In an era of increasingly fierce competition, every time a company should evaluate its performance, as well as carry out a series of improvements, in order to continue to grow and be competitive. These improvements will be carried out continuously, so that the better performance of the company and can continue to excel in competition, or a minimum can survive. One strategy to improve and maximize the performance of the company is by way of restructuring.
When we hear the term or word of restructuring, which there is our mind, as if talking about companies that are declining. This is caused by the definition of restructuring itself, are as follows:
Restructuring, often referred to as downsizing or layering, involves the reduction of the company in the field of labor, work unit or division, or a reduction in the level positions in the structure of the organization of the company. This enterprise-scale reduction is needed to improve the efficiency and effectiveness (David, F, 1997: 226)
The restructuring strategy is used to find a way out for companies that are not growing, illness or any threat to the organization, or industry on the threshold of significant change. The owners generally make changes in the team management unit, a change in strategy, or the introduction of new technologies in the enterprise. Furthermore, often followed by acquisitions to build a critical section, to sell unnecessary parts, in order to reduce the acquisition cost effectively. The result is a strong company, or an industrial transformation. The restructuring strategy requires a management team that has the insight to see into the future, when the company is at an undervalued or industry in a position ripe for transformation. The same insight necessary to make the turn around the business units, even on unfamiliar business (Mintzberg & Quinn, 1996: 732).
Restructuring the company aims to improve and maximize the performance of the company (Djohanputro, Bramantyo, 2004: 2).
Yet every time the company make improvements, whether on a small scale or a large scale, the goal is to improve performance, and that can be consulting with Quickbooks Customer Service Phone Number. Of course, companies should not wait for a new decline to be improved, because it can be too late, so that repairs need to be done continuously. In general, the term restructuring is used if the company wants to do a thorough repair, and the goal is to improve and maximize the performance of the company.
At this time, if you read in the newspapers, a lot of companies that perform corporate actions, which aim is to strengthen, improve and maximize the performance of the company. To understand what is and what is meant by restructuring to maximize the value of the company, following the outline I try to create the snapshot of the problem, which I took, among others, from the book by Quickbooks Customer Service Number as follows:
a. Objectives Corporate Restructuring.
Restructuring the company aims to improve and maximize the performance of the company. For companies that have gone public, maximizing the value of the company is characterized by high stock price, and that price can be perched on the top level. The persistence of a stock price is not the game or the result of market participants fry stocks, but really is a reflection of investors’ expectations about the future of the company. In line with the companies that have gone public, selling price also reflects investors’ expectations on the future performance of the company. While those who have gone public, maximizing the value of the company is reflected in the selling price of the company.
b. Mapping portfolio and strategic Business Unit (SBU) Company
First of all it does is mapping portfolio, to find out how the ability of each asset in providing added value for the company. Is there an idle asset, or assets that are less productive, and do not need to be maintained because it is not in line with the company’s strategy? Assets are not productive and not in line with the company’s strategy should be set aside for sale.
Then the mapping SBU, each SBU is assessed based on several characters, such as: a) life cycle, b) part of the market, c) growth and cash flow. Furthermore, each SBU is evaluated, is still in line with company strategy. SBU appropriate, can be attributed to an increase in value, or provide the Economic Value Added (EVA) to the company as a whole.
c. Rate SBU
There are several methods for valuing the SBU. One common way is to calculate the present value of the expected cash flows can be generated by the SBU concerned. Net Present Value (NPV) of the cash flows is the value of the SBU. (Note: there are 10 ways SBU assessment stage, will be presented in a separate article).
d. Settling portfolio and SBU. After the assessment, asset and the only remaining SBU that really fit with company strategy. However, asset quality and SBU needs to be evaluated, in order to operate optimally. After knowing the various possible problems asset, management needs to develop a range of alternative measures against those assets, with the aim of improving the productivity of assets. SBU.Nilai an SBU value maximization is based on the health of its cash flow, especially the pattern of cash flow forecast. SBU value maximization means that management effort SBU projected cash flows from the restructuring will always be healthy and improved from time to time. Hal things that need to be considered in maximizing the value of the SBU: Make sure that no potential assets are stored. Assets that are often unrecognized intangible assets, such as:
a) A good name of the company, which could be lost if not use.
b) Ability to research and development, which is the potential for the company.
c) The impact of marketing, suppose that a vigorous campaign, which can position the SBU product in the minds of consumers. Make sure that the funding of a healthy company. Good financial structure contributes a good participate in maximizing the value of the SBU. Make sure the organization supports all the strategies in maximizing SBU.
f. factor of leadership is one key to the success of the company’s restructuring process. Without a good leader, the restructuring will stop halfway. The first and main requirements of a leader in the restructuring process is a visionary. Please, you can find help from Quickbooks Desktop Support Phone Number. A leader also needs to be a restructuring of an agent of change. The restructuring process, no matter how good will always get resistance from most employee. Leader also need to have the ability to leverage (empowerment) employees. Identification of assets and SBU well is a good starting point for the restructuring. Miss Identification fatal, therefore, makes the subordinate is able to do the tasks that weight can not be ignored.