Really Big Financial Co.has been forced to sell its under performing mortgage division so that senior management can focus on the relatively profitable sector of private banking.Most likely the company is pursuing a generic business strategy of _________.
A) Retrenchment
B) Stability
C) Diversification via concentric means
D) Growth/Concentration via vertical integration
E) Growth/Concentration based on horizontal integration

Question

Quizplus · Accepted Answer

Retrenchment refers to a strategy of cutting back or restructuring a company's operations to improve profitability and refocus on core business activities. The sale of an underperforming division to focus on a more profitable sector suggests a retrenchment strategy.