Introduction

Restructuring is a complex process that involves various aspects, particularly for large
corporations to adapt to changing market dynamics, improve operational efficiency and ensure
long-term stability. It has the potential to significantly impact a business and may result in some
casualties along the way. Therefore, successful restructuring requires meticulous planning and
expertise in the field.

This case study examines the restructuring strategies implemented by Coca-Cola India and
Dabur, two prominent companies operating in the Indian market. It explores the challenges they
encountered during the restructuring process and evaluates the similarities and differences in
their approaches, as well as the outcomes of their restructuring efforts.

Analysis

Similarities

Differences

The Coca-Cola and Dabur India HR restructuring case study emphasizes the significance of
effective leadership and human resource management for carrying out organizational changes.
The case study demonstrates how poorly thought out and carried out HR restructuring initiatives
can have serious negative effects on both the business and its employees. The case study
identifies several crucial problems that contributed to Coca Cola India's attempt at HR
restructuring failing. Employee mistrust and resistance to change were the first effects of the
decision-making process's lack of communication and transparency. Second, the company
neglected to consider how the restructuring would affect employee motivation and morale,
which led to a significant decline in productivity and performance. Thirdly, the business lost
valuable talent due to its emphasis on cost-cutting measures at the expense of employee
engagement and welfare.

Recommendation and Action Plan

Walsh, S. (2021). Strategy And Tactics To Lead A Restructuring In Uncertain Times. Oliver
Wyman. https://www.oliverwyman.com/our-expertise/insights/2021/aug/strategy-and-tactics-to-
lead-a-restructuring-in-uncertain-times.htm
Engage advisors early

Change Champions

At face value, restructuring looks like an economic problem that can be

fixed by making swift top-down decisions to address debt loads and
pushing through operational changes. However, if businesses are to truly
transform, they need to start by finding the right people for the journey.

The first step is to identify and select leaders at each critical level of the
organization who can become “change champions.” These well-networked
go-to people and opinion makers will embrace the vision, drive the change
process, and influence those around them. This strengthens the
accountability and viability of the transformation.

Leaders need to embody, own, and drive the

future vision of the organization

In a restructuring, leaders need to embody, own, and drive the future

vision that the organization can rally behind. It’s important to recognize
that, in general, not all current leaders have the desire to embrace a new
vision quickly. Those who are part of the future must also commit to
enduring the bumpy ride.

Set appropriate targets

The future needs to be different than the past. This can be communicated
through financial targets that the company sets and the business
strategies it employs.
Targets should be both ambitious and realistic

Targets should be both realistic to ensure credibility, and ambitious

enough to see that change occurs. Achieving this balance requires
teamwork and constructive discussion within the leadership team. Once
targets are set, a small number of clear and specific metrics should be
communicated and brought to life by business leaders in each area.

During the restructuring process, think outside the box and set demanding
goals and milestones that align with your strategic objectives. Envision
where you want to be in the future instead of pursuing incremental change
based on your current state.

Organizations should be wary of implementing across-the-board cuts

during restructuring proceedings. While this may be a common approach,
these one-size-fits-all reductions can result in incorrectly sized departments
and poor employee morale. Instead, use nuanced analysis by function.

Have a clear and detailed plan

When developing an operational turnaround plan, it’s important to gain
rapid clarity about future organizational needs, minimizing or eliminating
excess wherever possible. Tools such as zero-based organization (ZBO) and
zero-based assets (ZBA) can help reach ambitious targets. In a
restructuring, it is important to demonstrate to internal and external
stakeholders that the organization is prioritizing the highest impact
activities, such as rightsizing the footprint, supply chain, and headcount to
align with future strategy.
Prioritize the highest impact activities to
maximize value...and move fast

These tools can also help to either invest in activities that are central to the
organization’s value proposition, or, eliminate activities that no longer
support the strategy. Likewise, it’s important to pinpoint the one-time costs
required to implement these changes. Digitization is a crucial enabler of
long-term cost reduction however should only be utilized when the
appropriate people and processes are in place.

In a restructuring, you also need to move fast. It is critical to maintain a

simple, documented list of significant transformational milestone activities
and dates for transparency and accountability.

Recognize the importance of change

management
Change is challenging; therefore, engage your employees using reason
and emotion to help them embrace the transformation. The most
successful change management programs focus significantly on shifting
culture, but this change only works if there is a high degree of
psychological safety, where employees can vocalize concerns and opinions
without fear of repercussion. Listening to ideas for improvement that have
been overlooked or thought difficult to achieve is critical, while focusing on
the most impactful items.
 Careful communication is essential. Before making external
announcements, internal changes should be communicated using in-house
forums such as townhalls and department meetings. Employee sentiments
should be distilled regularly.

Your leaders should be prepared to over-communicate, clearly articulating

to employees about the challenges – and the opportunities – that lie ahead
as the turbulent times pass. Empathy and humility are important traits to
reassure your people that leaders are supporting them despite the hard
decisions.

Final thoughts
While in the very short term “cash is king,” in a major restructuring it is vital
that the collective team focuses on maximizing long-term value which
supports the strategy. This sets the context of the entire transformation
and allows employees to feel a sense of ownership rather than resist
change. Done well, it gives leaders the opportunity to reframe the
organization for a more resilient future.

1. Portfolio Rationalization: Coca-Cola India undertook a comprehensive analysis of its product

portfolio to identify underperforming brands and products. It discontinued several low-
performing beverages and invested in product innovation to cater to changing consumer
demands, including a shift towards healthier beverage options.
2. Operational Optimization: The company aimed to improve operational efficiency by
streamlining its manufacturing and distribution processes. This involved consolidating
production facilities, optimizing supply chain networks, and implementing cost-saving measures.
The goal was to enhance productivity, reduce costs, and improve overall operational
performance.
3. Organizational Restructuring: Coca-Cola India also restructured its organizational setup to align
with its strategic priorities. This involved realigning roles and responsibilities, introducing new
leadership positions, and enhancing cross-functional collaboration. The objective was to create a
more agile and customer-focused organizational structure.
4. Market Expansion and Partnerships: As part of its restructuring efforts, Coca-Cola India sought
to expand its market presence and forge strategic partnerships. The company invested in
 marketing campaigns, launched new products tailored to local tastes, and collaborated with
regional distributors to strengthen its distribution network.

Challenges Faced by Coca-Cola India: Coca-Cola India encountered several challenges during
its restructuring process:

1. Regulatory Environment: The company had to navigate through a complex regulatory landscape,
including taxation policies and regulations on marketing and labeling of beverages. Compliance
with these regulations posed challenges and required significant resources.
2. Consumer Preferences: Changing consumer preferences towards healthier and more natural
beverages presented a challenge for Coca-Cola India. The company had to innovate and
introduce new products to cater to these shifting demands while ensuring brand loyalty.
3. Workforce Transition: Restructuring often involves workforce reduction or reallocation. Coca-
Cola India faced the challenge of managing the transition for affected employees, including
providing necessary support, retraining, or offering alternative employment opportunities.

Restructuring Strategies of Dabur: Dabur, a leading Indian consumer goods company

specializing in health care and natural products, also underwent a restructuring process to
enhance its competitive position and drive growth. The key strategies employed by Dabur during
restructuring were as follows:

1. Business Diversification: Dabur expanded its product portfolio by diversifying into new
segments and categories. The company leveraged its expertise in natural and Ayurvedic products
to enter sectors such as personal care, home care, and foods. This diversification aimed to reduce
reliance on a single product category and tap into new growth opportunities.
2. International Expansion: Dabur focused on expanding its global footprint by entering new
international markets. The company established subsidiaries and distribution networks in various
countries, enabling it to reach a broader customer base and drive revenue growth.
3. Operational Efficiency: Dabur aimed to improve operational efficiency through various
initiatives, such as supply chain optimization, cost rationalization, and process improvements.
The company implemented advanced technology solutions, upgraded manufacturing facilities,
and streamlined its distribution network to enhance productivity and reduce costs.
4. Brand Positioning and Marketing: Dabur invested in brand positioning and marketing strategies
to strengthen its market presence. It launched advertising campaigns, rebranded certain product
lines, and emphasized the natural and Ayurvedic aspects of its offerings to appeal to health-
conscious consumers.

Challenges Faced by Dabur: Dabur encountered several challenges during its restructuring
process:

1. Market Competition: The consumer goods industry in India is highly competitive, with both
domestic and international players vying for market share. Dabur faced the challenge of
differentiating itself and effectively competing against established brands in various product
categories.
2. Cultural Adaptation: As Dabur expanded internationally, it had to navigate cultural differences
and adapt its products and marketing strategies to suit local preferences and consumer behaviors
in different markets.
3. Integration of Acquisitions: Dabur's diversification involved acquiring and integrating new
businesses. Ensuring a smooth integration process and aligning acquired entities with Dabur's
culture and processes posed integration challenges.

Similarities and Differences in Restructuring Approaches: Coca-Cola India and Dabur undertook
restructuring with the aim of adapting to market changes, improving efficiency, and driving
growth. While both companies focused on portfolio optimization, operational improvements, and
market expansion, there were some notable differences in their strategies:

1. Portfolio Rationalization: Both companies assessed their product portfolios, but Coca-Cola
India's rationalization focused on discontinuing underperforming beverages, whereas Dabur
diversified its product portfolio to reduce reliance on a single category.
2. Organizational Restructuring: Coca-Cola India restructured its organizational setup to enhance
agility and customer focus, while Dabur's restructuring efforts were primarily focused on
operational efficiency and market expansion.
3. Market Expansion: Coca-Cola India emphasized partnerships and collaborations to expand its
market presence, while Dabur pursued international expansion by establishing subsidiaries and
distribution networks in new countries.

Success of Restructuring Efforts: Assessing the success of restructuring efforts requires

considering various factors, including financial performance, market share, and customer
satisfaction. The outcomes of Coca-Cola India and Dabur's restructuring efforts can be evaluated
based on these indicators:

Coca-Cola India: The company's restructuring strategies, such as portfolio rationalization and
operational optimization, have shown positive results. Coca-Cola India reported improved
financial performance, increased market share in certain segments, and successful launches of
new products aligned with changing consumer preferences.

Dabur: Dabur's restructuring efforts, including business diversification and international

expansion, have contributed to its growth trajectory. The company has expanded its presence in
multiple product categories, entered new international markets, and reported sustained revenue
growth.

Conclusion: Restructuring is a complex and multifaceted process that demands careful planning
and execution. Coca-Cola India and Dabur approached restructuring with different strategies and
faced unique challenges. While both companies experienced varying degrees of success, Coca-
Cola India's focus on portfolio rationalization and operational optimization, coupled with Dabur's
diversification and international expansion, contributed to their respective growth and
adaptability in the changing market landscape. The case study highlights the significance of
understanding the specific needs and dynamics of an organization while formulating and
implementing restructuring strategies.