Running head: CORPORATE RESTRUCTURINGCorporate RestructuringStudents NameInstitutional Affiliation1CORPORATE RESTRUCTURING2Corporate RestructuringCorporate restructuring is making changes or reorganizing the components, portfolio orstructure of a business or firm to make it more profitable in its operations (Marimuthu, 2009).It can occur in two main ways: The first method is by financial reconstruction which isadjusting the equity pattern, capita or debt-servicing especially when there are adverseeconomic conditions like a fall in sales. The second-way is organization restructuring; this ismodifying the structure of the business like minimizing hierarchical levels, redesigning jobroles and reducing employees. It is usually done to cut on costs to enable the continuation ofoperations.Corporate restructuring may be necessary even when a firm is appropriately managedas it helps in long-term efficiency and cost-effectiveness in an organization. Moreover,strategy execution involves decisions and activities done to meet the objectives. Restructuringhelp organize the business to meet the requirement of the strategies as well as act as a tool toadjust to any ...
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