engleski

Navigating through Organizational Life Cycle and Longevity: Restructuring as a Business Transformation Strategy

Management’s primary task is to ensure that organization acts efficiently in performing its tasks and achieving its goals. Long-term competitiveness and longevity have always been one of the most important goals that organizations deal with. However, especially in today’s business environment, many organizations fail to be capable of providing its product or services in the long run. Financial problems and bankruptcy often emerge as phases in organizational life (Koh et al., 2015). Companies that survive these downturns and show long-term sustainability seem to be more successful in recognizing the needs of the organization on time and avoided negative performance cycles as opposed to other numerous companies whose lifespan was very short. If they did go through crisis, they were able to overcome them. In other words, they were successful in managing their life cycle and implementing strategies that lead to enhanced organizational performance and sustainability. This chapter presents restructuring as a strategic response to organizational crisis, and one of the solutions that can lead to improved performance and renewal for organizations found in financial distress or decline as a phase of their life cycle. The case study presented in this chapter gives an example of Pevex Ltd., as a company that has successfully gone through restructuring after bankruptcy, and today presents one of the leaders in the segment of retail of non-food goods in Croatia.

organizational life cycle ; longevity ; organizational decline ; business crises ; restructuring

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