restructure
To what extent does restructuring transform corporate market and financial performance? Discuss using an extended example
Restructuring is effective way to change terrible company situation. It is related to enterprises development and control, which have an obviously effect on companies form of business, scope and methods implement plan. Moreover, it is refers to corporate market and performance. Therefore, a company restricting would contribute a new organization, which will change a numerous in terms of management structure, shareholders and company system and employee. As Lazonick (2003, p.3) argued: “Restructuring occurs when the corporation is no longer willing or able to develop or utilize the capabilities and assets that resulted from these past investment decisions.” Therefore, enterprise could contribute to a sustainable development via restructuring. This essay at first would discuss the reason why companies restructuring and in what extend restructuring. Next, consider three aspects restructuring: financial restructuring, portfolio restructuring and organizational restructuring. Finally, General Motor Corporation would be used to analysis actually implement in restructuring to discuss how restructuring impact on corporate market and financial performance.
First of all, enterprises need restructuring to increase their stock value. As Hill and Jones (2008, p.340) argued: “one main reason that diversified companies have restructured in recent years is the stock market has valued their stock at a diversification discount.” It means highly diversified firm is valued lower, which is related to their profits. There are four reasons explain why highly diversified companies less attractive for investors. At first, there is no multibusiness model that could prove investors participation in many different industries. Second, the complex statement of the highly diversified enterprise could conceal the individual business whether it is gain the profits. (Hill
Restructuring is effective way to change terrible company situation. It is related to enterprises development and control, which have an obviously effect on companies form of business, scope and methods implement plan. Moreover, it is refers to corporate market and performance. Therefore, a company restricting would contribute a new organization, which will change a numerous in terms of management structure, shareholders and company system and employee. As Lazonick (2003, p.3) argued: “Restructuring occurs when the corporation is no longer willing or able to develop or utilize the capabilities and assets that resulted from these past investment decisions.” Therefore, enterprise could contribute to a sustainable development via restructuring. This essay at first would discuss the reason why companies restructuring and in what extend restructuring. Next, consider three aspects restructuring: financial restructuring, portfolio restructuring and organizational restructuring. Finally, General Motor Corporation would be used to analysis actually implement in restructuring to discuss how restructuring impact on corporate market and financial performance.
First of all, enterprises need restructuring to increase their stock value. As Hill and Jones (2008, p.340) argued: “one main reason that diversified companies have restructured in recent years is the stock market has valued their stock at a diversification discount.” It means highly diversified firm is valued lower, which is related to their profits. There are four reasons explain why highly diversified companies less attractive for investors. At first, there is no multibusiness model that could prove investors participation in many different industries. Second, the complex statement of the highly diversified enterprise could conceal the individual business whether it is gain the profits. (Hill
Bibliography: Hill Charles W.L. and Jones Gareth R., 2008, Strategic Management: An Integrated Approach 9th Edition, USA: South-Western Cengago Learning Pohl G., Anderson Robert E., Claessens S Blancett S.S. and Flarey D.L., 1995, Reengineering Nursing and Health Care: the Handbook for Organizational Transformation, United States of America: An Aspen Publication. MN2201 Individual Assignment - Part 1 (Moodle 856828) Author: