Retrenchment Strategy

Retrenchment strategies are organizational strategies used when a company is struggling in the market. They aim to stabilize or return to growth by reorganizing operations, divesting non-performing units, or liquidating unnecessary assets. These strategies are part of a broader organizational approach to improve market position and align with the company's mission and vision.

What is the primary goal of retrenchment strategies within an organization?

• To enhance product innovation

• To expand into new markets

• To increase employee satisfaction

• To align with the organization's mission and vision

Which of the following best describes a turnaround strategy?

• Increasing marketing expenditure

• Entering international markets

• Reorganizing the company's operations and value delivery

• Focusing on new product development

What is a key characteristic of a divestment strategy?

• Acquiring new businesses

• Eliminating underperforming units or products

• Increasing production capacity

• Expanding the workforce

How does a liquidation strategy benefit an organization?

• By generating cash from unnecessary assets

• By hiring more employees

• By increasing market share

• By launching new product lines

Which strategy involves selling off assets to create liquid cash?

• Liquidation strategy

• Growth strategy

• Turnaround strategy

• Stability strategy