Question

Which of the following statements is incorrect with respect to ‘strategy’ as a type of plan ?

• A. Strategy provides the broad contours of an organization’s business.
• B. Strategy refers to future decisions defining the organization’s direction and scope in the long run.
• C. Strategy is the desired future position that the management would like to reach.
• D. Strategy is a comprehensive plan for accomplishing an organization’s objectives.

Hint:

The desired future position that management wants to reach is the meaning of an objective, not of a strategy. So that statement is the incorrect one.

Answer 1

The Correct Option is C

Step 1: Understanding the question:
We must find the statement that is incorrect about strategy as a type of plan.
So first we recall what a strategy is, and then check each statement against it.

Step 2: Recall the concept:
A strategy is a comprehensive plan for accomplishing the objectives of the organisation.
It defines the broad contours of the business, its direction and scope in the long run, and it is framed keeping the environment in mind.

Step 3: Check option (A):
"Strategy provides the broad contours of an organisation business." This is true, as strategy shows the general shape of the business.

Step 4: Check option (B):
"Strategy refers to future decisions defining the organisation direction and scope in the long run." This is also true.

Step 5: Check option (C):
"Strategy is the desired future position that the management would like to reach." The desired future position or end result is the meaning of an objective, and not of a strategy.
A strategy is the plan of how to reach that position. So this statement is incorrect.

Step 6: Check option (D):
"Strategy is a comprehensive plan for accomplishing an organisation objectives." This is the standard definition, so it is true.

Final Answer:
Only statement (C) is wrong, because it describes an objective. The correct option is (C).