Asked by Alejandra Quiroz on May 02, 2024
Verified
Restructuring by divestiture is mostly followed by organizations that are focused and not complex.
Restructuring
The process of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
Divestiture
The action of a company selling or disposing of an asset or subsidiary as a strategic business decision.
- Identify the value of employing strategies like bankruptcy, divestiture, and co-opetition for the purpose of organizational adaptation and flexibility.
Verified Answer
IR
Isaac RodgersMay 06, 2024
Final Answer :
False
Explanation :
Restructuring by divestiture is mostly followed by complex organizations that have multiple business units and are trying to streamline their operations by separating themselves from non-core assets. Focused organizations with simpler structures may follow other forms of restructuring such as downsizing or outsourcing.
Learning Objectives
- Identify the value of employing strategies like bankruptcy, divestiture, and co-opetition for the purpose of organizational adaptation and flexibility.
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