1. Please describe some of the challenges your organization might face in implementing a retrenchment strategy.
Challenges to implementing Retrenchment Strategy
This strategy involves dropping some of the activities of the business of the company or the total dropping of some of the businesses of the firm. It is an essential part for the organization to run the corporate strategies in an effective manner (Grant, 2002). This strategy also involves a redefinition of the business of the corporation. A company can adopt this strategy if there is product obsolescence, if business is becoming unprofitable or if there is a high competition or an industry overcapacity (Wheelen & Hunger, 2004). When a company has a week competitive position in few or all product lines, it opts for retrenchment strategy. It is very difficult for the business organizations to implement retrenchment strategy. Many challenges faced by ...
The challenges faced when implementing retrenchment strategy are described. Three references are provided.