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CMA Intermediate · Operations Management and Strategic Management · Strategic Analysis and Strategic Planning

A regional Indian biscuit company keeps its existing products and sells them with the same approach in the same markets, making only small improvements, because it is satisfied with its present performance and the environment is stable. Which grand strategy is this?

This is a stability strategy. The firm continues with the same products, markets and approach, making only marginal improvements, because it is satisfied with current performance and its environment is stable. It is neither expanding nor cutting back.

  1. AStability strategyCorrect
  2. BDivestment strategy
  3. CTurnaround strategy
  4. DMarket development strategy

Explanation

The firm continues with the same products and markets and makes only marginal changes, content with current performance. This is a stability strategy. Turnaround and divestment are retrenchment moves, and market development means entering new markets with existing products.

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