BUS 642 Business Research Methods & Tools
Instructor: Donald Platine
September 24, 2012
In this study, we will be focusing on restructuring and how it relates to cost improvement. This information has been investigated in order to gain a good knowledge on the importance of restructuring. In order to test this theory, I used random sampling of 20 different data reports relate to the issues that the company faces concerning expenditures, labor and necessary spending. Each month every section of the company has a major meeting and part of the meeting is to discuss the financial reports of the company. Many companies may not find this to ...view middle of the document...
Cost improvement will mean that business management getting out the books to look at ways of saving money for their company. This includes taking a look at how all departments of the organizations is doing financially. The management team would have to look at ways to reduce their overall cost which may include making changes all across the board. They must look at cost savings which means being smart about spending and focusing on the necessities and not spending money on things that may not be necessary to the organization. Cost improvement includes restructuring. Restructuring is redesigning one or more aspects of a company (Tatum, 2012). Improving cost is something that requires many steps and goals that are set by the company. Typically a company put a time frame on when the changes should take place. A cost improvement project should allow the company to make better usage of the company’s resources while maintaining or improving their productivity. Cost improvement also requires business turn around activities. This is similar to restructuring but can be a temporary project. The part of cost improvement that we will be focusing on is restructuring.
There is a major cause for the need of restructuring. One of the major reasons is for survival. This takes affect when organizations try to adapt to the changes made in the economy. It is believed that no company, regardless of what it does or how big it is or who runs it, is indispensable or immune to change (Maurer, 1996). Downsizing can be looked at from many different perspectives. Some companies do it to enhance their competitiveness, decrease waste, and improve profitability. Basically restructuring is used to get out of debt or to prevent your company from going into debt. Some companies even use restructuring if they are on the verge of going out of business. Management try this method because they believe that it will save their business. Like many other companies, the company that I work for must restructure because it has grown to a point where the original way of doing business is no longer effective. One of the major issues with this is it can cause problems within the organization. This can cause a lack of quality in work and also lower morale. This can typically happen because people become in fear of losing their jobs. It also causes problems when you have someone you have worked with for over 20 years gone. So this process can cause an emotional strain on the employees who remain with the company.
I have been with the current company that I work for just a little over a year and a half. Since I have been here there have been huge financial concerns and the necessity of proper restructuring or downsizing. This can include a number of actions. The first would be a reduction in the number of staff who carry out the organization’s existing activities through across-the-board cuts or the reduction of staff involved in a specific activity; second, the centralization of...