A strategy is a comprehensive plan for accomplishing an organisation objectives. A comprehensive plan includes three dimensions. Identify the statement which is not a dimension of strategy:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Allowing any flexibility or discretion
Option (1) Adopting a particular course of action — A dimension of strategy (Incorrect). A strategy is a comprehensive plan for achieving the organisation’s objectives. Once the objectives are set, the firm decides the course of action it will follow.
Option (2) Allowing any flexibility or discretion — Not a dimension of strategy (Correct). How much freedom a plan leaves to the people using it is a feature that separates one type of plan from another. A rule, for example, allows no discretion at all. It is not one of the three dimensions of a strategy.
Option (3) Determining long term objectives — A dimension of strategy (Incorrect). The firm first decides where it wants to be in the long run.
Option (4) Allocating resources necessary to achieve the objective — A dimension of strategy (Incorrect). Money, people and materials are set aside to carry out the chosen course of action.
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.” “Rule Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken. …” |