restructuring%20jj%20%C4%91o%CC%81.pdf.pdf

What does efficiency mean? In business: Business efficiency describes how effectively a company generates products and services related to the amount of time and money needed to produce them Restructuring: Restructuring is an action taken by a company to significantly modify the financial and oper...

What does efficiency mean? In business: Business efficiency describes how effectively a company generates products and services related to the amount of time and money needed to produce them Restructuring: Restructuring is an action taken by a company to significantly modify the financial and operational aspects of the company, usually when the business is facing financial pressures. Restructuring is a type of corporate action taken that involves significantly modifying the debt, operations, or structure of a company as a way of limiting financial harm and improving the business. Restructuring is when a company makes significant changes to its financial or operational structure, typically while under financial duress. Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals, or transfer of ownership. Following a restructuring, the company should be left with smoother, more economically sound business operations. 1. Boosts Communication While reorganizing business activities or organizational elements, corporate leaders may probably boost interaction between corporate branch locations or divisions. Also, it affects the working process of departments toward organizational goals and their collaboration with each other. 2. Sustains Or Refines Company Funds This helps enterprises maximize revenue streams, debt reduction, or sustenance of operations throughout financial downturns. 3. Equalizes Firms with Rivals It permits the organizations to facilitate their functional structure and funds or adjust to industry changes. Therefore, corporations can match market rivals and maintain a robust business image. 4. Enhances Employee Productiveness The reorganization of divisions or a complete firm lets the organizational leaders redesign commercial affairs and roles in a manner that benefits employees. To clarify, this comprises the workers' movement into distinctive teams or parts and executing systems to boost functionalities. - Problem to businesses: Here are the problems with restructuring 1. Probable negative public image 2. Employee anxiety 3. Unpredictable investor reactions 4. Losing assets 5. Reduction in employee morale 6. Re-training efforts and expenses 7. disrupt daily operations 8.can lead to confusion and inefficiencies in the short term Impact on Employees Organizational restructuring can have a significant impact on employees. Employees may face new roles, changes in job responsibilities, and potential layoffs. Employees may feel uncertain or overwhelmed due to the changes, it is important to provide clear communication throughout the process. (Goals of restructuring; how it will affect the organization) It is also important to provide support resources (such as counseling and training) to help employees adjust to their new roles. layoffs can lead to reduced morale and productivity, while new roles and responsibilities may require additional training or resources. Finally, it is important to ensure that employees are given adequate time to adjust to their new roles and responsibilities. Example: In late March 2019, Savers Inc. the largest for-profit thrift store chain in the United States reached a restructuring agreement that cut its debt load by 40% and saw it taken over by Ares Management Corp. and Crescent Capital Group LP. The out-of-court restructuring, which was approved by the company's board of directors, includes refinancing a $700 million first-lien loan and lowering the retailer's interest costs. Under the deal, the company's existing term loan holders get paid in full, while senior noteholders swapped their debt for equity Delocalization: … What Is Downsizing? According to the Merriam-Webster dictionary, the general definition of downsizing is “to undergo a reduction in size.” Downsizing has a business definition as well: To fire employees with the intention of decreasing the size of the business. Downsizing is closely related to layoffs. - However, layoffs are usually viewed as only a temporary reduction of employees, while downsizing is a more permanent measure. - Businesses downsize for a variety of reasons: changing economic conditions shifting products or services (Sometimes downsizing occurs in response to changing economic conditions. Other times, it occurs because a business is shifting its products or services. Whatever form it takes, downsizing is common to all legal and business entity types, including corporations, professional partnerships, and limited liability companies) Downsizing Advantages and Disadvantages Downsizing brings a variety of benefits to businesses. In some situations, it can even mean the difference between bankruptcy and continued successful expansion. Yet downsizing can sometimes cause more harm than good. Downsizing Benefits The benefits of downsizing are obvious. Downsizing reduces costs, meaning that it can help businesses improve their profit margins and even stay afloat during challenging times. Downsizing can also improve the business’s administrative efficiency by cutting out unnecessary organizational complexity. Finally, downsizing in one section can help a business expand in other areas or departments. Downsizing Disadvantages Downsizing too little or too much can cause significant harm to a business. Downsizing too little fails to achieve any real savings, while downsizing too much can overburden employees and reduce the business’s productivity and revenue. important for businesses to downsize only unprofitable and costly personnel. harm the business’s public image reduce local goodwill. Do the right way and right time Downsizing Examples Downsizing occurs on a continual basis, so it isn’t hard to find recent examples. Between 2008 and 2010, General Motors let go tens of thousands of employees due to the fallout of the Global Financial Crisis. In the 1990s, Boeing downsized more than 50,000 people. And General Electric CEO Jack Welch famously fired more than 100,000 employees throughout the 1980s and 1990s. In each one of these examples, the massive workforce reduction helped the company live on to fight another day. Summary Downsizing occurs when businesses fire a significant number of employees to reduce costs and improve profits. Although business owners should use downsizing carefully, it can be an invaluable tool for long-term success. T ko bt file này có dài quá ko hay ok r, chắc để bàn lại với ae =))