study on corporate restructuring
CORPORATE RESTRUCTURING “Re-engineering is new, and it has to be done.”
Peter F. Drucker
INTRODUCTION
The increasing competition, rapid advances in technology, more demanding shareholders, more challenging work forces and rising complexity of the business conditions have increased the burden on managers to deliver superior performance and value for their shareholders. In this modern “winners take all” economy, companies have to take a timely responsive action to save their organisations. This brings us to the concept of “CORPORATE RESTRUCTURING”.
Companies pass through different phases in their lifetime. Good times are followed by bad times, expansion is followed by retraction. Sometimes, companies cannot ensure their continuity and are partly or entirely liquidated. Through their life cycle, companies from time to time need to be restructured, dramatically changing course to restore profitable operations. At this point of time company executives may ask whether it is time to restructure the company. But before considering any action, they must first answer the questions: “will restructuring work?” and when does restructuring improve economic performance?” During the past decade, corporate restructuring has increasingly become a staple of management life and a common phenomenon around the world. Unprecedented number of companies across the world have reorganised their divisions, restructured their assets, streamlined their operations and spun-off their divisions in a bid to spur the company performance. It has enabled numerous organisations to respond quickly and more effectively to new opportunities and unexpected pressures so as to re-establish their competitive advantage. Restructuring is a change in company strategy without which its continuity could not be ensured. The suppliers, customers and competitors also have an equally profound impact while working with a restructured company.
CORPORATE RESTRUCTURING in definite terms:
Peter F. Drucker
INTRODUCTION
The increasing competition, rapid advances in technology, more demanding shareholders, more challenging work forces and rising complexity of the business conditions have increased the burden on managers to deliver superior performance and value for their shareholders. In this modern “winners take all” economy, companies have to take a timely responsive action to save their organisations. This brings us to the concept of “CORPORATE RESTRUCTURING”.
Companies pass through different phases in their lifetime. Good times are followed by bad times, expansion is followed by retraction. Sometimes, companies cannot ensure their continuity and are partly or entirely liquidated. Through their life cycle, companies from time to time need to be restructured, dramatically changing course to restore profitable operations. At this point of time company executives may ask whether it is time to restructure the company. But before considering any action, they must first answer the questions: “will restructuring work?” and when does restructuring improve economic performance?” During the past decade, corporate restructuring has increasingly become a staple of management life and a common phenomenon around the world. Unprecedented number of companies across the world have reorganised their divisions, restructured their assets, streamlined their operations and spun-off their divisions in a bid to spur the company performance. It has enabled numerous organisations to respond quickly and more effectively to new opportunities and unexpected pressures so as to re-establish their competitive advantage. Restructuring is a change in company strategy without which its continuity could not be ensured. The suppliers, customers and competitors also have an equally profound impact while working with a restructured company.
CORPORATE RESTRUCTURING in definite terms: