At least 4 meetings must be held with effected staff. Retrenchment strategy. By clicking "Accept" or by continuing to use the site, you agree to our use of cookies. RETRENCHMENT: SUMMARY GENERAL: If you are considering retrenchment, you must begin consulting with possible effected staff. The following are common examples of a turnaround strategy. We help companies stay competitive by offering effective business solutions such as leadership development, career management, and human resource engagement.. ... For example, a company that saves money by centralizing HR or customer-experience staff may saddle the central staff with a lot more work. Report violations. Besides, a retrenchment strategy also results in reduction of the number of employees, and sale of assets associated with discontinued product or service line. What is Retrenchment Strategy? spends less or reduces costs: 2. a situation in which…. Divestment of the whole business is an “end game” strategy and it may be done via selling or liquidation of business. 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. Retrenchment strategies are also used to cut down operating expenses and reduce the size of the company for the betterment of the organization. That often means the loss of significant numbers of management and other staff positions as well as a reduction in capacity. American Sniper: The Autobiography of the Most Lethal Sniper in U.s. Military History, Boundaries: When to Say Yes, How to Say No, Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, Shoe Dog: A Memoir by the Creator of Nike, The Alter Ego Effect: The Power of Secret Identities to Transform Your Life, Leadership Strategy and Tactics: Field Manual. The process of aggressively cutting costs in fundamental ways. It can also involve the disposal of business units that provide value to other parts of a business group. The definition of turnaround strategy with examples. Retrenchment Strategy Types of retrenchment strategy 1. Visit our, Copyright 2002-2021 Simplicable. example. Retrenchment might occur when one or more of the following happen to a business: Reduce output & capacity Job losses / redundancy programmes Product / … Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities. A turnaround strategy is a plan to save an organization, department or team that is failing. Learn more. There are … 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. A list of common types of business philosophy with examples from leading companies. ... sample size of 400 individuals comprising 200 … The move toward retrenchment in recent years is visible for example in patterns of US military spending, force posture, and security strategy. This strategy can also be used to get a good stand in this competitive market. Their plan on separating themselves from weak performing business units and product categories will put … The definition of occupation with a list of common examples. The definition of transformational change with examples. 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. 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 … GM decided that it needed to retrench by concentrating on just a few "makes." Retrenchment strategy alternatives include shrinking selectively, extracting cash for investment in other businesses, and divestment. Typically the strategy involves withdrawing from certain markets or the discontinuation of selling certain products or service in order to make a beneficial turnaround. Retrenchment is something akin to downsizing. Example: Dell is the best example of a turnaround strategy. The many challenges that are associated with retrenching are as follows: Growth decline. The definition of intangible good with examples. The definition of a cost leadership strategy with examples of how this strategy is realized. © 2010-2020 Simplicable. 99 examples: There might be an employee possibly in his own borough, who had been displaced… For example, a corporate hospital may decide to focus only on specialized treatments, and thus, realize higher revenues. All Rights Reserved. Examples of Retrenchment strategy • General Motors of the United States stopped producing a number of "makes" of automobile. If labour unions represent members, they must be involved in consultations. Retrenchment Strategy Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are provided with a case study. This typically requires fast and aggressive decisions in the context of constrained resources and large threats. Sara Lee’s retrenchment strategy is required in order to focus its resources on more profitable industries such as the beverage, food, and household products company. The most popular articles on Simplicable in the past day. Turnaround Strategies. Reproduction of materials found on this site, in any form, without explicit permission is prohibited. In some case, bankruptcy can be an effective type of retrenchment strategy. General strategy: Nowadays, retrenchment is the easiest way to see through the damages and revoke policies that did not fare well. For instance, in August 2005, a report surfaced about the death of a 28-year-old southern Korean gamer who had spent 50 hours playing a real-time strategy game (BBC). retrenchment meaning: 1. a situation in which a government, etc. An overview of the strategic development process with examples. Journal of European Public Policy 19 (7):1089- The Budget Control Act of 2011 in particular, together with subsequent sequestration, resulted in roughly $1 trillion in defense cuts over a ten-year period currently underway. Different Types of Retrenchment Strategies of Business are given below: 1. Consult - not negotiating - Seeking consensus is the focus. The Good Egg Presents: The Great Eggscape! If you enjoyed this page, please consider bookmarking Simplicable. If retrenchment is inevitable, here are 6 steps to implement a retrenchment exercise in a responsible and sensitive manner. All rights reserved. 1. Managers who have to tell employee after employee they've been downsized may come to dread their job. 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). Examples we were given of situations to avoid were of particular events (e.g. 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. Retrenchment involves cutting back. This material may not be published, broadcast, rewritten, redistributed or translated. The main objective of the paper to understand the reasons of retrenchment and the impact of retrenchment on the individual’s moral and how company negotiate with the retrenched staff. RETRENCHMENT STRATEGY IN HUMAN RESOURCE MANAGEMENT: THE CASE OF VOLUNTARY SEPARATION SCHEME (VSS).pdf. The definition of abstract concept with examples. Corporations adopt a retrenchment strategy when they're overextended. Profit Strategies - A profit strategy endorses any action necessary to maintain or improve profitability. MEETING 1: This strategy is designed to fortify an organization’s basic distinctive competence. A list of common strategies with examples. he Turnaround Strategy is a retrenchment strategy followed by an organization when it feels that the decision made earlier is wrong and needs to be undone before it damages the profitability of the company. 6. Retrenchment strategy Retrenchment involve total or partial withdrawal from a customer group, customer function or use of an alternative technology. 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. 89% found this document useful (18 votes), 89% found this document useful, Mark this document as useful, 11% found this document not useful, Mark this document as not useful. Retrenchment Strategy aims to reduce the size & to cut down its expenses & cost. Vodafone was acquired by hutch is a good example of divestment strategy.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. Selling Assets Selling assets such as investments, facilities, machines or entire divisions of your organization. Retrenching strategy is also known as downsizing and cutback initiatives. The prospects of liquidation create a bad impact on the company’s reputa… The four types of organizational change with examples of each. It hoped this would help it return to profitability. Retrenchment strategy is a strategy that is geared towards reducing expenditures; withdraw products or services from the market and to reduce the size of diversity. The current paper is also explained the retrenchment strategy of Indian airline company Jet airlines during the slowdown phase in Indian aviation sector. which is no less serious than narcomania or alcoholism. The retrenchment strategies mainly acts on two factors, they are. 1. Examples of retrenchment in a sentence, how to use it. Smaller workforce. An extensive list of business strategies. It is consider as a … Stockton, CA Bankruptcy Retrenchment Strategies Retrenchment - Initial effort - Sony Corp. ~ Eliminated 10,000 jobs ~ closed 11 0f 65 plants ~ divested in unprofitable products -A strategy used by corporations to reduce the diversity or the overall size of the operations of the While these strategies result in generating cash, they differ in terms of their intentions. Bankruptcy can allow a firm to avoid major debt obligations and… Majo The following are illustrative examples of a retrenchment. Article shared by. A list of common digital transformation strategies. Cookies help us deliver our site. This dire step comes to pass when a company has suffered a heavy loss at the hands of their own foolish investment. For example, firms operating in niche markets commonly choose a niche (cost or differentiation) strategy and maintain that strategy until internal or external factors necessitate a change. Retrenchment What it is- Retrenchment occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits. Turnaround strategy means backing out, withdrawing or retreating from a decision wrongly taken earlier in order to reverse the process of decline. There are three types of Retrenchment Strategies: Turnaround; Divestment; Liquidation; To further comprehend the meaning of Retrenchment Strategy, go through the following examples in terms of customer groups, customer functions and technology alternatives. ... political choice of retrenchment strategy." 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