Retrenchment

• What is the focus of retrenchment in strategic management?

  Cutting back and using resources carefully
• How does retrenchment contrast with typical business strategy?

  Retrenchment focuses on reduction, not growth
• What might a business do during retrenchment?

  Close a production line or factory
• What are some signs of retrenchment in a business?

  Job losses and reduced output capacity
• What is one reason a business might undergo retrenchment?

  To respond to a significant reduction in demand
• What does retrenchment involve regarding a business portfolio?

  Deciding to dispose of a division or brand
• What financial issue might lead to retrenchment?

  Too high a level of gearing
• How can losing market leadership influence retrenchment decisions?

  It may prompt a business to scale back operations
• Who was the CEO of Nokia during its retrenchment strategy?

  Steven Elop
• What was the outcome of Nokia's retrenchment strategy?

  Over 40,000 job losses occurred
• What did Tesco do in response to losses in the US market?

  Decided to exit the US grocery market
• What was a significant decision made by Microsoft under Satya Nadella?

  To simplify the organizational structure
• How does retrenchment relate to change management?

  It can significantly impact organizational change
• What is a common implication of retrenchment for employees?

  Significant job losses may occur
• What might retrenchment lead to in terms of management structure?

  New reporting structures and responsibilities
• What is a potential challenge for remaining employees after retrenchment?

  Increased workload for those who remain
• How can a change in leadership style affect retrenchment?

  It may create uncertainty and anxiety among staff
• What is a significant concern for change management during retrenchment?

  Maintaining morale and motivation of the workforce
• What is a key factor in managing change during retrenchment?

  Effective communication with external stakeholders