CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning
A packaged-foods company in India decides to keep selling its existing products in its existing markets, with only minor efficiency improvements and no major change in scope. Which grand strategy is this?
This is a stability strategy. The firm continues with its existing products and markets and makes only marginal improvements, without expanding or shrinking its business scope. Expansion needs growth, retrenchment needs a reduction, and combination needs a mix of approaches.
- AStability strategyCorrect
- BExpansion strategy
- CRetrenchment strategy
- DCombination strategy
Explanation
A stability strategy means continuing with the present products, markets and scope, with only incremental improvements. Expansion would involve growth in products, markets or functions. Retrenchment would involve cutting back scope, and combination would mix different strategies across businesses or time.
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