ISSN : 1997-1052 (Print)
2227-202X (Online)
 
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Public Sector Turnaround Strategies: A Case from Indian Railway
Hasan Muhammad Baniamin
Abstract

Indian Railways (IR) has been the prime mover of the nation and has the distinction of being the largest railway system in Asia and the second largest railway system in the World under single management. After being written off as a financially unviable concern by industry watchers and nonchalant soothsayers, Indian Railways has staged a dramatic turnaround. The success mantra of this turnaround was: running heavier, longer and faster trains. Some of the favorable environmental factors like- change of macro-economic conditions, rise in demand, change in legal position, impact of the pay commission etc; acted as the catalyst to the turnaround of IR, but the main thrust came from the strategic interventions from IR which contribute to create and to grip the opportunities raised from its business environment. Through the retrenchment strategy IR successfully reduces the operating cost and brings efficiency. It focused on operating and commercial sub-strategies within the overall repositioning strategy to significantly increase revenue. Replenishment strategy helps to ensure that the network works efficiently, with safety and reliability. Reorganization spawns aid to implement aforementioned three strategies. The major implications of the findings of this diagnostic study are not only to generate knowledge on public sector turnaround but also to produce roadmap to replicate it into other countries. During the replication, one should carefully customize these strategies on the basis of content and context of the turnaround.

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