Costs, Cash, Capital and Customers - Harriet Green’s Strategy for Success

Harriet Green's strategy for Thomas Cook looks like it might become a classic case study in how to achieve a successful turnaround for a business with a strong brand and customer base but a weak balance sheet (gearing too high).

Before Green could get the balance sheet right through a refinancing, she had to get the business right first. She needed to change the organisational structure and improve profitability and medium-term cash flow through a strategy of retrenchment. This has been a painful process but it made it much easier when Thomas Cook approached the stock market to raise new share capital (equity) and reduce the amount of debt.

This short interview with Harriet Green is packed full with great A2 business studies materials as she explains the basics of her turnaround strategy.