What does strategic continuity refer to in a strategy context?

• A. Constantly changing the core to adapt to new trends.
• B. A stable core over time to build capabilities and reputation.
• C. Relying solely on short-term financial metrics.
• D. Outsourcing core activities to external partners.

Answer: (B)

Strategic continuity means keeping a stable core over time—the enduring capabilities, values, and strategic intent that define the business. By preserving these elements, a firm can accumulate experience, refine routines, and strengthen its reputation, building a durable foundation for competitive advantage. If the core kept changing, the company would struggle to develop distinctive capabilities and a coherent identity. Focusing on short-term financial metrics diverts attention from long-range value creation, and outsourcing core activities weakens control over the assets that give the firm its uniqueness. Of course, a company can evolve surrounding activities and adapt to market shifts, but the central purpose and key capabilities should stay steady to support growth and consistent performance. That balance—a stable core over time to build capabilities and reputation—is what strategic continuity is all about.