What are some examples of retrenchment strategy?

7 Examples of a Retrenchment Strategy

• Selling Assets. Selling assets such as investments, facilities, machines or entire divisions of your organization.
• Abandoning Markets.
• Abandoning a Line of Business.
• Decreasing Production.
• Eliminating Redundancies.
• Downsizing.
• Outsourcing.

What is retrenchment in marketing?

Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities. Retrenchment might occur when one or more of the following happen to a business: Reduce output & capacity. Job losses / redundancy programmes. Product / market withdrawal.

Which company use retrenchment strategy?

In the year 2019, Ford made an announcement. The Ford motor decided to retrench from India and transfer operations to Mahindra & Mahindra along with its assets. It’s not exactly a liquidation strategy as it still holds 49% of the business along with voting rights.

What is a retrenchment strategy Why do companies pursue retrenchment strategy explain with suitable examples?

Retrenchment strategy is a corporate level strategy that aims to reduce the size or diversity of organizational operations. For example, a corporate hospital may decide to focus only on specialized treatments, and thus, realize higher revenues.

What are the two types of retrenchment?

There are three types of Retrenchment Strategies:

• Turnaround.
• Divestment.
• Liquidation.

What is the purpose of retrenchment?

Retrenchment is a form of dismissal due to no fault of the employee, it is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.

How does retrenchment affect a business?

Retrenchment can have a traumatic and emotional impact on the still-employed as well as those who have been laid off. The remaining employees may feel demotivated and insecure which can result in lower productivity within the organisation – especially if the retrenchment process hasn’t been handled appropriately.

What is another word for retrenchment?

In this page you can discover 13 synonyms, antonyms, idiomatic expressions, and related words for retrenchment, like: decrease, curtailing, frugality, abatement, deduction, thriftiness, reduction, economy, curtailment, downsizing and deindustrialisation.

What are three types of retrenchment strategies?

The three types of retrenchment strategies are Turnaround strategy, Divestiture strategy, and liquidation strategy.

How do you use retrenchment strategy?

6 Steps to Implement Retrenchment in a “Responsible & Sensitive…

1. Selection Criteria. Be fair when determining who to layoff.
2. Choose an Appropriate Timing.
3. Do It Face-to-Face.
4. Embrace All Outcomes.
5. Provide Accurate Facts & Figures.
6. Career Coaching.

What is retrenchment with example?

Retrenchment is defined as cutting back or a reduction. An example of retrenchment is a company laying off employees to get back within budget.

What is retrenchment in business policy?

Definition: The Retrenchment Strategy is adopted when an organization aims at reducing its one or more business operations with the view to cut expenses and reach to a more stable financial position.

What is an example of a Retrenchment strategy?

For example, a corporate hospital may decide to focus only on specialized treatments, and thus, realize higher revenues. Besides, a retrenchment strategy also results in reduction of the number of employees, and sale of assets associated with discontinued product or service line.

What happens when a company retrenchs?

Besides, a retrenchment strategy also results in reduction of the number of employees, and sale of assets associated with discontinued product or service line. At other times, it involves restructuring of debt through bankruptcy proceedings; and in most extreme cases, liquidation of the firm.

How to retrench employees effectively?

The management should keep the process of retrenchment process transparent. They should keep the productive employees instead of providing favoritism. Appropriate Timing. The management should break the news on Tuesday rather than on Friday. At the beginning of the week, they would be able to support service in difficult times.

Which Retrenchment strategy is considered the most extreme and unattractive?

A retrenchment strategy which is considered the most extreme and unattractive is the liquidation strategy which involves closing down a firm and selling its assets. It is consider as a last resort because of its serious consequences.