In an organization using the unrelated-diversification multiproduct strategy, if an SBU is performing poorly, it will either be disciplined by headquarters changing its resource allocation or it will be
A) partitioned.
B) divested.
C) absorbed.
D) dissolved.

Question

Quizplus · Accepted Answer

In unrelated-diversification multiproduct strategy, SBUs operate independently and have little to no relation to other products or divisions of the organization. Therefore, if an SBU is performing poorly, it is unlikely to benefit much from resource reallocation or absorption by other divisions. Divesting the SBU is a better option as it allows the organization to cut its losses and focus on more profitable areas.

In an Organization Using the Unrelated-Diversification Multiproduct Strategy, If an SBU