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Asked by Ravi on :Feb. 28, 2018

Am I correct in stating : "Retrenchment implies d…

Am I correct in stating : "Retrenchment implies downsizing of business"?

Am I correct in stating : "Retrenchment implies downsizing of business"?

0

Chiranjibi Mar. 08, 2018

No you're not.

You see, in the context of strategic management, retrenchment implies giving up certain products and reducing the level of business as a compulsive measure to cope up with certain adverse developments on which the firm has little control.

Downsizing (or rightsizing) is planned elimination of positions or jobs. Retrenchment does not imply downsizing. However, the latter(downsizing) is the most often used procedure to implement a retrenchment strategy.

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