In which phase of a turnaround strategy does the firm attempt to "stop the bleeding" with a general,across-the-board cutback in size and costs?
A) contraction
B) consolidation
C) captive company
D) rebirth
E) divestment

Question

Quizplus · Accepted Answer

In the contraction phase of a turnaround strategy, the firm focuses on stabilizing its operations by implementing cost-cutting measures, such as reducing the size of the organization and trimming expenses. This phase is often referred to as "stop the bleeding" because it aims to halt the financial losses and improve the company's cash flow. Therefore, option A is the correct answer.

In Which Phase of a Turnaround Strategy Does the Firm