How to respond to this in 100 words?   Stability Strategy is considered an effective measure for those firms who are doing well in the industry. However, the stability strategy is fostered into an organization as a way to increase productivity and innovation during leaner times. The Stability strategy can be most effective for firms who are exploring opportunities of possibly adding a new business, due to added cost that may be associated with getting the business up and running. The process for each organization is different, beginning from a unique starting point along an individual path to develop what is most relevant and appropriate for that particular organization at that specific time with decisions along the way as to how to progress. The stability strategy is not the most effective solution. However, there are pros and cons to this strategy. As for an industry which operates alone. The Stability strategy would only help to maintain their operational needs at a minimum growth in revenue for a single firm. The growth for a single firm may vary depending on the size of the organization.  There are four reasons where firms may adopt the Stability strategy as opposed to increased growth.  If the firm’s growth is rather slow. Due to the situation where internal growth presents an expense for another firm can be costly when industry leaders are subject to being attacked. The actual cost that is associated with how the firm is growing does not always outweigh the benefits. For example, Pepsi and Coca-Cola use their revenue as a way to market their brand and attract consumers, and soon discovered where the firm had a major loss in profits. “The task of firm leaders is to position and direct the firm efficaciously in both its markets and nonmarket environments. This goes to show that firms who are doing well financially do not always make the right strategic decisions regarding how they are promoting their brand. Stability can be an effective strategy for a high-performing firm, but it is not necessarily a risk-averse strategy.

icon
Related questions
Question

How to respond to this in 100 words?

 

Stability Strategy is considered an effective measure for those firms who are doing well in the industry. However, the stability strategy is fostered into an organization as a way to increase productivity and innovation during leaner times. The Stability strategy can be most effective for firms who are exploring opportunities of possibly adding a new business, due to added cost that may be associated with getting the business up and running. The process for each organization is different, beginning from a unique starting point along an individual path to develop what is most relevant and appropriate for that particular organization at that specific time with decisions along the way as to how to progress. The stability strategy is not the most effective solution. However, there are pros and cons to this strategy. As for an industry which operates alone. The Stability strategy would only help to maintain their operational needs at a minimum growth in revenue for a single firm. The growth for a single firm may vary depending on the size of the organization. 

There are four reasons where firms may adopt the Stability strategy as opposed to increased growth.  If the firm’s growth is rather slow. Due to the situation where internal growth presents an expense for another firm can be costly when industry leaders are subject to being attacked. The actual cost that is associated with how the firm is growing does not always outweigh the benefits. For example, Pepsi and Coca-Cola use their revenue as a way to market their brand and attract consumers, and soon discovered where the firm had a major loss in profits. “The task of firm leaders is to position and direct the firm efficaciously in both its markets and nonmarket environments. This goes to show that firms who are doing well financially do not always make the right strategic decisions regarding how they are promoting their brand. Stability can be an effective strategy for a high-performing firm, but it is not necessarily a risk-averse strategy.

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions