Consider the following statements and identify the correct answer of true statements.
1. When an organisation's survival is threatened and it is not competing effectively, retrenchment strategies are often needed.
2. Turn around strategy is used when an organisation is performing well but has not yet reached a critical stage.
3. Divestment strategy involves selling the business or setting it up as a separate corporation.
4. Liquidation strategy involves closure of business which is no longer profitable.
A. 1, 2 and 3 are correct
B. 2, 3 and 4 are correct
C. 1, 3 and 4 are correct
D. Both 1 and 4 are correct
Answer: Option C
Related Questions on Strategic Management
Strategy is developed by the visionary chief executive in ___________ mode of strategic management
A. planning mode
B. adaptive mode
C. strategic mode
D. entrepreneurial mode
Stability strategy is a ____________ strategy
A. corporate level
B. business level
C. functional level
D. strategic level
What are the means by which long term objectives will be achieved?
A. Strategies
B. Policies
C. Strength
D. Opportunities
Marketing strategy is a ___________ type of strategy
A. business level
B. Growth strategy
C. corporate strategy
D. functional strategy
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