Retrenchment Strategy Homework Help

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Retrenchment strategy is one among the three essential elements of Defensive strategy. It is applied to decrease the diversity and total operation size of the company. Retrenchment Strategy Homework Help tells us that the basic goal is to become a more financially stable firm by dropping the company expenses. In order to achieve a beneficial turnaround, companies tend to reduce their business relations and withdraw from a few markets, leading to discontinuation of services. It is informed in Retrenchment Strategy Homework Help that the firm may also opt for restructuring its business functions rather than discontinuing it to revitalize its current financial position.

Types of Retrenchment Strategy

Retrenchment Strategies can be divided into three types. They are mentioned below in Retrenchment Strategy Homework Help
• Turnaround Strategies– These are the decisions made to withdraw from any business in order to revert back the changes which were made due to wrong decisions in the past. Negative cash flow, declining market and regular losses are a few indications for a turnaround.
• Divestment Strategies– Divestment strategy can be considered as a backup plan for the situations in which turnaround strategies prove to be unsuccessful. It suggests sale or partial liquidation of a part of the business. Retrenchment Strategy Homework Help shall tell us more about it.
• Liquidation Strategies- Liquidation Strategies suggests closing down the whole organization and selling away all its assets. It is considered to the most extreme step that the company takes to prevent further losses. It can be studied in Retrenchment Strategy Homework Help.

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