Before we delve into the details about divestitures, including the reasons a company might consider divesting, it is important to understand the definition of the term. Investopedia provides this basic description:
What Does Divestiture Mean?
"The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy. Divestiture can be done slowly and systematically over a long period of time, or in large lots over a short time period." (Investopedia)
Memo 11 Summary In Memo 11, Baye discusses whether or not Time Warner should divest their Filmed Entertainment unit. His answer to this question is based on two important issues. First, Baye addresses the concentration level of the industry and argues that since seven major studios comprise 75 percent of the total box office revenues, there would likely be antitrust concerns with any potential divestment. Secondly, he argues that Time Warner’s Filmed Entertainment unit is important for future growth. The company’s relationship with AOL would allow them to provide film entertainment to individuals through the internet once it becomes a more viable option for watching movies. Baye points out that cost complementaries exist between “filmed entertainment and AOL content creation.” (Baye, Memo 11)
Reasons to Divest There are a number of possible reasons to divest an asset, and this blog will focus on the five common reasons listed below:
Legal
Poor performance
Lower cost production opportunities
New market opportunities
Refocus core activities/Specialization
Legal
There have been instances in the past when divestments have been court-ordered, rather than being initiated by the firm in question. One of the most famous cases was the Bell Systems divestiture, initiated by the U.S. Department of Justice as an antitrust case. As Guinn describes, “AT&T, the largest corporation in the world (at the time), was divided into eight companies, each of them with total assets of $14 ½ billion or more.” (Guinn 364) The court’s decision was intended to encourage competition within the industry.
This is similar to Baye’s discussion of mergers, and the Federal Trade Commission’s ability to prevent them. When the industry’s HHI exceeds 1800 and the merger will raise that number by at least 100, the Department of Justice may exercise power, as they did in the Bell Systems case, to prevent the industry from becoming too concentrated.
Below is my summary of an article on the Bell Systems Divestiture:
Authors, H.D. Vinod and Baldev Raj, attempt to answer the questions of whether or not economies of scale existed within the company, whether inputs were used efficiently, and whether a regulated Bell Systems resulted in overcapitalization, in their article entitled, “Economic Issues in Bell System Divestiture: A Bootstrap Application.” Using data from 1947-1977 (prior to the divestiture), the authors utilized stem and leaf displays and ridge regression to determine that economies of scale did exist. From our textbook, we learned that economies of scale exist when, "long-run average costs decline as output is increased." (Baye 185) With regards to efficient use of inputs, the authors conclude that practices were not consistent with profit-maximization or cost- minimization, and that labor inputs may have been overused. This relates to Baye’s discussion of cost minimization through the proper mix of labor and capital as inputs in the production process. If the proper mix is not achieved, the firm will not create the greatest output at the lowest cost. Finally, the authors suggest that no physical overcapitalization was present. The Bell Systems divestiture is a prime example of a court-ordered divestment, and is one of the most notable cases of its kind throughout history.
Poor Performance
The selling of assets within a company due to poor performance or financial distress is similar to Baye’s discussion of exit from an industry when losses are incurred. “Firms may divest a unit due to loss-making operations in the unit or due to a desire to insulate the assets of the firm from unprofitable assets in the unit.” (Denning 33) For example, product lines often become outdated over time, and companies must be willing sell off entire production units if they perform poorly in the long run. When revenues are no longer able to cover the costs of production (in the long run), a change must be made. In addition to poor performance, a “lack of synergies with other units will often lead to divestment as the firm’s solution to a small unit’s difficulties.” (Duhaim 494)
Similarly, a firm may actually decide to divest customers by no longer providing services or products to them when they are no longer profitable, or their demands are too great. For example, “Sprint Nextel sent out letters to about 1,000 people on June 29, 2007, to inform them that they had been summarily dismissed.” (Mittal 95) Dealing with excessive complaints, products returns, or support calls from any one customer can consume employee time and decrease the productive capabilities of workers. However, divesting customers can have negative effects, especially with regards to the company’s reputation, and should be considered as a last resort.
Lower Cost Production Opportunities
The promise of lower cost production is a powerful motivator in the decision to divest assets. “As firms try to cut costs to access cheaper factors of production in foreign markets, they are likely to contract or close parent operations in their home country to realize these benefits.” (Berry 381) As we have learned from Baye, lower costs shift the ATC curve downward, the MC curve to the right, and allow a competitive firm to increase both their output and profits.
“The opportunity to invest in cheaper production can provide firms with a better use of existing firm resources if less efficient operations are divested or contracted.” (Berry 381)
New Market Opportunities
As a manager, you are responsible for the allocation of resources within the company. It is important to constantly seek and assess possible business opportunities to ensure that resources are being used in the best possible way. As we have learned from Baye, “Econonic decisions […] involve the allocation of scarce resources, and a manager’s task is to allocate resources so as to best meet the manager’s goals.” (Baye 3) This concept of scarcity suggests that companies have to pick and choose where resources should go, since they are finite. As Berry suggests, “there are […] circumstances in which new market opportunities can provide a better use of firm resources […]” (Berry 383) Wallender supports the previous statement by saying, “Divestment should be viewed as a useful tool for getting full value from resources.” (Wallender 35) In other words, firms should constantly seek ventures in which their limited resources can be put to the best use. If a company discovers an opportunity that will provide a greater return on assets than what they currently enjoy, it may be wise for them to divest certain units to secure the funds necessary to take advantage of that opportunity.
Refocus Core Activities/Specialization
Sometimes a company may decide to sell assets or production units that are not directly related to the company’s strengths or core activities. By doing so, they are able to focus only on the activities that contribute the greatest gain for the company. Berry suggests that, “Firms may decide to focus more on their core activities across all markets to become more competitive […]” (Berry 383)
One example of a company divesting assets to refocus activities or promote specialization is seen through Kodak.
“In an effort to refocus resources and management exclusively on its imaging business, Eastman Kodak Co. is divesting itself of several subsidiaries. Kodak, of Rochester, N.Y., will unload Sterling Winthrop Inc., its pharmaceutical and consumer health products subsidiary; L&F Products, its personal care and household business; and its Clinical Diagnostics division. These companies generated 23 percent of Kodak's $16.4 billion in sales last year.” (Bernard 135)
By focusing on core activities, companies such as Kodak are able to gain greater degrees of productive efficiency.
Steps in a Successful Divestiture
It is unwise to simply sell an asset at the first sign of poor performance. Mankins, from the Harvard Business Review, suggests 4 steps when considering a divestment.
1. Establish a Dedicated Team--- a group that is fully devoted to analyzing and assessing possible divestiture options.
2. Test for Fit and Value--- selling is an option if the asset isn’t crucial to the company’s growth or profitability, or if it is worth more in another company’s portfolio.
3. Plan for De-Integration--- consider what degree of divestment is most beneficial to your firm, as well as who is the right buyer.
4. Provide a Compelling Logic for Buyers and Employees--- properly communicate details of the deal with all parties
(Mankins 94-99)
Fictional Case Study
The Yellow Pencil Company is a U.S. based company, and has been a successful producer of pencils for the last 20 years. The owner has ran the numbers and feels that the company can achieve lower-cost productions by moving the business overseas. The owner wants to close down production tomorrow and begin the shift to a new location. If the owner is correct and the company could indeed achieve these cost reductions, would it make sense to divest the U.S. production line and create a line overseas?
“As firms try to cut costs to access cheaper factors of production in foreign markets, they are likely to contract or close parent operations in their home country to realize these benefits.” (Berry 381)
Closing down the U.S. production line is a viable option if the cost reductions are definite. However, divestment is a complicated decision and should not be hastily decided.
Multiple Choice Questions
Which of the follow is not a valid reason for a company to divest an asset? a. poor performance b. legal reasons c. to refocus on core activities d. new market opportunities e. none of the above
Each of the first four options listed above are possible reasons for a company to divest. A section is devoted to each in the wiki.
According to the Harvard Business Review, what is the first step when considering a divestment? a. Plan for de-integration b. Test for fit and value c. Establish a dedicated team d. Provide a compelling logic for buyers and employees
Before you can complete any of the steps listed above, a divestment team needs to be in place. Once that team is developed, they can then test for fit and value, plan for de-integration, and provide a compelling logic for buyers and employees.
A divestiture is described as the partial or full disposal of an investment or asset through all of the following except: a. Sale b. Exchange c. Closure d. Death
Death is the only option not listed in Investopedia’s brief description of a divestiture posted at the beginning of the wiki.
Divesting to refocus on a company’s core activities can result in: a. Greater degrees of productive efficiency b. A greater variety of products to offer at market c. Smaller degrees of specialization d. Smaller degrees of productive efficiency
“By focusing on core activities, companies such as Kodak are able to gain greater degrees of productive efficiency.” Refocusing often decreases the variety of products a company may offer. Likewise, greater degrees of specialization are achieved.
The Bell Systems divestiture took place as a result of which of the following: a. Lower cost production opportunities b. Legal reasons/court-ordered c. New market opportunities d. The desire to refocus on core activities
Due to the concentration of the industry, the Department of Justice brought forth an antitrust case in an effort to break up the large company and encourage competition within the industry.
Summaries
Property rights and incentives- include tragedy of the commons
The author gives a brief definition of property rights, describing them as having authority over how a resource is consumed or used. The government has in place specific laws to define and protect these rights The author also discusses the “tragedy of the commons,” in which there are no defined or enforced property rights, and everyone is free to use the resource. In this scenario, no one feels responsible to maintain the resource, which eventually leads to its decline. The real-world example of grazing lands in Mongolia is used to illustrate this point.
Budget constraints, indifference curves. Including assumptions such as transitivity, completeness and more is better. Diminishing MU The author begins by giving a brief real-world example of a budget constraint. When you only have a certain amount of money to spend, there are trade-offs to consider. Next, constraints are applied to the author’s work environment in a brief story. The author discusses how tax rates may affect charitable donations. A definition of diminishing marginal utility is provided, that states that the utility one receives from consuming equal units of a good declines as more and more of the good is consumed.
Create and answer a case study similar to Memo 12 from Time Warner (Most Relevant Chapters 1, 8, and 11) that uses a cost-benefit analysis in determining what products or programs to keep.
The author lays out a decision that must be made between an individual selling homemade crafts, or working part-time for a company. All relevant costs and benefits are considered, including explicit and implicit costs, which are defined. Lastly, the author discusses some information that the individual would have to consider when selling her own products, including own-price elasticity and the appropriate markup. The article is concluded with a recommendation for the individual. Concentration indexes - Four firm concentration ratios, Herfindahl Hirschman indexes (HHI), Rothschild index, Lerner Index, Mergers ---- (See also Concentration's Ratio Index on Blackboard under Assignment tab)
The author begins with a brief description of concentration ratios. Next the different concentration levels are listed and defined. Certain disadvantages of using concentration ratios are discussed. Finally, brief descriptions of a number of indexes are included, such as the Pivotal Supplier Index, the Residual Supplier Index, the four and eight firm ratios, the Herfindahl-Hirschman Index, the Rothschild Index, and the Lerner Index.
Create and answer a case study similar to American Airlines Case (Chapters 5, 7-11, 13) - Cases Available under Assignments tab- that looks at pricing to drive out competitors and then raising prices in the future.
A discussion of predatory pricing is included in the article. It is defined as pricing below costs in an effort to eliminate competition. A T-shirt company example is used to illustrate the effects of such pricing strategies. To further elaborate on the topic, Walmart’s pricing history is discussed. A few graphs are also included as visual aids.
Works Cited
Baye, Michael R. Managerial Economics and Business Strategy. New York: McGraw-Hill Irwin, 2010. Print.
Bernard, Viki. "Kodak to unload 3 units to focus on imaging." PC Week 11.18 (1994): 135. Business Source Premier. EBSCO. Web. 14 Oct. 2011.
Berry, Heather. "Why Do Firms Divest?." Organization Science 21.2 (2010): 380-396. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Denning, Karen Craft. "Spin-offs and Sales of Assets: An Examination of Security Returns and Divestment Motivations." Accounting & Business Research 19.73 (1988): 32-42. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Duhaim, Irene M., and Inga S. Baird. "Divestment Decision-Making: The Role of Business Unit Size." Journal of Management 13.3 (1987): 483. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Guinn, Donald E. "The Impact of the Bell System Divestiture: TOWARD PRICES BASED ON ACTUAL COSTS." Vital Speeches of the Day 50.12 (1984): 364. Business Source Premier. EBSCO. Web. 14 Oct. 2011.
Mankins, Michael C., David Harding, and Rolf-Magnus Weddigen. "HOW THE BEST DIVEST." Harvard Business Review 86.10 (2008): 92-99. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Mittal, Vikas, Matthew Sarkees, and Feisal Murshed. "The Right Way to Manage Unprofitable Customers." Harvard Business Review 86.4 (2008): 94-102. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Vinod, H.D., and Baldev Raj. "Economic Issues in Bell System Divestiture: A Bootstrap Application." Journal of the Royal Statistical Society: Series C (Applied Statistics) 37.2 (1988): 251. Business Source Premier. EBSCO. Web. 14 Oct. 2011.
Wallender III, Harvey W. "A Planned Approach to Divestment." Columbia Journal of World Business 8.1 (1973): 33. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
What Does Divestiture Mean?
"The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy. Divestiture can be done slowly and systematically over a long period of time, or in large lots over a short time period." (Investopedia)
Memo 11 Summary
In Memo 11, Baye discusses whether or not Time Warner should divest their Filmed Entertainment unit. His answer to this question is based on two important issues. First, Baye addresses the concentration level of the industry and argues that since seven major studios comprise 75 percent of the total box office revenues, there would likely be antitrust concerns with any potential divestment. Secondly, he argues that Time Warner’s Filmed Entertainment unit is important for future growth. The company’s relationship with AOL would allow them to provide film entertainment to individuals through the internet once it becomes a more viable option for watching movies. Baye points out that cost complementaries exist between “filmed entertainment and AOL content creation.” (Baye, Memo 11)
Reasons to Divest
There are a number of possible reasons to divest an asset, and this blog will focus on the five common reasons listed below:
Legal
There have been instances in the past when divestments have been court-ordered, rather than being initiated by the firm in question. One of the most famous cases was the Bell Systems divestiture, initiated by the U.S. Department of Justice as an antitrust case. As Guinn describes, “AT&T, the largest corporation in the world (at the time), was divided into eight companies, each of them with total assets of $14 ½ billion or more.” (Guinn 364) The court’s decision was intended to encourage competition within the industry.
This is similar to Baye’s discussion of mergers, and the Federal Trade Commission’s ability to prevent them. When the industry’s HHI exceeds 1800 and the merger will raise that number by at least 100, the Department of Justice may exercise power, as they did in the Bell Systems case, to prevent the industry from becoming too concentrated.
Below is my summary of an article on the Bell Systems Divestiture:
Authors, H.D. Vinod and Baldev Raj, attempt to answer the questions of whether or not economies of scale existed within the company, whether inputs were used efficiently, and whether a regulated Bell Systems resulted in overcapitalization, in their article entitled, “Economic Issues in Bell System Divestiture: A Bootstrap Application.” Using data from 1947-1977 (prior to the divestiture), the authors utilized stem and leaf displays and ridge regression to determine that economies of scale did exist. From our textbook, we learned that economies of scale exist when, "long-run average costs decline as output is increased." (Baye 185) With regards to efficient use of inputs, the authors conclude that practices were not consistent with profit-maximization or cost- minimization, and that labor inputs may have been overused. This relates to Baye’s discussion of cost minimization through the proper mix of labor and capital as inputs in the production process. If the proper mix is not achieved, the firm will not create the greatest output at the lowest cost. Finally, the authors suggest that no physical overcapitalization was present. The Bell Systems divestiture is a prime example of a court-ordered divestment, and is one of the most notable cases of its kind throughout history.
Poor Performance
The selling of assets within a company due to poor performance or financial distress is similar to Baye’s discussion of exit from an industry when losses are incurred. “Firms may divest a unit due to loss-making operations in the unit or due to a desire to insulate the assets of the firm from unprofitable assets in the unit.” (Denning 33) For example, product lines often become outdated over time, and companies must be willing sell off entire production units if they perform poorly in the long run. When revenues are no longer able to cover the costs of production (in the long run), a change must be made. In addition to poor performance, a “lack of synergies with other units will often lead to divestment as the firm’s solution to a small unit’s difficulties.” (Duhaim 494)
Similarly, a firm may actually decide to divest customers by no longer providing services or products to them when they are no longer profitable, or their demands are too great. For example, “Sprint Nextel sent out letters to about 1,000 people on June 29, 2007, to inform them that they had been summarily dismissed.” (Mittal 95) Dealing with excessive complaints, products returns, or support calls from any one customer can consume employee time and decrease the productive capabilities of workers. However, divesting customers can have negative effects, especially with regards to the company’s reputation, and should be considered as a last resort.
Lower Cost Production Opportunities
The promise of lower cost production is a powerful motivator in the decision to divest assets. “As firms try to cut costs to access cheaper factors of production in foreign markets, they are likely to contract or close parent operations in their home country to realize these benefits.” (Berry 381) As we have learned from Baye, lower costs shift the ATC curve downward, the MC curve to the right, and allow a competitive firm to increase both their output and profits.
“The opportunity to invest in cheaper production can provide firms with a better use of existing firm resources if less efficient operations are divested or contracted.” (Berry 381)
New Market Opportunities
As a manager, you are responsible for the allocation of resources within the company. It is important to constantly seek and assess possible business opportunities to ensure that resources are being used in the best possible way. As we have learned from Baye, “Econonic decisions […] involve the allocation of scarce resources, and a manager’s task is to allocate resources so as to best meet the manager’s goals.” (Baye 3) This concept of scarcity suggests that companies have to pick and choose where resources should go, since they are finite. As Berry suggests, “there are […] circumstances in which new market opportunities can provide a better use of firm resources […]” (Berry 383) Wallender supports the previous statement by saying, “Divestment should be viewed as a useful tool for getting full value from resources.” (Wallender 35) In other words, firms should constantly seek ventures in which their limited resources can be put to the best use. If a company discovers an opportunity that will provide a greater return on assets than what they currently enjoy, it may be wise for them to divest certain units to secure the funds necessary to take advantage of that opportunity.
Refocus Core Activities/Specialization
Sometimes a company may decide to sell assets or production units that are not directly related to the company’s strengths or core activities. By doing so, they are able to focus only on the activities that contribute the greatest gain for the company. Berry suggests that, “Firms may decide to focus more on their core activities across all markets to become more competitive […]” (Berry 383)
One example of a company divesting assets to refocus activities or promote specialization is seen through Kodak.
“In an effort to refocus resources and management exclusively on its imaging business, Eastman Kodak Co. is divesting itself of several subsidiaries. Kodak, of Rochester, N.Y., will unload Sterling Winthrop Inc., its pharmaceutical and consumer health products subsidiary; L&F Products, its personal care and household business; and its Clinical Diagnostics division. These companies generated 23 percent of Kodak's $16.4 billion in sales last year.” (Bernard 135)
By focusing on core activities, companies such as Kodak are able to gain greater degrees of productive efficiency.
Steps in a Successful Divestiture
It is unwise to simply sell an asset at the first sign of poor performance. Mankins, from the Harvard Business Review, suggests 4 steps when considering a divestment.
1. Establish a Dedicated Team--- a group that is fully devoted to analyzing and assessing possible divestiture options.
2. Test for Fit and Value--- selling is an option if the asset isn’t crucial to the company’s growth or profitability, or if it is worth more in another company’s portfolio.
3. Plan for De-Integration--- consider what degree of divestment is most beneficial to your firm, as well as who is the right buyer.
4. Provide a Compelling Logic for Buyers and Employees--- properly communicate details of the deal with all parties
(Mankins 94-99)
Fictional Case Study
The Yellow Pencil Company is a U.S. based company, and has been a successful producer of pencils for the last 20 years. The owner has ran the numbers and feels that the company can achieve lower-cost productions by moving the business overseas. The owner wants to close down production tomorrow and begin the shift to a new location. If the owner is correct and the company could indeed achieve these cost reductions, would it make sense to divest the U.S. production line and create a line overseas?
“As firms try to cut costs to access cheaper factors of production in foreign markets, they are likely to contract or close parent operations in their home country to realize these benefits.” (Berry 381)
Closing down the U.S. production line is a viable option if the cost reductions are definite. However, divestment is a complicated decision and should not be hastily decided.
Multiple Choice Questions
Which of the follow is not a valid reason for a company to divest an asset?
a. poor performance
b. legal reasons
c. to refocus on core activities
d. new market opportunities
e. none of the above
Each of the first four options listed above are possible reasons for a company to divest. A section is devoted to each in the wiki.
According to the Harvard Business Review, what is the first step when considering a divestment?
a. Plan for de-integration
b. Test for fit and value
c. Establish a dedicated team
d. Provide a compelling logic for buyers and employees
Before you can complete any of the steps listed above, a divestment team needs to be in place. Once that team is developed, they can then test for fit and value, plan for de-integration, and provide a compelling logic for buyers and employees.
A divestiture is described as the partial or full disposal of an investment or asset through all of the following except:
a. Sale
b. Exchange
c. Closure
d. Death
Death is the only option not listed in Investopedia’s brief description of a divestiture posted at the beginning of the wiki.
Divesting to refocus on a company’s core activities can result in:
a. Greater degrees of productive efficiency
b. A greater variety of products to offer at market
c. Smaller degrees of specialization
d. Smaller degrees of productive efficiency
“By focusing on core activities, companies such as Kodak are able to gain greater degrees of productive efficiency.”
Refocusing often decreases the variety of products a company may offer.
Likewise, greater degrees of specialization are achieved.
The Bell Systems divestiture took place as a result of which of the following:
a. Lower cost production opportunities
b. Legal reasons/court-ordered
c. New market opportunities
d. The desire to refocus on core activities
Due to the concentration of the industry, the Department of Justice brought forth an antitrust case in an effort to break up the large company and encourage competition within the industry.
Summaries
Property rights and incentives- include tragedy of the commons
The author gives a brief definition of property rights, describing them as having authority over how a resource is consumed or used. The government has in place specific laws to define and protect these rights The author also discusses the “tragedy of the commons,” in which there are no defined or enforced property rights, and everyone is free to use the resource. In this scenario, no one feels responsible to maintain the resource, which eventually leads to its decline. The real-world example of grazing lands in Mongolia is used to illustrate this point.
Budget constraints, indifference curves. Including assumptions such as transitivity, completeness and more is better. Diminishing MU
The author begins by giving a brief real-world example of a budget constraint. When you only have a certain amount of money to spend, there are trade-offs to consider. Next, constraints are applied to the author’s work environment in a brief story. The author discusses how tax rates may affect charitable donations. A definition of diminishing marginal utility is provided, that states that the utility one receives from consuming equal units of a good declines as more and more of the good is consumed.
Create and answer a case study similar to Memo 12 from Time Warner (Most Relevant Chapters 1, 8, and 11) that uses a cost-benefit analysis in determining what products or programs to keep.
The author lays out a decision that must be made between an individual selling homemade crafts, or working part-time for a company. All relevant costs and benefits are considered, including explicit and implicit costs, which are defined. Lastly, the author discusses some information that the individual would have to consider when selling her own products, including own-price elasticity and the appropriate markup. The article is concluded with a recommendation for the individual.
Concentration indexes - Four firm concentration ratios, Herfindahl Hirschman indexes (HHI), Rothschild index, Lerner Index, Mergers ---- (See also Concentration's Ratio Index on Blackboard under Assignment tab)
The author begins with a brief description of concentration ratios. Next the different concentration levels are listed and defined. Certain disadvantages of using concentration ratios are discussed. Finally, brief descriptions of a number of indexes are included, such as the Pivotal Supplier Index, the Residual Supplier Index, the four and eight firm ratios, the Herfindahl-Hirschman Index, the Rothschild Index, and the Lerner Index.
Create and answer a case study similar to American Airlines Case (Chapters 5, 7-11, 13) - Cases Available under Assignments tab- that looks at pricing to drive out competitors and then raising prices in the future.
A discussion of predatory pricing is included in the article. It is defined as pricing below costs in an effort to eliminate competition. A T-shirt company example is used to illustrate the effects of such pricing strategies. To further elaborate on the topic, Walmart’s pricing history is discussed. A few graphs are also included as visual aids.
Works Cited
Baye, Michael R. Managerial Economics and Business Strategy. New York: McGraw-Hill Irwin, 2010. Print.
Bernard, Viki. "Kodak to unload 3 units to focus on imaging." PC Week 11.18 (1994): 135. Business Source Premier. EBSCO. Web. 14 Oct. 2011.
Berry, Heather. "Why Do Firms Divest?." Organization Science 21.2 (2010): 380-396. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Denning, Karen Craft. "Spin-offs and Sales of Assets: An Examination of Security Returns and Divestment Motivations." Accounting & Business Research 19.73 (1988): 32-42. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
"Divestiture Definition." Investopedia. Web. 14 Oct. 2011. http://www.investopedia.com/terms/d/divestiture.asp
Duhaim, Irene M., and Inga S. Baird. "Divestment Decision-Making: The Role of Business Unit Size." Journal of Management 13.3 (1987): 483. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Guinn, Donald E. "The Impact of the Bell System Divestiture: TOWARD PRICES BASED ON ACTUAL COSTS." Vital Speeches of the Day 50.12 (1984): 364. Business Source Premier. EBSCO. Web. 14 Oct. 2011.
Mankins, Michael C., David Harding, and Rolf-Magnus Weddigen. "HOW THE BEST DIVEST." Harvard Business Review 86.10 (2008): 92-99. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Mittal, Vikas, Matthew Sarkees, and Feisal Murshed. "The Right Way to Manage Unprofitable Customers." Harvard Business Review 86.4 (2008): 94-102. Business Source Premier. EBSCO. Web. 10 Oct. 2011.
Vinod, H.D., and Baldev Raj. "Economic Issues in Bell System Divestiture: A Bootstrap Application." Journal of the Royal Statistical Society: Series C (Applied Statistics) 37.2 (1988): 251. Business Source Premier. EBSCO. Web. 14 Oct. 2011.
Wallender III, Harvey W. "A Planned Approach to Divestment." Columbia Journal of World Business 8.1 (1973): 33. Business Source Premier. EBSCO. Web. 10 Oct. 2011.