Since the mid-1980s, Disney's strategic planning group turned the company into a huge and diverse collection of media and entertainment businesses. The sprawling Disney grew to include everything from theme resorts and film studios to media networks to consumer products and a cruise line. The newly transformed Disney proved hard to manage and performed unevenly. Recently, Disney disbanded the centralized strategic planning unit, decentralizing its functions to Disney division managers. Since then, Disney's management has helped it perform strongly in a competitive marketplace. Suppose that one of Disney's business units is a chain of sound studios. The studios have low profit potential, and the chain commands a relatively small share of the market. On these grounds, Disney is considering whether to sell the chain. Which of the following, if true, would most strongly suggest that Disney should keep the chain instead?
A) The chain has reduced its operating loss in each of the last three years.
B) The chain has penetrated the market in coastal areas but not inland areas.
C) Other Disney companies use the chain's studios for a wide variety of projects, resulting in significant cost savings for Disney.
D) The chain uses the most up-to-date technology in its sound studios.
E) The chain staffing levels are comparable to those of similar companies in the industry.
Correct Answer:
Verified
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