When organizations close operations, shut down factories, terminate employees, and take other actions to scale back current operations, it is referred to as a _____ strategy.
A) growth
B) turnaround
C) functional
D) business
E) diversification

Question

Quizplus · Accepted Answer

A turnaround strategy involves reducing or curtailing current operations in order to overcome financial difficulties and achieve profitability. The other options are not relevant to scaling back operations. Growth strategy involves expanding operations, functional strategy is focused on improving the efficiency of specific functions within the organization, business strategy is a broader plan for achieving organizational goals, and diversification strategy involves expanding into new markets or product lines.

When Organizations Close Operations, Shut Down Factories, Terminate Employees, and Take