Question

prolonged lockdown may force to decide business organization in adopting divestiture strategy as an aftermath of covid-19" with reference to this do u suggest business organization to adopt retrenchment strategy prior to decide divestiture strategy​

Answer 1

Answer:

llowed when a particular business is so small that it does not make any sizable contribution to the total earnings of the organization.

1. Turnaround:

The term ‘turnaround’ refers to the measures which reverse the negative trends in the performance indicators of the company. It refers to the management measures which turn a sick company back to a healthy one or those measures which reverse the deteriorating trends of performance indicators such as falling market share, falling sales, decreasing profitability, increase in costs, worsening debt equity ratio, getting negative cash flow, severe working capital problems etc. The strategies adopted to come out of crisis vary from case to case and from company to company.

Generally, the turnaround strategy emphasizes on improving internal efficiency and a failing company can be nursed back to health through any of the following or combination of efforts:

(a) Reducing costs may involve: