What does divestment typically involve?

Divestment primarily involves selling off parts of an organization, which can include subsidiaries, product lines, or assets. Companies may choose to divest for several reasons, such as focusing on their core operations, improving financial performance, or raising capital. This strategic decision is often part of restructuring efforts aimed at increasing overall efficiency and profitability.

By divesting, a company can reduce its exposure to sectors that may be underperforming or not aligned with its long-term goals. It also allows the organization to concentrate resources on more profitable or sustainable areas, thereby enhancing overall business performance.

The other choices revolve around growth and expansion strategies, which do not align with the concept of divestment. For instance, acquiring new businesses and investing in new markets are focused on increasing a company's market presence rather than reducing it. Similarly, increasing workforce size is related to expansion rather than the reduction or streamlining involved in divestment.