To What Extent Does a Mature and Cyclical Product Market Drive Corporate ‘Restructuring’? Use a Corporate Example of Your Choice to Discuss Whether Restructuring Transforms Market, Productivity and Financial Performance.

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To a large extent the mature and cyclical product market drive cause corporate to restructure the company. The cyclical market has a short-term market trend prompted by seasonal or cyclical business conditions. With such products in this market, there is no prospect as the movement of the product is not consistent. When it is low peak in the cyclical cycle, corporate will not be doing well. Therefore, they may suffer during the recession and are prone to bankruptcy. A possible restructuring method will be through acquisition. The maturity and over capacity is the key factor to the success of restructuring. The method might be risky but its well manner integration and value collection is the mean of growth in the mature market In the mature market, corporate products have successfully become popular in the market and no one else will be willing to purchase it. This means that it has reached a state of equilibrium where there is an absence of significant growth, or a lack of innovation. Eventually, the product is entered into a decline stage: technologically superior products substitute the product causing the sales curve to follow a downward trend (Cox 1967; Porter 2004; Vernon 1966). Restructuring through merger and acquisition becomes necessary. It will enable the corporate to venture into a variety of markets with possible high potential growth during both the up and down market. In both the markets, it is a great challenge to sustain growth and comparative advantage. Therefore, in order to increase the demand for products in both markets, restructuring is necessary as it allows the corporate to make business profits, increase shareholder values and improve the performance of the products in the market. Corporate example – Malaysia Airlines In the recent years, Malaysia Airlines have been struggling with an increase in the amount of competitors

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