Research On Business Strategic Retrenchment

Business Strategic Retrenchment (BRS) hides in company operation, such as product adjustment, industrial structure optimization as well as reform, transfer and sell of projects. It is inevitable and a must for companies to establish retrench mechanism, keep development and improve competitiveness. Thus, it is important to research RS for corporate strategy, and it is also instructive for china companies in a transferring era. This thesis, under the instruction of retrench theory, systematically research on BRS, using strategic tools and applying real examples and qualitative analyzes methods. Under the analysis on importance of BSR, the thesis research on the essence and type of BSR, pointing out that the core of BSR is its initiativeness. Analyzing both internal and external factors that influent BSR, and according to business life cycle, the thesis get the conclusion that managers should consider different stage characters when applying BSR. Around BSR types, the thesis analyzes characters and pros and cons of different types. To guarantee the execution of BSR, this thesis also researches on how to build BSR mechanism. In the end, the thesis applies the theory to analyzing PHS of Utstarcom and indicates relative resolutions prescriptions.The thesis gets two conclusions through researches above: The essence of BRS is its intelligence, also called positive Strategic Retrenchment; It is an ability for companies in 21st century to use BRS in right time. So the thesis not only offers theory basis and instructiveness to companies applying BRS, but also perfects traditional transfer theory from retrenchment angle.