Retrenchment Strategy

Retrenchment strategies are organizational strategies used when a company is struggling in the market. They aim to stabilize or return to growth by reorganizing operations, divesting non-performing units, or liquidating unnecessary assets. These strategies are part of a broader organizational approach to improve market position and align with the company's mission and vision.

Explain the liquidation strategy and its purpose in retrenchment.

How do retrenchment strategies lead to stability or growth in an organization?