In her article, Lenka Tetřevová discusses the concepts of corporate restructuring and re-engineering. She provides a framework for understanding the differences between them. These two concepts would be done in the case of Swvl Holdings Corp. The necessary steps to carry out both restructuring and re-engineering of the company will be discussed.
Corporate restructuring
It is a term that refers to any change in the company's structure. This could include company ownership, management, operations, or financing changes. Restructuring is often done in response to changes in the company's environment, such as changes in the market, technology, or competition (Paterson & Walters, 2023). This process could include several critical steps if applied to Swvl Holdings Corp.
1. Reorganization of Company Operations: Swvl operates in several countries, each with regulations and market conditions (Hamdy et al. 2021). This can make it challenging to run the company effectively. One way to address this problem is to reorganize the company's operations into regional units, each responsible for a specific geographic area. This will allow Swvl better to adapt its operations to the needs of each market and improve its efficiency.
2. Simplification of the Company’s Management Structure: Swvl's current management structure is complex and bureaucratic (Hamdy et al., 2021). This can make it difficult for the company to make decisions quickly and respond to changes in the market. One way to address this problem is to simplify the company's management structure by reducing the number of layers of management and by giving more decision-making power to lower-level managers. This will allow the company to be more flexible and responsive to changes in the market.
3. Focus on core competencies: Swvl offers several services, including bus and school transportation (Hamdy et al., 2021). While this diversification helped the company grow, it also made managing it more challenging. One way to address this problem is for Swvl to focus on its core competency, which is bussing. This will allow Swvl to focus on its core business and improve efficiency.
4. Improving the company's financial performance: Swvl has been struggling financially recently. One way to improve a company's financial performance is to reduce costs. This can be done by negotiating lower prices with suppliers, reducing the number of employees, or closing unprofitable operations.
Corporate re-engineering
According to Tetrevová (n.d.). A more specific type of restructuring focuses on fundamentally redesigning a company's operations. Re-engineering is usually done to improve efficiency, effectiveness, or quality. It often involves significant changes to a company's business and can be a disruptive process (Lokhande et al., 2021).
1. Redesigning the Company’s Business Processes: Swvl's current business processes are inefficient (Hamdy et al., 2021). This can lead to delays, errors, and customer dissatisfaction. One way to address this problem is to redesign the company's business processes from the ground up. This may involve identifying the company's core operations and areas for improvement. The company can then implement new, more efficient, and effective processes.
2. Embracing New Technologies: Swvl can use new technologies to improve efficiency and effectiveness. For example, a company can use artificial intelligence (AI) to automate tasks, big data to improve decision-making, and blockchain to improve security.
3. Employee Empowerment: Swvl should empower its employees to make decisions and take charge of their work. This will allow the company to be more flexible and responsive to changes in the market.
4. Creating a culture of continuous improvement: Swvl can create a culture of continuous improvement by encouraging employees to identify and implement improvements to company operations. This will allow the company to stay ahead of the competition and improve its performance.
Conclusion
Tetrevová's (n.d.) article provides a comprehensive overview of corporate restructuring and re-engineering concepts. It is a valuable resource for companies considering restructuring efforts, as it can help them understand the different options available and choose the appropriate approach for their particular situation. The article argues that the two concepts are often confused and that it is essential to understand their differences to choose the right approach for a given situation. Restructuring & re-engineering can be valuable tools for improving company performance. Still, it is essential to consider the potential risks and benefits before embarking on restructuring & re-engineering efforts.
References
Hamdy, H., El Deen, B. H., El-Toukhy, I. M., Elsagheer, A., & Mohamed, A. (2021). Online bus services: A view of Swvl Company. In Handbook of Research on Decision Sciences and Applications in the Transportation Sector (pp. 178-188). IGI Global.
Lokhande, D. A., Venkateswaran, D. C., Ramachandran, D. M., Chinnasami, S., & Vennila, T. (2021). A Review on Various Implications on Re engineering in Manufacturing. REST Journal on Emerging trends in Modelling and Manufacturing, 7(3), 70-75.
Paterson, S., & Walters, A. (2023). Selective corporate restructuring strategy. The Modern Law Review, 86(2), 436-464.
Tetřevová, L. (n.d.). Concept of corporate restructuring and reengineering. Retrieved from https://pdfs.semanticscholar.org/e34e/143c1a361e1707dc50e8db255dee92636255.pdf