Retrenchment would be an effective strategy when an organization
A) has shrunk so quickly that major internal reorganization is needed.
B) is one of the stronger competitors in a given industry.
C) is plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance.
D) has decided to capitalize on opportunities, maximize threats, take advantage of strengths, and overcome weaknesses.
E) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.

Question

Quizplus · Accepted Answer

Retrenchment is effective when an organization faces inefficiency, low profitability, poor morale, and pressure to improve, as it involves cutting costs and restructuring to stabilize the company.

Retrenchment Would Be an Effective Strategy When an Organization