What is retrenchment in business studies

Answer 1

Retrenchment in business studies refers to the strategic decision by a company to reduce its activities, scale back operations, or cut costs in order to improve its financial performance and viability. It is often seen as a last resort for companies facing financial difficulties or trying to survive during a downturn in the economy. Retrenchment measures can include workforce reduction through layoffs or early retirement programs, selling off unprofitable business units or assets, closing down non-performing operations or locations, or implementing cost-cutting measures such as reducing overhead expenses. The goal of retrenchment is to refocus and streamline the company's operations so that it can become financially stable and sustainable in the long run.