Over the course of 40 years, Sal grew his company to six package shipping stores. With his retirement approaching and the increased competition, he decided to reduce the number of locations to two. Sal's reduction of effort represents a
A. merger approach.
B. fixed plan.
C. defensive strategy.
D. growth strategy.
E. stability strategy.
C. defensive strategy.
A defensive strategy, or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. Example: Redbox, which installed more than 40,000 DVD movie-rental kiosks in grocery stores, 7-Elevens, and Walmart stores during a seven-year growth period, in 2014 began uninstalling kiosks (more than 500 in the United States) and switching to a defensive strategy. Not only had the company run out of good locations in which to place its machines, it was also contending with challenges from online streaming and more original television programs. The music industry is also engaged in a defensive/retrenchment strategy.
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