Final answer:
Stability strategies in business aim to maintain a company's current position. The Type I strategy is suited for stable environments and involves maintaining the status quo. The Type III strategy is used in unstable environments, focusing on adaptability, and often includes actions like mergers. The correct option is 3) Combination Strategy
Step-by-step explanation:
The three types of stability strategies in a business context refer to the approaches that a company can take to maintain its current position without significant growth or reduction. The Type I stability strategy, which is common in stable environments, involves continuing the current operations and maintaining the status quo. It suits organizations that are currently satisfied with their performance and the level of risk in their environment.
The Type III stability strategy, on the other hand, is often employed in unstable environments. This strategy involves a combination of maintaining certain core aspects of the business while still being flexible and adaptable to changes. Example strategies under this category could include mergers to allow a firm to acquire new product lines, become more efficient, or eliminate rivals. Firms in unstable environments might use this strategy to remain adaptable and mitigate risks associated with rapid changes in the market.
Overall, economic stability refers to a situation when the economy is growing consistently, unemployment rates are stable and low, and prices are maintained at the same level. Stability strategies aim to maintain this balance within a company's operations. The correct option is 3) Combination Strategy