Why might a corporation decide to restructure?

A corporation may decide to restructure for various strategic reasons, with the primary goal often being to enhance its market competitiveness and efficiency. In a dynamic business environment, companies must adapt to changing market conditions, technological advancements, and evolving consumer preferences. Restructuring can involve reorganizing the corporation's operations, investing in new technologies, or streamlining processes to improve productivity.

By enhancing competitiveness, a corporation can better position itself against rivals, respond to market demands, and potentially increase profitability. This might involve refining its product lines, adopting more effective sales strategies, or revamping its supply chain. Thus, the focus on enhancing market competitiveness and efficiency reflects a proactive approach to solidifying the corporation's overall success and sustainability.

The other choices, such as creating a more complex hierarchical structure, eliminating subsidiaries, or drastically reducing workforce size, might not always contribute positively to a corporation’s overall goal of becoming more competitive. In fact, complexity in structure can lead to inefficiencies, while eliminating subsidiaries could be part of a broader restructuring strategy but does not encompass the comprehensive objectives of enhancing competitiveness and efficiency. Similarly, drastically reducing workforce size might not directly contribute to a sustainable competitive edge and could instead harm morale or productivity if not managed carefully.