This week’s topics include minimizing costs and long-run optimization. It is possible for a firm to acquire or grow multiple lines of business or divisions that might operate independently. Without synergies, it can often become cost effective to split up the company into two (or more) entities. The following article describes how International Business Machines Corporation (IBM) arrived at this conclusion:
For this discussion board, find an article that describes a corporation that has made the decision, or considered an opportunity to split up the larger company. It is important to note this is not a stock split, but a decision to split a corporation into different entities.
For this discussion board, answer the following questions:
Identify the firm you selected and provide a brief overview of the article?
Describe the type of market(s) the company operates in (competitive, oligopoly, monopoly). Who would likely be impacted by the split?