CA Inter P6 · Chapter 13 · Question 1 of 11
A firm that continues to serve the same customers with the same products, aims only for modest, incremental improvements in performance and makes no major change in direction is following a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Stability strategy
Explanation
A stability strategy keeps the business broadly unchanged: same products, markets and functions, with incremental improvements. It suits firms in a mature or stable environment that are satisfied with their performance. Expansion involves major growth, and retrenchment involves cutting back.
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