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Allegheny Technologies is a manufacturer of metals with two business units. One business unit focuses on the core products, basic metals, which the firm produces
Allegheny Technologies is a manufacturer of metals with two business units. One business unit focuses on the core products, basic metals, which the firm produces as efficiently as possible as this is a mature and competitive market where the firm has a significant market share. The positive cashflow from this division is invested in its second division where the firm develops high-end specialty metals. Though the firm's market share in this industry is very small, it is a fast-growing segment with substantial future potential. When managing diversification in this manner, how do we call the unit that focuses on basic metals? At 19
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