Limeria Inc., an industrial paint manufacturing company, has been incurring losses. In an attempt to stop this, it removed synthetic distempers from its product list and concentrated on enamel paints, a less capital-intensive business. Which of the following grand strategies was used by Limeria in this scenario?

Question

Quizplus · Accepted Answer

The retrenchment strategy involves cutting back on the scope of an organization's activities by divesting part of the business or reducing the size of operations in order to stop losses. In this scenario, Limeria Inc. removed synthetic distempers from its product list, indicating a reduction in the scope of its product line, which aligns with the objectives of the retrenchment strategy.