What strategy is used to turn around very poor company performance by shrinking the size or scope of the business?

Question

Quizplus · Accepted Answer

Retrenchment strategy is used to turn around very poor company performance by shrinking the size or scope of the business. This may include selling assets, reducing staff, closing unprofitable locations or product lines, and cutting costs. The idea is to focus on the core business and eliminate anything that is not contributing to profitability. Growth strategy involves expanding the size or scope of the business, stability strategy involves maintaining the current size or scope of the business, and repositioning strategy involves changing the company's position in the market.

What Strategy Is Used to Turn Around Very Poor Company