BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an organization is facing rapid growth.
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an organization is in a state of slow growth.
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an organization is not meeting its goals.
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an organization’s performance is declining.
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Detailed explanation-1: -A stability strategy is particularly appropriate when the industry is in a state of rapid upheaval. A stability strategy refers to a strategy by a company where the company stops the expenditure on expansion, in other words it refers to situation where company do not venture into new markets or introduce new products.
Detailed explanation-2: -What is a Stability Strategy? As the name implies, a stability business strategy seeks to maintain operations and market size and position. This strategy is characteristic of small risk-averse firms or firms operating in a very precarious market that is comfortable with its current position.
Detailed explanation-3: -Stability strategy is a strategy in which the organization retains its present strategy at the corporate level and continues focusing on its present products and markets. The firm stays with its current business and product markets; maintains the existing level of effort; and is satisfied with incremental growth.
Detailed explanation-4: -The importance of selecting the stability strategy by business organizations is due to the organization focus on funneling all resources in current business activities and to avoid risks associated with the expansion and growth of products and markets.
Detailed explanation-5: -In general, stability strategies can be very useful in the short run, but they can be dangerous if followed for too long.