In 2006, Sara Lee spun off products that accounted for a large percentage 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 using a contraction defense strategy by selling off a significant portion of its business to focus on its core food brands. A contraction defense strategy involves reducing the size or scope of a company's operations to improve efficiency and profitability.

In 2006, Sara Lee Spun Off Products That Accounted for a Large