Stability as a Strategy - Assignment Example

Stability as a strategy is portrayed by nonexistence of noteworthy alteration/s by continuing what practices are being done currently by the company. This strategy is basically an extension of business approaches on hand. When companies are contented with their present rate of growth and earnings, they may settle to employ a stability strategy. Stability strategy is usually found in industries having comparatively established situations.

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The company is repeatedly making contented earnings operating a trade that they are familiar with, and perceive no requirement to make the psychological and financial outlay that would be necessary to assume a growth strategy. With this strategy, a company keeps on serving its current market and customers while sustaining its market share. When is a stability strategy most proper to be utilized?

It is most proper to be used when several circumstances exist like having a steady and static situation, acceptable organizational performance, and existence of important strengths and nonexistence of serious weaknesses, while facing non-important opportunities and threats. Some companies profitably utilize stability strategy. However, still other companies believe that there must some alterations in strategies for gains.

One reason might be that no change means nothing new to be proud about. Another might be that the company itself desires to remain in a down-to-earth profile; stakeholders may regard being stagnant to be suitable, or the strategy may be warning of inflexibility of the planning practice. During the time that a company is in quest of leisurely growth or stagnation, the use of stability as an effective strategy by management may become the center of focus.