Which of the following is NOT a main type of corporate strategy?

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 correct answer highlights that "User strategy" is not recognized as a main type of corporate strategy within the framework of strategic management. Corporate strategies are generally categorized into specific types that organizations use to achieve their goals and objectives within the competitive landscape.

Growth strategy focuses on how a business can expand its market share, increase revenue, or enter new markets. Stability strategy indicates a focus on maintaining the current operations and market position, emphasizing consistency in performance and avoiding unnecessary risks. Retrenchment strategy relates to cutting back operations, often through downsizing or divesting unprofitable segments, to improve financial health.

In contrast, "User strategy" does not fit into the established categories of corporate strategy. While businesses may consider user or customer strategy as part of marketing or operational tactics aimed at better serving their customers, this concept does not function as a distinct corporate strategy on its own. Understanding these recognized categories helps clarify the strategic options available to organizations when devising their long-term plans.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy