1.0 JOHNSON TURNAROUND CASE STUDY ANALYSIS 1.1 INTRODUCTION

Johnson Pte. Ltd., a public non-listed subsidiary of a fast moving consumer goods (FMCG) group of companies based in Southern Indian region. Before the takeover, JPL was wholly-owned by the Indian government. Then, 20 years after it began operations, the Hong Kong group of companies acquired 80% of the company’s shareholdings and the company were involved in a similar industry operating within the Asia Pacific region. JPL manufactured and distributed a range of products, including frozen, chicken, noodles, pastries, bread products, yeast and fats. It also traded in commodities such as oil. It owned a chain of restaurants and retailing outlets. Azmi, the new Chief Executive Officer in November 2009 had been assigned by the chairman to plan and execute a turnaround programmed for the company due the besieged with problems ever since they took over its operation from the previous owner. Addition, the sales figures is on a decline but their operating costs are up. So, the chairman directed Azmi to check what is happening to the company credit control and inventories management. Therefore, Azmi had to plan and execute an appropriate turnaround strategy.

The case is about a company based in southern Indian region, named Johnson Pte Ltd, (JPL). It a non-public listed firm operating in Fast Moving Consumer Goods Industry, (FMCG). The company manufactures and distributes products which include frozen Chicken, Noodles, pastries, bread products, yeast and fat. Also the company owned a number of restaurants and retailing outlets and it deals in trading of oil products as well. It was initially owned by Government of India, has operated 20years in this industry (FMCG), before Hong Kong group of companies acquired 80 percent equity share to become its parent company. The acquisition was in line