...ONE 1.0 INTRODUCTION 1. Background of the study Restructuring is A general term for major corporate changes aimed at greater efficiency and adaptation to changing markets. Spin-Offs, Recapitalisations, Strategic Buyouts and major management realignments are all developments frequently associated with corporate restructurings (Financial & Investment Dictionary, Barron’s, 2000). The verb restructure has one meaning: to reconstruct or form anew or provide with a new structure. Restructuring is significant modification made to the debt, operations or structure of a company. This type of corporate action is usually made when there are significant problems in a company, which are causing some form of financial harm and putting the overall business in jeopardy. The hope is that through restructuring, a company can eliminate financial harm and improve the business. (Investment Dictionary, Investopedia 2002). Restructuring is a method of raising organisational efficiency by questioning every stage of key operational processes to see if they still achieve what is required of them in terms of cost, quality service and speed. Restructuring is the corporate management term for the act of partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making severe staff reductions. Restructuring is often done as part of a bankruptcy or of a takeover by another...
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...FREDERICK W. TAYLOR Frederick W. Taylor (1856-1915) rested his philosophy on four basic principles: 1. The development of a true science of management, so that the best method for performing each task could be determined. 2. The scientific selection of workers, so that each worker would be given responsibility for the task for which he or she was best suited. 3. The scientific education and development of the worker. 4. Intimate, friendly cooperation between management and labor. Taylor contended that the success of these principles required "a complete mental revolution" on the part of management and labor. Rather than quarrel over profits, both sides should try to increase production; by so doing, he believed, profits would rise to such an extent that labor and management would no longer have to fight over them. In short, Taylor believed that management and labor had a common interest in increasing productivity. Taylor based his management system on production-line time studies. Instead of relying on traditional work methods, he analyzed and timed steel workers' movements on a series of jobs. Using time study as his base, he broke each job down into its components and designed the quickest and best methods of performing each component. In this way he established how much workers should be able to do with the equipment and materials at hand. He also encouraged employers to pay more productive workers at a higher rate than others, using a "scientifically correct"...
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...Research Paper #1 – Williams Aero Flight Services Introduction I have been hired as the CPA Tax Advisor for Williams Aero Flight Services. Several tax issues have been brought to my attention and it is my job to advise the management of Williams Aero Flight Services on their recent tax issues. Relevant Facts Williams Aero Flight Services is a charter carrier operating out of Manassas, Virginia, that flies both passengers and cargo. Prior to 2011, their primary business was the transport of corporate executives. Currently, their primary customer for both the cargo and passenger divisions is the U.S. Military, which represents 10% of their total revenue. Williams Aero Flight Services’ fleet consists entirely of jets. A typical, properly maintained jet aircraft has a useful economic life of thirty years. Frequent and necessary maintenance must be performed on the engine and airframe in order for the jet to last all thirty years. The aircraft engines and auxiliary power units must be serviced every 24 to 60 months, based on usage. In order to service an engine and power unit, the engine must be removed from the aircraft and sent to a third party specialized maintenance company that maintains and repairs the engines and power units. The annual cost of these repairs, resulting from the age of the fleet and the annual usage, is $2,000,000. Annual revenue is approximately $40,000,000. During a preliminary meeting, the IRS claims that the jet engines and power units...
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...Megan Morales Madeline Row Mgmt 450.003 Case Brief Managing with Analytics at Procter & Gamble Overview Procter & Gamble has always maintained their brand position as a widely renowned and successful international company. That success has been attributed to many things over the years, including the information decision solutions provided through their core analytics team. With the passionate leadership exhibited by the company’s CEO, Bob McDonald, and the ambitious and visionary efforts of CIO Passerini, P&G was able to secure a clear competitive advantage through the development of their analytics department. In this case discussion, a brief overview of the company’s efforts to transform their IT department as well as specific actions and results will be discussed, in order to identify where the company is positioned now, and where they should be headed. This case explains how the leading soap and candle company, Procter & Gamble, dominated the detergent market by implementing up-to-date analytics into the decision making process in it’s operations. The development team led by Group President and Chief Information Officer Filippo Passerini, helped create a system of tools designed to collect data and aid in statistical forecasts. The data collected gave up-to-date performance information on specific brands, retailers and individual stores. This information became available to all leading executives at the touch of button, compiled into graphs and charts making...
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...Core Issue Sony’s frequent restructuring without a long term vision carries its focus away from its core competencies and thus incurring losses, losing market shares in various categories and facing threats from both local and global competitors. Supporting issues Huge expenditure on restructuring and increasing competition in the electronic industry were affecting Sony’s profitability 1. In 1989, Sony shifted its focus from product innovation to process innovations to improve efficiency and controlled product costs. Symptoms: Sony’s businesses were organised into three broad divisions – Electronics, Entertainment and Insurance and Finance to earn efficiency Consequence: operating revenues improved by only 2 percent during that period. However, the net income and operating income registered a drastic fall of 87 per cent and 67 per cent respectively. Causes: Analysts felt that the stagnation in the electronics industry coupled with factors such as the recession in the Japanese economy and the appreciation of the yen against the dollar led to the deterioration in the company’s performance. 2. In order to focus on the high growth businesses, Sony announced major changes in the structure of its electronics business in April 1994. Sony’s management felt that the ‘Group’ structure, which had fuelled the company’s growth in the 1980s, was proving to be redundant in the dynamic business environment of the 1990s. In the new structure, the product groups of the electronics...
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...General Motors Corporation Restructuring Plan for Long-Term Viability Submitted to Senate Banking Committee & House of Representatives Financial Services Committee December 2, 2008 TABLE OF CONTENTS Page 1. INTRODUCTION ...........................................................................................................4 2. BACKGROUND .............................................................................................................6 3. THE PROBLEM ..............................................................................................................7 4. CONSEQUENCES OF FAILURE ..................................................................................8 5. TEMPORARY FEDERAL LOAN ..................................................................................9 5.1 Capital Structure Considerations ...........................................................................11 5.2 Stakeholder Considerations ...................................................................................13 5.3 Loan and Funding Protocol ....................................................................................14 5.4 Taxpayer Protections .............................................................................................14 5.5 Shareholder and Management Sacrifices ...............................................................15 5.6 Corporate Aircraft .......................................................................................
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...stakeholder culture. To justify the course of action with this strategy, we will prepare a three-year financial forecast to help predict The Body Shop’s future earnings and financial needs. This forecast will be based on The Body Shop’s historical financial statements to create the best possible financial model going forward. II. Statement of the Problem When Anita Roddick was still CEO, the main problem affecting The Body Shop was not being able to find a strategy strong enough to overcome competition. Because of a weak strategy or none at all, low sales and reduced profits happened as a result. Unfortunately, this led into further questioning of how the business should operate so that it could grow once more. It also led into a failed restructuring effort as the company continued to report losses. With a brand new CEO,...
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...lectures to come straight from the text! What is management? 1. Management is the planning, organizing, leading and controlling of human and other resources to achieve organization goals effectively and efficiency. 2. Managers operate within an organization, a group of people who work together to achieve a wide variety of goals or desired future outcomes. 3. Organizational productivity (performance) is how effectively and efficiently a manager uses resources to satisfy customers and reach organizational goals. a. efficiency measures how well or how productively resources are used. b. effectiveness measures the appropriateness of the goals chosen by a manager. What do managers do? Get things done through others by . . . I. Management functions: A. Planning is the process managers’ use for identifying and selecting appropriate goals and actions for the organization. 1. Planning involves three steps including deciding which organizational goals and courses of actions to pursue; strategies to adopt and deciding how to allocate organizational resources to attain those goals. 2. The strategies determined during planning determine the effectiveness and efficiency of an organization. B. Organizing is the task of structuring working relationships in a way that allows organizational members to work together (effectively and efficiently) to achieve organizational goals...
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...Consulting Assessment of Macy’s Inc. Assignment Matthew Buckman HRM/326: Employee Development September 28, 2015 Dr. Tracey Durden Consulting Assessment of Macy’s Inc. Assignment Macy’s Inc. has been around for over 100 years when they were known as R.H. Macy’s & Co. and then Federated Department Stores Inc. before merging with Bloomingdales Inc. in 2007. Macy’s Inc. is a chain of retail stores under the names of Macy’s, Macy’s Backstage, Bloomingdale’s, Bloomingdale’s Outlet, and Bluemercury with over 885 stores and approximately 167,000 employees in 45 states, District of Columbia, Guam, and Puerto Rico so far as of April 2015 (About Us, 2015). Macy’s Inc. is also one of the nation’s premier omnichannel retailers with iconic brands that help out its customers through its stores, outlets, and online sites. Macy’s Inc’s Focus & Goals Macy’s and Bloomingdale’s are world reknown for their own unique brands , identity, and their customer focus that they each have and Bluemercury is a beauty based business focused on specialty stores (Corporate Vision, 2015). Macy’s Inc. clearly acknowledges that their business is driven by their customers and their unique styles and personalities. They realize that all actions and Omnichannel strategies needs to be directed to provide a localized merchandise being offered and the shopping experience to be stupendous to targeted consumers through places such as online sites. The company’s customer-centered strategies are...
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... | |Submitted to | |Prof. A Srinivasa Rao | | | Contents INTRODUCTION 2 DOWNSIZING 3 RESTRUCTURING 4 PRIMARY ISSUES 5 How to Downsize Effectively 5 COMPANY BACKGROUND 8 PRIMARY ISSUES - II 9 GENERAL MOTORS: RESTRUCTURING 10 RECOMMENDATIONS 14 CONCLUSION 15 REFERENCES 16 INTRODUCTION Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate mergers, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure...
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...MANAGEMENT; CHALLENGES AND CHANGES Case Assignment In today’s job market we see many human resource management changes and challenges evolving with the changes in a competitive market environment. One goal of the human resource department is to hire employees that will be as productive as possible, which in turn leads to more revenue and the success of an organization. In healthcare we see even more challenges; making sure there is enough staff members to care for the patient load, keeping morale high, keeping the budget down, making sure the employee is properly trained and oriented, to name just a few. First, explain the significance of human resource management and then identify and discuss the following: 1. How organizational restructuring has impacted staffing in healthcare organizations. 2. Does decreasing the number of employees always save an organization/company money? Why or why not? 3. How would you select a “qualified person” for a position? What about a successful leader in healthcare? 4. Discuss other specific human resource issues that are relevant in the healthcare setting. Note: In preparing your response you should not only draw from the assigned readings but should also incorporate additional research you conduct on the subject. Be sure to properly cite all references used in preparing your paper. Assignment Expectations Number of Pages: 2–3 Scholarly Content Your CASE/SLP and your case assignments are considered scholarly works. Your final...
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...A CASE STUDY ON CORPORATE RESTRUCTURING IN L&T SUBMITTED BY: GROUP 1 ANSHU KUMARI (60011) ABHIJEET SINHA (60001) AMBUDHEESH PARASAR (60005) ABHISHEK CHOUDHARY (60002) AMRIT RAJ (60006) HIMANI SINGHAL (60016) IN THE COURSE OF COST ACCOUNTING DURING TRIMESTER 2 IN THE ACADEMIC BATCH OF 2013-15, CIMP UNDER THE GUIDANCE OF DR. ASHISH VARMA ACKNOWLEDGMENT The light of a matchstick can never be a match for sunlight. In the similar fashion, it was not possible for our group to complete the project on our own. First of all, we would like to extend our gratitude to DR. Ashish Varma .we were fortunate that he considered us to be good enough to carry on with this project. It was his valuable suggestion, constant help and incessant monitor which helped us in carrying out this project. We would also like to thank our friends and family for their valuable inputs and help. We would be failing in our duty if we ignore the library resource centre of CIMP as it helped us in gathering information which helped us in carrying out this project. 1. INTRODUCTION After the opening up of the Indian economy there had been an advent of large MNC’s and big global corporate houses in India. As a result there had been a constant pressure on Indian corporate houses not only to survive but to come out as a key player in their respective sectors. Many of the Indian firms which followed a rigid organisational structure felt the need to restructure their businesses. Many of the...
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...Price/Mix +7.3% Profit & Loss Revenues EBITDA (before restructuring costs) % ∆ Exchange Rate -2.8% FY '07 4,162 549 13.2 358 8.6 358 FY '08 4,100 443 10.8 250 6.1 150 ∆% -1.5 -19.2 ∆ Volume -6.0% Impact of raw materials 14 103 88 41 18 EBIT (before restructuring costs) % EBIT (after restructuring costs) -30.2 EBIT +191 ∆ Commercial ∆ Efficiencies -4 ∆ Unit costs & other -295 A dramatic increase in all input costs (raw materials, energy, etc.) A collapse of the OE market, driving sales down by 10.2% in Q4 (5% organic) The decision to provision in 2008 results restructuring initiatives and costs worth 100 ml € Note: unaudited results, pre-closing | 2 Pirelli Tyre 2008 operating and financial performance Million € Raw materials: Labour / energy / other: (72) -195 -73 EBIT bridge (before restructuring costs) 358 263 (268) (268) (5) (15) (11) 250 EBIT 2008 EBIT 2007 Price & mix Volume Cost of inputs Efficiencies Exchange rate Depreciation / other NFP evolution * of which stock: -212 PBIT: Investments & Depreciation: ∆ NWC: Other variations: Financial / fiscal charges: +250 -106 -156* +8 -172 ( ) (175) 14 1,266 560 (452) (93) NFP 2007 Minorities repurchase and debt restructuring Dividends Net Cash Flow before dividends Other variations NFP 2008 | 3 Pirelli Tyre restructuring program 100 million € have been committed...
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... | |Organizational Re-Structure of General Motors | |Behavior in Organizations | Outline I. Introduction II. Definition a. Downsizing b. Restructuring III. Primary Issues (Part One) a. How to Downsize Effectively IV. Company Background V. Primary Issues (Part Two) a. General Motors: Restructuring VI. Conclusion VII. References Introduction Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate merger, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that led...
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...strong operating margins which have delivered stable cash flows. These cash flows enable us to consider a variety of alternatives, such as investing in our business, reducing our debt, paying dividends to our stockholders and repurchasing shares of our common stock.” Dr. Pepper’s supply chain has seen profit loss in the attempt to maximize the efficiency of its current supply chain. The ability to distribute goods from the warehouses’ storage facilities has been substantially been reduced due to 19 manufacturing plants from the 28 U.S. manufacturing plants since the end of 2009 in order to boost the efficiency of the overall supply chain which has seen a 6% increase in productivity in two years. Time lost in accidents at these manufacturing plants is down 32% since 2008 even though 16 of these manufacturing plants have been accident free during the fiscal year of 2009. Pressure from inflation is offset due to the new productivity office that was established from the funds set aside during the outsourcing of end-user IT service from offices that are no longer available due to the consolidation of manufacturing plants allowing Dr. Pepper to improve service delivery. The company’s ratio analysis for the fiscal years of 2008 and 2009 has seen an increased in percentage from 0.5% in 2008 to 0.6% in 2009. Long-term...
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