Selling off poorly performing units and acquiring new businesses is a response to an aspiration-performance discrepancy.

Question

Selling off poorly performing units and acquiring new businesses is a 	response to an aspiration-performance discrepancy.

Quizplus · Accepted Answer

Selling off poorly performing units and acquiring new businesses is a common strategy used to bridge the gap between a company's aspirations and its actual performance. By shedding underperforming business units and investing in new ventures with greater growth potential, companies can improve their overall performance and better align with their long-term goals. This strategy is often driven by a desire to increase profitability, expand market share, or mitigate risks associated with certain business segments.

Selling Off Poorly Performing Units and Acquiring New Businesses Is