Question : Statement 1: Strategy provides a competitive advantage.
Statement 2: Strategies are non comprehensive plans.
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: Only statement 1 is correct.
Solution : The correct answer is (b) Only statement 1 is correct.
Statement 1 is generally correct. Strategies, when effectively formulated and executed, can indeed provide a competitive advantage to organizations. A well-designed strategy allows an organization to position itself favorably in the market and outperform competitors.
Statement 2 is not accurate. Strategies are comprehensive plans that encompass a set of actions, decisions, and resource allocations designed to achieve specific objectives. Strategies are intentional and often involve a holistic approach to guide an organization toward its goals.
Therefore, only statement 1 is correct.
Statement 2: Strategies are formulated to exploit opportunities.
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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