This document discusses stability strategies as part of corporate strategy. It defines stability strategies as continuing current activities without significant changes in direction, and notes they are most common for small businesses or mature firms. The document outlines three types of stability strategies: no-change strategies for stable environments; profit strategies to maintain profits artificially in the short-term; and pause/proceed with caution strategies to test changes before fully implementing them. Advantages include reduced risk and maintaining routine work, while disadvantages include limiting growth and innovation long-term.

1. Submitted by
Abhishek Prakash

2. Introduction
 A part of Corporate Strategy.
 Corporate Strategies are framed and controlled by the
top level management.
 This strategies deal with how a firm would like to
behave in the future.

3. Stability
 Stability strategy implies continuing the current
activities of the firm without any significant change in
direction.
 This strategy is most likely to be pursued by small
businesses or firms in a mature stage of development.
 Stability strategy is not a ‘do nothing’ approach nor
goals such as profit growth are abandoned.

4. Types Of Stability Strategies
Types
No-Change
Profit
Pause/Proceed
With Caution

5. No-Change Strategy
 A no change strategy is a decision to do nothing new
 A firm adopts this strategy when their internal &
external environment is stable.
 Small and Medium firms adopt this sort of strategy

6. Steel Authority Of India Ltd.

7. Profit Strategy
 The profit strategy is an attempt to artificially
maintain profits by reducing investments and short-
term expenditures
 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

8. Larsen & Toubro

9. Pause/Proceed with Caution
 Employed by firms to test the grounds before the full-
fledged strategy
 Helps all the employees to get used to it
 This strategy enables a company to consolidate its
resources after prolonged rapid growth

10. HUL & Shoes

11. Advantage
 The firm successfully runs and objectives are achieved
and there is satisfactory performance
 A stability strategy is less risky unless the conditions
are really bad.
 When pursuing this strategy there is no disruption of
routine work.
 Most suitable in short run.

12. Disadvantages
 Only useful for small and medium scale industries.
 No use of this strategy in long run,if it applies in long
run the overall groth would be less.
 Less opportunity of innovation and growth due to
stable strategy.
 No more expansion and boredom process not to do
changes in the firm.