Which of the following strategies has STU adopted to manage its reduced funding?

STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.

Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)
A . Liquidation
B . Divestment
C . Retrenchment
D . Facilitation
E . Turnaround

Answer: B

Explanation:

Reference: http://www.cbsmohali.org/course_material/fourth_semester/strategic%20management.pdf (63)