HRM 3430 Chapter 1: Restructuring Strategies

• School: York University
• Department: Human Resources Management
• Course: HRM 3430
• Professor: Althea Gordon

Document Summary

When businesses/companies do not achieve their goals, it is corporate strategy that tries to deal with the problem and come up with a potential solution. Restructuring options include turnaround, liquidating, going bankrupt and divesting. Turnaround strategy: an attempt of increasing viability of a business. It"s where managers attempt to restore businesses with low profitability that lose a lot of money into a business that makes a stable and steady profit. It includes: removing and/or decreasing products that are deemed unprofitable or barely make any money, layoffs, increasing organizational efficiency. Divestiture: sale of division or a part of a business/company. It is known as spinning off an organization independent in monetary terms as well as managerial or even the possibility of leaving everything as it is and selling it completely. One of the problems could be the fact that the specific division or part of the organization doesn"t fit.