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Kryger [21]
3 years ago
7

Swanz, a cosmetics manufacturing company, plans to stay in the cosmetics business and become the market leader in the cosmetics

industry. However, the company is facing natural attrition and hence directs the human resource department (HR) to develop ways to reduce the turnover rate. The department decides to provide training to the company's current employees to increase their skills so that they become more valuable to the organization. In the given scenario, the HR department wants to implement a _____.
Social Studies
1 answer:
larisa [96]3 years ago
8 0

Answer: stability strategy

Explanation:

Stability Strategy:

This is the strategy in which a company decides not to expand their business but to stay with their current business hence they don't get themselves into new markets or start selling other products.

Why would a company consider this strategy?

Companies will take this approach especially when there is instability within the country's economy because they would rather save their current cash than spend it on a new business.

Sometimes companies face debts which may hinder their plans to extend the business because that may put them into even severe debts and face difficulties in paying back the money.

When the company has reached their maximum productivity level they can do well where they are, they will then not consider expanding .

When the profit is less than the actual process of extending or expanding the business that means they will be less benefits to the company it will then consider stability strategy.

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