The Forrester Group of companies has many products,including a fertilizer manufacturing unit.While this unit has never been a source of high revenues in the past,the SBU has increasingly become an area of concern.For the last few years,this SBU has not generated enough business for the Forrester Group and the parent company does not see things changing in the future without substantial investment.In a market with low growth potential,its already low market share has declined further.Which one of the following strategies is the Forrester Group likely to choose for this SBU?

Question

Quizplus · Accepted Answer

The Forrester Group is likely to choose divestiture because the fertilizer manufacturing unit has low market share, low growth potential, and requires substantial investment to improve, making it a candidate for selling off.

The Forrester Group of Companies Has Many Products,including a Fertilizer