One of the SBUs under the Retro Group of companies is not generating a satisfactory amount of business.Extensive analysis shows that the company is losing its market share because its competitors have more sustainable processes.Analysts also feel that the growth prospects in this industry are extremely limited.Which one of the following organizational strategies should the company adopt?
A)focus
B)stability
C)retrenchment
D)growth
E)divestiture

Question

Quizplus · Accepted Answer

Divestiture is the appropriate strategy when a business unit is underperforming, has limited growth prospects, and is losing market share due to unsustainable processes. It involves selling off or liquidating the unit to focus resources on more promising areas.

One of the SBUs Under the Retro Group of Companies