Questions: Victoria's Secret decided to close their stores in March due to the global pandemic and reopen in June; however, not all of their stores had the opportunity to reopen. Instead of completely filing for bankruptcy and going out of business, Victoria's Secret decided to decrease its number of stores and lay off a fraction of their employees. This strategy can be referred to as (A) Diversification (B) Retrenchment (C) Restructuring (D) Acquisition (E) Upsizing

The answer is (B) Retrenchment

Diversification involves expanding a company's operations into new markets or product lines, which is not what Victoria's Secret is doing in this scenario. They are reducing their operations, not expanding them.

Retrenchment is a strategy used by companies to reduce their size or operations, often by closing stores and laying off employees, to cut costs and stabilize the business. This aligns with Victoria's Secret's actions of closing stores and reducing their workforce.

Restructuring involves reorganizing the company's structure, operations, or finances, which can include retrenchment but is broader in scope. While Victoria's Secret may be restructuring, the specific actions described (closing stores and laying off employees) are more accurately described as retrenchment.

Acquisition refers to a company buying another company or its assets. Victoria's Secret is not acquiring another company; they are reducing their operations.

Upsizing is the opposite of what Victoria's Secret is doing. It involves expanding operations, increasing the number of stores, or hiring more employees, which is not the case here.