Asked by Milano Irvin on Jul 21, 2024
Verified
Restructuring by divestiture primarily involves
A) selling off parts of the organization to refocus on core competencies.
B) working with rivals on projects of mutual benefit.
C) customizing products and advertising to best fit local needs.
D) joining in partnership to pursue an area of mutual interest.
E) adopting standardized products and advertising for use worldwide.
Divestiture
The process of selling off subsidiary business interests or investments by a company to refocus its operations or to raise capital.
Core Competencies
Fundamental strengths or advantages of a business or organization that set it apart from competitors.
- Recognize the implications of strategic restructuring methods like downsizing, divestiture, and turnaround.
- Acknowledge the importance of core competencies in strategic focus and business restructuring.
Verified Answer
TS
Tineshwary ShanmugavelJul 25, 2024
Final Answer :
A
Explanation :
Restructuring by divestiture involves selling off parts of the organization that are no longer profitable or do not align with the company's core competencies. This allows the company to refocus on its core strengths and streamline its operations.
Learning Objectives
- Recognize the implications of strategic restructuring methods like downsizing, divestiture, and turnaround.
- Acknowledge the importance of core competencies in strategic focus and business restructuring.
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