Wirtschaft & Handel

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Consolidation
Zusammenschluss

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Internet tip!
There is an interesting article from business news site Chron about organizational consolidation here: http://ow.ly/p36W30dJ1iv

Why consolidate?

Consolidation may be a result of belt-tightening, of trying to navigate difficult economic landscapes, or it may spring from a wish to concentrate on a company's core issues, to tighten a company's focus, perhaps to regain market dominance in one area. To such diverse ends, there are many ways in which a company may decide to consolidate, not all of them reductive (some may in fact actually be expansive) for example:

• divestiture of divisions or subsidiaries that do not help to focus on core areas
• divestment of any assets that do not contribute to the principal business
• planned redundancies of staff whose positions do not support key areas or can be eliminated by natural attrition
• temporary shut-downs of factories that are unable to meet primary manufacturing plans
• acquisition of firms engaged in similar business (possibly competitors)
• purchase of brands or licenses to enable a company to broaden its offer to customers while maintaining a position of strength
• removing barriers to foreign markets.

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