Southwire is one of the world's largest cable and wire manufacturers. In 1999 it sold its copper recycling plant so it could concentrate on expanding its wire and cable manufacturing capabilities. Since the price of recycled metals had declined, it was not profitable for Southwire to continue this operation. According to the GE business screen, Southwire engaged in which of the following strategies?

Question

Quizplus · Accepted Answer

Southwire's decision to sell its copper recycling plant to focus on expanding its wire and cable manufacturing capabilities is an example of a divestiture strategy. This move was made because the operation was no longer profitable, indicating a strategic decision to divest from a non-core, underperforming asset.

Southwire Is One of the World's Largest Cable and Wire