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

Which choice indicates an effective growth strategy?

1. A focus on reducing workforce size

2. Keeping the current level of products

3. Expanding product lines or markets

4. Enhancing operational stability

The correct answer is: Expanding product lines or markets

An effective growth strategy typically involves expanding the range of products offered or reaching into new markets. This approach creates opportunities for increased revenue by appealing to a broader customer base or meeting varied customer needs. By expanding product lines, a business can attract new customers and increase sales to existing customers, which is crucial for sustainable growth. It also allows for diversification, reducing dependence on a single product or market, which can mitigate risks. In contrast, reducing workforce size and maintaining the current level of products can indicate a retrenchment strategy rather than growth. Focusing solely on operational stability may improve efficiency, but it does not inherently lead to expansion or growth opportunities. Therefore, the strategy that focuses on expanding product lines or markets is the most aligned with the overall goal of growth within a business context.