Course work
Restructuring Strategies and Tactics
Introduction
At present, a new area of knowledge and practical application for Russia - the restructuring of enterprises and companies - is gaining more and more development. The restructuring methodology, widely used in the business practice of developed Western countries, is beginning to conquer the Russian market as well. The implementation of restructuring programs can significantly increase the competitiveness of companies and lead to overcoming negative situations in economic development.
Company restructuring is not an end in itself, it should be carried out when it is necessary due to objective circumstances. The main feature of restructuring, in contrast to the current individual changes in production, capital or ownership structure, sales markets, etc. is that it is not part of the company's daily business cycle. It is the need for a complex nature of transformations affecting almost all aspects of the company's functioning that determines the restructuring.
The most important component of the reform is the restructuring of the management system. It distinguishes three areas: production management, personnel management and integrated management. Restructuring is preceded by an analysis of the operational and strategic management of production, methods of developing and making organizational decisions. It is also important to take into account the prospect of updating and improving the quality of products, which involves the modernization of production and a change in the structure of capital investments, and the transformation of the management system. The new management structure should ensure the optimal number of departments, the hierarchy of subordination, the balance of renewal processes and the preservation of the quantitative composition of personnel.
Restructuring is one of the effective market development tools successful business. The failures of the restructuring of individual Russian enterprises testify rather to an insufficiently thought-out and elaborated organization of its implementation than to a lack of it as a method.
Relevance of the topic term paper in that restructuring involves complex and interrelated changes in the structures that ensure the functioning of the enterprise as a whole. For modern economy In Russia, the restructuring of large enterprises has become a highly effective market tool for increasing the competitiveness of enterprises and is considered as a set of measures to comprehensively bring the conditions for the functioning of a company in line with changing market conditions and a developed strategy for its development.
the main objective term paper - is to consider the strategies and tactics of restructuring.
The tasks of the work, based on the goal, are:
· study of the theoretical foundations of restructuring;
· consideration of strategies and tactics for restructuring;
· consideration of approaches to assessing the effectiveness of the implementation of enterprise transformations;
· development of indicators for determining the effectiveness of the restructuring.
1. Theoretical aspects restructuring
.1 Essence, main directions and stages of restructuring
Restructuring of an enterprise is the implementation of a complex of organizational, economic, financial, economic, legal, production and technical measures aimed at reorganizing an enterprise, changing the form of ownership, management system, organizational and legal form, for the financial recovery of an enterprise, increasing production volumes competitive products, improve production efficiency and meet the requirements of creditors.
From this definition it follows that the concept of "enterprise restructuring" is, although close to the concept of "enterprise reorganization", but does not coincide with it in content. Since "reorganization" is one of the components of "restructuring", the latter concept is broader than the former.
The restructuring program involves comprehensive work on three main aspects: · financial(transformation of the structure of assets and liabilities of the company);
· structural(transformation of the internal structure and system of external relations of the company);
· legal(legal procedures and technologies of enterprise restructuring).
Depending on the reasons that served as the basis for business restructuring, not only directions, types and types of restructuring are selected, but also its strategy.
Rice. 1. Principal scheme of enterprise restructuring
The strategy and tactics of restructuring usually involve its implementation in two stages: operational, including measures that give quick results, aimed at those areas of work that are most responsive to corrective actions; strategic, involving deep transformations that ensure long-term sustainable development, a margin of safety in case of fluctuations in the external conjuncture and an imbalance due to internal reasons for the enterprise.
The main stages of restructuring are:
Table 1
.2 Goals and objectives of the restructuring
To eliminate the noted negative trends, it is necessary to focus on ensuring the effective development of enterprises as the main structure-forming element of Russia's economic policy.
Changing the operating environment of enterprises, which until now has been the main focus of the reform, should be supplemented in the coming years by stimulating internal transformations in enterprises.
The step-by-step process, stimulated by the state, of the transition of enterprises to the principles of functioning generally accepted in a market economy is the content of the reform of enterprises.
The purpose of the reform of enterprises is to promote their restructuring, contributing to the improvement of management at enterprises, stimulating their activities to increase production efficiency and competitiveness of products, as well as labor productivity, reduce production costs, and improve financial and economic results. Reformation should be carried out by enterprises independently. However, in the context of an economic downturn and a payments crisis, only a small number of enterprises are able to reform without state support.
Federal executive authorities, without directly interfering in the internal affairs of enterprises, should create more favorable economic conditions for those enterprises that are actively reforming.
The priority tasks of the enterprise reform are:
Rice. 2. Structure of restructuring tasks
1.3 Main risks associated with the restructuring
During the implementation of the restructuring project, no one is immune from negative results. There are several most important risks for companies that may adversely affect the implementation of restructuring programs.
Risk 1. The risk of choosing the wrong restructuring method.
The choice of restructuring methods is determined depending on the strategy, goals and condition of the company.
If the company has decided to conduct an operational restructuring, then the following methods can be used by it. Firstly, methods of restructuring the property complex, such as leasing, conservation, liquidation, write-off of assets, their sale. Secondly, methods of restructuring accounts payable, in particular, recognition of debt as invalid, deferment or installment plan of debt with subsequent repayment, repayment of debt with minimal costs, redemption of claims against the creditor with subsequent presentation of claims, and many others. Thirdly, the organization can use the methods of restructuring receivables, among them the repayment of debts with the maximum economic effect, the recognition of debts as invalid, as well as various forms dismissal or downsizing of employees.
Risk 2. Risk of premature evaluation of restructuring results.
In practice, it is very difficult to determine where the real results of structural changes begin. Often the negative short-term consequences of the restructuring are taken by the management of the company as its results. In this case, the entire program can be curtailed, and the strategic goals have not been achieved. To minimize this risk, a well-designed restructuring program with a detailed description of all short-term results and targets, as well as a clear definition of long-term goals, is necessary.
Risk 3. The risk of insufficient qualification of representatives of the company's management bodies.
This risk can be minimized in two ways. Or by dismissing the company's management and attracting a new management team. Or, the second option, by conducting specialized seminars and trainings to explain to the management the goals and main directions of the restructuring. In any case, in order to identify and manage this risk, it is necessary to involve professional specialists from the side.
Risk 4. Risk of incorrect assessment of the resources required for restructuring.
Companies traditionally underestimate the complexity of restructuring. Therefore, limited time periods are given for its implementation, a small number of specialists are involved, and scarce funding is allocated.
Risk 5. Risk of low motivation of persons involved in the restructuring process.
This risk implies not only a different degree of interest of the company's employees in structural changes. It also includes a conflict of interest that may arise between the management and owners of the company during the restructuring and adversely affect their motivation during the project. To manage this risk, the restructuring program needs to be top-down rather than bottom-up. At the same time, the exceptional energy of the company's owners is extremely important. Their desire to achieve the goals of the restructuring should be transferred both to the top management team and to middle managers, low-level performers.
Risk 6. Risk of negative social consequences.
The occurrence of negative social consequences in the course of restructuring is a normal practice that operates in countries with a market economy. It manifests itself in mass layoffs of personnel from existing industries, in layoffs at liquidated companies, in the closure of companies social sphere.
Risk 7. Risk of poor quality legal support project.
Very often, in the course of restructuring, it becomes necessary to carry out legal transformations. In Russia, the most common of them are the creation of one or more subsidiaries on the basis of an enterprise, the creation of a new economic society together with an enterprise - a potential bankrupt and its owners, bankruptcy of an enterprise, reorganization in the form of division and in the form of separation. There are no reliable statistics on how many restructurings were carried out under such schemes in recent years in Russia. And it is obvious that carrying out legal restructuring, not supported by real organizational changes, changes in financial, production systems in practice is only a half measure. On the other hand, errors in legal support can nullify the transformations that have already been implemented in the company.
2. Development of enterprise restructuring strategies
.1 Reasons for enterprise restructuring
restructuring risk transformation
The main reason for the restructuring of a normally functioning enterprise is qualitative changes within the enterprise in the process of its evolutionary development over time.A small enterprise over time, through medium and large, turns into a very large enterprise and then into various kinds of joins. The transition from one stage of the evolutionary development of an enterprise to another is characterized by a special type of its restructuring. For example, the transition from a small enterprise to a medium one is accompanied by its restructuring, during which, as a rule, an unstructured small enterprise acquires a pronounced management structure. The transition from a medium-sized enterprise to a large one is accompanied by restructuring, as a result of which the functional organizational structure changes to a divisional one. The transition from a large enterprise to a very large one is accompanied by transformations, as a result of which the divisional organizational structure changes to a matrix one. Even a very large enterprise can be restructured and turn into such types of associations as a concern, a holding, a financial and industrial group, an association, a union.
The considered reason for the restructuring of an enterprise can be called a natural cause of growth and can be attributed to the so-called natural causes of restructuring, i.e. reasons due to internal, in this case, qualitative, changes in the enterprise.
Changes in the interests of the owners of the enterprise (owners) or one owner (owner) can also be attributed to internal reasons. In this case, the restructuring of the enterprise can be carried out through the division of business areas, personnel, the creation of various, including competing, firms. The owner can finally sell or liquidate his enterprise, or create a number of new ones on its basis, etc.
If the owner's interest is to increase the scale of the enterprise or neutralize a competitor, he can merge, take over or acquire another similar enterprise - a competitor, or create a new enterprise that will operate in the competitor's market sector. Mergers, acquisitions or acquisitions of various enterprises are very complex processes, accompanied by profound changes both in the main enterprise and in the affiliated one. The complexity of these processes is due to the combination of various individual structures, personnel, traditions and cultures. The problems that arise during this merger are solved in the process of restructuring these enterprises - the main one and the affiliated one.
Another common reason for restructuring an enterprise is conflicts between co-owners, or CEO and the board of directors, or leading executives.Usually the contradictions of the opposing sides accumulate over time and become antagonistic. In this case, contradictions can be resolved by restructuring the enterprise, dividing it into several independent enterprises.
An internal cause, although associated with external changes, can be attributed enterprise insolvencyassociated, including with significant receivables and accounts payable enterprises.
And, finally, one of the most common reasons for the restructuring of enterprises is wear and tear: functional, physical and external. The functional depreciation of the enterprise is associated with the continued functioning of the "old" ("former") enterprise, created in pre-capitalist conditions, in the new market conditions of management, to which it is not adapted. To adapt such an enterprise to real market conditions, restructuring is necessary. Large and medium-sized insolvent enterprises, which are decrepit and obsolete organisms, in the process of restructuring turn into new, modern, efficient enterprises managed by highly qualified managers focused on market needs.
The external depreciation of the enterprise is due to market changes in management, i.e. reasons external to the company. Competitors in the market can reduce prices, expand the range, improve the quality of similar products, and these changes must be adequately responded to, that is, changed, restructured.
To others external reasons restructuring are political and legislative changes.
2.2 Enterprise restructuring strategies
The strategic concepts of enterprise restructuring are closely related to the reasons for their restructuring. If the reason is the natural growth of the enterprise, which is based on the idea that the prospective opportunities of the enterprise are related to its potential, then a capacity building strategy would be an appropriate restructuring strategy. This strategy, in turn, is associated with the implementation of a specific type of restructuring based on expanding the scope of activities and increasing the scale of the enterprise, which corresponds to its own types of restructuring: accession, merger, acquisition, etc.
Consider several strategic concepts of enterprise restructuring:
Concept of capacity building;
Marketing concept;
Anti-debt concept;
protective concept;
automatic concept;
investment.
Let's take a closer look at the first one. It is impossible to acquire a universal potential of the enterprise, suitable for all occasions, but it is a feasible task to work on its creation for obtaining real advantages in a particular market. What is the potential of the enterprise?
Qualified personnel - the main and auxiliary workers (in a certain ratio), headed by an energetic, competent and decent leader.
Modern property complex, which operates a modern high-quality and flexible production of goods that are in demand on the market.
An adequate enterprise management system, including an organizational structure, a subsystem for the implementation of basic and specific managerial functions, a modern information subsystem of office work. For the management system, the speed and validity of the adoption are important management decisions, efficient system control. Improving individual subsystems of the management system increases the potential of the enterprise.
Business management style. Here it is necessary to consider the correlation of different types of power: the power of the leader, the power of office and the power of coercion. The maximum potential of the enterprise corresponds to the maximum power of the leader, the moderate power of the position and the absence of coercive power.
The level of debt of the enterprise (mainly accounts payable). The higher the level of debt of the enterprise, the lower its potential.
Marketing characterized by the company's market share (the higher the market share, the greater the opportunity for effective pricing and influencing other manufacturers of similar products) and the effectiveness of the sales and supply services (whether it has its own or controlled distribution network, how flexible they are and whether they can adequately respond to changes in demand, whether there are alternative suppliers of resources and a credibility that allows you to receive prompt shipments, payment deferrals, a scarce assortment, etc.).
Exclusive enterprise opportunities. These include exclusive access to raw materials, access to exclusive information, exclusive right to a part of the market.
Purposeful and effective functioning of all the above components of the potential of the enterprise, all components of the potential must work purposefully to maximize profits, the efficiency of the enterprise must be above the average market.
The essence of the concept of enterprise capacity building is that any change in the enterprise should be aimed at improving a certain component of the enterprise's potential, provided that the remaining components are not weakened. This concept is very flexible, it allows the general problem of enterprise restructuring to be solved by separate tasks-blocks. The manager has the opportunity to choose individual areas of restructuring, he can choose what he is ready to change.
The concept of restructuring under consideration is largely related to one of the two most common domestic market strategies for the functioning of enterprises, namely with long-term presence strategy.
The strategy of long-term presence consists in a stable constant growth of the enterprise's potential, based on strict observance of market rules and restrictions (including ethical ones). Profits are reinvested in the development of production.
The market is also cultivating another strategy for the functioning of the enterprise - primitive capital formationbased on making a profit today, by any means. The most popular tools of this strategy are access to budgetary resources and their "pumping", manipulations with value added tax and other taxes, participation in the process of restructuring the debts of enterprises as intermediaries, delays in payment and other "malfunctions" in obligations. All profits are transferred abroad and are not reinvested in the domestic economy.
Another common strategic concept enterprise restructuring is marketing concept, which is characterized the following features:
marketing is understood in a broad sense - as a management function that orients the enterprise to the market, forms and realizes the goals of the enterprise;
the goals of the prospective development of the enterprise are clearly formulated on the basis of a deep analysis of its external and internal operating environment;
programs for restructuring the enterprise are developed and implemented, orienting it to meet market needs.
This concept allows, from the very beginning of building an enterprise restructuring strategy, to establish the direction of changes in the enterprise in strict accordance with the market situation and market interactions, and not only to establish the direction of changes, but also to ensure that each change introduced at the enterprise brings it closer to the planned quality of work on market. Thus, marketing builds the enterprise itself in accordance with the requirements of the market. In this case, the company adequately responds to changes in the market and functions effectively.
Anti-debt conceptessentially consists in the following: as a result of the implemented measures, the enterprise is released from debts or their burden becomes lighter. However, this strategy must be distinguished from another - the restructuring of the debt of the enterprise, specific technologies for debt restructuring.
Protective concept of restructuringused to protect the enterprise from capture by competitors. The core of this strategy consists of a series of changes in the management system and in the capital structure of the enterprise, as well as stock manipulations that make it difficult for competitors to gain control of the enterprise. The defensive strategy also includes individual elements marketing strategy, as well as a strategy for increasing capital.
Automatic restructuring conceptlies in the fact that all changes in the enterprise are aimed at building such a management system in which "everything works by itself", without the prompt intervention of the first manager. This strategy may combine individual elements of a marketing strategy and an enterprise capacity building strategy.
Investment strategy as an element of the overall strategy of the enterprise.
Investment strategy - a system of long-term goals of the investment activity of an enterprise, determined by the general tasks of its development and investment ideology, as well as the choice of the most effective ways to achieve them. The investment strategy is effective tool prospective management of the investment activity of an enterprise, is a concept of its development and as master plan implementation of the investment activity of the enterprise determines:
priorities of directions of investment activity;
forms of investment activity;
the nature of the formation of investment resources of the enterprise;
the sequence of stages in the implementation of long-term investment goals of the enterprise;
the boundaries of the possible investment activity of the enterprise in the areas and forms of its investment activity;
a system of formalized criteria by which an enterprise models, implements and evaluates its investment activities.
The process of developing an investment strategy is the most important integral part general system of strategic choice of the enterprise and includes:
setting investment strategy goals;
optimization of the structure of formed investment resources and their distribution;
development of an investment policy on the most important aspects of investment activity;
maintaining relationships with the external investment environment.
It is possible to effectively manage investments only if there is an investment strategy adapted to possible changes in the factors of the external investment environment, otherwise the investment decisions of individual divisions of the enterprise may contradict each other, which will reduce the effectiveness of investment activities.
A change in the factors of the internal environment of the enterprise may be associated with fundamental changes in the goals of its operating activities or with upcoming changes in the stage life cycle. New business opportunities that open up change the goals of the enterprise's operations. In this case, the developed investment strategy ensures the predictable nature of the increase in the investment activity of the enterprise and the diversification of its investment activities.
3. Evaluation of the effectiveness of the restructuring transformations of the enterprise
So, the restructuring of the enterprise is a controlled process of changing the structure of economic activity (assets, property, finance, management, personnel, etc.) in order to adapt the internal structure of the enterprise to constantly changing environmental conditions in order to achieve enterprise sustainability. If an enterprise does not carry out restructuring measures in a timely manner, then its ability to effectively adapt to changing market conditions is reduced, and strategic stability decreases.
In this chapter, we will consider the following strategies that are most relevant at present in the restructuring of domestic enterprises: financial recovery, reorganizational financial recovery, anti-debt, protection strategy, diversified growth, integrated growth, concentrated growth and capacity building.
If the head of the enterprise crisis restructuring, then the goal is to restore the solvency, financial stability of the enterprise, to overcome the crisis. To achieve the set goals, the manager can choose one of three proposed strategies:
Financial recovery strategyis aimed at restoring the solvency and financial stability of an existing enterprise and affects changes in the financial, production, organizational and marketing areas of the enterprise.
Strategy for reorganizational financial recovery- aimed at terminating the activities of an existing enterprise and creating a new financially “healthy” enterprise. The fundamental measure of restructuring here is reorganization. Reorganization is carried out by merging with another similar organization, joining a stronger company, joining a financial and industrial group, dividing an enterprise, separating separate technologically separate industries in order to attract demand for their products, etc.
Anti-debt strategyaims to rid the company of debts.
In order to facilitate the choice of a strategy for the implementation of natural restructuring carried out in connection with the need to grow the enterprise, it is proposed to systematize them, combining them into two groups:
1 group.Unrestricted growth strategies aim to grow the business using legal restructuring methods such as mergers, acquisitions and new ventures.
This group includes:
Integrated growth is an expansion through the acquisition of supplier firms, seller firms, and the capture of competitors.
Diversified growth - implemented through acquisitions operating enterprises or the creation of new businesses in new industries.
2 group.Limited growth strategies assume that the accumulated profits of previous years, as well as borrowed funds, will be invested in an existing business.
This group combines the following strategies:
Concentrated growth is an increase in the share of traditional products in traditional markets, entering new markets with this product, creating new products and releasing them to the traditional market.
Capacity building - aimed at increasing the production, personnel, financial potential of the enterprise through the use of methods of restructuring changes in the enterprise.
In carrying out business restructuring aimed at preserving ownership, at preventing the takeover of the enterprise by third-party "hostile" organizations, managers choose a strategy to protect against takeovers. This strategy provides for the implementation of special methods, the use of which reduces the likelihood of a hard takeover of the enterprise. The main methods of restructuring in order to protect against takeovers for Russia are litigation, share buyback, withdrawal of attractive assets.
Having chosen a restructuring strategy, it is necessary to develop a set of measures to implement this strategy and calculate the effect of the introduction of changes in the enterprise. Grade economic efficiency carrying out transformations allows you to correctly choose the final one from alternative options for conducting restructuring.
We can distinguish the following approaches proposed in domestic practice for assessing the effectiveness of restructuring transformations:
1 approach.Using a number of predictive indicators:
dynamics of sales growth;
specific gravity new products in sales volume;
dynamics of net profit;
return on assets and equity;
net profit per share.
2 approach.Using the discounted cash flow method to determine the value gap. The discounted cash flow method is the only way to take into account future changes in the company's cash flows. Within the framework of this approach, it is possible to use one of the following options for determining the cost gap when calculating the cost gap:
a). Value Gap Formula
where D(PN) - additional profit from restructuring, - period of time after restructuring,
(EE) n - savings in production costs,
(I) n - additional investments for restructuring,
(T) n - increase (saving) of tax payments - current value coefficient.
b). Defining the gap as the difference between the company's current value (current value) and the company's potential value after restructuring.
The current value of the enterprise is taken as the basis for comparing this approach to assessing the strategy and methods for its implementation. If, when comparing the potential value of the enterprise after restructuring and the current value that the company currently has, a value gap is obtained, this strategy is recommended for implementation at this enterprise, otherwise it must be abandoned.
With). Due to the fact that the period of planning, preparation and implementation of the restructuring is from 2 to 5 years, it is believed that the forecast potential value of the enterprise after the restructuring should be compared not with its current value, but with the future value of the enterprise without restructuring. The following improvement of the cost gap method is proposed:
The value gap is the gap between the predicted values of the present value of future cash flows in the event of a restructuring and the present value of future cash flows without a restructuring.
As part of the proposed method, to determine the value gap, it is necessary to calculate the forecasted present value of future cash flows:
When the enterprise operates according to the traditional method of enterprise development;
during restructuring.
If, when comparing the present value of future cash flows during restructuring and the present value of future cash flows without restructuring, a cost gap is obtained, this strategy and the selected methods of its implementation are recommended for implementation at this enterprise. If not, it is recommended to abandon its implementation or review the list of methods for its implementation. This approach is applicable for financially healthy and also successful businessescarrying out natural restructuring.
For businesses that are in trouble financial position, and even more so for enterprises to which judicial procedures are applied, this approach should be supplemented by the calculation financial indicators, which are able to assess the dynamics of a gradual transition of a business from a state of unprofitability to normal conditions and testified to the presence of a process of overcoming the crisis. As such indicators, it is recommended to use the coefficient current liquidity and self-sufficiency ratio working capital.
In this way, when evaluating the effectiveness of restructuring crisis enterprises necessary:
so that the cost gap as a result of the implementation of the strategy is obtained,
net discounted cash flow became positive,
current liquidity ratio and own working capital ratio began to correspond to their normative values.
Table 2 proposes a systematization of performance evaluation indicators depending on the goals and type of restructuring strategy (Table 2).
Table 2. Relationship between restructuring goals, strategies and performance indicators for achieving planned goals
Restructuring goalsStrategiesIndicator of the effectiveness of the chosen strategyAchieving the strategic sustainability of the enterprise, maximizing the value of the business.Concentrated growth, Integrated growth, Capacity building, Diversification growth.Value gap*. If, when comparing the present value of future cash flows during restructuring and the present value of future cash flows without restructuring, a cost gap is obtained, this strategy and the selected methods of its implementation are recommended for implementation at this enterprise. If not, it is recommended to abandon its implementation, or reconsider the chosen methods for its implementation. Financial stabilization. Financial recovery, Reorganizational financial recovery. discounted flow. Compliance of indicators of financial stability and solvency with normative values. Protection of the interests of owners. Protection strategies. Preservation of control by the owners of the enterprise.
To determine the cost gap, using any of the methods discussed above, it is necessary to correctly identify the sources of value added creation. Sources of value increase form a certain benefit for the restructuring enterprise, which is the main motivating factor for restructuring. The sources of added value creation can be: growth in sales volumes by improving the quality of products, through the introduction of new technologies, improving marketing, etc. The sources of added value creation depend on the chosen restructuring strategy.
R we arrange the sources of added value creation depending on the chosen restructuring strategy(Table 3).
Table 3. Ranking of value added sources depending on the chosen restructuring strategy
The added value during restructuring is formed by obtaining additional profit (PN) and savings in production costs (EE). This systematization allows managers to focus their attention when evaluating the effectiveness of the strategy on the analysis of the sources of obtaining added value, characteristic of the restructuring strategy they have chosen.
For example, when choosing a horizontal integration strategy by the head of an enterprise, when determining the cost gap, it is recommended to pay attention to the following sources of value added:
where PN6 is the growth in revenues with an increase in the production of profitable products, - the growth in revenues with an increase in sales volumes due to entering new customer segments, - the growth in revenues due to the growth of the customer base through geographical expansion, - the growth in revenues due to the expansion of the range, - growth in revenues due to growth in investment opportunities, - growth in revenues due to growth in investment opportunities, - growth in revenues from a positive assessment of the intention to conduct a transaction by the market, - savings from the availability of complementary resources, - savings due to the elimination of inefficient management, - savings due to economies of scale, - savings by reducing the costs of competition, - additional investment in restructuring, - savings in tax payments.
Compilation of such value-added models will allow, if necessary, to carry out factor analysis value growth indicators.
The proposed methodology for assessing the effectiveness of the implementation of transformations will help the manager competently approach the preparation of a restructuring plan, the implementation of which at a particular enterprise will achieve all the planned goals.
Conclusion
So, the restructuring of an enterprise is a structural restructuring in order to ensure the effective distribution and use of all the resources of an enterprise (material, financial, labor, land, technologies), which consists in creating a complex of business units based on the separation, connection, liquidation (transfer) of existing and organization new structural divisions, accession to the enterprise of other enterprises, acquisition of a determining share in the authorized capital or shares of third-party organizations.
Compliance with the basic principles of restructuring is a necessary condition for its successful implementation.
Whether the head realizes that his enterprise needs to be restructured - this is the leading role of the head in the restructuring.
In order to correctly determine the causes and establish a diagnosis of problems, it is necessary to first make a comprehensive and in-depth analysis of the problems. Having established the causes and diagnosis, it is possible to reasonably develop a strategy and program of action. In the course of carrying out the planned programs, it is necessary to observe the principle of validity and consistency.
The development of the strategy is carried out on the basis of forecasts for the development of markets for manufactured products, an assessment of potential risks, an analysis of the financial and economic condition and management efficiency, an analysis of strengths and weaknesses enterprises.
Thus, the restructuring strategy is an action plan to change the structure of ownership, capital, production, capacity and management system, aimed at bringing the internal conditions of the enterprise into line with changing external conditions in relation to the enterprise and the strategic goals of the enterprise.
The totality of decisions within the framework of the chosen strategy are of fundamental importance for the functioning of the enterprise and entail (if implemented) long-term and irreversible consequences. Moreover, the restructuring strategy should follow from the overall strategy of the enterprise. Therefore, in the face of the need for restructuring, these strategies should be closely interconnected.
List of used literature
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In modern economic literature, two types of restructuring measures are distinguished: financial and operational. Financial restructuring is mainly related to the optimization of the capital structure of the enterprise and has the following main goals:
ensure the restoration of normal financial flows and key economic and financial indicators in the short term;
within a short period of time to ensure the survival of the enterprise;
restore the competitiveness of the enterprise for a long time;
prevent the threat of possible bankruptcy of the company;
increase the value of the company.
In accordance with these goals, two interrelated forms of financial restructuring are distinguished: operational and strategic.
Tasks of operational and strategic restructuring
In the course of operational restructuring, two main tasks are solved: ensuring liquidity and a significant improvement in the results of the enterprise's activities.
Strategic restructuring provides for the growth of the company's value in the long term. To fulfill these tasks, it is necessary to mobilize all the internal reserves of the enterprise, active, purposeful, constant work of managers at all levels, and strict control over the completeness and timeliness of the implementation of planned activities.
Timing of operational and strategic restructuring
The duration of the period of operational restructuring should not exceed 6 months, strategic - 1 year.
Conducting operational restructuring is, of course, complicated by the fact that it is carried out within the framework of the old production and management structures. At the same time, the strategic one provides for their replacement or a certain reorganization, which is also a problem.
Measures for operational restructuring of the enterprise
The operational restructuring of an enterprise from illiquid to liquid requires a set of measures, among which the following stand out:
operational reduction of receivables;
reduction of stocks of working capital by identifying and selling (liquidating) excess stocks (including stocks of auxiliary materials);
refusal (sale) of equity participations in other enterprises and organizations after a previous analysis of their effectiveness;
reduction of fixed assets by identifying and selling (liquidating) excess equipment, transport methods, etc.;
an accurate assessment and termination of all investments, except for those vital for the enterprise and justified from the position of market development.
Measures of strategic restructuring of the enterprise
Strategic restructuring provides for the following activities:
cost savings associated with operations, which are obtained by increasing the scale of production in management, marketing, distribution and sales;
financial savings, which includes lower transaction costs for the operation;
more effective management, meaning that the company's management was inefficient, that is, investment resources after the reorganization will be used more efficiently;
What are the measures of operational restructuring of the enterprise aimed at?
Operational restructuring is aimed at restructuring technological systems, managing costs by increasing the efficiency of using production resources, improving the organizational and management structure enterprises. Operational restructuring includes reactive and strategic measures.
Reactive measures are the response of enterprises to the changed macroeconomic environment, in particular to tightening budget constraints and economic downturn. They are directly related to the desire to reduce production costs and survive in a complex and rapidly changing environment with the maximum use of existing production and management potential and minimal investment.
What are the measures of strategic restructuring of the enterprise aimed at?
Strategic measures are associated with the development of new business strategies that require the active introduction of new production, management and marketing technologies. Strategic restructuring requires significant investments to improve the production and management structure of the enterprise and develop a market orientation. It takes time, and its speed depends on the degree of development of competitive market relations in the country's economy, success in the field of macroeconomic stabilization and development of the privatization process.
In recent years, many developments have been devoted to various aspects of competitiveness in the scientific community, with the main emphasis being placed on the introduction into practice of new methods of enterprise activity in market segments, the development of marketing programs, the creation of new types of goods and the introduction of progressive, as a rule, Western technologies. The problems of reforming, restructuring and reorganizing both complexes of enterprises and their main types of production activities are paid much less attention by researchers. Moreover, the issues of competitiveness of commodity producers and restructuring of production are not considered comprehensively, but locally, in isolation from each other, which is unlawful and leads to negative economic consequences.
The current stage of development of market reforms in Russia is increasingly exacerbating production, economic, organizational and financial relations between enterprises of both related and related activities. The strategy of raising domestic production is becoming the main direction of the economic activity of industrial enterprises in almost all branches of the national economy of our country.
Increasing competition in the efficient production and sale of products between domestic producers, as well as with foreign suppliers of goods imported to Russia, requires national companies and firms to mobilize efforts to maintain positions in the domestic market.
The restructuring is aimed at increasing the efficiency of production, increasing the competitiveness of enterprises and their products, as well as improving their investment attractiveness. Often it includes a set of measures aimed at improving organizational structure and management functions: modernization of technical and technological aspects of production; improvement of financial and economic policy; reduction of production and marketing costs; better use of material and labor resources; creation of a modern information system and workflow.
Property, resource and other transformations are rarely associated with the resolution of only internal production problems. As a rule, restructuring adapts the business processes of an enterprise to changes in the external environment and in corporate relations with partners. The possibilities of carrying it out directly affect the implementation of the developed competitive strategy of the enterprise, and, conversely, the requirements for increasing the competitiveness of production and manufactured goods form the content, stages and timing of the necessary measures. Such a unity of goals and methods for achieving competitiveness makes it possible to create an effective restructuring mechanism for the primary restructuring of the economy and its further maintenance in an operational mode.
When analyzing the general problem of increasing competitiveness on the basis of restructuring measures, the authors propose a two-stage scheme for preparing and implementing measures to reform enterprises. At the first stage, the key provisions of the competitive production and marketing strategy are formed, covering goals, sub-goals and tasks, as well as basic and operational indicators. At the second stage, restructuring procedures are being developed. It is advisable to include in the measures being prepared: an analysis of the economic activity of the enterprise with an assessment of the state of the external and internal environment, which ends with a comprehensive assessment of the business and the development of reform requirements; development of a general concept of restructuring, its direction and form; restructuring activities; evaluating the results and making adjustments.
As a result, a unified system of transformations is being formed at the enterprise to achieve competitiveness, both in production itself and in products.
Restructuring aimed at improving the efficiency of functioning and ensuring the competitiveness of the enterprise can also be carried out on the basis of the allocation of separate divisions, while the functions within one of them can be supply, product development, technological processes, direct production, marketing and sales. The process of separating a division or part of an enterprise into separate companies includes determining the assets, liabilities and personnel to be separated, as well as their actual disposal. Shareholders as a result receive shares in the formed company in proportion to their investment in the business.
An independent (manufacturing and commercial) unit combines all the functions and activities necessary for the development of competitive production and effective implementation products and services, which allows managers to quickly respond to customer needs and to changing situations in the external market environment. It is responsible for the results of its activities, while its effectiveness and the results achieved are clearly reflected in the production and financial statements enterprises.
A similar allocation of production units for the production of the main types of goods is carried out as a result of an analysis of the competitiveness of products, which makes it possible to take into account market requirements to increase the competitiveness of products, as well as the investment attractiveness of this production for Russian and foreign investors. This approach allows you to concentrate the released funds and then, based on the overall strategy, invest them in the development of production and its diversification, i.e. start up the production of new products. The result is not a simple automatic redistribution financial resources from profitable divisions to outsiders, and the necessary development is provided by corporate management, based on the interests of the work and development of the enterprise or the company as a whole.
To maintain the competitiveness of the enterprise as a whole, its organizational management structure should be such that the work of the main and allocated production is focused on all specific products and on a specific end consumer. The management system and organizational structure must be consistent with the restructuring strategy. A change in strategy requires a change in the organizational structure of management, so a dynamic balance must be ensured between them. It is necessary to distinguish between the units that develop the strategy and the units that implement it. The former, as a rule, play a more important role.
To ensure the continuity of management and prevent a decrease in the company's efficiency during the transition period, the role executive body began to fulfill Management Company allocated (distributed) in the bowels of the management apparatus of each plant. In the future, the formation of a full-fledged organizational structure of the company and the formation of a corporate center with shared divisions should take place. The company should form such a model of the management system that is able to act and develop in accordance with the set corporate goals and objectives, with a constant dialogue with environment. This control system is based on high level self-organization.
One of the options most suitable for the conditions of the company is holding. This is usually a group of enterprises or subsidiaries operating under a parent company that holds shares in these enterprises.
In the USA, 10-15% of the shares are enough to effectively control the activities of subsidiaries, in Western Europe - about 20-40%. In Russia, this ratio may be different depending on the characteristics of production. In the meantime, in conditions of great legal and economic instability, parent companies are trying to have at least 51% of the shares of subsidiaries.
The formation of a holding allows you to move capital from less promising areas to more progressive ones; carry out concentrated joint investments in the presence of large liquid funds; equalize seasonal and commercial fluctuations and risks; delegate (differentially) to individual subsidiaries some of their corporate functions to the parent company.
As practice shows, the following financial management functions are usually implemented as part of a competitive strategy:
- - providing the enterprise with certain credit resources to replenish working capital;
- - concentrating the supply of the enterprise with raw materials and materials, as well as the sale of finished products in one of the divisions of the holding;
- - withdrawal of financial flows from the control of the enterprise and its implementation external funding within the framework of budgets formed by the relevant services of the holding, functioning in the form of a financial and settlement center;
- - after obtaining operational control over the enterprise, decisions are made on an additional issue of shares (within the declared capital), acquiring which financial corporation becomes the main shareholder with a decisive vote, and the previously consolidated controlling stake reduces its weight by 5-7% of the total number of shares.
As a result, each enterprise partially loses its financial and production independence and turns into an industrial structure, the management of which is carried out from a single center.
During the restructuring, it seemed that, by combining their production and financial resources, homogeneous enterprises will be able to jointly overcome the crisis tendencies that have emerged in their development in recent years. Indeed, the centralization of supply allows you to optimize the cost of purchasing raw materials and raw materials. This, while reducing the cost, contributes to strengthening the position of the group of manufacturers in the market. Unified marketing and sales services improve coordination pricing policy and geography of sales, which has a positive effect on increasing the competitiveness of finished products. However, the implementation of the concept of combining tire and other factories in their current state may not give the expected maximum effect. The unsatisfactory state of finances, enterprises entering the association complicates the prospect of their joint activities. The recognition of the insolvency of any of the members of the group will automatically lead to a break in the established ties, which will negatively affect the economic condition of each member of the association.
The proposed methodological approach to the implementation of restructuring measures, based on the development of a competitive strategy, is already finding more and more understanding and application in the management practice of modern management. Therefore, its further theoretical development and implementation should play a positive role in strengthening the competitive positions of enterprises both in the domestic and foreign markets.
Chichkina V.D.
Associate Professor of the Department of General Economic Disciplines of the branch of the Samara State Technical University in Syzran [email protected]
company restructuring as a way out
to a new stage of development
restructuring in management strategy
enterprise development
annotation
Restructuring is becoming one of the main tools for strategic management of an enterprise's development. Restructuring is a complex process of transforming an enterprise's activities in order to create and maintain the required level of its competitiveness. The article discusses the key issues of restructuring: its feasibility, concept, stages, principles, goals and objectives,
Keywords Keywords: restructuring, business processes, competitive advantage, organizational transformations, enterprise competitiveness, strategic goals, business process reengineering
The main goal of the restructuring process is a fundamental transformation of business practices. Restructuring is a set of measures to bring the conditions for the functioning of the organization in accordance with the developed development strategy. Activities within this process occur for changes in strategic goals and key business processes. To implement the strategy, it is necessary to radically change the technology of the company's activities.
Competitiveness is impossible without revising the principles of functioning, methods of action and approaches - it is necessary to restructure the enterprise in accordance with the new conditions and tasks.
Necessity and expediency of restructuring
Restructuring is a complex process of transforming the activities of an enterprise, aimed at the formation and maintenance of its competitive advantage in all
spheres. As a fundamental principle of restructuring the organization, customer orientation should be adopted in order to maximize the value of the company. At the same time, it is necessary to ensure the creation and use by company managers of such tools and techniques that would allow them to manage the degree of uncertainty in order to maximize the result.
To decide whether changes are necessary and appropriate, their expected economic impacts should be assessed. The question always arises before the managers and owners of the enterprise in such cases: what is the price of obtaining the necessary flexibility, and what is the ratio of benefits and losses from its presence? The need to reorganize the activities of enterprises can be caused by two groups of factors: controllable and uncontrollable.
Controlled factors are subject to the influence of the enterprise, as they are a consequence of its activities. These include elements of the internal environment, which are divided into functional areas of activity: management, production, finance, personnel, marketing. Uncontrollable factors consist mainly of the macroeconomic conditions in which the enterprise operates, therefore it is almost unable to influence them, it can only adapt to them.
Restructuring concept
Successful transformation is possible only on the basis of the development holistic concept restructuring
rization, which is designed to answer the following questions:
What is the current and desired position of the enterprise, its strategic goals and objectives;
What resources need to be involved;
What methods can be used to evaluate the results of restructuring.
The main goal of the restructuring is a fundamental transformation in the way business is done. This is necessary to cope with the new, more demanding and complex business environment in today's environment. Actions within this process occur for changes in strategic goals and key business processes, that is, in order to increase the ability of the enterprise to act in conditions of uncertainty and achieve its goals. According to A. Chandler, the strategy is a kind of long-term management concept, within which
restructuring is a complex process of transforming the activities of an enterprise, aimed at creating and maintaining its competitive advantages in all areas
strategic management
long-term guidelines for the development and goals of the company are determined (4). The main reasons for the restructuring are as follows:
Inefficiency of existing business processes;
Lack of a clear strategy for the enterprise;
Striving to improve financial results;
Deteriorating market conditions;
The emergence of liquidity problems.
Stages of restructuring
Organizational changes require the following work.
1. Setting goals for restructuring.
2. Clarification of the mission and goals of the company, highlighting key success factors.
3. Analysis of the business and its environment in order to select priority objects for changes (if the changes do not affect the entire organization as a whole). Building the model "as is".
4. Designing new business processes (building processes in accordance with the goals, mission and taking into account key success factors). Building a model "as it should be."
The strategy is a kind of long-term management concept, within which the long-term development guidelines and goals of the company are determined.
5. Drawing up a draft of changes (a list of activities indicating the stages of work, deadlines, budgets and responsible persons).
6. Implementation of the project (implementation of changes).
7. Control and evaluation at the stages.
In order to develop a universal methodology for carrying out reengineering activities, it is necessary to classify the business processes of an enterprise. This classification is important in identifying business processes - candidates for reengineering, as well as the features of the implementation of the functions themselves. Current activity consists of the correct implementation of the main and supporting (auxiliary) business processes.
The subjects of restructuring are senior management, managers of various levels of management, heads of departments, owners of enterprises and members of the workforce.
Principles of restructuring
Conducting organizational transformations based on the transition to business processes should be based on the following principles:
Consistency (complexity) - restructuring transformations affect all areas of the enterprise as a complex dynamic system;
Going concern - the enterprise is functioning normally and is not going to stop its activities;
Adaptability - the enterprise is open in relation to the external environment, is influenced by its factors, therefore, one of the tasks of restructuring is to increase its
adaptability to changing conditions of the external and internal environment;
Situational approach - restructuring is carried out based on the conditions of economic activity and the size of the enterprise, and its methods, goals are selected depending on the state of the external environment and the position of the enterprise in the industry;
Organizational integrity - participation and interest in the positive results of the restructuring of a wide range of employees, support for ongoing changes from the staff;
Periodicity - restructuring transformations should be carried out regularly as needed;
Efficiency - it is necessary to quickly diagnose problems, adjust their actions in accordance with the requirements of the external environment;
Efficiency - restructuring should have clear goals and be aimed at a specific result, it should be started after a precise definition of strategic goals and priorities;
Efficiency - the costs associated with the restructuring should be less than the economic effect of the transformations.
Goals and objectives of the restructuring
Business process reengineering technology transforms not only the organizational structure industrial enterprise but also the internal management system. The purpose of the restructuring is to improve competitiveness, operational efficiency and increase the cost of capital. Depending on the state of the external and internal
the purpose of the restructuring is to increase competitiveness, operational efficiency and increase the cost of capital
environment, the goals can be achieved by solving the following tasks:
Comprehensive diagnostics of the external and internal environment of the enterprise;
Development of a strategy based on market research and competition conditions;
Identification of internal reserves of growth and concentration of resources and reserves on solving key internal problems;
Mastering the production of new products and increasing the competitiveness of already manufactured ones;
Improving performance by minimizing costs;
Acceleration of inventory turnover;
Attracting long-term capital investments in the form of direct investments;
Improving the financial condition of the enterprise, its solvency and liquidity;
Formation of the organizational structure of enterprise management, which is most consistent with its strategy and provides a quick response to changes in the external environment.
Solving the tasks set and following the principles of restructuring should lead to:
To the intensification of production activities;
Increasing competitiveness, market value and investment attractiveness;
strategic management
Restructuring is an integral part of the functioning of any modern enterprise
Growth of labor productivity, efficiency and profitability of the enterprise.
To achieve the goals and evaluate the results of the restructuring, an enterprise can use the tools and methods of financial, production, investment management, logistics, management accounting, economic analysis, marketing and controlling.
Thus, restructuring is an integral part of the functioning of any modern enterprise. The changes that accompany this process affect all aspects of its activities,
Literature
1, Vikhansky O, S, Strategic management, - M : Economist, 2008, -293 s,
2, Mazur I, I, Shapiro V, D, Restructuring of enterprises and companies: Textbook for universities, - M : Economics, 2001, - 436 s,
3, Thompson A, A, Strickland A, Strategic management, The art of developing and implementing a strategy, Per, from English, - M : Unity, 2004, - 576 s,
4, Chandler A, Principles strategic development business, - Kyiv: Dialogue, 2002,
Associate Professor, Chair of General Economic Disciplines, Branch of Samara State Technical University, Syzran
Restructuring the Strategy of Company Development Management
One of the main tools of strategic management of the company development is restructuring. Restructuring is a complex process of transformation of the company's activities with the purpose to build and maintain the necessary level of competitiveness. The article examines the key issues in restructuring: its expediency, concept, stages, principles, goals and objectives.
Keywords: restructuring, business processes, competitive advantage, organizational changes, competitiveness of enterprise, strategic objectives, reengineering of business processes
