CASE 2 REQUIREMENT: Prepare a report in which you: 1. The top management of GRA has determined that it has two choices if it decide s to sell one or more divisions: (50 Marks) Sell the segment to one of the company's present rivals. "Spinoff" the division by separating it from GRA and distributing its GRACE (GRA) is a Canadian firm that has grown from a small engineering firm into a multinational corporation employing over 100,000 people worldwide. It has been in business for over 100 years and currently has four divisions. The table below provides further information: Divisions Further Information Motor Vehicle EnginePower Generators Engineering Medical Devices Components /Transmission Consultancy Services Business Started 1903 1927 1997 2011 %% of GRA Revenue 37% 28% 14% 21% % of GRA Operating Profits 13% 27% 24% 36% Rank in its Industry Based on Revenue 7th 5th 4th 2nd Industry Lifecycle Stage Very Mature Mature Growing Growing Rapidly The senior management of GRA considers the motor vehicle engine components division and power generators/transmission division to have a considerable strategic fit. They also believe that the engineering consultancy services division benefits from the reputation and brand built up by GRA. The medical devices division has become very successful, but senior management does not consider that it has core competencies that can readily fit with the other divisions. The senior management of GRA has come under pressure from investors to review the firm's corporate strategy and potentially divest one or more of its divisions. A spinoff in strategic management refers to separating a business unit or subsidiary from its parent company to create a separate, independent company. This can be done for various reasons, including allowing the spinoff company to focus on a specific product or market, allowing the parent company to divest itself of a non-core business, or allowing the spinoff company to access capital and other resources more efficiently