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Question

Following are the features of a strategy
A. It relates to one area of operation
B. It requires commitment of organization
C. It is based mostly on future scenario
D. It will not affect future growth of organization
E. It is based on expected behaviour of forces in the external environment
Choose the correct answer from the options given below:

The correct answer is
B, C and E only

The question requires us to identify which features of a strategy are accurately described by the provided statements. Let's evaluate each option:

  1. A. It relates to one area of operation: A strategy often encompasses multiple areas of operation for cohesive achievement of organizational goals. Therefore, this statement is not a general characteristic of strategy.
  2. B. It requires commitment of the organization: Strategy implementation indeed requires commitment and support from the whole organization. This is an essential feature of any strategic plan.
  3. C. It is based mostly on future scenario: Strategy is inherently forward-looking and involves planning based on projections and expectations about the future. Thus, this statement accurately describes a feature of strategy.
  4. D. It will not affect future growth of organization: Strategies are designed precisely to influence and enhance future growth. Therefore, this statement is incorrect.
  5. E. It is based on expected behaviour of forces in the external environment: Understanding the external environment is crucial for strategic planning, making this statement a true reflection of a strategy's characteristic.

By analyzing the statements, we find that options B, C, and E correctly describe characteristics of a strategy. Therefore, the correct answer is:

B, C and E only

This highlights the essential nature of strategic planning, which encompasses organizational commitment, future-oriented thinking, and consideration of external environmental factors.

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Important Questions from Strategic Management

  1. When the organizational requirements advocate tight cost control; frequent, detailed control reports; structured organization and responsibilities and incentives based on meeting strict quantitative targets then it is called:

  2. Which of the following strategies are types of combination strategies?

    (A) No change strategies

    (B) Pause/Proceed with caution strategies

    (C) Turn around strategies

    (D) Profit strategies

    (E) Concentration strategies

  3. As per Henry Mintsberg, which of the following is NOT a part of his conception of types of strategies?

  4. Which of the following is NOT the characteristic of strategic decisions that deals with the long run future of an entire organization ?
  5. Strategic Management involves :
    (a) Assessment of external environment
    (b) Identification of subsystem
    (c) Unity of command
    (d) Span of control
    (e) Assessment of resources and capabilities
    (f) Identification of goal
    Code :
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