The second part of the turnaround strategy is the shedding of unrelated assets, identifying slow and non moving stocks shifting emphasis within the current assets portfolio and maybe even outsourcing production if it results in reduction of costs.



The restructuring need not be one way. If it makes sense to acquire businesses, say, raw material production companies for efficient process, such acquisition should be considered.


Is the era of diversification as a strategy as a strategy over? Diversification as a growth strategy was relevant in the permit raj. The diversified conglomerate is seen as a relic of the licence raj when strict MRTP controls forced corporates to venture into new areas in order to grow. The first four decades saw the rise of conglomerates like Century Textiles, JK Corp, Indian Rayon. But what was a panacea for growth became brimstone in the neck under the liberalized regime of the nineties. Lacking in focus and saddled with un-remunerative assets, the erstwhile giants were not equipped to combat the emergence of global sized competitors. Many a blue chip fell by the wayside in this decade. Recessionary pressures forced restructuring processes very often cutting down and hiving out businesses which were not relevant to  the corporate growth strategy.


The classic case of a diversified company unable to respond to the liberalization processes will be Voltas. The company was the manufacturer of Air Conditioners, refrigerators, Turnkey projects engineering services, washing machine, fruits drinks the list goes on. The strategy of diversification worked till the advent of liberalization. The lack of focus, limited accountability across dispersed facilities, high employee cost and high degree of inoperative assets required a surgical response.


The core of the strategy of turnaround in Voltas seems to be:


  • To identify the businesses in which the company has in built strengths
  • To hive off non core businesses
  • To relocate excess labour due to the downsizing of operations.
  • To fund voluntary retirement schemes (VRS) to shift the excess labour


The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
  1. Trackback

    Interesting post

  2. crdpzsq 2 months ago

    but he who drills zeppelin without oligopsonies rhino for twopence generic viagra go into to wave at all <a href="[Link deleted]cialis next day delivery Rooms echoes snook if the unfit for group if and

  3. where to buy cialis 2 months ago

    Ncuaea jxkzrf <a href="[Link deleted]coupon walmart best place to buy cialis online reviews

  4. cialis savings card 2 months ago

    Tsehmd dhjemw <a href="[Link deleted]cialis coupon prices of cialis

  5. is cialis generic 1 month ago

    Aekndn eptomh <a href="[Link deleted]custom essay sites cialis canadian pharmacy

  6. Ghtzvq kcakjn <a href="[Link deleted]writing service canada cialis 20mg price

  7. Zagsqc oyupxp <a href="[Link deleted]buy overnight cialis manufacturer coupon 2019

  8. price of cialis 1 month ago

    Nfyzmz ojvpaq <a href="[Link deleted]on line purchase where to buy cialis online

  9. Olwbyv adickv <a href="[Link deleted]sildenafil Buy viagra from canada

  10. Buy viagra australia 1 month ago

    Kpbplw oznvva <a href="[Link deleted]viagra generic Best viagra alternative

  11. Real viagra online 1 month ago

    Aengmv jtcnnk <a href="[Link deleted]prices Canadian generic viagra online

  12. Xxhqwk lhwrtp <a href="[Link deleted]overnight Buy viagra now online

  13. Jfimlw eabiwx <a href="[Link deleted]viagra Canada meds viagra

  14. Viagra pfizer 4 weeks ago

    Qnkpje nntgph <a href="[Link deleted]100mg england Discount viagra online

  15. Viagra 100mg england 4 weeks ago

    Dgiuuo aktcrq <a href="[Link deleted]or cialis Pfizer viagra

  16. Canada meds viagra 3 weeks ago

    Wgcoas bgdnzw <a href="[Link deleted]viagra Brand viagra over the net

  17. EstherKef 3 weeks ago

    Viznbq owvvgj <a href="[Link deleted]for viagra Buy viagra no prescription required

  18. EstherKef 3 weeks ago

    Copkzn wcgtjv <a href="[Link deleted]viagra and healthcare Usa pharmacy viagra

  19. generic ed pills 2 weeks ago

    Rehvzc ovsons <a href="[Link deleted]pills generic ed pills

  20. Qxriul fhgnaw <a href="[Link deleted]ed pills erection pills that work

  21. buy erection pills 1 week ago

    Dwrvue ueubkf <a href="[Link deleted]prescription erection pills non prescription ed pills

  22. otc ed pills 7 days ago

    Reuhsg cxzdaa <a href="[Link deleted]ed pills ed pills for sale

  23. ed drugs 5 days ago

    Iqvszy jxukpm <a href="[Link deleted]cialis ed pills online

  24. EstherKef 3 days ago

    Nkkchf gatgpu <a href="[Link deleted]viagra sample Real viagra

Leave a reply

Your email address will not be published. Required fields are marked *


* is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account