Question : Statement 1: Strategy provides a competitive advantage.
Statement 2: Strategies are formulated to exploit opportunities.
Option 1: Both statements are correct.
Option 2: Only statement 1 is correct.
Option 3: Only statement 2 is correct.
Option 4: Neither statement 1 nor statement 2 is correct.
Correct Answer: Both statements are correct.
Solution : The correct answer is (a) Both statements are correct.
Statement 1 is generally correct. Strategic planning and implementation of effective strategies can provide a competitive advantage to organizations. A well-crafted strategy enables an organization to differentiate itself from competitors, capitalize on its strengths, and navigate the business environment more successfully.
Statement 2 is also correct. Strategic planning involves analyzing the external environment for opportunities and threats. Strategies are then formulated to leverage opportunities and mitigate potential risks, allowing the organization to make the most of favorable circumstances.
Therefore, both statements are correct.
Statement 2: Strategies are non comprehensive plans.
Question : Statement 1: Strategy involves long-term goals.
Statement 2: Strategies are exclusively formulated by top management.
Question : Statement 1: Strategy involves setting long-term goals.
Statement 2: Strategies are formulated at different levels of an organization.
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