Question

Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a _____ strategy.

a. stability
b. growth
c. portfolio
d. firm-level
e. retrenchment

Answer 1

A retrenchment strategy is characterized by significant cost reductions, layoffs, closures, and selling off unprofitable product lines or services.

Step-by-step explanation:

The characteristic described in the question, which includes cost reductions, layoffs, and closures, is indicative of a retrenchment strategy. Retrenchment involves making significant changes to a company in order to improve financial stability and profitability. Examples of retrenchment strategies include closing poorly performing stores, laying off employees, and selling off unprofitable product lines or services.