Asked by Franco Volschenk on Jun 07, 2024
Verified
Managers in a department store have decided that the shoe department is not a profitable part of the store and that it would be better suited to being an independent organization that rented space from the store.What type of strategy is demonstrated if the shoe department is separated from the department store into a separate entity?
A) merger
B) divestiture
C) bankruptcy
D) growth
Divestiture
The sale of a division or part of an organization.
Profitable
Yielding financial gain or benefit; making more money than the expenses incurred.
Independent Organization
An entity that operates autonomously, without direct control by any other organization or government body.
- Acknowledge a variety of strategic maneuvers like scaling, constancy, and restructuring approaches.
Verified Answer
EA
Elizabeth AndersonJun 12, 2024
Final Answer :
B
Explanation :
Divestiture is the process of selling or spinning off a business or product line that is not deemed profitable or strategic. In this situation, the shoe department is being separated from the department store and would become an independent entity, which is an example of divestiture.
Learning Objectives
- Acknowledge a variety of strategic maneuvers like scaling, constancy, and restructuring approaches.
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