Use an example of your choice to discuss how corporate restructuring transformed market, productive and financial performance - Essay Example

Download file to see previous pages At such a point, the effectiveness of a company’s old structure (original structure) has reduced to an extent of not being able to cater for the output and the larger interests (which includes the future interests) of the company. Corporate restructuring is where a company restructures or changes one or several of its aspects. It has been defined as changes in ownership, changes in assets or even alliances in a bid to improve and increase the shareholders wealth, meet consumer demands among others (Aden, 2014).
The restructuring may be in form of divisions and departments combinations, production focus laying back, asset restructuring, employee scale back among others (Arocena, Blasquez and Grifell, 2011). This work shall analyse on how corporate restructuring transformed the market, the productive and the financial performance of a named company. The named company (case study) shall be Caterpillar, a public limited company which survived a harsh economic climate, thanks to corporate restructuring. In the first part of the work, the company shall be introduced and its main competitors analysed. The market it operates on currently and on which it operated on in the early 80’s shall also be discussed. Thereafter, there shall be a discussion on how Caterpillar embraced and applied corporate restructuring and analysis on how successful this was.
The main aims of restructuring include creating a decentralised approach, increasing the level of responsiveness and expanding the customer focus for matured markets. There are many businesses that have adopted corporate restructuring in order to maximize their profits and their chances of survival. Caterpillar, a public limited company is one such company that has a successful experience with the adoption of corporate restructuring (Vartan, 1987). It specialises in three operational segments which are power systems, construction ...Download file to see next pagesRead More