ABB India Corporate Restructuring Process through Slump Sale

This case examines the corporate restructuring process of SMU Group, a Chilean retail supermarket chain. The restructuring process was triggered by an internal situation involving operational inefficiencies between the years 2007 and 2012, following an aggressive acquisition process. These problems were the result of an aggressive “Buy-and-Build” strategy, thanks to which by the end of 2012 the Group had grown to become the third largest player in the supermarket industry in Chile. Although this strategy allowed the conglomerate to consolidate its competitive position, it was based on inorganic growth that hid the differences in the operational performance of the different chains and did not allow the Group to take advantage of its own synergies in the process of consolidating the holding company. Around mid-2013, this lack of definition in SMU's competitive strategy resulted in a serious deterioration of its financial position, due to the significant indebtedness taken on to finance acquisitions, as well as the insufficient generation of cash flow. Furthermore, when compared to the two main players in the industry, SMU showed lower levels of profitability and sales per square meter. To overcome this crisis, SMU implemented a three-year strategic plan (2014-2016), reinforcing three fundamental areas: finance, operations and commercial. The goal was to restore financial viability to the conglomerate by the end of 2016. After executing its plan, SMU achieved an improvement at the operational and commercial levels. However, in the first months of 2017, the risk rating agencies still had doubts about SMU's future performance and its crisis management capacity. For this reason, Álvaro Saieh, who was serving at the time as Chairman of the Company's Board of Directors, had several questions: could SMU's 3-year operational and strategic restructuring plan be considered successful? what are the critical variables that will ensure the sustainability of the company and its growth in the coming years? will I be questioned again like I was in 2013? and finally, what possibilities do I have to create corporate value in the future?

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The concept of the system approach of the enterprise restructuring process

Virtual Economics ◽

10.34021/ve.2019.02.04(3) ◽

2019 ◽

Vol 2 (4) ◽

pp. 46-70 ◽

Cited By ~ 1

Author(s):

Henryk Dzwigol

Keyword(s):

Knowledge Management ◽

Strategic Management ◽

System Approach ◽

Corporate Restructuring ◽

Management Model ◽

Enterprise Restructuring ◽

Knowledge Based ◽

Restructuring Process

The article presents methodical requirements for the restructuring programme in the context of strategic management and the shaping of strategic forms. The author described the corporate restructuring model as a basis for transformations designed to achieve a knowledge-based organisation. The author attempted to address the following question: How should the knowledge management model be perceived in modern companies? Furthermore, the importance of organisational forms in the corporate restructuring process was underlined. The restructuring process should be carried out on the basis of specific restructuring objectives resulting from the scope of changes.

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STRATEGIC SOLUTIONS FOR CORPORATE RESTRUCTURING

International Journal of Strategic Property Management ◽

10.3846/1648715x.2004.9637506 ◽

2004 ◽

Vol 8 (1) ◽

pp. 45-55 ◽

Cited By ~ 1

Author(s):

Juozas Bivainis ◽

Andrius Tamošiūnas

Keyword(s):

Strategic Management ◽

Corporate Restructuring ◽

Human Potential ◽

Corporate Management ◽

Financial Assets ◽

Process Use ◽

Restructuring Process ◽

Management Functions

The paper analyses solutions of corporate restructuring, specifying the techniques of their application in the context of improvement of strategic management, rationalization of corporate management functions as well as measures to control the restructuring process. The benefit of application of the proposed corporate restructuring solutions is revealed. Greater possibilities to rationalize the restructuring process, use of human potential, material and financial assets, other relevant strategic corporate property, to develop resources of an enterprise and thus to reach greater competitiveness of enterprises are created.

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Corporate management in receivership: the case of Uchumi supermarkets

Emerald Emerging Markets Case Studies ◽

10.1108/eemcs-01-2013-0004 ◽

2014 ◽

Vol 4 (2) ◽

pp. 1-16

Author(s):

David Mathuva

Keyword(s):

Subject Area ◽

Corporate Restructuring ◽

Management Style ◽

Corporate Management ◽

Content Type ◽

Corporate Managers ◽

Before And After ◽

Restructuring Process ◽

A Company

Subject area – Strategic Management and Corporate Finance. Study level/applicability – Higher undergraduate and graduate levels. Case overview – The case demonstrates how a company can be able to manage corporate restructuring successfully and recover from receivership. Uchumi is a company incorporated in Kenya and listed on the Nairobi Securities Exchange (NSE). The case examines how Uchumi successfully recovered from receivership in 2006 owing to previous mismanagement and regained profitability after years of continued losses. A review of the company's management style and the role of the management in turning around the company are presented. Expected learning outcomes – The case demonstrates how financially and operationally troubled corporations can be managed effectively, illustrates how corporate managers can manage corporate restructuring and receivership successfully, shows the applicability of Kotter's eight stages of leading changes successfully and other leadership approaches/theories and demonstrates the differences between the performance of a corporation before and after the restructuring process. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email: [email protected] to request Teaching notes.

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Bankruptcies, bailouts, and some political economy of corporate reorganization

Journal of Institutional Economics ◽

10.1017/s1744137418000085 ◽

2018 ◽

Vol 14 (5) ◽

pp. 833-851 ◽

Cited By ~ 4

Author(s):

DYLAN DELLISANTI ◽

RICHARD E. WAGNER

Keyword(s):

Political Economy ◽

Corporate Governance ◽

Corporate Restructuring ◽

Standard Approach ◽

Discovery Process ◽

Financial Industry ◽

Corporate Reorganization ◽

Entrepreneurial Discovery ◽

Restructuring Process ◽

Enterprise Level

AbstractBankruptcy has long been the standard approach to reorganizing failing corporate entities. In recent years, bailout, whereby a governmental entity takes charge of the reorganization, has appeared as an alternative. At the enterprise level, there is a Coase-like invariance proposition at work in which a failing concern is replaced by a going concern under either process. Significant differences arise once we move beyond the point of reorganization. The choice between bankruptcy and bailout is fundamentally a choice between alternative arrangements for corporate governance, and not about transforming failing concerns into going concerns because this will happen under either arrangement. We argue that political entanglement in corporate restructuring will tend to preclude the entrepreneurial discovery process. We recount the recent American auto and financial industry bailouts, highlighting how each episode was guided by political considerations, which served to distract the restructuring process from discovering those opportunities that market-based restructuring would have discovered.

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