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Which strategy should be implemented when a division is responsible for an organization's overall poor performance? Backward integration Divestiture Forward integration Cost leadership Related diversification

Respuesta :

damifola728

Answer: Divestiture

Explanation: Divest strategy means selling of your own assets, and it is also called divestiture. Divest strategy is implemented by companies in order to get funds quickly from a business which is anyways not a star performer for the company. It helps to liquidate that business & give some stability to the company.

OlanmaE

Answer: Divestiture

Explanation:

Divestiture Strategy is employed when an aspect of business (division) is not yielding so many gains for the company. The asset which could be in the form of the entire business division is then sold off to generate money that would be useful to the organization.

Reasons for divestiture include; bankruptcy, cost reduction, repayment of debts, etc.

When the management notices that a particular division of the business is affecting the organization's performance negatively, they could make the decision to divest and sell that aspect of the business.