During the Great Recession, Malcolm's Racing Bikes lost a considerable amount of its business because customers could no longer afford the expensive models in his shop. He was very near bankruptcy. Malcolm began carrying a line of less expensive bikes to appeal to recreational bicyclists and families and also opened a repair service. Malcolm used a ________ strategy.
A) retrenchment
B) diversification
C) turnaround
D) reorganization

Question

Quizplus · Accepted Answer

Malcolm used a turnaround strategy, which is a type of strategic change that involves making significant changes to a company's operations in order to improve its financial performance. In this case, Malcolm's Racing Bikes was facing a serious decline in sales due to the economic recession, and as a result, Malcolm had to shift his focus to a different segment of the market by offering less expensive bikes and repair services to attract recreational bicyclists and families. By doing so, he was able to turn the company around and avoid bankruptcy.

During the Great Recession, Malcolm's Racing Bikes Lost a Considerable