When a firm is experiencing problems of some sort and advancement or consistency is not feasible, it might be advisable to follow a strategy of______________.

Question

Quizplus · Accepted Answer

When a firm is experiencing problems and growth or consistency is not feasible, the best strategy is retrenchment. Retrenchment strategy involves reducing the size or scope of operations in order to improve profitability and efficiency. This strategy may involve downsizing, divestment, or restructuring of operations to focus on the core business. It allows the firm to cut costs, streamline operations, and refocus on its core competencies.

When a Firm Is Experiencing Problems of Some Sort and Advancement