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CLIENT CASE - Defining a turnaround strategy and economic modeling
Discover how OPM Conseil supported a company in defining its turnaround strategy and economic modeling: approach, results, and key benefits
A turnaround plan is a strategic roadmap designed to help a company recover from financial difficulties. It outlines cost-saving measures and organizational changes needed to restore profitability. This plan includes a thorough diagnosis, economic analysis, and financial modeling to guide decision-making. It may recommend actions such as cancelling costly investments or restructuring operations. The plan serves as a clear framework for business recovery
Why implement a turnaround plan?
Context and challenges of a company facing profitability issues
A women's fashion brand was experiencing a sharp decline in revenue and struggling with profitability. To stabilize its financial situation and make informed investment decisions, the company needed a cost-reduction strategy that would not compromise its commercial activity. The goal was to revive business performance through a structured turnaround plan.
Project objectives: Restore revenue and profitability through strategic planning
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Relaunch business activity
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Improve overall profitability
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Avoid unnecessary investments and optimize operational costs
Our approach: Designing an effective turnaround strategy
General approach
14 weeks
Key actions
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Business and financial diagnostics
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Stakeholder engagement: shareholders, top management, operational teams
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Profitability analysis with a focus on Supply Chain efficiency
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Development of the turnaround plan:
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Revision of the logistics master plan (cancellation of new warehouse investment)
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Store profitability analysis (rent levels vs. foot traffic)
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Cost-reduction plan for administrative and headquarters functions
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Review of international strategy
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Audit of online commercial activity
Results achieved
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Avoided costly Supply Chain investments
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Restructured retail network by retaining only profitable stores
Considering a turnaround strategy for your business?
Contact OPM Conseil
Let’s discuss how we can help you define a strategic recovery plan, improve your economic performance, and restore profitability.
We support companies across all sectors in building and executing their turnaround strategies and financial modeling plans.