Restructuring / Turnaround Strategies Case Study

D&B: The Turnaround Strategies

Abstract:
Dun & Bradstreet (D&B), the $1.4 billion company by 2005, dealt with global business data and provided business information, tools, and insights about various companies. Customers bought D&B products, such as business information reports and business to business marketing lists, to improve cash flows, mitigate risks and increase revenue. But, during the 1980s and 1990s, a series of acquisitions and divestitures diminished the performance and brand value of the company and by the late 1990s, it could no longer focus on its core performance areas. In 1999, D&B failed to meet its revenue and earning expectations, as a result of which, shareholders were furious, leading to the resignation of the CEO, Volney Taylor. The company had become an under-performer with under-leveraged assets. In May 2000, Allan Z. Loren joined D&B as the CEO. Under Loren’s leadership, D&B devised a strategy to determine ways in which it could reclaim its position in the market place. Soon the company adopted a business model designed to increase its investments in its core competence areas. Further, it also sought to re-position itself for enhanced growth. Savings from re-structuring were re-invested, in order to expand the business and raise its Earnings Per Share (EPS). D&B also created a new culture of leadership, which Loren regarded as crucial, for sustaining any business. The Case discussed D&B’s crisis and its turnaround while raising a question of its sustainability.

Pedagogical Objectives:

• To understand the concept of revenue driver
• To analyse business model with specific reference to D&B
• To understand and discuss turnaround strategies
• To understand the concept of strategic concentration and divestment with reference to D&B.

Keywords : D&B (Dun & Bradstreet); Allan Z Loren; Turnaround; Earnings per share; Duns-number; Restructuring / Turnaround Strategies Case Study; Risk management solution; Supply management solution; Sales and marketing management; Blueprint for growth; Re-engineering activities; Financial flexibility; Winning culture