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Organizational restructuring

The response from within companies have to redesign their operations for a variety of reasons. The text book prescription is to align company structure with strategy. This includes redrawing of divisional boundaries, flattening of hierarchic levels, spreading of spans of control, reducing product diversification revising compensation streamlining process and reforming governance. Some of the response […]

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Strategic turnarounds

A strategic turnarounds is a more serious form of external retrenchment and leads to divestment or liquidation. Turnaround strategies derive their name from the actions involved, that is, reversing a negative trend. There are certain conditions or indicators which point out that a turnaround is needed if the organization has to survive. These danger signs […]

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Portfolio Restructuring

The second part of the turnaround strategy is the shedding of unrelated assets, identifying slow and non moving stocks shifting emphasis within the current assets portfolio and maybe even outsourcing production if it results in reduction of costs.   The restructuring need not be one way. If it makes sense to acquire businesses, say, raw […]

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Financial restructuring process

This involves   a) Identifying value drivers in cash flows b) Developing cost consciousness c) Driving quality d) Understanding impact of information technologies on the business process e) Understanding tax structures and the direction tax structure would take f) Understanding capital needs for financial restructuring between debt and equity  

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What is Pause/proceed-with-caution strategy?

Pause/proceed-with-caution strategy   Pause/proceed-with-caution strategy is such a tactic. It is employed by firms that wish to test ground before moving ahead with a full-fledged grand strategy. It is a temporary strategy just like the profit strategy. It defers in the way of objectives are defined. The Pause/proceed-with-caution strategy is a deliberate and conscious attempt […]

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What is Profit Strategy?

Profit Strategy   This strategy is adopted in large firms. Firms would be generating cash flow as primary concern for ensuring durable stability durable stability of the organization. Under the following circumstance, a profit strategy may arise:   If there is a decline of sales of the product in the market. Expansion became impossible due […]

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What is No-Change Strategy?

No-Change Strategy:   This stability strategy is a conscious decision to do nothing new, that is to continue with the present business definition. Taking no decision is sometimes a decision too.   When faced with the predictable and certain external environment a stable organizational environment, a firm decides to continue with its present strategy. Because, […]

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What are the reasons for stability strategy?

Reasons for Stability Strategy:   The important reasons for pursuing stability strategy are the following:   The company is doing fairly well and it is hopeful of the same in future. A family dominated or private company may not like to expand its business if it amounts to diluting the control or if effective supervision […]

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Typical Project Management Life Cycle

A typical project life cycle consists of the following steps: Scope of the project State problem Identify problem Identify goal Identify success criteria   Develop plan Identify activities Resources requirements Construct /analyze network   Execute plan Recruit project team Establish rules Execute tasks   Monitor / control   Progress reporting systems Monitor progress   Close […]

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Standard Format for a Strategic Plan

A strategic plan is a simply a document that summarizes, in about ten pages of written text, why an organization exists, what it is trying to accomplish and how it will go about doing so. Its “audience” is anyone who wants to know the organization’s most important ideas, issues, and priorities: board member staff, volunteers, […]

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