The stability strategy is appropriate for all of the following circumstances EXCEPT
A) useful in the short-run but can be dangerous if followed too long.
B) most appropriate for reasonably successful corporations in a reasonably predictable environment.
C) when a firm is continuing its current activities without a significant change in direction.
D) appropriate when the industry is in decline.
E) popular with small business owners who have found a niche and are happy with their success.

Question

Quizplus · Accepted Answer

The stability strategy may not be appropriate when the industry is in decline as it may lead to the firm falling behind its competitors and eventually becoming obsolete. In such a situation, the firm needs to adapt and change its strategy to survive.

The Stability Strategy Is Appropriate for All of the Following