Enterprise Restructuring Evaluation

Abstract

The paper analyses the evaluation model of enterprise restructuring programmes, specifying the techniques of its application in the context of the following proposed criteria: the market share; financial capacity; business development potential; product competitiveness; productivity.The benefit of application of this model in restructuring enterprises is revealed. The greater possibilities to rationalize the restructuring process as well as the use of human, material and financial potentials, to develop potentials of an enterprise and thus to increase its competitiveness are shown.

Strategic Solutions for Corporate Restructuring

“…Corporate restructuring is the strategic management technique used to rationalize the enterprise activity and resulting in essential changes of corporate strategy and structure, pursuing to increase enterprise competitiveness in clearly defined time outlook [6,7]. In this context we can state that corporate restructuring is based on the programme (or plan) of the objectives and their tasks for changing the enterprise activities, covering the complex of the measures and ways thereof, which due to its content are similar to the programme for the implementation of the corporate strategy as at tactical and strategic levels of the enterprise management [2,3,6,9,10].…”

“…The following aspects are considered as the main ones with respect to the content of the corporate restructuring programme [4,6,11,12]: the enterprise activity objectives (long and short-term); the alternatives of restructuring strategic decisions, restructuring techniques, validity of their application; the demand of human, material and financial resources and other property necessary for their application; the possible benefit of the strategy to the enterprise (if the latter were implemented) and risk factors which may reduce this benefit; the changes of enterprise organizational management as well as assets/property structures to be made in order to implement the strategy; the necessary changes of human resources (reduction of staff number, employing, the change of functions, authority and responsibility); the changes of functional strategies to be done (concentrating on departments and divisions of the lowest efficiency level); the forecast of restructured enterprise activity results and their comparison with expected results of the competitors activity; restructuring strategy implementation plan, indicating the tasks to be solved and persons, divisions responsible for the execution of the tasks as well as the time schedules thereof. One of the first tasks of restructuring programme implementation is to renew the strategic management system.…”

“…Scientific Problem. The topic of corporate restructuring has been analyzed in various aspects by Ansoff [3], Rock [24], Greiner [18], Bower [10], Bosas [9], Bivainis [6,7]. The scientific research towards the corporate restructuring accomplished in the country is fragmentary.…”