This document presents a divestment strategy for an organization. It discusses that divestment strategy is part of a retrenchment strategy used when an organization aims to contract its activities. Divestment involves selling or liquidating parts of the business. Reasons for divestment include persistent negative cash flow, inability to cope with competition, raising capital, and focusing on core operations. The process of divestment includes identifying assets to sell, valuing them, finding buyers, and carrying out the transaction. Types of divestment strategies and a case study are also presented.

1. PRESENTATION OF
STRATEGIC MANAGEMENT
ON
DIVESTMENT STRATEGY
Submitted By: Submitted
To:
Nikhil Kumar Dr. Pinki
(190010505004)
M.Com(Hons.) 9th Sem.

2. Introduction
Divestment strategy is the part of
Retrenchment strategy.
Retrenchment strategy is followed
when an organization aims at the
contraction of its activity through
substantial reduction or the
elimination of the scope of one or
more of its business in term of their
respective customer groups,
customer functions or alternative
technologies either singly or jointly
in order to improve its overall
performance.

3. Divestment Strategy
Divestment
strategy involves
the sale or
liquidation of a
portion of business,
or a major division,
profit centre or
strategic business

4. Reasons
 Persist negative cash flow.
 Inability to cope
competition
 Better alternative
available.
 Focus on core operation.
 Raise capital.
 Technology upgradation
not possible.
 Acquired unit mismatch

5. Process of divestment
 Identifying the assets or
business units to be sold.
 Valuing these assets.
 Finding potential buyers.
 Carrying out the
transaction.

6. Types of divestment strategies

7. Case Study