A company should consider downsizing when products of an SBU no longer fit the company's overall strategy.

Question

Quizplus · Accepted Answer

Downsizing is a strategic decision that a company may make when certain products or services of an SBU (strategic business unit) no longer align with the company's overall vision and objectives. This can be due to changes in market demand, technological advancements, or shifts in consumer preferences. In such cases, downsizing can help the company focus its resources and efforts on the most promising and profitable areas of its business.

A Company Should Consider Downsizing When Products of an SBU