The second part of this two-part case examines the actions that Ashok Leyland (AL) took to achieve its aggressive growth plan and the consequences it faced when there was an abrupt negative demand shock. The case describes the challenge before AL’s management when faced with bankruptcy, and invites readers to consider how this once-proud company could be transformed and led towards profitability and growth.
1. To illustrate how a firm’s performance and survival is impacted in a recessionary environment with declining industry factors.
2. To evaluate business turnaround and recovery strategies available to firms operating in challenging economic conditions.
3. To discuss the challenges in implementing and adjusting to tough strategies that would eventually take the firm on a path of recovery.