Discuss any three principles of effective divestiture

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Question - Giant Holding (GH) is a construction company which was established in 2001. GH has broadened its operations into several sectors include tourism, food, and telecommunications sectors. Dato' Nizam, the CEO, convened a top management meeting, during which he announced that the Group's earnings had plummeted to a new low for the organization. GH's underwhelming performance was associated with the difficulties in managing the diversity of its business portfolio. Accordingly, Dato' Nizam is now considering divesting its food division because of its insignificant contribution to the company's overall performance. However, the company's upper management is not fully in favor of the divestiture idea. Raymond Chia, the Group Chief Operating Officer, stated that divestment necessitates the development of a well-thought-out plan to avoid the loss of a present competitive advantage.

Required -

a. Explain how using the Boston Consulting Group (BCG) model can help GH in portfolio management.

b. Discuss any three (3) principles of effective divestiture that GH's management should consider for its divestment drive.

Reference no: EM133109170

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