Question

A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Forever and Ever is a jewelry store that sells only one type of item: engagement and wedding rings. The management of Forever and Ever does not plan to branch out into selling different types of jewelry; the company has a reputation for being the go-to store to purchase wedding rings, and it plans to maintain that strategy.

True / False.

Answer 1

True.

Step-by-step explanation:

Stability strategies are the one that are appropriate when the company is in maturity and decline, which are the last two phases. These strategies are based on the life cycle model and their objective is to make sure that the company takes full advantage of its last phases of this cycle. Doing so, the company is going to maximize the profits.

Answer 2

The correct answer is True.

Step-by-step explanation:

Stability and survival strategies are strategies that, according to the life cycle model, are appropriate when the company is in one of its last two phases: maturity and decline.

The objective of these strategies is to ensure that the company takes full advantage of its last phases of the cycle, obtaining the greatest possible volume of profit. A stability strategy seeks to remain as long as possible in the maturity phase (or stability) of the company, reaping the fruits of the investments made. A survival strategy seeks to survive in a hostile environment, while retaining its market share.