Corporate Restructuring

Is corporate reorganization an available option? If so, how should it be structured? What issues would be associated with this alternative?

Chris and Sue are 50 percent shareholders in BackBone personal service corporation. Backbone provides chiropractic services in four separate offices, in four small towns: Troy, Union, Vista and Willow. Chris is the main chiropractor in the Troy office, and Sue heads up the Vista office. Charlie, the main chiropractor in the Willow office, does not see eye-to-eye with Chris and Sue on management styles. Charlie is highly competent and well-liked by patients and therefore indispensable in the eyes of Chris and Sue. Chris and Sue may be willing to give Charlie control of the Willow office,

The work of Kanter (1992) defined organizational change as the behavior of the organization to a certain degree or another. Organizational change has strategic and structural consequences within a given organization. This is because it involves the process of dismantling as well a restructuring of the various structures within a given organization. Several problems can arise due to organizational change (Czerniawska,2005).

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.

Financial management is a work plan that details the revenue and expenses of a company. Financial decisions are strategies that achieve the financial objectives of a company that include capital budgeting, capital structure, and working capital management. Modigliani and Miller (1958) received the Nobel Prize in economics for their study of the relationship between capital structure and corporate value, with and without corporate tax. Whether financial management decisions influence firm value is still debated daily because there are plenty of uncertain factors. In this paper, I intend

6. Organization development consultant David Nadler was interested in developing a model of how large companies cope with restructuring in a competitive business environment. With a team of consultants, he followed the restructuring process of Xerox Corporation for two years. He interviewed the CEO and the top managers at Xerox. He observed the behavior and analyzed the speeches of the CEO and the top managers. Nadler and his team collated and interpreted the information they had collected, and wrote up a detailed account of Xerox’ restructuring process,

John Everet will act as the playboy by displaying a lack of involvement through his

At the time of this case study, 2002, Timken was involved in company-wide restructuring. They were consolidating current operational segments into global business units to reduce expenses. Their goal was more penetration in global markets due to reduced growth in the US based on the bearing industry’s cyclical nature. Analysts predicted 2-3% industry growth in the US, but 6.5% global growth through 2005. The slow US growth was directly tied to the automotive industry’s cyclical nature, which was declining in 2002. Global penetration would help to achieve economies of scale, whilst hedging the

Restructuring the organization will be considered to be a major reconfiguration of the internal administrative structure that is associated with an intentional management change program. The goal of the restructuring will include results such as productivity improvements, cost reductions, increased shareholder value, and/or a better alignment of the organization with a changing environment. It’s important to recognize that although management views restructuring as a source of order during a turbulent time, their subordinates view restructuring as a source of disorder because it

A survey is a method of gathering information from a number of individuals within an organization, to learn something about the larger population from which the data was collected. The information collected from surveys comes in many forms, and serve a variety of purposes. Some surveys focus on opinions and attitudes, whereas others are more concerned with the collection of factual information. However, many surveys do share certain characteristics; all are used to solicit employee feedback. There are seven common categories

When discussing adapting to change management the organization must consider implementation of core competencies that are new and innovative. These challenges faced by the organizations require agility and a shift in strategic congruence that strengthens market adaptation. As business strategies transition, capabilities within functional departments must evolve as operational strategies are implemented.

Many companies emphasize a culture of continuous improvement. While never being satisfied with the status quo can drive

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.

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

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.