Question

List and clearly define the 3 methods of restructuring. (Be specific)

Answer 1

The three types of restructuring can be said to be:

1. Merger, acquisition, and integration

We can say that the change in the structure of two companies as they come together, where various processes such as operations and administration along with the technology aspect of both the companies are combined together to form a new structure.

2. Repositioning

Repositioning can be defined as the action of a firm that is currently doing business in one industry or field, changes or expands its business competency in another industry making use of a change in their structure to provide them with a competitive advantage. Examples include Amazon’s outlook towards manufacturing devices such as Kindle and Alexa enabled smart devices has allowed the company to be considered as a repository from a retail giant to a tech firm as well.

3. Downsizing

We can say that downsizing can be simply understood as a form of restructuring where the company decides to reduce the number of employees in order to guarantee their operational efficiency or even survival in some cases. The changes it brings to the organization then exhibits restarting.