One of the SBUs Under the Retro Group of Companies

question 86

Multiple Choice

One of the SBUs under the Retro Group of companies is not generating a satisfactory amount of business.Extensive analysis shows that the company is losing its market share because its competitors have more sustainable processes.Analysts also feel that the growth prospects in this industry are extremely limited.Which one of the following organizational strategies should the company adopt?

• A)focus
• B)stability
• C)retrenchment
• D)growth
• E)divestiture

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Definitions:

Marginal Revenue

is the additional revenue that a company gains from selling one more unit of a good or service.

Total Revenue

The aggregate income a company receives from its selling activities, calculated by multiplying the price of goods by the number of units sold.

Willingness to Pay

Willingness to pay is the highest price a consumer is prepared to spend on a good or service, reflecting the perceived value or utility.

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive practices among businesses.