Chimera Inc., a chemical company, has been facing a loss in business. In an attempt to stop the declining profitability, it removed petrochemical products from its product list and concentrated on specialty chemicals, a less capital-intensive business. Which of the following grand strategies was used by Chimera in this scenario?

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Quizplus · Accepted Answer

The retrenchment strategy involves cutting back on a company's product line or reducing its operations to focus on a more profitable area. Chimera Inc.'s decision to remove petrochemical products and focus on specialty chemicals is an example of a retrenchment strategy. The stability strategy aims to maintain the current level of operations, the growth strategy involves expanding the business, and the acquisition strategy involves acquiring other businesses to expand operations.