Possibility Strategy: The Stability Strategy

STABILITY STRATEGY

According Business Jargon, 2016 The Stability Strategy is adopted when the organization attempts to maintain its current position and focuses only on the incremental improvement by merely changing one or more of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or collectively.

By looking at the unfavourable market condition, the stability strategy applied to the company which risk averse, satisfied with own performance which maintaining regular business operation. In other word to be safe they refused to change and they find that it is fine with stability strategy and does not look for other alternative.

Three category of stability strategy

The needs of selling is to cover the debt and closed the less profitable division and focus to one division that could generate money. Usually when the turnaround strategy failed the company will adopt this strategy.

Example: Tata Communications is the best example of divestment strategy. It has started the process of selling its data centre business to reduce its debt burden.

Liquidation Strategy

The Liquidation Strategy is the most unpleasant strategy adopted by the organization that includes selling off its assets and the final closure or winding up of the business operations (Business Jargon, 2016). Most of the firm is trying to avoid this retrenchment methods as much as possible because it involving serious implication to business position. The firm adopting the liquidation strategy may find it difficult to sell its assets because of the non availability of buyers and also may not get adequate compensation for most of its assets.

In general the one that involved in liquidity strategy is small firm like sole proprietorship and partnership compared to the big firm. The decision to follow the strategy is not welcome somehow it is better to close the business rather than continuing business entity with no hope to