BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
WHICH STRATEGY IS THE OPPOSITE OF INVESTMENT?
A
INTEGRATION
B
DIVESTMENT
Explanation: 

Detailed explanation-1: -Also known as divestiture, divestment is effectively the opposite of an investment and is usually done when that subsidiary asset or division is not performing up to expectations. In some cases, however, a company may be forced to sell assets as the result of legal or regulatory action.

Detailed explanation-2: -A divestment strategy, also known as a divestiture strategy, is when a company divests itself (separates from, sells, lets go of) a part or parts of its business. In strategic management, an organization usually adopts a divestiture or divestment strategy when a business unit is under-performing.

Detailed explanation-3: -In finance and economics, divestment or divestiture is the reduction of some kind of asset for financial, ethical, or political objectives or sale of an existing business by a firm. A divestment is the opposite of an investment.

Detailed explanation-4: -Disinvestments can take the form of divestment or a reduction of capital expenditures (CapEx). Disinvestment is carried out for a variety of reasons, such as strategic, political, or environmental.

Detailed explanation-5: -What kinds of divestitures are there? There are three basic types of divestitures: sell-offs, spin-offs and split-ups. Some of these may involve a continuing involvement – a strategy referred to as a satellite launch.

There is 1 question to complete.