Corporate Restructuring Case Study Example | Topics and Well Written Essays - 1500 words

incorporated Restructuring - Case Study ExampleOrganizations need to be more efficient and effective to ward discharge the chall(a)enges of deregulation and hence increased competition. As a result of increased market pressures, it is unavoidable that organizations consider and redesign all aspects of their business to remain competitory.Companies approximately the world atomic number 18 awaking to new realities of an intensively competitive domain and have been undertaking extensive restructuring both at the operational and at the strategic levels. Organizations around the world need to make more decisive choices and take the challenges to leap frog to the next var. of growth. Business portfolios need to be restructured and realigned to assimilate the effects of globalization and deregulation. Companies all over the world are exploring various restructuring methodologies such as Cost cuttings, better customer relationship management, Resource Planning, jointures, takeovers a nd buy-outs to pursue think growth.Citicorp Citicorp was the descendant of City Bank of New York which was founded On June 16, 1812, with $2 million of capital, later, in 1968 renamed as commencement ceremony National City Bank. Large corporate entrusting was the core business of Citicorp and was one of the largest banks in the United States at the time of its merger with Travelers Group.Traveler Traveler Group Insurance titan Travelers was founded in 1864 in Hartford, Connecticut. In the 1990s, Travelers went through a sequence of mergers and acquisitions, First with Primerica in 1993 and then Aetnas property and casualty business in 1996. Traveler was the first company in America to insure against accidents and to introduce automobile insurance policy. do of the Giant - Acquisition In October 1996, Citigroup, Inc. was formed afterward a $70 billion Merger among Citicorp and the Travelers Group. The Travelers Insurance acquisition added property and casualty, and life and ann uities underwriting capabilities to the group. It also brought along the Travelers red umbrella logo, which they applied to all the businesses within the group. One notable exception is Citibank, whose logo is Citibank with a red arc over thet. The Citicorp-Travelers merger has represented a new era of inorganic growth.Motives behind MergerThe merger of Citicorp and Travelers Group took ramble in 1998 against the prevailing US laws such as Glass-Steagall meet which prohibited the merger of a bank with an insurance underwriter. In year 1999, before the trial period provided by Glass-Steagall Act could end, new law, Gramm-Leach-Bliley Act which invalidated previous law was framed, this validated the merger. The main official motive behind this merger was expanding their convergence mix, customer base and , achieve cost savings and synergies and to leave a bigger footprint.Restructuring after Merger Weill, then CEO of Traveler Group, proposed a structure of co-CEOs, in order to conv ince Citicorp to merge, consisting himself and fundament vibrating reed, CEO of Citicorp. This strategy was believed unworkable by many business research analysts. Former Treasury deposit Robert Rubin was brought in as a moderator between Reed and Weill . But, conflicts within the company eventually forced Reed to come out of the conglomerate.Later three co-CEOs were inducted