Serrano, a clothing and apparel company, suffered major losses when one of its warehouses was destroyed in a fire mishap. In an attempt to make up for these losses, it had to sell one of its product lines to a rival company. Which of the following grand strategies was used by Serrano in this scenario?

Question

Quizplus · Accepted Answer

The retrenchment strategy is used when a company is facing financial difficulties and has to cut back on its operations, sell assets, or take other measures to reduce costs and improve profitability. In this scenario, Serrano had to sell one of its product lines, which is a form of divestment, indicating that it is undergoing retrenchment.

Serrano, a Clothing and Apparel Company, Suffered Major Losses When