Future Business Leaders of America (FBLA) Business Management Practice Test

A stability strategy is best described as what?

1. A plan to reverse negative trends

2. A plan to expand markets

3. A plan to maintain current operations

4. A proactive growth plan

The correct answer is: A plan to maintain current operations

A stability strategy is best characterized by the intention to maintain current operations without significant changes in the company's approach or activities. This strategy is often adopted by businesses that are satisfied with their current market position and want to maintain their existing customer base and product lines. The focus is on preserving the status quo, ensuring efficiency, and stabilizing operations rather than pursuing aggressive expansion or drastic changes. In situations where a company operates in a stable environment without significant competitive pressure or market fluctuations, a stability strategy allows for consistent performance and continued resource allocation to sustain operations. This can also include efforts to improve quality and efficiency within existing processes rather than venturing into new markets or products. It allows businesses to solidify their strengths and ensure long-term sustainability without the risks that come with rapid expansion or transformation.