To What Extent Does a Mature and Cyclical Product Market Drive Corporate ‘Restructuring’? Use a Corporate Example of Your Choice to Discuss Whether Restructuring Transforms Market, Productivity and Financial Performance.

Year: | 2 |

Course Code | MN2201K: Strategic Management |

Course Tutor: | Ailson De MoraesEndrit Kromidha |

Assignment No.: | 2 |

Degree Title: | BSc Management with Marketing |

Question No. & Title: | Q2: To what extent does a mature and cyclical product market drive corporate ‘restructuring’? Use a corporate example of your choice to discuss whether restructuring transforms market, productivity and financial performance. |

Corporate Restructuring

A variety of transactions and exchanges occur during restructuring, including offering lines of business or making noteworthy acquisitions, changing capital structure through infusion of large amounts of debt, and also changing the core management of the firm. Business portfolio restructuring may happen through the sale of lines of business, which are seen as fringe to the extended strategy of the firm. (Bowman et al., 1993)

The aim of this essay is to assess on the extend to how a matured market and a cyclical product market drives a firms corporate ‘restructuring’. At the beginning of the essay, an introduction to the term - restructuring. Followed by details on the a few restructuring strategies that firms undertake that changes its set of businesses or financial structure. Afterwhich, an elaboration on how a matured market and a cyclical product market have an impact on corporate restructuring and its financial performance, with the example of HP (Hewlett Parkard), the global computer giant.

A number of distinctive variables may be implemented for restructuring the company, different reasons such as positioning the company to be more aggressive, or essential cuts and downsizing to weather through unfavorable economic climate, or simply redirecting the company to attain certain goals, the ultimate goal for restructuring is to generally to enhance shareholder value. Corporate administration is significant in an efficient and effective management of an organisation to align managers and...