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Management · Q116

Strategic Management

Graduate and Post Graduate · Management · question 116

Q116

A _______ strategy addresses organizational weaknesses, helps stabilize operations and revitalizes organizational resources and capabilities

A.
unrelated diversification
B.
horizontal integration
C.
vertical integration
D.
retrenchment
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A retrenchment strategy addresses organizational weaknesses, helps stabilize operations and revitalizes organizational resources and capabilities. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. Typically the strategy involves withdrawing from certain markets or the discontinuation of selling certain products or service in order to make a beneficial turnaround.