Corporate Restructuring

|

Corporate Restructuring |

Downsizing and Outsourcing |

|

Table of Contents

Introduction 3

Corporate Restructuring 3

Process of Corporate Restructuring 4

Diagnostic Plan 6

Planning process 8

Implementation 10

Downsizing 10

Outsourcing 12

Conclusion 14

References 15

Introduction

Entrepreneurs all over the world believed that cost cutting and increasing revenues are the two only activities which could create money in business. But presently in global scenario, restructuring is also considered as a money making activity for a business. Whether it is the quest of new markets or a wish to improve the superiority of a product or performance, every company reviews its plans and strategies to adjust in the changing business environment or to stay competitive. The booster of fresh funds, ownership dynamicity or ever changing circumstances in trade and industry can time and again direct the process of restructuring and reorganization within a corporation (Zhang and Wang, 2013).

We have a large number of corporations in the world who have crossed $100 billion in their revenues only. Ranging from Wal-Mart to Peugeot who employ the largest number of employees in the world were not the same few years back. Some of them even did not exist. These larger corporations developed over time by developing the industrious potentials of the investments they made in resources, materials and employees and then comprehending income on these reserves through the transactions of products and services, thus garnering the remunerations of economies of scale and span. Thus these organizations which have now became world’s best have often undergone major restructuring and reorganization processes (Angulo, 2013).

Corporate Restructuring

Restructuring is a modification in the strategies of a firm devoid of which its stability and permanence could not be guaranteed. It is now a day needed more due to the fact that an organization has to compete locally as...