Question

Serrano, a clothing and apparel company, suffered major losses when one of its warehouses was destroyed in a fire mishap. In an attempt to make up for these losses, it had to sell one of its product lines to a rival company. Which of the following grand strategies was used by Serrano in this scenario?a. The stability strategyb. The growth strategyc. The retrenchment strategyd. The acquisition strategy

Answer 1

Answer:

retrenchment strategy.

Explanation:

The retrenchment strategy is a way that businesses reduce cost in order to become financially stable. Usually this strategy is used when a business withdraws from a particular market or stops offering a product or service with the hope that it will gain positive financial results.

There are three type the turnaround strategy, divestment strategy, and liquidation strategy.

In the given instance due to fire aserrano decided to sell one of its product lines in order to recover it's losses.