When the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses, it is called
A) retrenchment.
B) growth.
C) cash cow.
D) multidomestic.
E) stability.

Question

Quizplus · Accepted Answer

The term used to describe this situation is retrenchment, as it involves a strategic decision to cut back on certain aspects of the organization in order to improve overall performance and profitability. This is typically done during periods of economic downturn, or when certain business units are no longer profitable or sustainable.

When the Organization Goes Through a Period of Forced Decline