Concluding the Georgia Lumber Company, George has been appro…
Concluding the Georgia Lumber Company, George has been approached by an entrepreneur who has been successful in the business of installing solar energy panels on the roofs of rural barns in the Georgia, Alabama, and Tennessee 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 __________.
Read DetailsGeorge has learned that National Timber is considering selli…
George has learned that National Timber is considering selling its business to the highest bidder. National Timber is also family owned, but the younger generation of the family has little interest in continuing to run the business. Acquiring National Timber would not only help secure a source of wood, but would also open up Georgia Lumber Company to selling wood to other regional firms similar to itself and Alabama Woods. George understands the risk associated with the initiative and the likely high “price tag” for National Lumber, but this initiative alone if successful, would exceed Otis Thomsan’s 50% growth objective. This initiative, if approved by Mr. Thomson, could best be described as a ________________ strategy.
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