In order to become worthwhile again and better organized, the community of the corporate world chooses to take this step which has proven advantageous for the organization, even though the most likely endgame is selling the company for a profit.
The first step to any restructuring act is merging two or more businesses into one so that there is shared responsibilities, cost and resources in a single entrepreneurship. Usually has a huge to very little effect on the market, mergers are a good strategy in getting the competition working together and thus ensuring a successful joint in profits and success. This is a very effective step towards achieving product extension and geographical market extension into unrelated yet profitable industries.
Mergers are also divided into types where one is done through absorption and the other through consolidation of properties and ownership. Another facet of restructuring is the acquisition step where a smaller firm is being acquired by a larger more profitable firm either in a hostile or a friendly takeover. Most of these acquisitions stems from the loss in profits or a general fall from the competitive market; a bigger and more successful firm takes over the entire industry that helps dominating the playing field or just plain increase in the economic profits.
As suggested by the title, this step involves an understanding between two or more enterprises to take on market ventures together for better results and economic profits. This is a good way to share cost and risks, to get the advantage of more resources and size of market, expenses and of course, management.
The most important gain from this movement is acquiring new skills and expertise, benefits that are also complementary and new product development that more often has a big success probability.
These sold out assets or investments are usually the businesses that are not the core of the industry and evaluated to be good for elimination. Strategic alliances and signed agreements where there is a shared or total sell out of a part of the organizational assets will help the parent company lose some of the fat that is not actually needed.
A certain number is giving a fixed rate of productivity and so the reasoning behind this is that, if cutting down the number of employees and still be able to give the same rate of productivity then why not?
The other reason for this is that in this world of technological updates, a piece of machinery might be able to do the same kind of job than a handful of employees and thus increasing productivity with lesser amount of cost. One of the main reasons for downsizing is an economic crisis where the need to cut a number of employees so that the crisis is averted; downsizing the company will also help in cost reduction and output is therefore balanced with the resources.
There are many reasons for restructuring a company and some of these are the changes in the business atmosphere, downsizing, updated methods of working, new management, technological changes, mergers and acquisitions, buy-outs, financial issues and legal problems.
Most often, companies are being moved and reorganized so that productivity increases and the control on the market scene is more diverse and profitable.
One of the reasons that cause a complete turn around of the organization is downsizing the whole company where there is a reduction in the number of employees and therefore repositioning of work, systems and productivity numbers and sales are needed.
New strategies usually follows downsizing at the helm and therefore, with the new strategies in place, there is a call for the restructuring of systems and organizations. Newer ways of getting work done such as a change in the atmosphere of the workplace, when there are outsourced employees and even the upgradation to newer technologies would require a new structure and systems that is being built around the new methods.
But it has a profound impact on those who work in the parts of the company that are about to be stripped away. One interviewee, for example, described how she led the integration process after the purchase of a new business. Unable to display preview. Download preview PDF. Skip to main content.
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This is a preview of subscription content, log in to check access. Senior Professional agencies such as the IRS and FBI have considerable prerogative to act in a prescribed arena and have a protected budget.
Political agencies, such. It has led to homogenization and convergence in organization strategies, structures and processes as well as in consumer choice. With accelerating globalization, organizations have had to change and new trends have set in even. Access bank Plc was in- corporated as a private limited liability company on February 8, , to undertake the business of commercial banking and commercial operations started on May 11, The bank converted to a public limited liability company on March 24, and was subsequently listed on the Nigeria Stock Exchange on November 18, at an initial offer price of 70kobo.
It does not cover the individual selections herein that. Downsizing And Reengineering The American Public And Private Sector Wheels of Industry Over the past decade, more and more American organizations are downsizing and reengineering as a means of eliminating excesses in corporate staffing, bureaucracy, and expenditures.
Constant change is a new way of life as companies strive to meet customers needs and the ability to successfully innovate, time after time to achieve competitive advantages. Moreover, American companies are facing a fierce global environment and are downsizing to achieve cost-lowering efficiencies to render their firm more fit to combat tenacious global competitors. American organizations are …show more content… Downsizing is a type of reorganization or restructuring.
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