Question

Explain 'Strategy' as one of the types of plans.

Answer 1

A strategy is a comprehensive plan to achieve the organisational objectives. The dimensions of strategy are:

(i) Determining long term objectives.

(ii) Adopting a particular course of action.

(iii) Allocating resources for achieving the objectives.

Strategy formulation is the task of top level people and it is must to scan and understand clearly the business environment before framing the strategy. The common decisions in strategy are whether to introduce a new product or not. If to introduce then how, finding out customer for your products making changes in existing products etc. All the strategic decisions are greatly influenced by the business environment. Strategy defines the future decisions regarding the organisation’s direction and scope in the long run.