Stopping cash consumption with hard cost-cutting measures is only an emergency operation to avert the imminent exitus of the company.
To achieve a sustainable Turn-around, regaining strength based on a stable market strategy is at least equally important to the restructuring efforts.
No route without a destination
Market strategy is the essential element in any considerations toward the restructuring effort („Structure follows Strategy“):
- It determines the strategic business areas with regards to the critical factors for success.
- It defines market requirements on which processes, structural organization and management structures are based upon.
- It supplies the structure in which the analysis of earnings development takes place.
The development of the „right“ strategy requires professional know-how, comprehensive market knowledge, experience and vision.
Consequent implementation in the day-to-day operations
Especially within the medium-sized business sector strategic developments are often largely dependent on the management style of the CEO or the owner. In the event of a deficient consequent implementation down to the single employee, opportunities might be missed – because the strategy is not lived and therefore peters out.