Answer:
Retrenchment strategy
Explanation:
Retrenchment strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. A company that is reducing the scope of its activities by selling unprofitable business units or those no longer directly related to its overall aims is likely following a retrenchment strategy
The following are characteristics of Retrenchment strategy:
- designed to reduce the scale or scope of a corporation's business/ operations
- weaker competitors often resort to retrenchment when national business environments grow more competitive
- company that is closing factories with unused capacity and laying off worker sis likely following a retrenchment strategy
