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Question
RX Corporation has four strategic business units (A, B, C, D). During a review meeting, a member of the company's board of directors suggests that SBU A, which is in the textile industry, should be sold off. Which of the following, if true, would strengthen the argument to eliminate SBU A from the company's portfolio?
A) SBU A requires very little financial investment.
B) The textile industry is in the maturity stage of the market.
C) SBU A was a first mover in its market.
D) The textile industry has very high barriers to exit.
E) SBU A recently underwent a rebranding exercise.
Answer
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