|
| |
Cut and run is a quick but expensive retreat. It is an analogy to an 18th century sailing term meaning to cut an anchor free in order to quickly set sail. As a modern strategy, cut and run is associated with dire situations that require a retreat whatever the cost. The following are hypothetical examples.InvestingAn investor buys a stock based on its earnings and dividend. The price falls dramatically. The investor digs a little deeper and finds that the firm has an enormous debt relative to its book value. The investor decides to accept a large loss to avoid the risk that the firm will go bankrupt.CareersA young professional takes a new job and quickly finds that the hours are extremely long and the environment is toxic. Their quality of life plunges and they suddenly feel stressed much of the time. With little hope of improvement they decide to move on, despite potential negative impact to their resume and finances.|
Type | | Definition | A quick but expensive retreat. | Value | Escaping from a dire risk or facing up to a failing strategy before its too late for recovery. | Notes | It should be noted that cut and run is often used with negative connotations. For example, the term is commonly used in politics to suggest an irresponsible retreat. | Related Concepts | |
Business Strategy
This is the complete list of articles we have written about business strategy.
If you enjoyed this page, please consider bookmarking Simplicable.
An extensive list of business strategies.
A reasonably comprehensive guide to strategy.
The difference between a baseline and a benchmark.
A definition of strategy vs tactics with two examples.
A few sources of competitive advantage for businesses.
A list of macro environment components.
The difference between competitive advantage and distinctive capability.
An overview of a common business strategy.
A definition of restructuring with examples.
A list of common business risks.
The five things that can be done about risk.
A metric for measuring risk management.
The potential that you'll achieve too much of a good thing.
Any risk that people have a strong aversion too.
The definition of risk taking with examples.
A list of risk examples by type.
The two main factors in modeling a risk.
A definition of calculated risk with an example.
How to calculate relative risk with examples.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
Site Map
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.
|
