An organization that pursues a(n) ______ strategy attempts to pare down its operations, usually because of serious economic difficulties.

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29-08-2022
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An organization that pursues a(n) ______ strategy attempts to pare down its operations, usually because of serious economic difficulties.

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okpalawalter8 okpalawalter8 · Answer 1 · 2022-09-06T23:47:29+02:00

An organization that pursues a(n) divestment strategy attempts to pare down its operations, usually because of serious economic difficulties.

This is further explained below.

What is the divestment strategy?

Generally, When a specific company line fails to live up to expectations and transforms into a burden rather than an asset, the best course of action is to implement a plan of divestiture.

The prevention of bankruptcy, the reduction of debt, and the maintenance of a minimal debt ratio may all be accomplished by organizations via the use of a divestment plan.

In conclusion, An company that adopts a divestment plan makes an effort to scale down its business activities, which is often done as a response to significant financial challenges.