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THE VARASCHIN CASE STUDY
A SUCCESSFUL BUSINESS TURNAROUND STRATEGY. THE VARASCHIN CASE STUDY.
This book summarises the key principles that need to be followed when developing a new strategy to turnaround a company, particularly when it comes to Small and Medium sized Enterprises (SMEs). This approach significantly increases the likelihood of successfully turning a company around. The Varaschin S.p.A. model was a success because the company’s remarkable recovery coincided with a significant creation of value for its stakeholders. Identity and consistency were the main premises for properly structuring the turnaround. The strategy of focusing on its core business has significantly strengthened the company, which has concentrated its efforts on activities linked to its core competencies, that is, on what it does best. Diversification in the company’s target segment is based on Varaschin’s core values: hand-woven, high comfort, ergonomics, quality, design, outdoor setting. These values are the genuine strengths capable of characterising the company’s offering in a manner which is consistent with its identity. The ability to properly plan over the medium to long term and a strategic vision capable of promptly interpreting the changes both inside and outside the confines of an industry are discriminating factors needed for guiding a company towards a successful future.
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