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

Question

Quizplus · Accepted Answer

Retrenchment is usually seen as a last resort, taken by companies that are facing significant financial difficulties. Therefore, it is an effective strategy for organizations that are plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance. It involves reducing costs, selling assets, and, in some cases, cutting jobs in order to turn around the organization's finances.

Retrenchment Would Be an Effective Strategy When an Organization