turnround


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turnround

a situation where a firm or a division of a firm that has been experiencing a protracted decline in profits is able to institute measures which not only halt the decline but form the basis of a sustained recovery in its profitability A turnround situation reflects something more than a downturn in profits associated with the BUSINESS CYCLE which affects to a greater or lesser degree most companies operating in a particular activity In essence it is a crisis situation which is firm-specific, reflecting various internal problems: ineffectual management (an autocratic chief executive, an unbalanced management team, lack of attention to the formulation of BUSINESS STRATEGY), poor financial structure (an inappropriate capital GEARING level), poor financial control (unsystematic allocation of overhead costs, lack of information on which products are generating cash and which ones are making losses) etc. All these factors can contribute to a lack of efficiency, higher costs, loss of competitive vigour and a failure to respond adequately to the changing needs of the market.

Recovery can only be achieved if there is a willingness and ability to identify the major sources of the firm's problems, followed by the initiation of action programmes involving managerial, administrative and financial reorganization, cost reduction and better directed marketing efforts aimed at re-establishing COMPETITIVE ADVANTAGE over rival suppliers. A tardiness or failure to implement appropriate turnround measures may well end in insolvency. However, before this point is reached the firm may well be TAKEN OVER, or in the case of a division, divested. See DIVESTMENT, ENDGAME STRATEGY.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
We have invested in new equipment too to enable us to offer a fast turnround service, which is increasingly in demand."
The turnround has come since the company formed an alliance with Renault and its UK manufacturing plant at Sunderland continues to break production records.
Bartholomay indicated that Toray values its link with ITW because its iScan pulse laser origination system allows a fast turnround on origination.
Indeed, he suggests that Rocroi did not lead to a major turnround in French military fortunes.
Measure Target Intervention Point * User satisfaction 95% good+ 90% good+ with helpfulness of staff * Active borrowers 45% of relevant 30% of relevant population population * Opening hours 45 hours per 45 hours per week week for large large branch branch * Reservation 50% in 7 days 35% in 7 days turnround * Bookspend 3,500 [pounds 1,970 [pounds sterling] sterling] per 1000 per 1000 population population * IT workstations 0.7 per 1000 0.35 per 1000 population population
These words are either part of the term (but may be omitted) or indicate the particular field of application, for example "turnround (of vehicle)".
For example, the US Federal Reserve in 1991 stated that policy easings were carried out `to foster a turnround in the economy ...
Nevertheless, the mere fact of a sea crossing may be thought of as an obstacle by some customers and might deter companies which rely on a very short turnround from considering Northern Ireland as a location.
The most important considerations were the industry (60 per cent ranking this the most important), potential market growth and turnround potential.
Mid-term policy changes do seem to have produced a very favourable balance of payments response: where the earlier policy phase was contributing a deficit of some [pound]1,000 m at annual rates, the turnround produced a swing of some [pound]4,000 m.
It is more than a year since the Chinese economy started to show a sharp turnround. At that point, investors were braced for an economic "hard landing" and a currency devaluation.