Retrenchment

• What is business retrenchment?

  Business retrenchment is the reduction in a company's size, operations, or market share
• Why would a business retrench as a strategic business decision?

  • Focus on core business activities
  • Reduce costs and improve efficiency
  • Respond to changes in market demand or competition
• What are different ways a business can retrench?

  • Closing underperforming branches
  • Reducing staff numbers
  • Discounting non-core products or services
• What are the reasons for a business to retrench?

  • Financial difficulties
  • Changing market conditions
  • Poor performance
  • Strategic refocusing
• What is a real-life example of a business retrenching?

  Ford have closed underperforming factories and reduced staff numbers in response to changing market conditions