Restructuring: The impossible dream

A popular new strategy has appeared on the scene lately. It is called restructuring or, occasionally, redeployment. It may resemble the tried and true strategies of disinvestment and spin‐outs, but it attempts to be something much more far‐reaching; no less than the entire redirection of products, markets, and technologies of the restructuring firm. Seagrams, Bendix, Northwest Industries, Cities Service, Borden, American Can, GAF, and dozens more have pioneered and implemented restructuring on a radical scale in recent times. In all these instances, management has shed not just a doggy division but a whole line of endeavor—typically representing a third to a quarter of its asset base—with the intent of using the proceeds to plunge into entirely new activities.