Dissertations / Theses on the topic 'Corporate turnarounds - Management'

Thesis (MBA)--Stellenbosch University, 2014.
This research sought to provide insight into the key leadership skills, competencies and organisational processes required to lead a company from decline to a sustainable turnaround. The study focused on the four attributes of managing a turnaround: organisational values and culture, change leadership and organisational high performance. The research aimed to establish the role and impact of the above four factors, particularly in a corporate turnaround. It further assessed the role of leadership in ensuring the implementation of the four factors. The study revealed that turnaround leaders need to develop a new economy wave of values and a high performance culture as a foundation for creating ownership of the organisation’s objectives, as well as for the necessary alignment of the vision, mission and strategy. It was also noted that a corporate culture is an ever changing issue, hence leadership needs to continually ensure that the culture remains in support of the corporate objectives. The study also revealed the need for leadership to have the necessary emotional, cognitive and spiritual intelligence in order to be proactive in managing both the process and the effects of change. They need to have the transformational leadership abilities to drive the pursuit of organisational excellence as a means to achieving a sustainable turnaround. The research also noted the importance of communication as an integral part of each of the turnaround phases. Also of great importance were leadership attributes such as honesty, trustworthiness, sincerity and commitment, and the fact that leaders tend to believe that people will be driven by the rules and processes of business, forgetting that people gather the inspiration they need to be able to respond emotionally to a challenge, from their leaders’ demonstrated personal attributes.

The research emanated from an investigation of GB7, GB8 and GB9 main contractors in the Eastern Cape Province of South Africa. The study was focussed on the strident economic times in the construction industry following the FIFA Soccer World Cup from August 2010 to December 2012. The research was conducted to identify the key strategy or combination of strategies keeping construction entities in operation. The study further investigates the key elements of a successful turnaround strategy as well as the most effective methods in implementing strategies within construction organizations. The research took the form of an empirical quantitative study where a descriptive survey was used to collect data. Structured interviews were held with the target population to collect data in the field. The study established that geographic diversification was the most effective method utilized by main contractors for survival during the study timeframe. The study also found that lowering of profit margins and preliminary and general amounts were most effective methods in the use of turn around strategies. The study finally concluded that effective steps were taken by main contractors in the Eastern Cape to implement corporate strategies within their organizations. Step by step guidance to all employees on new processes was the key element in successful strategic implementation of a strategy within construction organizations. The research conducted contributes to the strategic management competency within the built environment as well as the existing body of knowledge within the construction industry. All members of the construction industry in South Africa involved with strategic level planning of entities would value the study.

The objective of this study was to develop turnaround strategies for the Calitzdorp Spa Tourism Resort (herein after referred to as Calitzdorp Spa) to stop the performance decline and put it back on the road of recovery again. The development of turnaround strategies are dependent on establishing the cause of the performance decline and to enable management to plan effective and optimal strategies for the tourism resort focused on the recovery response. An analysis of various sources on strategic management models were undertaken to find a theoretical framework for the development of a strategic management model that could be applied to a tourism resort. The following model for the strategic management of a tourism resort was consequently developed and consists of the following main components: • Mission, objectives and stakeholders; • Strategic position; • Strategic choice; and • Strategic implementation. A second model for the Turnaround Process of a tourism resort was proposed to assist management in guiding the resort to recovery, consisting of two main phases, namely: • Turnaround situation; and the • Turnaround response. The research methodology followed included: • a literature survey to define the important concepts of tourism, resorts, strategic management and turnaround strategies; • a questionnaire survey to determine customer satisfaction at the Calitzdorp Spa; • telephone interviews to determine the marketing and positioning strategies of the Calitzdorp Spa; and • a focus group discussion session to determine the current situation at the resort and to plan future management strategies of the Calitzdorp Spa. Specific conclusions were made and specific actions recommended based on the results obtained.

Thesis (MBA)--Stellenbosch University, 2015.
ENGLISH ABSTRACT: The 2008/2009 economic downturn had a major impact on the international steel industry. With economic activities declining, the demand for steel decreased and subsequently, prices started to tumble. This put a great deal of pressure on steel manufacturing companies’ financials and they had to focus on cost reduction initiatives to survive. Steel companies who did not follow a turnaround strategy were not able to keep up with the competition. This research study focused on determining the details pertaining to the ArcelorMittal Saldanha Works turnaround strategy, as it is viewed as one of the most successful in the steel industry. Data was obtained from discussions with various role players and managers at ArcelorMittal Saldanha Works. The aim of the interviews was to get the detail of all the steps taken by the company to turn around its performance. Quantitative data describing the operational as well as financial and cost performance was sourced from the ArcelorMittal Saldanha Works Key Performance Indicator (KPI) system and from financial statements and progress reports. It was found that the basis for the turnaround strategy of ArcelorMittal Saldanha Works was World Class Manufacturing as it provided the vehicles through which improvements were managed with the aid of mainly the Autonomous Maintenance (AM), Professional Maintenance(PM), People Development (PD), Focused Improvement (FI), Product Quality (PQ) and Safety Pillars. The Cost Deployment (CD) Pillar was used to identify the biggest losses that needed to be addressed. ArcelorMittal Saldanha Works moved from one of the highest-cost producers in the ArcelorMittal group during 2010 to the second-lowest-cost producer in the group at the end of 2013. It reduced its total cost of production with $70 per ton over this period, without any major capital expenditure. The study concluded that the turnaround of ArcelorMittal Saldanha Works was successful and it is sustainable. This can be seen from the increase in the overall equipment availability, amount of hot-rolled coil tons produced, as well as the EBITDA figures reported in the study.

Corporate turnaround, in comparison to financial distress, is not substantially researched either internationally or locally in South Africa. This study attempts to explore this area of research by developing models that identify financially distressed companies with a potential for turnaround. This analysis examines listed companies on both the JSE Securities Exchange ('JSE') and Alternative Exchange ('AltX') for the period 2007 to 2014 by using available data from iNet BFA. The financial distress model, Taffler's Z-score, is used to identify companies that fall within the sample. Multiple linear discriminant models with interaction variables are used as part of the process to derive the turnaround models. The first model shows that efficiency is a key driver for a successful turnaround. The second model reveals that JSE-listed companies are more likely to survive than AltX companies. This study contributes to the existing research by identifying significant factors for corporate turnaround and summarizing its findings in a practical manner.

The presented master thesis is intended to serve as a guide to the corporate turnarounds for small and medium enterprises. In the first part, the theoretical background related to corporate turnaround is outlined complemented with specific aspects of the CEE region and the Czech Republic. In the next part, a comprehensive turnaround framework based on theoretical research is developed. The final part presents a case study of a small Czech company that went through a turnaround and evaluates the company's turnaround actions from the perspective of suggested theoretical framework.

This in-depth study looked at a major manufacturing company during a year when management projected contract losses and massive lay-offs and terminations. The company's hourly employee culture indicated that the major automotive customers of the company were influential driving forces and would rescue the company from the dire management predictions. The principal major research question was to determine the accuracy of predictions based upon the company's hourly workers' culture versus management's predictions and actions based upon external sources.Another investigation area was the company management's actions to manifest their avowed "our employees are our most valuable resource and asset" belief statement. Similarly, would the Professional and Technician Equal Employment Opportunity job groups have the smallest percent of reduction, since the company's primary strength was purported to lie in its engineering and technical employees?Interviews, data collection and analysis, and monthly task force investigations and communications revealed the company culture was definitely more accurate than the numerous predictions made by management. As the "culture" predicted, the loss of the contracts did not occur. The company concluded the year with increases in total employment. Temporary lay-offs did occur during the year and management took numerous actions to help both retained employees and those being terminated or laid-off. Such actions included outplacement services, stress reduction programs, job placement and resume writing, and instituting communication networks and procedures and a Dispute Resolution Procedure. The company did show that the employees were valuable and important assets.The reduction numbers and percents for the Professionals (engineers) and Technicians were exactly opposite of what management typically avowed. The largest category reduced was the Technicians and the second-largest category was the Professionals.The company continued to be quite viable and the future outlook became optimistic, which coincides with the company culture that the major automotive customers will always be there needing the company's products.The company management took several steps to prevent their predictions from occurring, while hourly employees, using only history which is not a very dependable source for industry today, happened to be correct in this study.The primary conclusion was that the culture of the company's hourly workers was more accurate in predicting the future than management's predictions based on supposed knowledgeable external sources. It was recommended that internal cultural based predictions and externally based information be blended together for the most accurate predictions. This will provide all managements everywhere a better information base for making decisions, particularly strategic planning decisions.
Center for Lifelong Education

Mestrado em Ciências Empresariais
Este projecto consistiu na concepção de uma metodologia para implementação de uma reestruturação empresarial, de uma Micro empresa portuguesa em situação de crise, na área da metalomecânica. A vertente teórica fundamenta-se numa revisão da literatura, tendo-se observado uma notável discrepância nas perspectivas e definições dos investigadores, com uma abordagem baseada em factores de declínio e crise das empresas e nas estratégias por elas praticadas. No decorrer da investigação, procurou-se sempre interligar a componente prática com a teoria investigada. Mediante um estudo de caso, que envolveu análise documental das informações financeiras, análise da cadeia de valor, do mercado externo e posterior concepção de uma matriz SWOT, realizou-se um diagnóstico da situação actual da empresa que permitiu delinear os objectivos e a proposta de estratégia futuros. A decisão final teve por base um estudo de viabilidade da implementação dos planos estratégicos - denominados "As Is" e "To Be" - assente numa metodologia de avaliação do valor dos capitais próprios no final do período considerado de reestruturação do negócio.
This project consisted of the conception and application of a practical methodology of the implementation of business restructuring in a micro portuguese company at a risky situation within the metalomechanics area. Basing the theorical aspect on a literature review we observed a great discrepancy between the investigators´perpectives, in an approache based on the facts leading to decline and company crisis, and the common practiced strategics. In the course of the investigation, methodology was based on the diferent author´s points of view, always interlinking the practical aspect and the investigated theory. Through a study case which involved financial documental analysis, value chain and external market analysis and posterior conception of the SWOT matrix, a diagnosis of the company´s actual situation was carried out which permitted a delineate of a future strategic proposal. The final decision feel upon a viability of implementation of the strategic plans´ studies comparison - called "As Is" and "To Be" - based on actualized equity market value evaluation methodology from the final of the period considered in the business restructuring.
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O objetivo deste trabalho foi explorar o tema de estresse financeiro e recuperação no ambiente corporativo através de uma revisão bibliográfica e estudos de casos, fazendo um paralelo entre os conceitos e conclusões levantadas por autores que estudaram o tema e casos reais vivenciados por empresas do setor de telecomunicações no Brasil. Muitos autores apontaram os fatores externos (cenário macroeconômico, mudanças na estrutura da indústria, falta de liquidez no mercado financeiro, etc.) e os fatores internos (erro dos administradores) dentre as principais causas que levam uma empresa a apurar estresse financeiro, enfatizando que, os fatores internos são determinantes na maioria dos fracassos corporativos. Os autores também mencionaram importantes estratégias de sucesso a serem implementadas dentro de um processo de recuperação, destacando as estratégias voltadas para o aumento de eficiência (redução de custos e despesas, venda de ativos, etc.) e estratégias voltadas para o empreendorismo (re-posicionamento de mercado, entrada em novos produtos). O trabalho desenvolveu estudos de casos de empresas do setor de telecomunicações do Brasil no período após a privatização, que vivenciaram estresse financeiro e implementaram um processo de recuperação. Dentro deste critério, os casos de estresse financeiro da Embratel e da BCP foram os objetos de análise e contribuíram para interessantes conclusões sobre as causas que levaram as empresas de telecomunicações a enfrentarem estresse financeiro, as estratégias de recuperação implementadas, os aprendizados dos casos analisados e como os conceitos e conclusões descritos na revisão bibliográfica se aplicaram nos casos.
This dissertation aimed at analyzing the financial distress and turnaround situations within the corporate environment, through a bibliography revision on the subject and also through case studies. This study assessed the concepts and the conclusions drawn from authors, who have researched the theme, and compared to real cases of telecommunication companies in Brazil. Many authors mentioned several external reasons (macroeconomic scenario, industry structure changes, lack of liquidity in the financial markets, etc) and also internal reasons (bad management) among the main causes of corporate decline. They highlighted that, in most cases, the internal reasons are the key contributors for corporate failures. The researchers also described important set of prevalent strategies implemented in successful turnaround processes. Among those strategies, the authors mentioned the efficiency-oriented strategies (also known as “retrenchment activities” that include cost reductions, downsizing and downscoping) and the entrepreneurial strategies, including changes in market positioning and new market entrance actions. This dissertation also developed case studies on telecommunication companies in Brazil that experienced financial distress and turnaround process after the privatization event. Following these criteria, the financial distress and recovery process of Embratel and BCP contributed for interesting conclusions on the business failure causes, the turnaround strategies executed, the lessons-learned from the analyzed cases and also on how the concepts and conclusions brought by the researchers fit in the cases studied.

Chan, Eunice Shan.
Thesis (M.Phil.)--Chinese University of Hong Kong, 2001.
Includes bibliographical references (leaves 108-119).
Abstracts in English and Chinese.
ABSTRACT --- p.i
CHINESE ABSTRACT --- p.ii
ACKNOWLEDGMENTS --- p.iii
TABLE OF CONTENTS --- p.iv
LIST OF TABLES --- p.v
LIST OF FIGURES --- p.vi
CHAPTERS
Chapter 1. --- INTRODUCTION --- p.1
Chapter 2. --- LITERATURE REVIEW --- p.5
Definitions of Turnaround --- p.5
Causes of Firm Decline --- p.6
Severity of the Situation --- p.8
A Western Perspective on Turnaround Responses --- p.10
Turnaround Success --- p.20
Turnaround in the Non-U. S. Contexts --- p.21
Chapter 3. --- THEORETICAL FRAMEWORK AND HYPOTHESES --- p.23
Organizing Framework --- p.23
Institutions and Their Impact on Turnaround --- p.26
Institutional Environment in East Asia and the West --- p.32
Hypotheses --- p.44
Chapter 4. --- METHODOLOGY --- p.54
Research Design --- p.54
Quantitative Methods --- p.55
Qualitative Methods --- p.62
Chapter 5. --- RESULTS --- p.65
Quantitative Results --- p.65
Qualitative Evidence --- p.79
Chapter 6. --- DISCUSSION AND CONCLUSION --- p.97
Implications --- p.98
Limitations and Future Research --- p.102
Conclusion --- p.104
REFERENCES --- p.108
APPENDIX 1: INTERVIEW PROTOCOL --- p.120
APPENDIX 2: ANALYSIS OF FIRMS WITH NON-ETHNIC CHINESE PRINCIPALS REMOVED --- p.121
APPENDIX 3: ANALYSIS OF FIRMS WITH LOW Z-SCORES --- p.123
APPENDIX 4: ANALYSIS OF FIRM SIZE --- p.126

M.Ing.
This report addresses an empirical study into the re-structuring of Transnet group of companies. The study is based on the outcome of the re-engineering process focusing on Spoornet as a member of Transnet. The departments partially studied are, the Infrastructure Maintenance department and Train Operations department with-in Spoornet. The objective of this study is to achieve a break-even point between maintenance and the business side so as to increase operational profit in Spoornet. Outsourcing is a management tool used to make more profit. It is also a way of getting rid of unwanted business units. This will help increase shareholder value and reduce operating costs so that management can focus on core business units. The results expected from outsourcing in this study are aligned with the business process engineering "BPR" results. From the BPR results the business units were classified as core and non-core business units. Non-core business units were discontinued while core business units were further classified into core department, which is the running of trains, and the non-core department as maintenance departments. The maintenance departments are fully represented on a functional level while they used to have a full representative on the corporate level before restructuring. Cutting-off these logistic support departments at a corporate level, can have an effect on maintenance being undermined due to lack of specialists input at a higher level in terms of systems engineering and maintenance. This can lead to system's lack of maintenance and an increase in systems failure, making the system un-reliable and unsafe for the passage of trains while on the other hand the business will be lost back to the competitors, who in this case is the road freight business. A case study is discussed in the dissertation where value added techniques such as the business turnaround process, outsourcing and Integrated Logistic Support "maintenance" were applied in this study.

O presente estudo aborda o fenómeno de recuperação de empresas (Turnaround) em Portugal. Através de inquéritos e entrevistas a gestores e outros protagonistas de casos bem sucedidos de Turnaround em Portugal, este estudo procura identificar se há um conjunto de factores característicos dos Turnaround em Portugal e, confirmada essa hipótese, se desses factores é possível extrair conhecimentos potencialmente úteis para a gestão de empresas em situação de declínio. Na primeira parte enunciam-se os objectivos do estudo e a revisão da literatura sobre Turnaround. A segunda parte apresenta a metodologia utilizada e procede à análise e discussão dos resultados, enquadrando-os no âmbito da literatura consultada. Por último, expõem-se as conclusões de que há uma matriz comum aos processos de Turnaround bem sucedidos em Portugal e sobre a mesma, extraem-se perspectivas sobre a gestão de empresas em dificuldades.
This paper studies the Turnaround in Portugal. Through inquiries and interviews to managers and other experienced players, this study seeks to confirm the existence of a framework of common factors to the Portuguese successful Turnaround processes, and if confirmed, if it is possible to transpose, from that framework, some potentially useful guidelines to the management of under-performing companies. The objectives of the study and a survey of the Turnaround literature are presented on the first part of the document. It follows the enunciation of the used methodology and the presentation of the analysis and discussion of the output under the perspective of the consulted literature. Finally, the common Portuguese successful Turnaround framework is identified, as well as, some perspectives about the management of declining companies.

O presente projecto-empresa tem como finalidade apresentar e fundamentar uma estratégia de reestruturação/turnaround aplicada a uma empresa real, a ACR. Com base na revisão de literatura, na análise da envolvente externa – mediata e imediata, e na análise interna da empresa, foi definida uma estratégia de reestruturação do negócio, tendo em vista o seu crescimento por via da diversificação em conglomerado. A formulação da estratégia implicou a definição da visão e missão, a definição dos objectivos gerais e por cada departamento, e as respectivas estratégias, sempre com o intuito de potenciar o crescimento do negócio através da combinação positiva de pontos fortes e oportunidades e procurando minimizar a combinação negativa de ameaças e fraquezas. Da avaliação económica e financeira resulta a conclusão de que a estratégia é viável pelos métodos do Valor Actual Líquido (VAL), Taxa Interna de Rentabilidade (TIR), Período de Recuperação do Investimento (PRI) e Valor Actual Líquido Ajustado (VALA).
The purpose of this work (project/company) was to present and validate one strategy of re-structuration/turnaround applied to a real company, ACR. Based on bibliographic research, external analysis of the surrounding – indirect and direct, and internal company analysis was defined one strategy to re-structure business, having the concern is increase by diversification in conglomerate. For the formulation of the strategy was necessary to define a vision and mission, general objectives, for each department with their own strategies, always with intention to improve business progress through the positive combination of strengths and opportunities and trying to minimize negative combination of threats and weaknesses. From economic and financial evaluation results the conclusion that the strategy is feasible by the methods of Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period and Adjusted Net Present Value (ANPV).

Tese de Doutoramento em Gestão na especialidade de Contabilidade apresentada à Universidade Aberta
O objecto da tese é investigar – tomando como base uma amostra de 122 Pequenas e Médias Empresas portuguesas, utilizando a metodologia estatística de modelação através de equações estruturais (Structural Equation Modeling – AMOS 5.01 do SPSS), analisando numa visão holística – padrões de inter relações entre diversas dimensões organizacionais e ambientais: factor humano, ambiente, recursos e capacidades organizacionais, actuação estratégica, causas do declínio e acções estratégicas de recuperação, com o intuito de melhor compreender a sua influência no nível de desempenho, percebendo as razões (contextuais) do seu declínio e (o contexto e conteúdo) da sua recuperação. Os resultados obtidos evidenciam uma associação directa, positiva e significativa, entre, a menor competência dos recursos humanos e o reduzido acesso a informação interna e externa de gestão, e os baixos níveis de desempenho. Perante a noção da existência de uma elevada competição e uma menor procura dos produtos do sector de actividade, a atitude da gestão baseada num estilo de gestão muito centralizado e com níveis moderados de complacência, relaciona-se de forma significativa com uma actuação estratégica, de crescimento moderado no actual binómio produto/mercado, com uma reduzida utilização de técnicas de rastreio do meio envolvente. Esta actuação estratégica afecta de forma contínua o desempenho, manifestado numa redução do Resultado Líquido do Exercício e na Rendibilidade do Activo. A percepção dos gestores de que a causa do declínio foi devida a um ambiente competitivo, leva-os a implementar um conjunto de acções visando a reestruturação operacional, melhorando a sua competitividade por via da redução da estrutura de custos e do número de efectivos. Tais acções são significativamente influenciadas pelo enfraquecimento da concorrência, pela capacidade negocial de melhores condições de pagamento e recebimento, e pela existência de adequados meios financeiros (fluxos de caixa positivos e financial slack resources). Esta actuação estratégica de recuperação revelou-se determinante na melhoria do desempenho, para a qual também contribuiu de uma forma significativa a actuação comercial e de marketing através da obtenção de informações sobre os clientes (inquéritos e estudos de mercado) e de uma análise criteriosa (selecção) de clientes.
The aim of the thesis was to investtigate – from a sample of 122 small and average Portuguese companies, using structural equation modelling (AMOS 5.01 from SPSS) statistic methodology, analyzing in a holistic view – standards of relationships between several organizational and environment dimensions: human resources, environment, organizational resources and capabilities, strategy, causes of the decline and turnaround strategies. The purpose of this study was to understand at the first time the perceiving contextual reasons influence on organizational performance decline and at second time the context’s and content’s turnaround in the organizational performance recovery. The results evidence a significant direct influence between the lesser ability of the human resources, lower access to the internal and external of management information, and the low level of organizational performance. With an existence of raised competition and a lesser industry products demand, the management attitude based on a higher centered management style and with moderate levels of complacency, becomes significantly related with a moderate growth corporate strategy in the current markets and products, with lower using of scanning environment techniques. This corporate strategy posture influence continuously the organizational performance, showed in a decreased profit and ROI. The manager’s perception that the cause of decline had it origin on a competitive environment takes them to implement a set of operational restructuring actions with the goal of improving its competitiveness. These actions included cost and number of employees reductions. In other way these turnaround actions are influenced by the competition weakness, better receiving and payment terms, positive cash flows and financial slack resources. This turnaround context seems critical to the organizational performance improvement, for which also contributed of a significant form the commercial and marketing performance through the attainment customer’s information (inquiries and market surveys) and customer’s selection analysis.