Explore BrainMass

Strategic Management Firms

Should a firm wait for performance declines before it adopts a retrenchment strategy or should it seek to avert a decline by pursuing retrenchment while things seem to be going well? How can a firm seek to divert such a decline? What responsibilities (if any) do firms have to their employees if downsizing is a part of restructuring? Defend your answer.

Solution Preview

Please refer to the attached file for the response.


An organization goes through various stages in the business life cycle. Among the stages include the introduction, growth/development, maturity, and decline. These stages do not just come as a part of the business routine. They come as a result of the strategies implemented as the company exists, survives amidst competition, acquires and utilizes its resources, as it balances the effects of the various forces in the environment.
After the company successfully passes through the introduction stage it would start to grow as manifested by increase in sales, market share, and profitability. With continuous application of effective strategies, the company may go further until it beats its competitors as indicated by largest volume of sales and market share and possibly highest level of profit. However, this is the stage when new entrants into the industry are encouraged to come in as the customers tend to lose their ...

Solution Summary

Strategic management firms are examined.