Farm Fresh Ltd., a family-owned organic farming business has been operating successfully over the past 10 years. Currently the company is facing…

CA Intermediate · Financial Management and Strategic Management · PYQS · January 2025
Farm Fresh Ltd., a family-owned organic farming business has been operating successfully over the past 10 years. Currently the company is facing stiff competition from the large farming houses. Hence to maintain status quo, the management of the company decided to adopt stability strategy. Which of the following initiatives best support Farm Fresh Ltd.'s stability strategy?
(A) Develop a new range of organic produce to attract a new segment of customers.
(B) Improve functional efficiency of its farm equipment to increase productivity and reduce cost of production.
(C) Purchase a number of farms to increase production.
(D) Add a few channels of distribution to attract customers in related market areas.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Improve functional efficiency of its farm equipment to increase productivity and reduce cost of production.

Topics: Part-A: Financial Management

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