2. INTRODUCTION
Karl Benz founder “ Benz & Co”.
1st October 1883.
1900,Benz & Co become world biggest
automobile manufacturer.
First Mercedes was delivered on 22 December
1900.
On 28th June 1926 it get merged and to form
Daimler- Benz AG.
4. BECOME A PLAYSTATION
Stop all internal discussions and conflicts….
It is time to “roll-out” smooth and well
rounded activities
Your actions should be clear, well defined like a
square
And each one of us should reach the summit of
his art
5. TURNAROUND MANAGEMENT
The present business scenario is one wherein
constant change is the name of the game.
For any firm to survive in any industry, there
has to be constant monitoring and
improvement of its systems and operations
Process of bringing about a revival in the
firm’s fortunes is what is termed as
“Turnaround Management”.
6. 3 PHASE IN MB’z TURNAROUND
MANAGMENT
Phase I: Watching out for the
danger signal
Phase II: Choosing appropriate
Strategy
Phase III: Implementation of the
change process
7. PHASE I : WATCHING OUT
FOR THE DANGER SIGNAL
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Decreasing constant sales
Decreasing profitability
Lack of planning
Inflexible CEO
A management team unwilling to
learn from competitors.
8. PHASE II : CHOOSING
APPROPRIATE STRATERY
1. Strategic Turnaround
A new way to compete in the existing business (Enter
into a joint venture with Telco 1994).
A new way to compete in the existing business ( by
launching Mercedes Benz E class)
Under this the first choice
Increases market share
Making product market relationship
9. 2. Operating Turnarounds
Asset reduction strategies : below BEP they should
reduce their assets so the fixed cost will reduce.
Revenue increasing strategies : Not extremely
below BEP they should apply new strategy so can
generate revenue.
Combination strategies : above BEP they should
use cost reduction strategy so firm profit can rise, by
unnecessary cost cutting down
10. PHASE III:IMPLEMENTATION
OF THE CHANGE PROCESS
Implementation plays an important role in any turnaround
management.
Identification of an appropriate strategy by itself will not
guarantee success.
The success or otherwise of a Turnaround strategy depends
on the commitment shown by the top management as also
the operating management.
Likewise new CEO Mr. Juergen Ziegler of Mercedes
– Benz India ltd has implemented the project with new
strategies with help of his management. And achieved
success.
11. TO Achieve a Turnaround, You will
Generally Need To Have The
Following Seven Things Present …
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A Viable Business
Time
Cash
Vision
Management
Stakeholder Support
Confidence In The Process