Multiple choice

If there are declining sales leading to declining profits and no possibility of increasing and improving them, which of the following strategies will be adopted by an organisation?

  1. Product modification

  2. More of product modification and some production elimination

  3. Some production modification and more of production elimination

  4. Product elimination

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a product’s performance is falling short of expectations and continued support is no longer justified, it’s time to pull it out of the marketplace, which is known as product elimination. It is done by adopting harvesting, line-simplification and total-line divestment.