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.
The statement mentions that Maruti adopted new technologies to cope with competitors, which indicates a broad, long-term plan of action to achieve a competitive advantage. This aligns perfectly with the concept of a strategy.
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.