In order to cope with the competitors, market leader Maruti adopted new technologies for manufacturing their recent models. Which type of plan is highlighted in the above statement?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Strategy
Option (1) Policy — Incorrect. A policy is a general statement that guides thinking and decisions, such as a pricing policy or a recruitment policy. Maruti’s step is a plan of action against competitors, not a general guide.
Option (2) Strategy — Correct. A strategy is a comprehensive plan for achieving the firm’s objectives. It fixes long-term objectives, chooses a course of action and allocates resources. A strategy is made after looking at the business environment and the competition. Maruti chose a course of action, using new technologies, to face its competitors. So this is a strategy.
Option (3) Programme — Incorrect. A programme is a detailed statement about one project: its objectives, policies, procedures, rules, tasks, resources and budget. The question describes a broad response to competition, not a detailed project plan.
Option (4) Objective — Incorrect. An objective is the end result a firm wants, such as 10% more sales. Adopting new technology is a way to reach a goal, not the goal itself.
NCERT (2026-27 Edition): “Strategy A strategy provides the broad contours of an organisation’s business. It will also refer to future decisions defining the organisations direction and scope in the long run. Thus, we can say a strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions, (i) determining long term objectives, (ii) adopting a particular course of action, and (iii) allocating resources necessary to achieve the objective.” “Whenever a strategy is formulated, the business environment needs to be taken into consideration. The changes in the economic, political, social, legal and technological environment will affect an organisation’s strategy. …” |