Read following passage and answer the question:

Star Ltd has recently entered the segment of manufacturing Electronic vehicles (EV) in India. It has set up a target volume of sales as 20% of total EV market. It has formulated a comprehensive plan taking into consideration the increasing levels of environment pollution and the new legal policies related to it. The company has set up broad parameters within which a manager may function. Apart from this, the company has prepared detailed statements about the EV project which outlines the other types of plans along with the human and physical resources required. The Finance Manager of the company has also prepared a plan which quantifies future facts and figure.

"It has formulated a comprehensive plan taking into consideration the increasing levels of environmental pollution, and the new legal policies related to it."

Identify the type of plan reflected above.

Strategy

The correct answer is option 1 i.e. strategy.

In this context, the plan considers broader aspects related to environmental pollution and legal policies, indicating a strategic approach to entering the EV market while aligning with environmental concerns and legal requirements.

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. Strategies usually take the course of forming the organisation’s identity in the business environment. Major strategic decisions will include decisions like whether the organisation will continue to be in the same line of business, or combine new lines of activity with the existing business or seek to acquire a dominant position in the same market.