Is retrenchment strategy the fastest way to reduce expense?

Actually it have been a while I never update “Buyer Diary”.

Recently, I have been thinking why some company will agree to take retrenchment strategy to reduce expense. I believe most of us still remember that early 2009 many MNC have using the retrenchment strategy as a temporarily solution to reduce expense due to economic crisis.

When we talk about retrenchment, I believe the first thing come to our mind is retrenching the employees. Actually to reduce expense, the retrenchment strategy can involve withdrawing from certain products or service in order to make a beneficial turnaround. Besides that, back to focus on the company core competencies is one of retrenchment strategy as well.

Honestly, I believe we will have a tough beginning of 2012. There is lots of analysis stated that we will have a soft market in the beginning of the year 2012. We can start feeling the pressure of soft market due to the recent Euro Crisis and US Debt Crisis. Theoretically, these crisis have a huge impact to the world crisis because “The World is Flat”