Turnaround Strategies

Table of Contents

Introduction 3

Internal management in Corporate Governance 3

Jack Welch 5

Growing fast in a slow growth economy: 5

‘The Welch Way’ 5

The unique leadership style of Jack Welch 6

Louis Gerstner 7

Gerstner’s approaches to understand the business 7

Challenges faced by Gerstner 7

Turnaround strategies 8

Lee Iacocca 10

Lee’s career challenges 10

Lee’s turnaround strategies 10

Conclusion 12

The role of CEO in Corporate Governance 12

Introduction

This report is an attempt to reproduce the understandings and learning from the turnaround strategies of three great leaders:-

Lee Iacocca - an American businessman known for engineering the Ford Mustang and Ford Pinto cars, being let go from Ford Motor Company, and his revival of the Chrysler Corporation in the 1980s.

Louis Gerstner - chairman of the board and chief executive officer of IBM from April 1993 until 2002 when he retired as CEO in March and chairman in December. He is largely credited with turning around IBM's fortunes.

Jack Welch - an American business executive, author and chemical engineer. He was chairman and CEO of General Electric between 1981 and 2001. During his tenure at GE, the company's value rose 4000%.

Corporate Governance refers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves the alignment of interests among the stakeholders....