corporate-spin-off

Vocabulary Word

Definition

'Corporate spin-off' means a company forms a new, separate company from one part of itself. Like when a candy company decides it wants one factory to have its brand and sell its creations.

Examples in Different Contexts

In a corporate spin-off, the new company can concentrate on a specific market segment or product line, potentially leading to more innovation and growth. A business analyst might explain, 'This spin-off enables the newly formed company to aggressively pursue opportunities in emerging markets without the constraints of the larger parent company.'

Practice Scenarios

Tech

Scenario:

Our web development team has been generating substantial returns. Maybe turning them into a separate business might give them better growth opportunities.

Response:

I love the idea! A corporate spin-off of the web development team would help it to focus on its strengths and explore new tech opportunities.

Impact

Scenario:

Our plastic recycling initiative has garnered significant attention. It might be an ideal time to boost its exposure.

Response:

Absolutely. A corporate spin-off of the plastic recycling project could get it more recognition and funding.