In 2006,Sara Lee spun off products that accounted for almost 40% of the company's revenues,including its strong Hanes hosiery brand,so it could concentrate on its well-known food brands.In this example,Sara Lee is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense

Question

Quizplus · Accepted Answer

Sara Lee is employing a contraction defense strategy in this scenario. This involves reducing the size or scope of the company by divesting or selling off certain products or business units in order to focus on core competencies or higher growth areas. By spinning off non-core products, Sara Lee could focus on its food brands, which it believed had greater potential for growth and profitability in the long term.

In 2006,Sara Lee Spun Off Products That Accounted for Almost