During a tactical planning meeting, company management discussed the performance of each of its business segments. Management concluded that its recreational vehicles segment was underperforming and lacked the core competencies to align with the company's three other business segments. Which strategy should the company pursue if management concluded that the divestiture of the recreational vehicles segment would improve its stock price

Question

Business

Lily Arroyo

19 February, 00:56

During a tactical planning meeting, company management discussed the performance of each of its business segments. Management concluded that its recreational vehicles segment was underperforming and lacked the core competencies to align with the company's three other business segments. Which strategy should the company pursue if management concluded that the divestiture of the recreational vehicles segment would improve its stock price

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Baby Maker · Answer 1

The company should pursue a sell-off strategy.

Explanation:

A sell-off strategy is a type of divestment strategy that involves selling a segment of a business and focusing on other profitable segments.

An organization may choose to use this strategy for various reasons which include; an under-performing business segment or a segment that does not fit with the rest of the organization.