To resize a disk I had to use Carbon Copy Cloner, cloning the existing disk to another drive, then booting up in to it.
1. VMWare Edit Settings on VM you want to change
2. Add 2nd hard drive with new primary partition size you want
3. Restart the VM to pick up the new drive
4. Open Disk Utility select new hard drive and partition as GUID
5. Run CCC and copy old hard drive to new one. You will be prompted and asked if you would like to create a recovery drive. Select YES if you want to use this feature.
6. Run Systems Preferences and change startup disk to new one and restart VM (confirm that it works)
7. Un-mount old hard drive
8. WMWare Edit Settings remove the old hard drive.
9. Power cycle the VM. And then finally delete the old drive from disk.
This did the trick for me.