Scenario: TeleToys Inc.
TeleToys Inc., a U.S.-based company, recently opened eighteen new toy stores in Brazil, acquired a women's clothing company in Canada, and closed its men's clothing line in Australia. The company has a structure that organizes its global operations into geographic regions.
-The closing of TeleToys' Australian men's clothing line can best be described as a(n)________ strategy.

Question

Quizplus · Accepted Answer

Retrenchment refers to the downsizing or restructuring of a company's operations to improve its overall efficiency and profitability. The closing of the men's clothing line in Australia is an example of retrenchment as it involves a reduction in operations. The opening of new stores in Brazil and the acquisition of a women's clothing company in Canada, on the other hand, indicate expansion or growth strategies. The term "global" is too broad and does not accurately describe the specific strategy being implemented. The term "stability" suggests a maintenance or status quo approach, which is not reflected in the company's recent actions. Therefore, the best choice is C) retrenchment.

Scenario: TeleToys Inc. TeleToys Inc., a U.S.-Based Company, Recently Opened Eighteen New Toy