Final answer:
Harvesting is a reduction of scope strategy where a company divests a business unit to focus on core competencies or improve financial health.option a is correct answer.
Step-by-step explanation:
The question at hand involves strategies used by businesses either to grow or to scale back their operations. In the context of a reduction of scope strategy, which involves scaling back operations to focus on core competencies or improving financial health, the answer is a. harvesting.
Harvesting, also known as divestiture, is a strategy where a company will look to get rid of a business unit or product line, usually because it is not generating expected profits or to free up resources for more profitable ventures. Other options such as market development, penetration, and merger are typically associated with growth strategies.
Market development involves reaching new demographic or geographic markets. Penetration strategies aim to increase market share within existing markets, and mergers are about combining with other businesses to increase capabilities and market reach.