Nortel cutting another 2,900 jobs in 2007 in an attempt to stay in business would be an example of:
A) divestiture.
B) backward integration.
C) liquidation.
D) retrenchment.
E) forward integration

Question

Quizplus · Accepted Answer

Retrenchment is the strategic option chosen by companies to reduce their operations in order to cut costs and become more efficient. Nortel's decision to cut 2,900 jobs in 2007 is an example of retrenchment as it involves reducing its workforce in an effort to stay in business. Divestiture refers to the sale of a company's assets or divisions, while backward integration involves a company moving into an industry upstream from its core business. Liquidation is the process of selling off all assets and closing down a company, while in forward integration, a company moves into an industry downstream from its core business.

Nortel Cutting Another 2,900 Jobs in 2007 in an Attempt