December 8, 2021

Group Members | Ameer Taimur Ali, Muniba Shoaib, Natasha Farooq,

Shumail Arzu

STRATEGIC
MANAGEME REVLON, INC
NT
 Revlon, Inc-2007
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Introduction

Revlon is an American cosmetics, skin care, fragrance, and Personal Care Company founded in
1932. Revlon operates as one of the world's leading cosmetics companies and markets its
products in over 100 countries under such familiar brands as Revlon, Color Stay, Age Defying,
Almay, and Skin-lights.

History

In 1932, Revlon was founded in the midst of the Great Depression. Two brothers named Charles
and Joseph Revson, they had an idea to create nail polish using pigments instead of the normal
dyes. They believed this would make the polish last longer and would allow for a larger variety
of colors. To come up with their formula, they partnered with a local chemist named Charles
Lachman. Using the Revson name, plus an "L" for Lachman, they named their new nail polish
company "Revlon." Within 6 years, the 3 men had turned Revlon into a million-Dollar Company,
selling only their special nail polish. In 1940, Revlon offered an entire manicure line, and added
lipstick to the collection. In 1994, The Color-Stay line of long-lasting cosmetics was introduced
with the debut of Color-Stay lipsticks, which soon captured the top spot in its category. As more
women began working, they needed makeup that stayed on all day. This has led Revlon to
develop its Color-Stay product lines.

Growth and innovation led the way for Revlon. In 1985, Revlon was sold to a subsidiary of
MacAndrews & Forbes Holdings. In the 1990's, Revlon revitalized its cosmetics business and
strengthened its industry leadership role. Revlon introduced the first transfer resistant lip color
which led to a full Color-Stay TM Collection of transfer-resistant products. The company closed
the gap on its closest competitors and reached a dramatic goal - the #1 brand in mass color
cosmetics. In 1996 Revlon again became a public company, listed on the New York Stock
Exchange

Vision & Mission Statement

Vision Statement

“To Provide Glamour, Excitement, Innovation Through Quality Products At Affordable Price”
 Revlon, Inc-2007
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Characteristics Of A Effective Worded Revlon

Vision Statement
Graphic Paints a picture of the kind of company that
management is trying to create and the market
positions the company is striving to stake out
Directional Is forward looking ;describing the strategic
course that management has charted and the
kinds of product/market/technology/customer
changes that will help the company prepare for
the future
Focused Is specific enough for managers to provide
them with guidance for making decisions and
allocating resources
Flexible Is Not-Once-And-All-Time-Statement, the
directional course management has charted
may has to be adjusted as
product/customer/technology/markets
circumstances may change
Feasible In within the realm of the company can
reasonably expect to achieve in due time
Desirable Indicates why direction make good business
sense and is in the long-term interests of
stakeholders(especially shareowners,
customers & employees )
Easy to communicate Is explainable in 2-3 minutes and ideally can
be reduced to a single, simple & memorable
slogan
 Revlon, Inc-2007
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Mission Statement

 “Revlon Is A World Leader In Cosmetics, Skin Care, Fragrance And Personal Care And
Is A Leading Mass Market Cosmetics Brand “
 “To Emerge As Dominant Cosmetics And Personal Care Firm In The Twenty-First
Century By Appealing To Young/Trendy Women, Health Conscious (Skin Care), And
Elder Women With Its Variety Of Brand”

Mission Statement Evaluation Matrix

Organizatio Customer Product Market Concern Technolog Philosoph Self- Concer Concern
n s s or s for y y Concep n for for
Services Survival, t Public Employee
Growth, Image s
Profitabilit
y
Revlon

Statement 1 No Yes No Yes No No No No No

Statement 2 Yes Yes Yes Yes No No No No No

Analysis

Revlon’s mission statement is too narrow considering the Corporate Social Responsibility (CSR)
factor into consideration Revlon needs a new mission statement which primarily focus on CSR
topics like concern for public image, self concept, concern for employees etc and among other
factors its philosophy which can give customers, employees & stakeholders a decent idea about
the organizational and their investment in it
 Revlon, Inc-2007
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Proposed Mission Statement

To meet customers need for superior quality services. Provide secure & challenging work
environment for all employees. Meet everyday needs for nutrition; hygiene and personal care
with brands that help people feel good, look good, and get more out of life.  Total commitment to
exceptional standards of performance and productivity, to working effectively, and to a
willingness to embrace new ideas and learn continuously

SWOT Analysis

Since the Industry Averages weren’t available we have used the competitors’ financial
ratios for financial analysis.

*In the context of the year 2008

Strengths

 $25 million was spent on CSR program

 Currently, $24.4 million on R&D
 Aggressive Advertising worth 120 million
 Great operating efficiency and use of capital assets
 Quality manufacturing standards and having ISO-9000 certification
 Strong Brand recognition
 The company tries to introduce new products
 Produces products for all type of women, young, trendy, health conscious and older
women
 Strong Social Responsibility programs
 Large mass merchandisers
 Great operating efficiency use of capital assets
 Continues new product development
 Big share of share of sales in the foreign market (43% in 2006)
 Net sale in 2007 increased from 2.6% after suffering a loss in 2006
 The baby boomer chunk of the population tends to be brand loyal
 Revlon, Inc-2007
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 Joint venture of Revlon and Pacific World Corporation into establishing a new line of
nail and nail care products
 Sales of products through internet

Weaknesses

 Long term debt 2.3 billion. In 2003 Mac Andrews and Frobes Holdings Inc gave out
$150 million, later in 2006 an extension of $87million debt by Mac Andrews was made;
 High restricting cost that amounted up to $29 million when David Kennedy was in
command . From the year 2006 – 2007. First there was a layoff of 15% before Kennedy
in 2000 then another reduction of 8% when he took charge
 Higher prices than competitors
 Decrease in sales by 1 million (from 2005 - 2006)
 High net losses in 2006, which resulted because of the discontinuation of Vital Radiance
and because of the long term debt
 Discontinued vital radiance in 2006. The brand was launched in 2006 but was
discontinued as the customers didn’t respond to it. Negative impact of this product line
was estimated to be $110 million
 Employ layoff by 8% duing 2006 – 2007
 Less diversified products compared with competitors
 Constant organizational restructuring
 Lack of financial resources
 Large amount of advertising expenses
 Decrease in current assets and increase current liabilities
 Revlon, Inc. is a holding company with no business operations of its own and is
dependent on its subsidiaries to pay certain expenses and dividends

Opportunities

 Increase in US teen market 20 million by 2010

 Revlon, Inc-2007
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 Growth in Hispanic population by 2010

 Asian markets still 60% uncovered by Revlon
 Increase in online retailing
 Women in China, India and middle East are rapidly growing interest in purchasing more
cosmetics
 Sales of personal care products increased form 428 to 499.4 in 2006 which indicates a
new trend
 Men also using the cosmetic products
 Expansion in Hair coloring market among youth
 The young migrants to America are increasing
 Personal care products usage is increasing
 Latin America represents a growth opportunity
 Older age women entering into the cosmetic industry
 Baby boomers have high levels of disposable incomes
 Globalization can enhance company’s productivity if the constant restructuring stops

Threats

 Racial and ethnic changes in US market

 Intense competition (so many brands offering the same stuff, even the competition for
African American market has increased with the entry of brands like Fashion Fairs and
cosmetics lines launched by Patti LaBelle)
 Some competitors of multinational companies are offering more than just skin care and
makeup products
 Disposable income of Americans decreasing
 Consumers’ concerns about product safety and CSR activities
 Major retailers reducing inventory levels due to recession
 Decrease in the value of dollar
 Ageing US population
 Young age women are decreasing
 Revlon, Inc-2007
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FINANCIAL RATIO ANALYSIS For The Year 2008

Liquidity Ratios

Current Ratio:

= Current Assets/ Current Liabilities

2008 Avon Estee lauder

1.32 1.21 1.9

Analysis: Current ratio is above 1 which indicates that for every $1 of CL there is $1.32 of CA.
This means that the company is managing its short term obligations quite well. For a creditor this
value would be quite satisfactory as opposed to its investors.

Quick Ratio:

= CA – Inventory/ CL

2008 Avon Estee Lauder

0.84 0.6 1.1

Analysis: This ratio indicates the extent to which it can meet its short term obligations without
relying on the sales of its inventory. This ratio is below 1 which refers to the fact that the
company relies quite a lot on its inventory to meet its short term obligations. The figure is below
1 which signifies a little trouble for the company. The company may not be doing great but is
definitely not the worst one in the industry.

Leverage Ratios

Debt to Equity Ratio:

= Total Debt/ Total Stock holders’ equity

 Revlon, Inc-2007
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2008 Avon Estee Lauder

-119.48% 4: 1 or 40% 58.2%

Analysis: The negative value indicates that the share of the owner’s equity as compared to the
creditors in lending the money is a larger one. The company depends mostly on equity. For Estee
Lauder this value amounts up to 58%, which is an alarming sign for the company.

Activity Ratios

Inventory Turnover

=Sales/ Inventory Of Finished Goods

2008 Avon Estee Lauder

3.18 times 3.7 2.1

This ratio states the number of times a company's inventory is sold and replaced over a period.
The lower the ratio (as compared to the industry average) the better it is for the company. A low
ratio implies poor sales and excessive inventory levels which is not the case here as Revlon’s IT
is 3.18, following Avon’s after 3.7.

Total asset turnover

= Sales/total assets

2008 Avon Estee Lauder

1.65 times 1.8 1.5
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Analysis: This ratio includes all the categories of assets, namely; receivables, and fixed assets.
The lower the ratio the sluggish the company’s sales, again this value is a satisfactory one and
denotes that the company is managing its assets well.

Accounts receivable turnover

=Annual credit sales/Account Receivables

2008 Avon Eatee Lauder

7.6X 14.6X 2.1X

Analysis: A low ratio indicates problems in collection which is the case over here, the highest
value is of Avon that has collected its receivables 14.6 times throughout 2008. Revlon’s low
turnover could be because of the bad debt.

Day’s sales in inventory

2008 Avon Estee Lauder

114.6 days 98

Analysis: There is considerable difference between the amounts of Revlon’s DSI and its
competitors. Because of a higher value the company’s efficiency has been hindered. This meant
the company is taking more days to sell off its inventory as compared to its rivals in the industry.

Profitability Ratios

Gross profit margin:

= Sales – CGS/sales

2008 Revlon Avon Etee Lauder

1346 – 491/ 1346 = 63.5% 64.8% 76.79%
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Analysis: There is a margin of 63.5% for the company to cover its operating expenses and still
yield a profit. As compared to its rivals it’s not doing well.

Operating Profit Margin

= EBIT/Sales

2008 Avon Eeste Lauder

155m/1346m = 11.5% 13.10% 15.31

Analysis: The profit left off before paying up interest and tax amounts up to 11.5% which again
is not a good thing even when we compare it with the competitors’ ratios the value is the lowest.

Net Profit Margin:

= NI/Sales

2008 Avon Estee Lauder

57.9m/1346m =4.3% 8.18% 5..98%

Analysis: 4.3% may not be a good value but considering that its not a negative one indicates that
the company has improved as the values before the year 2007 were in negative because of the
negative income

ROA

= NI/TA

2008 Avon Estee Lauder

57.9/813.4 = 7.11% 14.4% 10.87%

For every one dollar of assets the company yields a profit of $0.0711which is not exactly a good
sign and the amount of profit generated from total assets after tax and interest is quite low.
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ROE:

= NI/Total Stockholders’ equity

2008 Avon Estee Lauder

57.9/(1113) = (5.20)% 129.6% 26.73%

Analysis: The per dollar profit for every stockholders’ equity amount up to -5.20 which again is
a seriously bad sign as it’s not giving the investors/owners any attraction to keep the shares.

Price Earnings Ratio

= Price/Earnings per share

2008 Revlon Avon Estee Lauder

1.13 7.88

Analysis: This ratio shows the attractiveness of the firm on the equity market, as in how much an
investor is willing to pay for one share of the company. Over here, Revlon’s ratio is low in
comparison to its competitors. It’s not at all an attractive figure to the investors as they don’t
expect to get the highest returns from this company as opposed to the other ones in the industry.

Growth Ratios

Sales

= P2 – P1 / P1 * 100

2008 Revlon Amount in $ Avon Estee Lauder

1346-1367/1367 = (21) m 7.56% 11.03%
(1.5)%

Analysis: The sales decreased which is why the growth rate is negative for the company. The
company is not doing well against the others in the industry as the rest of its competitors have a
positive growth rate.
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Net Income

2008 Amount in $ Avon Estee Lauder

57.9 – (13.1)/13.1 71m 64.9% 5.47%
=502%*

*In 2007 the loss decreased to $16.1 million and in 2008 the net income came out to be a
positive figure; $57.9 million

Analysis: The figure is so huge because the income from 2007 was negative and its value
changed into a positive one in 2008. So in case of NI Revlon seems to be performing as
compared to its rivals.

Matrices
Internal Factor Evaluation Matrix for Revlon
Key internal Factors Weigh Rating Weighted
t Score
Strengths
1.      $25 million spend on CSR program 0.05 3 0.15
2.      Spend $24.4 million on R&D 0.06 3 0.18
3.      Aggressive Advertising worth 120 million 0.09 4 0.36
4.      Great operating efficiency and use of capital assets 0.05 4 0.2
5.      Quality manufacturing standards and having ISO-9000 0.04 4 0.16
certification
6.      Strong Brand recognition 0.06 2 0.12
7.      The company tries to introduce new products 0.04 3 0.12
 Revlon, Inc-2007
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8.      Produces products for all type of women, young, trendy, health 0.04 3 0.12
conscious and older women
9.      Strong Social Responsibility programs 0.05 3 0.15
10.  Continues new product development 0.03 4 0.12

Weakness Weigh Rating Weighted

t Score
1.      Extension of 87million debt by Mac Andrews; high restricting 0.03 1 0.03
cost
2.      Long term debt 2.3 billion 0.07 2 0.14
3.      High prices than competitors 0.09 1 0.09
4.      Decrease in sales by I million 0.04 1 0.04
5.      High net losses in 2006, which resulted because of the 0.04 2 0.08
discontinuation of Vital Radiance and because of the long term debt
6.      Discontinued Vital radiance in 2006. The brand was launched in 0.05 2 0.1
2006 but was discontinued as the customers didn’t respond to it.
Negative impact of this product line was estimated to be $110 million
7.  Large amount of advertising expenses 0.02 2 0.04
8.      Less diversified products compared with competitors 0.05 1 0.05
9.      Constant organizational restructuring 0.04 3 0.12
10.  Lack of financial resources 0.06 1 0.06
Total 1 2.43

External Factor Evaluation Matrix for Revlon

Key External Factors Weigh Rating Weighte
t d Score
Opportunities
1.      Increase in US teen market 20 million by 2010 0.03 3 0.09
2.      Growth in Hispanic population by 2010 0.07 4 0.28
3.      Asian markets still 60% uncovered by Revlon 0.09 4 0.36
4.      Increase in online retailing 0.03 3 0.09
5.      Women in China, India and middle East are rapidly 0.05 3 0.15
growing interest in purchasing more cosmetics
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6.      Sales of personal care products increased from 428 to 0.07 3 0.21
499.4 in 2006 which indicates a new trend
7.      Men also using the cosmetic products 0.04 3 0.12
8.      Expansion in Hair coloring market among youth 0.02 3 0.06
9.      The young migrants to America are increasing 0.03 4 0.12
10.  Personal care products usage is increasing 0.04 3 0.12
11.  Latin America represents a growth opportunity 0.05 3 0.15
12.  Older age women entering into the cosmetic industry 0.07 4 0.28

Threats Weigh Rating Weighte

t d Score
1.      Racial and ethnic changes in US market 0.04 1 0.04
2.      Intense competition 0.08 1 0.16
3.      Disposable income of Americans decreasing 0.03 2 0.06
4.      Consumers’ concerns about product safety and CSR 0.05 2 0.1
activities
5.      Major retailers reducing inventory levels due to 0.06 2 0.06
recession
6.      Decrease in the value of dollar 0.06 1 0.06
7.      Ageing US population 0.04 2 0.08
8.      Young age women are decreasing 0.05 2 0.1
Total 1 2.67

Competitive Profile Matrix

Revlon Estee Lauder Avon
Critical success Factors Weights Rating Score Rating Score Rating Score
Advertising 0.21 4 0.84 3 0.63 3 0.63
Product Quality 0.16 4 0.64 4 0.64 4 0.64
Price competitiveness 0.06 2 0.12 3 0.18 3 0.18
Management 0.09 2 0.18 3 0.27 4 0.36
Financial position 0.09 2 0.18 3 0.27 4 0.36
Customer loyalty 0.13 4 0.52 3 0.39 3 0.39
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Global Expansion 0.14 3 0.42 3 0.42 4 0.56

Market Share 0.12 3 0.36 4 0.48 4 0.48
Total 1 3.26 3.28 3.6

A SWOT Matrix For Revlon

Strength Weakness
  $25 million spend on CSR program Extension of 87million debt by Mac Andrews; high
restricting cost
Spend $24.4 million on R&D Long term debt 2.3 billion
Aggressive Advertising worth 120 High prices than competitors
million
Great operating efficiency and use of Decrease in sales by I million
capital assets
Quality manufacturing standards and High net losses in 2006, because of the
having ISO-9000 certification discontinuation of Vital Radiance & LTD.
 Revlon, Inc-2007
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Net sale in 2007 increased from 2.6% after Discontinued Vital radiance in 2006. Customers
suffering a loss in 2006 didn’t respond to it. Negative impact $110 M

The company tries to introduce new Employ layoff by 8%

products
Produces products for all type of women, Less diversified products compared with
young, trendy, health conscious and older competitors
women
Strong Social Responsibility programs Constant organizational restructuring
Large mass merchandisers and drug stores Lack of financial resources

Great operating efficiency use of capital Large amount of advertising expenses

assets
Continues new product development Decrease in current assets and increase current
liabilities
Big share of share of sales in the foreign
market (43% in 2006)
Strong Brand recognition

SO Strategies WO Strategies
Introduce the products in untapped Target a New growing potential Market. (W4,O5)
Markets. (S3,O3)

ST Strategies WT Strategies
Launch a campaign to make people
Invest in R & D to come up with better Products.
aware about their Social Responsibility
(W5,W6,T2)
programs. (S9,S1,T4)

Opportunities Threats
 Asian markets still 60%  Long term debt 2.3 billion. In 2003 Mac
uncovered by Revlon Andrews and Frobes Holdings Inc gave out $150
million, later in 2006 an extension of $87million
debt by Mac Andrews was made;

 Older age women entering  High restricting cost that amounted up to $29
into the cosmetic industry million when David Kennedy was in command .
From the year 2006 – 2007. First there was a
 Revlon, Inc-2007
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layoff of 15% before Kennedy in 2000 then

another reduction of 8% when he took charge

 Latin America represents a  Higher prices than competitors

growth opportunity

 Personal care products  Decrease in sales by 1 million (from 2005 -

usage is increasing 2006)

 The young migrants to

America are increasing

 Expansion in Hair coloring

market among youth

 Men also using the cosmetic

products

 Sales of personal care

products increased form 428
to 499.4 in 2006 which
indicates a new trend

 Women in China, India and

middle East are rapidly
growing interest in
purchasing more cosmetics
 Revlon, Inc-2007
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Analysis:

In the internal analysis matrix Aggressive Advertising worth 120 million is the major strength as
one can see that I have assigned .09 weights to it. The reason why this is the major strength, there
are still markets where Revlon has not catered yet, by aggressive advertising they can introduce
their products in untapped markets which would ultimately fulfill their business goal to earn
huge profits. The major threat for the company is its high prices than its competitors because
there is an intense competition in the market, user do need quality products but they what low
cost as well. Their brand loyalty is minor strength so they should do something in order to
overcome this weakness. If we look at the weighted avg. score of internal factors then we can say
 Revlon, Inc-2007
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that Revlon is unable to overcome its weakness by utilizing its strengths. Its 2.43 weighted avg.
score shows that it is not doing well internally, has poor control and weak performance.

In the external analysis matrix Asian markets still 60% uncovered by Revlon is the major
opportunity as one can see that I have assigned .09 weight to it. The reason why this is the major
strength, there are still markets where Revlon has not catered yet, by introducing their products
in untapped markets by which they can fulfill their business goal of earning huge profits. The
major threat for the company is intense competition because its prices are high than its
competitors, user do need quality products but they also want low cost. Women in China, India
and Middle East are rapidly growing interest in purchasing more cosmetics so they have a new
potential market to serve. They can reap the benefit. If we look at the weighted avg. score of
external factors then we can say that Revlon is able to overcome threats by utilizing
opportunities. Its 2.67 weighted avg. score shows that it is doing well externally, has control over
market and performance is good.

By looking at the weighted avg. scores we can say that Revlon is not doing well as compare to its
competitors. Estee lauder weighted avg. score is 3.3.28 and Avon weighted avg. score is 3.6.
Both competitors are doing well.

In the SWOT matrix by utilizing their strength of Aggressive Advertising worth 120 million they
can cater Asian markets which are still 60% uncovered by Revlon so they can Introduce the
products in untapped Markets. It would be beneficial for them and they could easily reap the
benefit. By Target a New growing potential Market which is Women in China, India and middle
East has rapidly growing interest in purchasing more cosmetics to boost their sales which would
be helpful in compensation the previous Decrease in sales by I million. They should Launch a
campaign to make people aware about their Social Responsibility programs. They have already
spent $25 million on CSR program this would be turn into high gain because now a day’s
Consumers’ concerns about product safety and CSR activities. They should Invest in R & D to
come up with better Products because there is Intense competition n they have suffered from
High net losses in 2006, because of the discontinuation of Vital Radiance & Long Term Debt
and one more reason for this failure is that Customers didn’t respond to it which resulted in
Negative impact $110 Million.
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Space Matrix

Environmental Ratings Competitive Ratings

Stability (ES) Advantage (CA)
Price elasticity of -5.0 Control over supplier -3.0
demand and distributors
Competitive pressure -4.0 Market share -4.0
Demand variability -4.0 Customer loyalty -3.0
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Price range of -5.0 Product life cycle -4.0

competing firms
Risk involved in -2.0 Product price -3.0
business

Total -20.0 Total -17.0

Financial Strengths Ratings Industry Strengths (Is) Ratings
(Fs)
Operating Income 1.0 Growth Potential 4.0
Net Income 1.0 Profit Potential 3.0
Working Capital 1.0 Ease Of Entry Into 3.0
The Market
Leverage 1.0 Resource Utilization 4.0
Inventory Turn Over 2.0
Earnings Per Share 1.0
Total 7.0 14.0

Analysis
From the above analysis and diagram we can conclude that the best strategy for Revlon is
competitive strategy which contains backward, forward and horizontal integrations, market
penetration, market development, and product development.
ES average is -20/ 5 = -4.00 IS average is +14/ 4 = +3.50
CA average is -17/5 = -3.40 FS average is +7/ 6 = +1.17
FS

Conservative. Aggressive

Market penetration Vertical integrations.

Market development Market penetration
Product development Market development
Related diversification. Diversification.

IS
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CA

Defensive Competitive
Retrenchment
Vertical integrations
Divestures
Market penetration

Liquidation Product development

ES

The Grand Strategy Matrix for Revlon

In the case study of Revlon we saw that the market is growing worldwide even in America the
young migrants increasing year by year but the competitive position of Revlon is not strong
because the competitors are Proctor & Gamble, Unilever, Avon Products, Inc’ which is very
strong and have popular brand names. Therefore according to Grand Strategy Matrix the Revlon
lies in quadrant II. According to this quadrant the Revlon needs strategies like Market
development, Market penetration, Product development, Horizontal integration, Divestiture, and
Liquidation. One of these strategy is important for Revlon

Rapid market growth

Quadrant II Quadrant I
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 Market development Market development

 Market penetration Market penetration
 Product development product development
 Horizontal integration Forward integration
 Divestiture Backward integration
 Liquidation Horizontal integration
Related diversification
Weak Strong
Competitive Competitive
Position Position
Quadrant III
Quadrant IV
 Retrenchment Related diversification
 Related diversification Unrelated diversification
 Unrelated diversification Joint ventures
 Divestiture
 Liquidation
Slow Market Growth

Relative Market Share Position

Star Question Marks

Industry
sales
growth
rate Revlon
Cash
cows Dogs

It says company market share is in medium position relative to industry market share
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Internal-external matrix
4.0 3.0 2.0 1.0

1 2

4 5
6

Revlon
 Revlon, Inc-2007
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Recommendations’
As we saw in the case study of Revlon which was actually written in 2007 that the company is in
great troubles. The financial position is also very weak and it generates losses in the recent years.
After applying the tools and techniques of strategic management our conclusion
is as follow.
1) The company should develop new markets, which is not tapped by the competitors.
2) The company should improve the quality of products as well as the price minimization
Efforts should be taken.
3) The company also needs to increase sales through increasing marketing efforts.
4) The other strategy option is the integration it may be forward, backward or horizontal
Integration.
5) The company should sell some unprofitable division.
6) The last option is liquidation. If the company fails to follow the above strategies then it
Should liquidate the business.