Corporate Restructuring: A Comprehensive Process Model

Abstract

The literature review in Chapter II serves as a fundamental basis for a common understanding on organizational decline and corporate restructurings. Moreover, the review of the most dominant literature of each research field has helped to identify crucial aspects within the concept of corporate restructuring. However, the literature does not exactly define how organizational decline through corporate restructurings should be addressed. The following questions, for instance, have been overlooked: What really determines successful corporate restructurings? Are operational restructuring activities generally applicable for all cases? Do strategic activities only play a minor role in the beginning of the restructuring process? What kinds of activities are important, at what stage of the process and under which circumstances? Does every process inhibit the overlapping phases of short-term and long-term goals? This chapter addresses and attempts to provide answers to these questions. A famous, concrete example of a corporate restructuring approach from the British manufacturing industry serves as a starting point to launch the analysis with which to address such questions.