A company that is reducing the scope of its activities by selling unprofitable business units or those no longer directly related to its overall aims is likely following a ________ strategy.
A) growth
B) retrenchment
C) stability
D) combination

Question

Quizplus · Accepted Answer

Retrenchment strategy involves reducing the scope of a company's activities by selling unprofitable business units or those that are no longer related to its overall objectives. This strategy is typically employed when a company is facing financial difficulties, and it aims to improve its profitability and financial performance by focusing on its core competencies. Therefore, Option B is the correct choice.

A Company That Is Reducing the Scope of Its Activities