Strategic Management
Degree Title:
Management with International Business
Question No. & Title:
To what extent does restructuring transform corporate market and financial performance? Discuss using an extended example.
Contents
To what extent does restructuring transform corporate market and financial performance? Discuss using an extended example.
Introduction
Globalization coupled with deregulation and technological development over the last two decades has significantly altered the business landscape. One key strategy that companies have employed to respond to these changes and developments is that of restructuring e.g. mergers, acquisitions, alliances, divestures and demergers etc. Over the past two decades, there have been many corporations that have employed restructuring strategies. For example, it is estimated that nearly half of large U.S corporations have restructured in the 1980’s.. A special report on corporate restructuring found that out of the 850 of “North America’s Latest Corporations, “398 (47%) of them restructured. In today’s dynamic business environment there are varying and novel reasons that may serve as an impetus for the company to consider restructuring. It could be competitive pressures, ailing financial health of the company, industrial pressures or demanding shareholders to name a few. Organizations believing that restructuring could help enhance and improve company performance have reorganized or spun off divisions, streamlined operations or even merged with competitors.
Corporate Restructuring
Corporate restructuring is defined as actions or a set of actions taken to expand or contract a firm’s basic operations or fundamentally change its asset or financial structure. These activities are broad, and range from reorganizing business units from product lines to divisions to takeovers or joint ventures etc. it may involve taking the company private, selling attractive assets, undertaking a major
Management with International Business
Question No. & Title:
To what extent does restructuring transform corporate market and financial performance? Discuss using an extended example.
Contents
To what extent does restructuring transform corporate market and financial performance? Discuss using an extended example.
Introduction
Globalization coupled with deregulation and technological development over the last two decades has significantly altered the business landscape. One key strategy that companies have employed to respond to these changes and developments is that of restructuring e.g. mergers, acquisitions, alliances, divestures and demergers etc. Over the past two decades, there have been many corporations that have employed restructuring strategies. For example, it is estimated that nearly half of large U.S corporations have restructured in the 1980’s.. A special report on corporate restructuring found that out of the 850 of “North America’s Latest Corporations, “398 (47%) of them restructured. In today’s dynamic business environment there are varying and novel reasons that may serve as an impetus for the company to consider restructuring. It could be competitive pressures, ailing financial health of the company, industrial pressures or demanding shareholders to name a few. Organizations believing that restructuring could help enhance and improve company performance have reorganized or spun off divisions, streamlined operations or even merged with competitors.
Corporate Restructuring
Corporate restructuring is defined as actions or a set of actions taken to expand or contract a firm’s basic operations or fundamentally change its asset or financial structure. These activities are broad, and range from reorganizing business units from product lines to divisions to takeovers or joint ventures etc. it may involve taking the company private, selling attractive assets, undertaking a major
Bibliography: Bowman, E., & Singh, H. (1993). Corporate Restructuring: Reconfiguring the Firm. Strategic Management Journal , 5-14. Fazilah. (2010). FreeWebs. Retrieved March 20, 2012, from www.freewebs.com: http://www.freewebs.com/fazilah_mba_cf/L12%20Corporate%20Restructuring.pdf Khuen, K. a. (2004). Corporate Restructuring Dynamics:A case study analysis. International Business Conference , 6-7. Lewis, W. (1990 ). Strategic Restructuring: A Critical Requirement in the Search For Corporate Potential. New York : McGraw-Hill . Perridon, Steiner. (1999). Finanzwirtschaft der Utrnehmung . The Wall Street Journal. (1990, August 12). Shifting Strategies: Surge in Restructuring Is Profoundly Altering Much of the U.S Industry. The Wall Steet Journal .