A strategy with the objective of correcting performance difficulties in a business through radical changes to current operations is called a _________ strategy.
A) co-opetition
B) growth
C) status quo
D) retrenchment

Question

Quizplus · Accepted Answer

Retrenchment strategy involves making significant changes to current operations in order to correct performance difficulties. It may involve cutting costs, downsizing, selling assets, and reducing business units. This strategy is chosen when a business is facing financial difficulties, declining sales or profits, or when there is a need for significant restructuring. Co-opetition strategy is a collaboration between competitors to achieve mutual benefits. Growth strategy aims to expand the business by increasing sales, profits, and market share. Status quo strategy involves maintaining the current operations and avoiding major changes.

A Strategy with the Objective of Correcting Performance Difficulties in a Business