Masceo, an oil and gas company, suffered major losses due to damaged oil pipelines. In an attempt to cover its costs, it laid off several employees and closed down three of its refineries. Which of the following grand strategies was used by Masceo in this scenario?

A) The stability strategy

B) The growth strategy

C) The retrenchment strategy

D) The acquisition strategy

Question

Social Studies

Mojo

5 April, 23:07

Masceo, an oil and gas company, suffered major losses due to damaged oil pipelines. In an attempt to cover its costs, it laid off several employees and closed down three of its refineries. Which of the following grand strategies was used by Masceo in this scenario?

A) The stability strategy

B) The growth strategy

C) The retrenchment strategy

D) The acquisition strategy

+1

Answers (1)

Know the Answer?

Sloane Hunt · Answer 1

The correct answer is Option C. The retrenchment strategy which is often used by companies to reduce expenses with the goal of becoming a more financial business.

Explanation:

Option A. is not correct because Masceo not only did not choose to grow but also decided to close down three refineries. Option B. is not correct because Masceo did not experienced any growth. And Option D. is also incorrect because this Oil and Gas company did not set up a milestone to manage a risk, Masceo took the decision immediately.

Option C is the correct because Masceo decided to withdraw some refineries from the market and lay off some employees in order to have a future beneficial turnaround.