Enterprise restructuring is the process of surveying, re-evaluating the current structure and proposing solutions for a new structural model in order to create a better “state” for the enterprise in order to realize the objectives set out in the plan. conditions and circumstances are always changing. The overall goal of restructuring is to achieve a “better fitness” for the business so that it can operate effectively based on the existing foundations of the enterprise’s mission, vision, and strategic direction.
The need for corporate restructuring
The need for business restructuring often comes from:
- The rapid growth in the size of the company’s resources;
- The expansion of the range of activities;
- Business expansion;
- Building and developing reputation, brand and corporate culture in business…
From the change, development of an enterprise, or the appearance of new factors in the business environment, it can lead to an incompatibility of the enterprise’s management mechanism with those changes. . In addition, with the current open and competitive economic market, businesses must always be active and change in all aspects in order to survive and develop sustainably.
It can be seen that corporate restructuring is an inevitable objective need for most businesses now and in the future.
Corporate restructuring includes the following main activities:
- Adjusting the structure of activities: Adjusting the structure of strategic goals, business lines, product categories, operating areas…
- Adjusting the organizational structure of the apparatus: Re-adjusting the functions, tasks and powers of departments, levels of management, titles…
- Adjusting the institutional structure: Adjusting mechanisms and policies through the review and rationalization from work processes to regulations andregulations…
- Adjust the structure of resources: Adjust the structure of investment to create resources and reallocate the use of resources.
Contents that often have to be resolved when restructuring a business:
- Basic corporate restructuring: Survey and evaluate the current structural model (reasonable, unreasonable). Set up a new company structure model; Determining the responsibilities and powers of each department, job description for each individual; Building an overall management system (rules, regulations, regulations, procedures, forms); Implementation training; Operate and maintain the new management system,…
- In-depth corporate restructuring: Includes the work of basic corporate restructuring, plus: Re-establishing administrative and human resource policies; Re-establish marketing and business strategic management policies; Re-establish supply management policy; Re-establish production and technical management; Re-establish accounting and financial management policies; Re-establish other administrative policies.
Stages in the implementation of corporate restructuring implemented by FAT:
- Stage 1: Identify core values and summarize corporate culture
- Stage 2: Re-evaluate the overall operation of the company
- Stage 3: Reorganize the Human Resources Department to be capable enough to perform its duties well
- Stage 4: Proposing a corporate restructuring strategy. The steps to propose the strategy are as follows:
- Step 1: Overall assessment of the company’s current capabilities.
- Step 2: Estimate the opportunities and challenges in the new period.
- Step 3: Develop a number of strategic options and analyze and select. Depending on the selected option for more detailed development, including the following elements: Positioning; assessment of product value; business model.
- Rebuilding vision and mission: Aligning with selected new strategy.
- New organizational and governance structure: Organizational structure; key areas of activity.
It can be seen that the need for corporate restructuring is always present for every business in the current period. Grasping that trend, FAT has fully equipped with knowledge, experience, personnel as well as facilities to advise and support businesses in need.