Corporations that reduce the scale of their operations by laying off managers and salespeople in national markets that are not generating adequate sales revenue are using a stability strategy.

Question

Quizplus · Accepted Answer

Corporations reducing the scale of their operations in this manner are using a retrenchment strategy, not a stability strategy. A stability strategy typically involves maintaining the current level of effort and focusing on consistent operations without significant growth or reduction.

Corporations That Reduce the Scale of Their Operations by Laying