According to my last post on long term objective, Union Carbide uses the strategy of divestment to reach its goal.
Divestment also known as divestiture is the reduction of some kind of asset for financial, ethical, or political objectives or sale of an existing business by a firm. A divestment is the opposite of an investment.
After the Bhopal incident, Union Carbide added diversification, simplification, and joint ventures to its strategy.
In the early 1990s, Union Carbide launched a “work simplification program.” This program had a cost reduction goal of $400 million a year by the end of 1994. Union Carbide acted on this goal by repurchasing 20 million shares, spinning off two small businesses and selling 50% of its carbon business in 1990.
“A New Union Carbide Is Slowly Starting to Gel,” Business Week, April 18, 1986, p. 68.
http://global.factiva.com.remote.baruch.cuny.edu/aa/?ref=tmsc000020011207dh8102ed8&pp=1&fcpil=en&napc=S&sa_from=
