Why would one organization want to purchase an SBU that has been classified as a "dog"?
A) A need to generate large amounts of short-run cash
B) A desire to expand into a rapidly growing market
C) Possible synergistic effects on the buying organization
D) A decision to adopt a retrenchment strategy
E) A desire to complete a hostile takeover of the seller

Question

Quizplus · Accepted Answer

Even though an SBU classified as a "dog" may currently have low market share and growth, it may have some assets, knowledge or skills that could be synergistically combined with the buying organization's strengths to create new opportunities. By acquiring such an SBU, the buying organization may be able to achieve cost savings, scale economies, or market power in the long run.

Why Would One Organization Want to Purchase an SBU That