Question

Wayth, a large mobile manufacturing company, is experiencing losses in its domestic operations. As a result, it closes two underperforming facilities and downsizes its workforce. The management is also offering early retirement benefits to its high-performing employees to make them resign voluntarily. In the given scenario, Wayth is using a _____. a. growth strategy b. stability strategy c. reduction strategy d. diversification strategy

Answer 1

Answer:

c. reduction strategy

Explanation:

Based on the situation being described within the question it can be said that Wayth is using a reduction strategy. This is a strategy used by companies who are struggling with sales and may or may not be losing money. With this strategy they reduce costs in many aspects of the business in order to try to increase profits and survive. Which is what Wayth is doing by closing the most under-performing facilities and laying off unessential staff.