Question
The Simms Corporation has a SBU that management considers to be a dog. Management feels that this business, which is now barely holding its own,
The Simms Corporation has a SBU that management considers to be a dog. Management feels that this business, which is now barely holding its own, will become increasingly unprofitable in the future. Simms had recently purchased the business and freely admits that its problems may be largely due to the fact that its management is not knowledgeable in the troubled SBUs industry. How should Simms deal with this problem?
a. concentrate investment in the troubled SBU to build its market share
b. retain the troubled SBU, but withdraw all financial support
c .divest itself of this SBU and employ its resources in more familiar, profitable businesses
d. invest just enough to allow the troubled SBU to maintain its current position
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