3.8 Energizer Holdings initially produced only its namesake batteries. Over the years, it acquired other divisions that
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3.8 Energizer Holdings initially produced only its namesake batteries. Over the years, it acquired other divisions that produced personal care products such as razors (Schick) and sunscreen
(Hawaiian Tropic and Banana Boat). The executives at Energizer Holdings decided that they would split the company into two independent firms, one producing batteries and the other the personal care products, because they thought the split would lower the two firms’ costs.
Using the concepts presented in this chapter, explain the executives’ reasoning.
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