What term refers to strategies that involve significant changes to a company's operations to improve its stability?

Retrenchment refers to strategies that involve significant changes to a company's operations, usually in response to financial difficulties or to enhance operational efficiency. This approach typically includes reducing costs, downsizing operations, or divesting non-core assets to stabilize the company and streamline its focus on core activities.

By implementing retrenchment strategies, a company aims to achieve a more sustainable operational structure, improve profitability, and regain competitive advantage. This may involve laying off employees, cutting production, or stopping unprofitable product lines. The goal is to emerge from a weakened position with a stronger foundation.

In contrast, the other terms—market development, joint venture, and bankruptcy—do not accurately describe the intent of significant operational changes aimed specifically at stability. Market development focuses on entering new markets with existing products, joint ventures involve collaboration with other companies, and bankruptcy is a legal process undertaken when a company cannot meet its financial obligations. Therefore, retrenchment stands out as the term that encapsulates strategies aimed at making substantial operational modifications for improved stability.