Physical restructuring
Encyclopedia
Manufacturing companies often refer to their manufacturing plant transfer, consolidation and closure activities as physical restructuring. This can be done by moving production or services overseas, a process known as offshoring
. Such projects began in the United States during the 1960s and by 2009 had showed little sign of having ended. Such corporate behavior has taken its toll on the manufacturing base and continues to do so.
Chrysler
planned a phase of physical restructuring with the sale of its "good assets" to Fiat in 2009. Pfizer
has executed numerous physical restructuring programs in the years prior to 2009, as a direct result of changes in the drug pipeline and an outdated and inefficient manufacturing and distribution network. General Motors
announced a large wave of physical restructuring associated with their June 2009 bankruptcy filing.
While the sell-off of assets is necessary in cases of bankruptcy, the costs associated with physical restructuring need to be managed by experts. Firms able to advise and oversee a program of physical restructuring include; PA Consulting Group
, Boston Consulting Group
, Bestshore Partners, AlixPartners and BOOZ and Company
.
Offshoring
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...
. Such projects began in the United States during the 1960s and by 2009 had showed little sign of having ended. Such corporate behavior has taken its toll on the manufacturing base and continues to do so.
Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
planned a phase of physical restructuring with the sale of its "good assets" to Fiat in 2009. Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
has executed numerous physical restructuring programs in the years prior to 2009, as a direct result of changes in the drug pipeline and an outdated and inefficient manufacturing and distribution network. General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
announced a large wave of physical restructuring associated with their June 2009 bankruptcy filing.
While the sell-off of assets is necessary in cases of bankruptcy, the costs associated with physical restructuring need to be managed by experts. Firms able to advise and oversee a program of physical restructuring include; PA Consulting Group
PA Consulting Group
PA Consulting Group is a global management and IT consulting and technology and innovation organisation with specialist expertise across the defence, energy, financial services, government and public services, healthcare, automotive and consumer goods, telecoms, and transport and logistics sectors...
, Boston Consulting Group
Boston Consulting Group
The Boston Consulting Group is a global management consulting firm with offices in 42 countries. It is recognized as one of the most prestigious management consulting firms in the world. It is one of only three companies to appear in the top 15 of Fortunes "Best Companies to Work For" report for...
, Bestshore Partners, AlixPartners and BOOZ and Company
Booz & Company
Booz & Company is a global management consulting firm established in the United States in 1914. It is recognized as one of the most prestigious management consulting firms in the world and one of the best consulting firms to work for by Consulting Magazine...
.