Coroprate Restructuring
MN2041K MANGERIAL ACCOUNTING
TITLE: Strategic Management
Question 1
ROYAL HOLLOWAY, UNIVERSITY OF LONDON
Name: Hsu Myat Hlaing
Course Title: PT Bachelor Of Science (Honors) in Management with International Business
Student ID: 100792025
Corporate restructuring is an internal or external act by the management to reorganize the legal, operational, ownership and other structures of a company for the purpose of making it more profitable, better organized or relevancy to the current market. It is a redesigning or restructuring of the organization of the management. Restructuring also conveys the certain information of the business decision to another party. It also can be because of poor performance, hence restructuring would pull out the business entity from the parent company and make it a standalone company. Most occasions, restructuring is to correct the poor strategic decisions made in the past.
The company we are going to talk about is “Sony” it is a Japanese multinational conglomerate corporation. Its diversified business is primarily focused on electronics, games, entertainment and financial services sectors.
The first form of restructuring include divestitures, it is the sale of a business segment to another party. Sony has decided to sell off its VAIO line of PCs in a move that effectively takes the japan based company out of the PC market. This is a result of Sony’s poor sales performance, by doing this the organization get rid of a business entity that was pulling them down and it provides a sharper focus for the management. Hence their shares would be increased as their drop their poor performance sector. Divestitures may arise due to negative synergy arising from poor decisions on past acquisition on poor decisions made during periods of high growth. Much evidence seems to show generally that by announcement of selling companies results in a positive share prices
TITLE: Strategic Management
Question 1
ROYAL HOLLOWAY, UNIVERSITY OF LONDON
Name: Hsu Myat Hlaing
Course Title: PT Bachelor Of Science (Honors) in Management with International Business
Student ID: 100792025
Corporate restructuring is an internal or external act by the management to reorganize the legal, operational, ownership and other structures of a company for the purpose of making it more profitable, better organized or relevancy to the current market. It is a redesigning or restructuring of the organization of the management. Restructuring also conveys the certain information of the business decision to another party. It also can be because of poor performance, hence restructuring would pull out the business entity from the parent company and make it a standalone company. Most occasions, restructuring is to correct the poor strategic decisions made in the past.
The company we are going to talk about is “Sony” it is a Japanese multinational conglomerate corporation. Its diversified business is primarily focused on electronics, games, entertainment and financial services sectors.
The first form of restructuring include divestitures, it is the sale of a business segment to another party. Sony has decided to sell off its VAIO line of PCs in a move that effectively takes the japan based company out of the PC market. This is a result of Sony’s poor sales performance, by doing this the organization get rid of a business entity that was pulling them down and it provides a sharper focus for the management. Hence their shares would be increased as their drop their poor performance sector. Divestitures may arise due to negative synergy arising from poor decisions on past acquisition on poor decisions made during periods of high growth. Much evidence seems to show generally that by announcement of selling companies results in a positive share prices