategies of Recovery
