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Concluding the Georgia Lumber Company, George has been approached by entrepreneur who has been successful in the business of installing solar energy panels on the
Concluding the Georgia Lumber Company, George has been approached by entrepreneur who has been successful in the business of installing solar energy panels on the roofs of rural barns in the North and Central Georgia farm belt. The entrepreneur has offered to sell a controlling interest in his company to the Georgia Lumber Company in exchange for cash and the opportunity to stay on and continue to run the solar panel installation company. The company would continue to be run autonomously as a subsidiary of the Georgia Lumber Company and the Georgia Lumber Company would be entitled to 80% of the company's profits. Although there would be no synergies between the solar SBU and the other SBUs George still likes the idea and believes that solar power could be a large growth area for the firm. If the Georgia Lumber Company decided to pursue this opportunity, this strategy would be best described as an example of concentration O vertical integration O virtual integration O unrelated diversification O related diversification O horizontal integration
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