Band 7+: ZM Corporation, a major household appliance manufacturer, is in bankruptcy and must decide whether to sell SB, a foreign-based appliance company it owns, or shut it down permanently. Using the facts below, write an essay in which you argue for one option over the other based on the following two criteria: ZM wants to emerge from bankruptcy financially sound and do so as quickly as possible ZM wants to focus on developing its own brands and strengthening their sales The sale of SB would produce an immediate injection of cash for ZM. Two bidders have a strong interest in SB. The SB brand has a strong reputation for technological innovation. SB has highly dedicated customers in several key markets. SB has lost money in nine of the past ten years. Recently ZM has invested heavily in developing updated products for SB that use some of ZM's most advanced technology. ZM would continueto sell parts and technology to SB for these appliances. An independent SB would compete with some of ZM's brands in certain markets.

ZM corporation is facing an important decision for its business trajectory and must decide whether to sell foreign-based appliance company (SB)or shut it down permanently. Ultimately, it’s aim is to emergefrom bankrupcty as soon as possible, in a financially good position and developing its ownbrand with strenghening itd sales. This is a challenging decision to make. Because oneoption, selling SB, offering immediate cash. The other option is shutting down SB, which will have substantial short term cost, by paying creditors.

Despite the difficulty of choice,one option is better than the other. ZM corporation must shut down SB. Firstly, by sellingSB assets corporation will havesome money for paying creditors, at the same time last years ZM invested a lot of money on technology and will retain exclusive control over this advanced technologies.

Secondly, since shutting down SB and rebranding its highly anticipated products will make much more profits in the near future. If ZM will sell SB for potential buyers with more financially stable companies, they can invest on new products that are higher in quality and lower in price than ZM’s other products and will be stronger brand than ZM, which ZM is not in the position to compete with them at this time. This strategy will help defend the company against itsincreasing competition.

Next, it is important to note that, happy customers are guarantees 80% that your business will succeed, and ZM will have their customers who will stay loyal to ZM products even if it is rebranded.

Additionally, although the shutting down has less potential for immediate large profits than the selling SB, it at least offers the chance of strong brand with advanced technology. It is a good balance of risk and reward.

In the end, ZM should choose shutting down the SB, becauseit takes advantage of its last years investments on techologies, offers the company to improve its branding and popularity for thefuture. Although the selling SB might help solve financial problem ASAP, but it does not satisfy the ZM’s objective of having own well known and strong brand. With a solid strategy in mind, ZM corporation is bound to fare better id they shut down the SB.