Businesses typical reasons for downsizing expectation

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Unformatted text preview: 8 Effective Acquisition Strategies Attributes Results Low-to-Moderate Debt Merged firm maintains financial Merged flexibility flexibility Sustain Emphasis on Innovation Continue to invest in R&D as part of the Continue firm’s overall strategy firm’s Flexibility Has experience at managing change and Has is flexible and adaptable is 1–29 Types of Restructuring: Downsizing • A reduction in the number of a firm’s employees reduction and sometimes in the number of its operating units. units. – May or may not change the composition of May businesses in the company’s portfolio. businesses • Typical reasons for downsizing: – Expectation of improved profitability from cost Expectation reductions reductions – Desire or necessity for more efficient operations 1–30 Types of Restructuring: Downscoping • A divestiture, spin-off or other means of divestiture, eliminating businesses unrelated to a firm’s core businesses. businesses. • A set of actions that causes a firm to strategically set refocus on its core businesses. refocus – May be accompanied by do...
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