Liberalisation, Globalisation and the Business Scenario

1014 WordsFeb 22, 20184 Pages
Liberalisation and globalisation has changed the business scenario all over the world. The multilateral trade agenda and the WTO have made easy and free exchange of technology and know – how. A restructuring wave has swept the corporate sector the world, taking within its fold big as well as small industries. Not only the new industries like e-commerce and biotechnology are transforming, old industries are also being transformed. With the increasing competition, heading toward globalisation, the corporate restructuring activities are expected to occur at a larger scale. It plays a major role in enabling companies to achieve economies of scale, competitiveness etc. Restructuring represents an essential reconstruction of an enterprise strategy, structures and processes and their tuning with the new reality”. Restructuring means overall enterprise reorganizing, renewing all its enterprising functions. Restructuring represents “enterprise oriented and systematic holistic changes of a managed organization unit (enterprise, plant, autonomous business unit etc. . The restructuring is a process of making a major change in organizational level in order to have a proper decision making or introducing a leadership oriented organization, or there may be structural changes as how to manage the finances of the Company or changes in the person managing it. Kinds of Restructuring • Financial Restructuring Financial restructuring involves adjustment of debt – equity ratio to make
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