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.
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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