...how would you organize the tournament? Who would fight against whom and what would the schedule look like?
For example, one could go with the standard KO system where all of the 16 fighters fight one opponent each, so that eight remaining fighters compete in the quarter finals. Then four fighters compete in the semi-finals and two are in the final.
Udon did it a bit differently: They started with the 12 non-grandmaster fighters and used the KO system as well until three fighters remained. Then there was a little variation: Each of the three remaining contestants fights against one grandmaster, Balrog, Vega and Sagat. And whoever beats his grandmaster opponent may then compete in the final which will be a three-on-one, two-on-one or one-on-one against M. Bison. (In the end result, Cammy had a double KO against Balrog, Ken beat Vega, but dropped out of the tournament voluntarily, and Ryu defeated Sagat and was about to fight Bison when Akuma jumped in, killed Bison and Ryu fought Akuma instead.)
So, let's say you would do another conversion of "Street Fighter II" from scratch, let it be a comic or an animated movie or whatever, where you actually display the tournament. (So, no simple walking around looking for opponents like in the anime. We're talking about the actual tournament here.) How would the battles go? Who would fight against whom in your version of the story?