__________ strategy may require a firm to redefine its business and may involve divestment of a major product line or an SBU, abandon some markets or reduce its functions

A. Expansion Strategy

B. Retrenchment Strategy

C. Combination Strategy

D. Stability Strategy

Answer: Option B

Solution(By Examveda Team)

Retrenchment Strategy may require a firm to redefine its business and may involve divestment of a major product line or an SBU, abandon some markets or reduce its functions. The Retrenchment Strategy is adopted when an organization aims at reducing its one or more business operations with the view to cut expenses and reach to a more stable financial position.