George is considering acquiring Alabama Woods. Like The Nort…
George is considering acquiring Alabama Woods. Like The North Georgia Products SBU, Alabama Woods, sells lumber specifically milled for barns and other farm-related outbuildings directly to its customers through a company-owned store in Muscle Shoals (Alabama); near the Mississippi state line. Unlike North Georgia Products, Alabama Woods also sell product through its robust eCommerce website. George is considering buying Alabama Woods but running it as a separate SBU. The firm would not be consolidated into a single SBU with North Georgia Products; instead, The Georgia Lumber Company would be run as 3 SBUs with a corporate “umbrella”. Alabama Woods would continue to focus its physical store on its Alabama customers while extending its eCommerce capabilities to the Georgia Lumber Company to service North Georgia Products retail customers. That said, the eCommerce capabilities are not a driver nor is it an important part of the strategy and would merely be considered a potential but uncertain benefit of the acquisition. This initiative, if approved by Otis Thomsan, could best be described as a _____________ strategy NOTE: For those of you unfamiliar with US geography, Alabama and Georgia share a common border and Muscle Shoals is approximately 130 to 140 miles west of the state of Georgia state line.