6. 1. MEETING 1: Smaller workforce. A retrenchment strategy which is considered the most extreme and unattractive is the liquidation strategy, which involves closing down a firm and selling its assets. Example: Dell is the best example of a turnaround strategy. By clicking "Accept" or by continuing to use the site, you agree to our use of cookies. This dire step comes to pass when a company has suffered a heavy loss at the hands of their own foolish investment. It can also involve the disposal of business units that provide value to other parts of a business group. A retrenchment strategy which is considered the most extreme and unattractive is the liquidation strategy, which involves closing down a firm and selling its assets. Examples of retrenchment in a sentence, how to use it. Retrenchment strategy Retrenchment involve total or partial withdrawal from a customer group, customer function or use of an alternative technology. This material may not be published, broadcast, rewritten, redistributed or translated. Divestment of the whole business is an “end game” strategy and it may be done via selling or liquidation of business. The definition of strategic communication with examples. RETRENCHMENT: SUMMARY GENERAL: If you are considering retrenchment, you must begin consulting with possible effected staff. The prospects of liquidation create a bad impact on the company’s reputa… The outcome of a socially responsible retrenchment strategy is that the retrenched staff are able to get through their dark night of adversity quicker and even be better off than they were before. Consult - not negotiating - Seeking consensus is the focus. General strategy: Nowadays, retrenchment is the easiest way to see through the damages and revoke policies that did not fare well. EX- A pharmaceutical firm pulls out from retail selling to concentrate on institutional selling in order to reduce the size of its sales force and increaser marketing efficiency. Turnaround Strategies. An extensive list of business strategies. The move toward retrenchment in recent years is visible for example in patterns of US military spending, force posture, and security strategy. The definition of intangible good with examples. example. When a company or government goes through retrenchment, it reduces outgoing money or expenditures or redirects focus in an attempt to become more financially solvent.Many companies that are being pressured by stockholders or have had flagging profit reports may resort to retrenchment to shore up their operations and make them more … Typically the strategy involves withdrawing from certain markets or the discontinuation of selling certain products or service in order to make a beneficial turnaround. It is consider as a … The four types of organizational change with examples of each. Retrenchment What it is- Retrenchment occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits. In other words, the strategy followed, when a firm decides to eliminate its activities through a considerable reduction in its business operations, in the perspective of customer groups, customer functions and technology alternatives, … Turnaround strategy means backing out, withdrawing or retreating from a decision wrongly taken earlier in order to reverse the process of decline. The definition of turnaround strategy with examples. A list of common digital transformation strategies. Majo The most popular articles on Simplicable in the past day. Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities. If you enjoyed this page, please consider bookmarking Simplicable. Profit Strategies - A profit strategy endorses any action necessary to maintain or improve profitability. If retrenchment is inevitable, here are 6 steps to implement a retrenchment exercise in a responsible and sensitive manner. Selling Assets Selling assets such as investments, facilities, machines or entire divisions of your organization. Managers who have to tell employee after employee they've been downsized may come to dread their job. That often means the loss of significant numbers of management and other staff positions as well as a reduction in capacity. Reproduction of materials found on this site, in any form, without explicit permission is prohibited. retrenchment meaning: 1. a situation in which a government, etc. Examples of Retrenchment strategy • General Motors of the United States stopped producing a number of "makes" of automobile. Report violations. This strategy is designed to fortify an organization’s basic distinctive competence. At least 4 meetings must be held with effected staff. It is considered as the last resort because it leads to serious consequences such as loss of employment for workers and other employees, termination of opportunities where a firm could pursue any future activities and the stigma of failure The psychological implications 1. Examples we were given of situations to avoid were of particular events (e.g. The following are illustrative examples of a retrenchment. If labour unions represent members, they must be involved in consultations. 1. For another significant example, one needs to look no further than July 2012, when a Taiwanese teenager fatally collapsed after a 40-hour game session (Crawley). It hoped this would help it return to profitability. Learn more. 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