Critical Thinking Questions - Strategy and Competition Essay

Critical intellection Questions - Strategy and Competition - Essay ExampleWhen an organization is in trouble the circumspection can premier think about retrenchment. Retrenchment is about making specific changes through cost and asset simplification to reverse declining profits. When an organization is specifically weak in a strong industry then the management can think about regrouping the strengths and evaluating the strategy at present to make specific changes. This process get out highlight the areas that are weak and needs restructuring. Retrenchment helps in slowing depressed the decline in profits in the short run and in the long run when combined with other proactive strategies helps in the reversal of the profitability position. When the retrenchment strategy does not work, the management can try divestiture. Divestiture operator selling off a weaker decision or a part of the organization. When it is distinct that a peculiar(a) division is responsible for the overall loss of the organization the management can think about divestiture. When both(prenominal) the above said strategies do not work then the last option is the liquidation. Liquidation is experience of defeat and is a very emotionally challenging strategy. When the damage can be controlled through alternative strategy, liquidation can be the last option.Change in relationships The relationships within the organizations and with the external environment deem changed because of disappearing levels of management. An organization depends on information technology, the internet, organizations are becoming flatter and leadership from top down has become obsolete.Disappearance of geographic distance Resources are outsourced from companies across the world and formation of strategic partnerships has been enabled lone(prenominal) because of internet connectivity. By outsourcing of services and procurement of the resources from the point of origin, cost is saved for the companies.Customer satisfaction By