Corporate Restructuring

Hyper Competitors especially those that more diverse in technology. Very competitive and people want the best and newest technology

Corporate reorganization is definitely an available option. The company should be structured as a parent-subsidiary controlled group. The restructuring should be performed in conformance to any and all tax-saving codes and provisions.

Introduction of new technology, strictness in law, reduction in profit margin etc. are the examples of threats.

The corporate reorganization should be structured as a divisive “D” reorganization and the restructuring process should conform to section 355 of the tax law in order to minimize the tax consequences of the reorganization.

While it was foreseen that the company would initially take financial setbacks because of the reorganization, it was not believed that the financial risks would be drastic. However, the impending report that Mr. Elesser has to present to the board will detail a net income that will be nearly 26 million dollars in the red for 2004 (see exhibit 2)3. The blunt force restructuring met resistance on numerous fronts. First of all, the various components of the company did not operate under the same uniformed leadership objectives. Each division was set up to look out for their own interests and markets. When the restructuring plan that focused on a more centralized management process, many of the things that worked for one division did not necessarily work for other divisions of the company. This left some divisions at a severe disadvantage. Another obstacle that worked against the restructuring was the employee unions in which the company had to deal. The unions were not on board with the various downsizing and restructuring methods. In addition, the company had to deal with a couple of different unions which posed a problem with negotiating tactics. Benefit costs were also a significant investment that did not hold up well under the auspice of restructuring.

The key to implementing effective organizational modifications is capturing a completed understanding. This understanding can be obtained by reading relevant industry journals, interviewing and hiring industry experts, or assessing similar operations benchmarking documentation ( ). After completing the external assessment form on behalf of Aristocrat Technologies, numerous areas conclusions were made.

Drivers for change come in two categories, internal and external. In the simulation, "Organization Structure", the pretence was that the stagnating system integration market, lead the CEO to

In today's business world, corporations have become more complex and more unpredictable, in fact it is considered almost "healthy" that a corporation experience change and transformation. Companies need to be susceptible and ready to acknowledge the challenges that change presents with and try to overcome these for the benefit of the company as a whole. Due to the ever-changing business and social environments caused strongly by globalizations, this has meant that companies must keep themselves up-to-date, whether it is through using the latest form of technology or through the latest management fad. There are many factors involved with change and the successful management of it which can often be a difficult time for

I realized there are several steps an Organization Developer must consider in order for a company to have a successful outcome when they go through a transition. The OD must be able to identify several different components to produce a positive outcome. For instance, the OD must identify what needs to change with the company and communicate the problem in a clear and concise manner. It is also important to put together a team that can help with the process to ensure that everything goes accordingly. Also, if additional training is necessary then that must be factored in for others to understand the different aspects of someone else’s job. Employees must also understand why the change was necessary; therefore, the OD must be the one to convey that message in order for employees to understand the process of reorganizing. Once employees understand why the change is taking place, they must understand the new plans and goals

This discussion is directed toward company restructuring and repositioning, specifically my personal experiences in a project dependant industry, and the evolution of a business structure and organizational culture of flexibility and adaptability. Many companies operating in a project specific and contract dependant industry are required to align employees with processes and strategies to ensure smooth transition in an often dynamic and changeable environment. Companies competing in dynamic market environments have evolved and adapted to stay competitive and profitable. It is important to recognize the alignment of company culture toward the employee and the

In the cases analyzed, we might infer that during a period of economic difficulties companies had gone through deep discontinuity. As such, this determined the need for a turnaround to realign the companies’ strategies with the external and internal environment. These changes impacted the four companies analyzed previously.

Change in such an organisation is complicated, as it is highly technical, and the focus in

The purpose of this report was to examine organization restructuring. Research for the report included literature based on organizational restructuring and the various processes involved in restructuring. The major findings indicate that the two methods commonly used for organizational restructuring to be downsizing and reengineering of business processes(Cummings & Worley, 2008). Downsizing assist the company to reduce its workforce, and this saves cost in terms of payroll reduction. Reengineering allows a company to change and adapt to the way it

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there

The main objective of this report is to gain a better understanding of large scale organizational change. The different changes implemented by General Motors company in an attempt to cope with the economical crisis of 2008 is a perfect example of this concept.