Provide an example of a company that has done a complete turnaround.
In your research, identify specific steps your selected company took to ensure a successful turnaround. Include data and statistics in your narrative.
Explain whether the turnaround has been effective in improving the company's profitability.
Guide On Rating System
Vote
One example of a company that has successfully undergone a complete turnaround is Apple Inc. in the late 1990s. At that time, Apple was struggling financially and faced the possibility of bankruptcy. However, under the leadership of Steve Jobs, the company took specific steps to ensure its successful turnaround.
Firstly, Apple identified their core strengths and focused their efforts on their innovative product offerings. They introduced the iMac in 1998, which was a revolutionary step in the personal computing industry. This product brought Apple back into the spotlight and helped regain consumer confidence.
Secondly, Apple reevaluated and streamlined their product line. They discontinued several non-profitable products and focused on a smaller range of high-quality products. This allowed the company to reduce costs and improve efficiency.
One significant step in Apple's turnaround was the introduction of the iPod in 2001. The iPod became a massive success and transformed Apple from a computer company to a consumer electronics company. This move helped diversify their revenue streams and open up new markets.
Another crucial aspect of Apple's turnaround was the emphasis on software and services. They launched the iTunes Store, which provided an easy and legal way for users to purchase and download music. Additionally, Apple introduced the App Store in 2008, which revolutionized the way people access and use mobile applications.
As a result of these strategic decisions, Apple's financial performance improved significantly. From 1997 to 2009, the company's annual revenue grew from $7.08 billion to $42.91 billion, marking a remarkable increase of over 500%. Furthermore, Apple's net income during the same period grew from a loss of $1.04 billion to a profit of $8.24 billion.
Additionally, Apple's profitability continued to improve in the subsequent years. In 2019, the company reported revenue of $260.17 billion and a net income of $55.26 billion, showcasing the sustained success of their turnaround strategy.
Overall, Apple's complete turnaround under Steve Jobs was highly effective in improving the company's profitability. By refocusing on core strengths, streamlining their product line, introducing groundbreaking products, and embracing software and services, Apple not only managed to avoid bankruptcy but became one of the most valuable and profitable companies in the world.
Got a question with my answer?
Cheapmath.com is completely free!
Asking question is free.
Getting answers is free.
+99