Huff Lorraine Unit 5 DB - large group of employees they are...

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Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity of an organization's operations. Retrenchment is also a reduction of expenditures in order to become financially stable. Retrenchment is a pullback or a withdrawal from offering some current products or serving some markets. Retrenchment strategy is also referred to as downsizing. Some of the challenges stemming from using a retrenchment strategy are that employees are usually laid off or terminated due to the elimination of unnecessary work. Anytime that a company terminates a
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Unformatted text preview: large group of employees they are seen as the bad guy by society which can harm their public reputation. This situation can be overcome if they communicate the reasons for their actions. The company should also develop value-added jobs to balance out job eliminations. Any positions that had been previously contracted out that can be performed by the remaining employees should be moved into company. References Hunger, & Wheelen. (2007). Essentials of Strategic Management 4th Edition. Upper Saddle River, NJ: Pearson Prentice Hall....
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