MaAi is a prominent group of companies. Currently it has businesses named Alpha, Bravo, Charlie and Delta. In year 2020, the company had acquired a…

(c) In 2023, MaAi adopted a Turnaround Strategy. This is evident from their emphasis on change in management and improvement in internal efficiency which are key features of a turnaround strategy. In 2024, MaAi decided to get rid of the business related to product 'Nota', which clearly indicates a Divestment Strategy. Divestment is adopted when "A turnaround has been attempted but has proved to be unsuccessful." This exactly matches the situation – despite a turnaround attempt in 2023, the business continued to underperform, leading to divestment in 2024. Reasons for adopting a Divestment Strategy in 2024: Mismatch with core business: The business acquired in 2020 dealing in 'Nota' may have proved to be a mismatch and could not be integrated well within the MaAi group structure. Persistent negative cash flows: Continued financial duress indicates persistent negative cash flows, which create a burden on the entire group. Failure of turnaround efforts: Despite changes in management and efforts for internal efficiency, no positive outcome was achieved, fulfilling the condition where turnaround attempts prove unsuccessful. Better alternative for investment: The company may have better options for redeploying resources, prompting the divestment of this underperforming business. Inability to cope with competition or technological upgrade: If 'Nota' required significant technological upgrades or faced intense competition and MaAi was unable or unwilling to invest further, divestment would be a prudent strategic exit.