Execution of turnaround strategies for ABC building towards financial recovery

• Main Author: Aquino, Karen Selina A.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Financial management (Business); Business planning; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5004
• Institution: De La Salle University

The target outcome of this action research consists of setting up and executing turnaround strategies specifically on operations and human resources (from no system of doing business transactions to defined and controlled implementation of operational procedures), to hopefully recover the business from its predicament and eventually obtain sustainability. Collaboration with the employees, absentee stakeholders and the bank through meetings, focus group discussions and one-on-one interviews were done in all four steps of action research cycle namely constructing, planning action, taking action and evaluating action. It was the decision of the absentee stakeholders and the previous manager herself, that she is to be replaced by me as the new manager. Upon my entry to the organization it was agreed upon by my collaborators and I, that we would address the issue of opportunity of not having a system of operations in doing business transactions and undefined employee roles. In the execution of turnaround strategies, we first defined employee roles and set up rental collection and disbursement procedure which has strict consideration in monitoring and control. The implementation of the strategies would hopefully lead to the collection of all the rental fees to be used appropriately. The interventions will ensure effective collection and use of funds to eliminate financial management problems. The drafted procedures were implemented successfully, although the collection procedure did not quite achieve what we were expecting. This led to the execution of the second cycle of the action research which focuses on the revision of the collection procedure. In the overall evaluation, the intervention proved to have significantly improved cash balances and has slowly updated financial obligations of the business. The organization is now slowly moving towards full financial recovery and hopefully towards sustainability.