A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy.
A) growth
B) retrenchment
C) stability
D) combined

Question

Quizplus · Accepted Answer

Retrenchment strategy is focused on reducing a company's size, either by selling off assets, closing down factories or laying off workers. It is done when a company is facing financial difficulties, declining sales, or when it seeks to concentrate its resources in a particular area of business. Closing factories with unused capacity and laying-off workers are the common actions taken under retrenchment.

A Company That Is Closing Factories with Unused Capacity and Laying-Off