Saturday, October 31, 2009

Re-enginnering vesrses Re-structuring

There has always been a great confusion between re-engineering and
re-structuring of the firm. Often managerial experts makes mistakes in finding
the clear difference between the two terms , and think they are synonymous.

In re-structuring the firms gets a small leverage , on the contrary in
re-engineering it's a quantum leap on the productivity and the
scale of portability.
The very concept of the two words are clearly defined in

Some times the firm's financial engineering crisis leads to financial
restructuring, according to INVESTOPEDIA

"When a company is having trouble making payments on its
debt, it will often consolidate and adjust the terms of the
debt in a debt restructuring.
After a debt restructuring, the payments on debt are
more manageable for the company and the likelihood
of payment to bondholders increases.
A company restructures its operations or structure by
cutting costs, such as payroll, or reducing its size
through the sale of assets.
This is often seen as necessary when the current situation
at a company is one that may lead to its collapse."

Other from of re-structuring are in the case of downsizing ,rightsizing,
smartsizeing, keeping the fixed cost minimum, and increasing the variable
and semi-variable cost.

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