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

Question

Quizplus · Accepted Answer

The company is following a retrenchment strategy because it is reducing the scope of its operations by closing factories and laying off workers. This strategy is usually implemented when a company is facing financial difficulties or when it wants to focus on a core business.

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