When should management pursue a stability strategy?

Question

Quizplus · Accepted Answer

A stability strategy is pursued when the organization's performance is satisfactory and the environment is stable. This strategy is aimed at maintaining the current business operations and avoiding major changes. As the environment is stable, there is no need for the organization to adapt to changing conditions, and management can focus on maintaining current efficiencies and optimizing performance. Additionally, the organization may have reached a level of maturity where it is beneficial to maintain a stable strategy rather than taking on new risks or investments.

When Should Management Pursue a Stability Strategy