Interactive Glossary

BROWSE:

Restructuring:

The separation of functions in a vertically integrated firm, leading to the unbundling of services. The owners and operators of the newly configured firms are now distinct entities. Such a policy can arise if segments of the industry are viewed as potentially competitive. Also, such vertical disintegration may be done to achieve better information regarding performance of components in the vertical chain. Alternatively, accounting separations may be required instead of moving to more dramatic restructuring.

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