Restructuring

• What is restructuring with an example?

  Changing the organisation's internal structure (e.g. moving from a functional to a matrix structure)
• Why do businesses restructure?

  • Improve efficiency
  • Cut costs
  • Adapting to market changes
  • Mergers or takeovers
• What are the advantages of restructuring?

  • Improves focus on core activities and objectives
  • Removes duplication and inefficiencies
  • Can improve responsiveness to customers or markets
  • May reduce costs, improving profit margins
• What are the disadvantages of restructuring?

  • Can cause disruption and confusion - lower morale and motivation
  • Redundancies - lower job security - lower morale
  • Costly in the short-term (e.g. training)
• When might a business want to restructure?

  • When entering new markets or releasing new products
  • During a crisis or significant strategic shift (e.g. merger)