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Business Management Report: Management Restructuring - Essay Example

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In the report the researcher has analyzed the corporate restructuring process, why the firm use the restructuring process, the advantages and disadvantages of the restructuring process. The researcher also recommended some policies that the companies should adapt to correct the disadvantages of the process…
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Business Management Report: Management Restructuring
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"Business Management Report: Management Restructuring"

Download file to see previous pages The company management obtains the way of corporate restructuring when they feel that they need to change the company structure or reorganize various departments for making more profit or become better organized for fulfilling the present needs of the company. The top management of a company take the decision of restructuring when they feel that they should change the ownership of the company, work with some other company, or divide the company in parts. Because of some present situations the management have to take the restructuring decision like the financial condition or decreasing market share or in a situation when some strategy change may open a new window to generate more revenue. The national organization of U.K. has also undergone a management restructuring recently. In this report the researcher have identified that why the organization go for the management restructuring, the advantages and disadvantages caused for restructuring. The researcher also has provided some suggestion which step the company should obtain for correcting the disadvantages caused for the restructuring. The right process of restructuring should be taken by the company otherwise it would hamper the working of the organization, the customers and as a result the profit of the organization. The researcher has used various sources like books, journals for obtaining the information about corporate restructuring.
Management Restructuring
Why Organization Do Restructuring
The organizations take the decision of management restructuring as they want to add more value in the processes of the company. The organization may take the decision of restructuring because of the following reasons....
The management may want to take some strategies so that they can retain their market share in the future which may lead to a corporate restructuring process. The organization may be failed to adopt a new technology which is a trend in the industry so the company is losing the competitiveness. So the management can take decision to acquire some companies who has that technical knowhow or may add some division in the company itself for solving the problem. The relations with the customers may get poor or they can lose some important clients. May be the services of the company was not up to the mark, so the company can take the decision to restructuring the management for improving the services. The debt of the company may be increased. In this situation the company management can offer the creditors for the convertible debt option. Loss of key management personnel may be also a cause that leads the organization to change the management structure. The management can appoint some managers from other company, also they can fill the blank position using the lower level managers in the position and giving them extra responsibility. Above mentioned points are certain causes of management restructuring. There may be also some other causes when the management can take the decision of restructuring the management. For maximizing the efficiency a firm can layoff its workers. A financial services firm has grown consistently over a decade. But for maximize the efficiency the firm has chosen the strategy of downsizing the company, so they have reduced the work forces, restructured the parts of the organization, consolidating the operations of its various business units and scaled back some business or close down the existing facilities (Oyer, ...Download file to see next pagesRead More
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