GM decided that it needed to retrench by concentrating on just a few "makes." Smaller workforce. Retrenchment might occur when one or more of the following happen to a business: Reduce output & capacity Job losses / redundancy programmes Product / … Report violations. This material may not be published, broadcast, rewritten, redistributed or translated. Vodafone was acquired by hutch is a good example of divestment strategy.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. This dire step comes to pass when a company has suffered a heavy loss at the hands of their own foolish investment. Besides, a retrenchment strategy also results in reduction of the number of employees, and sale of assets associated with discontinued product or service line. A list of common digital transformation strategies. 89% found this document useful (18 votes), 89% found this document useful, Mark this document as useful, 11% found this document not useful, Mark this document as not useful. What is Retrenchment Strategy? This strategy can also be used to get a good stand in this competitive market. ... For example, a company that saves money by centralizing HR or customer-experience staff may saddle the central staff with a lot more work. Retrenchment strategies are also used to cut down operating expenses and reduce the size of the company for the betterment of the organization. ... sample size of 400 individuals comprising 200 … Majo It hoped this would help it return to profitability. The outcome of a socially responsible retrenchment strategy is that the retrenched staff are able to get through their dark night of adversity quicker and even be better off than they were before. © 2010-2020 Simplicable. Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities. American Sniper: The Autobiography of the Most Lethal Sniper in U.s. Military History, Boundaries: When to Say Yes, How to Say No, Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, Shoe Dog: A Memoir by the Creator of Nike, The Alter Ego Effect: The Power of Secret Identities to Transform Your Life, Leadership Strategy and Tactics: Field Manual. A list of common strategies with examples. The move toward retrenchment in recent years is visible for example in patterns of US military spending, force posture, and security strategy. The definition of strategic communication with examples. While these strategies result in generating cash, they differ in terms of their intentions. Stockton, CA Bankruptcy Retrenchment Strategies Retrenchment - Initial effort - Sony Corp. ~ Eliminated 10,000 jobs ~ closed 11 0f 65 plants ~ divested in unprofitable products -A strategy used by corporations to reduce the diversity or the overall size of the operations of the Retrenchment is something akin to downsizing. Managers who have to tell employee after employee they've been downsized may come to dread their job. The four types of organizational change with examples of each. For example, firms operating in niche markets commonly choose a niche (cost or differentiation) strategy and maintain that strategy until internal or external factors necessitate a change. The prospects of liquidation create a bad impact on the company’s reputa… If labour unions represent members, they must be involved in consultations. We help companies stay competitive by offering effective business solutions such as leadership development, career management, and human resource engagement.. In other words, the strategy followed, when a firm decides to eliminate its activities through a considerable reduction in its business operations, in the perspective of customer groups, customer functions and technology alternatives, … Retrenchment strategy. The following are illustrative examples of a retrenchment. At least 4 meetings must be held with effected staff. Retrenchment strategy is a strategy that is geared towards reducing expenditures; withdraw products or services from the market and to reduce the size of diversity. There are … Reproduction of materials found on this site, in any form, without explicit permission is prohibited. The definition of turnaround strategy with examples. This typically requires fast and aggressive decisions in the context of constrained resources and large threats. For instance, in August 2005, a report surfaced about the death of a 28-year-old southern Korean gamer who had spent 50 hours playing a real-time strategy game (BBC). The Budget Control Act of 2011 in particular, together with subsequent sequestration, resulted in roughly $1 trillion in defense cuts over a ten-year period currently underway. For example, a corporate hospital may decide to focus only on specialized treatments, and thus, realize higher revenues. In some case, bankruptcy can be an effective type of retrenchment strategy. Cookies help us deliver our site. There are three types of Retrenchment Strategies: Turnaround; Divestment; Liquidation; To further comprehend the meaning of Retrenchment Strategy, go through the following examples in terms of customer groups, customer functions and technology alternatives. All Rights Reserved. spends less or reduces costs: 2. a situation in which…. Turnaround strategy means backing out, withdrawing or retreating from a decision wrongly taken earlier in order to reverse the process of decline. Corporations adopt a retrenchment strategy when they're overextended. MEETING 1: 6. It is consider as a … which is no less serious than narcomania or alcoholism. 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.
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