Question : Statement 1: Strategy involves resource allocation for objectives.
Statement 2: Strategy formulation is solely a top-level management function.
Option 1: Statement 1 correct, Statement 2 incorrect.
Option 2: Statement 1 incorrect, Statement 2 correct.
Option 3: Both statements are correct.
Option 4: Both statements are incorrect.
Correct Answer:
Statement 1 correct, Statement 2 incorrect.
Solution : The correct option is (a) Statement 1 correct, Statement 2 incorrect.
Statement 1 is correct. Strategy often involves resource allocation for objectives. It includes determining how resources such as finances, personnel, and time will be utilized to achieve the organization's strategic objectives.
Statement 2 is incorrect. Strategy formulation is not solely a top-level management function. While top-level management plays a crucial role, strategy formulation can involve input from various levels within the organization. Strategies are often developed through collaboration and analysis at multiple organizational levels.
Therefore, the correct option is (a) Statement 1 correct, Statement 2 incorrect.
