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WSJ Case Study

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Besides, Braun that realizes an annual sale of $1.3 billion is considered outside the P &G core businesses. The management is thus assessing Braun’s technologies application in other segments. McDonald reason of branding the company so that it is associated with particular products is also important. After the divestments, the company aims at focusing their effort in the production of the core products.Moreover, the decision to divest can be caused by the demand and pressure from the investors. The investors in some cases would put the company management into task of proving their performance as can be reflected by the returns on their capital. This is why the company, the CEO faced mounting pressure.Finally, P & G divestment decisions could be motivated by the need to increase investments. Firms in some instances reach a point where maintenance of its operations will demand acquisition of big investment in equipments, research and development, advertising and others to remain more viable and strategically positioned. This justifies McDonald proposal to buy Sara Lee, which deals with the households’ products, which was popular in Europe.I thus agree with the decision of McDonald to divest the business segments that were acquired earlier to enable growth in the company investments. This would enhance the returns of the business and increase the ever-fluctuating financial records that has been posted by the business. The investment decision would as well ensure that the business survives the recession that is experienced in the business performance i. from the divestment decisions, the company could smooth the impact of business cycle on the business. Furthermore, the divestment will enabled & G to acquire cash required n undertaking other profitable ventures. However, Mc Donald must be vigilant and asses the acquisition candidates to ensure that they are in line with companies core business and that the decisions will not make the company regret thereafter.In a bid to gain competencies in their activities, business leaders implement corporate strategies that would allow them compete favorably and increase their efficiencies. Corporate strategy is the broad scope of the business activities together with the matching them to the organization environment. A good corporate strategy should give a long-term perspective of the business and outlines the core objective of the actions. By buying the
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