Divestment strategy - Retrenchment Strategies
Corporate Level Strategies
Prepared By
Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.
Manu Melwin JoyAssistant Professor
Ilahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – [email protected]
Retrenchment Strategies
Retrenchment strategy• A retrenchment grand strategy is
followed when an organization
aims at a contraction of its activities
through substantial reduction or
the elimination of the scope of one
or more of its businesses in terms
of their respective customer
groups, customer functions, or
alternative technologies either
singly or jointly in order to improve
its overall performance.
Examples of Retrenchment strategy• General Motors of the
United States stopped
producing a number of
"makes" of automobile. GM
decided that it needed to
retrench by concentrating on
just a few "makes." It hoped
this would help it return to
profitability.
Divestment strategy
• A divestment strategy
involves the sale or
liquidation of a portion of
business, or a major
division.
Divestment strategy
• TATA group is a highly diversified entity
with a range of businesses under its
fold. They identified their non – core
businesses for divestment. TOMCO was
divested and sold to Hindustan Levers as
soaps and a detergent was not
considered a core business for the Tatas.
Top Related