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Principles of company restructuring

Posted: Thu Jan 30, 2025 10:33 am
by Mimaktsa10
The restructuring of the company should be carried out taking into account the following principles:

Systematicity , which facilitates concentration on the main elements, establishing connections and comparing qualitative parameters.

A sequence that ensures the conduct of research using a specific technology, where each previous stage serves as the basis for the next.

Purposefulness , according to which all changes pursue a clearly defined goal that determines the choice and the order of decision-making.

Corporativity , which consists of the awareness of the set goals by all employees of the company and the unification of social, psychological and business interactions.

Conceptuality , according to spain email list which restructuring should have a single logical basis and be based on goals common to all structural units and management processes.

Stability and controllability , in which changes during the reformation must be planned in advance, controlled at each stage and have time limits.

One of the main principles of company restructuring is the division of assets and risks among different legal entities. That is, companies that own assets do not conduct business, while companies that trade do not own assets.

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Basic requirements for restructuring
For a successful restructuring of a company, the following requirements must be met:

maintaining scientific, technical, production and human resources at an optimal level;

achieving balance and harmony between the interests of the company, clients and society;

implementation of measures to repay debts to creditors;

payment of debt to the budget;

minimizing layoffs and creating new job vacancies;

ensuring the protection of shareholders' rights.


Types of company restructuring
The selection of appropriate types of restructuring is based on the interests and resources of the company, taking into account external circumstances. Changes may affect the scope of activities, organizational structure, capital, and control system.

The different types of company restructuring are listed in the table:

Restructuring parameter Name of the type of restructuring
Growth phase of the enterprise
operational (if it is necessary to overcome a crisis situation in the organization);
strategic (to ensure stable operation of the organization).
Initiating party
passive, when the enterprise needs structural changes due to the prevailing external conditions;
active, in which the company itself initiates structural changes.
Intensity of interaction with external factors
external, focused on adaptation to environmental conditions;
internal, aimed at adjustments within the organization and independent of environmental influences;
Company's scope of activity
comprehensive (for all areas of activity);
element-by-element (for individual components, including production, financial processes and management systems);
multi-element (for a set of different elements of the system).
Period of implementation
short-term;
medium term;
long-term.
Level of accountability and means used
centralized, carried out in a company on the initiative and under the supervision of state (municipal) bodies with the involvement of external financing;
decentralized, carried out by the enterprise without external control and financing (only with its own resources);
mixed, involving the use of both own and borrowed funds.
Number of operations or steps performed
single stage;
multi-stage
Procedure
step by step;
abrupt (jumpy).
The types of company restructuring do not have strictly defined boundaries, and sometimes at different stages of the procedure there may be overlaps or repetitions of actions.