Part - I

Corporate restructuring addresses the central issue today namely restructuring. The strategies for restructuring must take into account global competition and must be found on core competencies. Competitive advantage has to be derived from a number of factors particularly three: -

1. Quality
2. Technology
3. Cost

There is also scope of creative financial strategies and an urgent need for quantum response requiring organizational transformation. HRD plays a significant role in restructuring which poses an exciting challenge for corporate leaders.

Global competition: In global competition the capacity has to be increased and the better way is to be buying it rather than build your own capacity as in case of Shriram fibers. Companies should make efforts to build technologies and not acquire it. In global competition communication with workers and relaxed relations with others is important. Quality is a must but it takes lot of time to be achieved.

Core competencies: It is more than sticking to your ground. It is recognizing your strength in area of expertise and proliferate it with range of dissimilar products. Authors define core competencies in two areas/types: -

1. Technological
2. Political

Technology, cost and quality are interrelated. Improvement in technology lowers cost and improves quality. Technology helps in product development and builds competencies in design. Quality changes at all levels and gives thrust for sustainable changes. World-class companies have 98% customer satisfaction and 95% customer retention due to these three factors.

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* Contributed by: -
Aviral Sanghera,
PGP 2003-2005,
XIM Bhubaneswar.