Question

Over the course of 50 years, Dexter grew his company to eight package shipping stores. With his retirement approaching and the increased competition, he decided to reduce the number of locations to three. Dexter's reduction of effort represents a
a. fixed plan.
b. defensive strategy.
c. merger approach.
d. stability strategy.
e. growth strategy.

Answer 1

Answer:

B. Defensive Strategy

Explanation:

One thing that is inevitable in business is competition. Dexter decided to use a defensive strategy for his business with his retirement coming in and competition becoming even stronger.

Defensive strategies are management techniques used to "fend off attacks" from competitors. It helps the decision maker hold on to shares of the market. Some companies do this to lower the risk of being attacked when they perceive attacks coming from competitors so in turn, those competitors can focus on other competitors in the market.