A company in the electronics industry is facing declining demand for one of its

product lines and increasing competition in its core market. After careful

consideration, the management decides to implement a downsizing strategy. Which

of the following reasons best justifies this decision?

The company is aiming to eliminate non$-$essential product lines and refocus on

its core business areas.

The company wants to increase its labor force to expand its production capacity.

The company is experiencing rapid growth and needs to add more divisions to

manage the increased workload.

The company plans to introduce more products in the declining market to

capture remaining demand.

The company wants to reduce automation and shift to more labor$-$intensive

processes.