What grand strategy is Arboral Inc. employing by opening new manufacturing plants and showrooms in additional countries?

Prepare for the Management and Organization Module 6 (06-MGMT-ORG) – Strategy Exam. Engage with flashcards, multiple choice questions, hints, and explanations. Excel in your exam!

The growth strategy is characterized by a company's efforts to expand its operations and increase its market share, often through initiatives such as opening new facilities, entering new markets, or launching new products. In the case of Arboral Inc., the decision to open new manufacturing plants and showrooms in additional countries clearly illustrates an intention to enhance its operational capacity and reach a broader customer base. This indicates a proactive approach to scaling the business and capitalizing on growth opportunities in international markets.

While the other options such as stability, retrenchment, and acquisition strategies focus on maintaining current operations, downsizing, or buying other companies, respectively, Arboral's actions demonstrate a clear commitment to expansion and growth. The company is not simply maintaining its current state nor consolidating its operations; instead, it is actively seeking to increase its presence and influence in new geographical areas, which aligns with the principles of a growth strategy.

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