Clubhouse Gourmet -A- (Scenario)
Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do?
-You are earning good profits but are fearful of growing too fast,so you decide to keep Clubhouse Gourmet in the same business and do not change the menu,hoping to retain the same market share and return-on-investment record.This would be considered a ________ strategy.
A)stability
B)retrenchment
C)diversification
D)differentiation

Question

Quizplus · Accepted Answer

The best choice in this scenario would be to pursue a stability strategy, as it involves maintaining the current business and not making significant changes. This would allow Clubhouse Gourmet to continue earning profits while avoiding the risks associated with expanding or diversifying the business in a potentially unstable market. Retrenchment and differentiation strategies involve making significant changes to the business, while diversification involves entering new markets, which may not be the best choice for Clubhouse Gourmet at this time.