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 option is (a) Both statements are correct.
Statement 1 is correct. Strategies are often developed to provide a competitive advantage over competitors. A well-formulated strategy can help an organization differentiate itself and achieve a competitive edge in the market.
Statement 2 is correct. Strategies are indeed formulated to exploit opportunities. Strategic planning involves identifying and capitalizing on opportunities in the external environment to achieve organizational goals.
Therefore, both statements 1 and 2 are correct.
