Examlex
Case Scenario 2: Raptec
Raptec was incorporated in 1991 and went public on the Nasdaq Stock Market in 1996. Raptec's strategy is to become the global leader in innovative storage solutions. Raptec is an S&P 500 and a Nasdaq Stock Market 100 member. The company's hardware and software solutions for eBusiness and Internet applications move, manage, and protect critical data and digital content. Raptec operates in three principal business segments: Direct Attached Storage ("DAS"), Storage Networking Solutions ("SNS")and Software. These hardware and software products are found in high-performance networks, servers, workstations, and desktops from the world's leading OEMs, and are sold through distribution channels to Internet service providers, enterprises, medium and small businesses, and consumers. Since the time it went public, Raptec has experienced rapid growth and consistently profitable operations. In early 2007, the company announced its plan to spin-off the software segment, subsequently incorporated as Axio, Inc., in the form of a fully independent and separate company. Software was Raptec's most profitable and fastest growing segment. By mid-2007 Raptec had completed the initial public offering of approximately 15 percent of Axio's stock, and then distributed the remaining Axio stock to Raptec's stockholders in a tax-free distribution.
-(Refer to Case Scenario 2). What risks does Raptec run in spinning off Axio?
Physical Illness
Any bodily disease or disorder, whether acute or chronic, that impairs normal functioning.
Cognitive Rigidity
A psychological disposition characterized by an inability to adapt or shift perspectives in the face of new information or changing environments.
Dichotomous Thinking
The tendency to categorize experiences, people, or items into two extreme and opposite groups.
Right Or Wrong
A moral or ethical judgment about actions or decisions based on societal, personal, or legal standards.
Q9: The repurchase at a premium of shares
Q23: A global strategy assumes that the strategic
Q61: Dragonfly Publishers of children's books has purchased
Q64: Junk bonds are financial instruments commonly used
Q73: The purchasing of firms in the same
Q91: Universal product demand has permeated all types
Q93: Offshore Oil Exploration Partners (OOEP) has entered
Q98: An examination of a company's activity map
Q98: The trend in diversification is a(an)<br>A) increase
Q119: In order for a cost leadership strategy