TURNAROUND STRATEGY

UNIT III
CHAPTER 3

TQM
(TOTAL QUALITY
MANAGEMENT)

MEANING
Reduce errors in production
Better Supply Chain Management
Improve Customer experience
Improve employee efficiency
Manage people, systems and processes

According to Sameul Kho

Definition:

TQM is a:
- systematic
- integrated
- consistent
- organization-wide perspective
Involving everyone and everything

MEANING
According to Samuel Kho:
TotalEach and everyone within and outside the
company is involved in continuous
improvement
QualityTo meet customer needs through quality
being par with specific standards
ManagementManagers are fully committed to quality
standards

FEATURES
1. Quality
2. Customer Focused
3. Continuous
4. Focus on people
5. Focus on systems
6. Focus on processes

NEED & IMPORTANCE OF TQM

1. Improved & productive processes
2. Higher productivity
3. Reduced cost
4. Elimination of wastage and defects
5. Improved customer satisfaction
6. Better competitive edge
7. Enhancing shareholders value
8. Better image

RESTRUCTURING

MEANING
It is an act of reorganization of a company,

business, a system or a process in a new way

to make it more effective & productive.
Overcomes challenges like- Asset Management
- Resource Management
- Revenue Generation
- Capitalizing growth opportunities
- Overcoming threats
- Delivering quality

TYPES OF RESCRUCTURING
a) Financial Restructuring:

Reorganizing capital
Buy back acquisition
Mergers
Joint Ventures
Takeover
Alliances
Amalgamation
Disinvestments

b) Technological Restructuring:
- Updating technology
- Latest technology
- Alliances for technical expertise
c) Market Restructuring:
- New Products
- Eliminate outdated products
- New Markets
d) Organizational Restructuring:
- Internal structures
- Procedures
- Systems
- Policies

BUSINESS PROCESS
REENGINEERING

DEFINITION
MICHEAL HAMMER & JAMES CHAMPY:

It is a fundamental rethinking and radical

design of business processes to achieve
dramatic improvement in critical,
contemporary measures of performance such
as cost, quality, service and speed

FEATURES/ELEMENTS
/COMPONENTS
1. Fundamental
2. Radical
3. Processes
4. Dramatic

FUNDAMENTAL
Basic question:

- What?
- Why?
- How?
If the answer is obsolete, erroneous or
inappropriate
Innovativeness required to do the same job
So the very fundamental aspect of the
business need to be changed

RADICAL
Derived from Latin word Latix-meaning Root
Making changes deep within
Discontinuing existing business
Reinventing new structure, plans, policies and

procedures

PROCESSES
Organizations focus more on people, task, job,

structures etc..except PROCESS

Requirement of being Process oriented
Focus of BPR is customer
If the process is not giving any outcome to
customer, complete change in process is
required
It is a system where old systems and
procedures need to be completely replaced by
new ones

DRAMATIC
BPR is not talking about small/big or

continuous improvement
Its not talking about a small bomb last but a
nuclear blast/volcanic eruption
Meaning: Changing the whole system itself
than making major or minor changes.

EXAMPLE- DOMINOS PIZZA

Dominos posted a 14.3% increase in quarterly

profits

The companys stock has grown 400%.

SELLING OF SICK UNIT

SICK UNIT
Company existence from 7 years
Incurred losses equal or exceeding its net

worth

SELLING DECISION
Despite of efforts, if the company does not

come out of sickness , the organization my

decide to:
- Stop the operation
- Sell unit to another company for
consideration
- Merge with another company
- Takeover by another company