The Concept  A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas. In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives A firm pursues stability strategy when 1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition. 2. Its main strategic decisions focus on incremental improvement of functional performance. 2. Corporate Restructuring is the process of redesigning one or more aspects of a company. 3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.

2. The Concept
 A stable strategy arises out of a basic perception
by the management that the firm should
concentrate on using its present resources for
developing its competitive strength
in particular market areas.
 In simple words, stability strategy refers to the
company’s policy of continuing the same business
and with the same objectives.

3.  A firm following stability strategy maintains
its current business and product portfolios
maintains the existing level of effort and it is
satisfied with incremental growth.
 It focuses on fine-tuning its business
operations and improving functional
efficiencies through better employment of
resources.

4.  A firm is said to follow stability strategy if:
1) It decides to serve the same markets with the
same products
2) Its main strategic decisions focus on
incremental improvement of
functional performance.
3)The focus is on maintaining and developing
competitive advantages consistent with the
present resources and market requirements.

5.  The firm is successfully run and the objectives are achieved and
there is satisfactory performance. Therefore, the
management may want to continue with the same activities.
 A stability strategy is less risky. Unless the conditions are really
bad, a firm need not take any additional risks.
 The management doesn’t foresee any change in
the environment or opportunity in the market or any threat.
 When pursuing this strategy, there is no disruption in routine
work

6.  Stability strategies can be very useful in the short
run, but they can be dangerous if followed for too
long.
 Stability strategy may be indication of rigidity of
the planning process.

7. Profit strategy
No change strategy
Pause/Process with
caution strategy

8.  Some organizations pursue stability strategy for a
temporary period of time until the particular
environmental situation changes, especially if
they have been growing too fast in the previous
period.
 Stability strategies enable a company to
consolidate its resources after prolonged rapid
growth. Sometimes, firms that wish to test the
ground before moving ahead with a full-fledged
grand strategy employ stability strategy first.

9.  No change strategy is a decision to do nothing
new i.e. continue current operations and
policies for the foreseeable future. If there are
no significant opportunities or threats
operating in the environment, or if there are
no major new strengths and weaknesses
within the organization or if there are no new
competitors or threat of substitutes, the firm
may decide not to do anything new.

10.  Profit strategy is an attempt to artificially maintain
profits by reducing investments and short-term
expenditures. Rather than announcing the company’s
poor position to shareholders and other investors at
large, top management may be tempted to follow this
strategy. Obviously, the profit strategy is useful to get
over a temporary difficulty, but if continued for long, it
will lead to a serious deterioration in the company’s
position. The profit strategy is thus usually the top
management’s short term and often self serving
response to the situation.