BMIS – L1 – SA – Q5.4 – Introduction to business strategy

Characteristics defining a strategic decision.

Question

Which THREE of the following characteristics would define a decision as being strategic in nature?

A The decision will have implications for operational decisions

B The decision concerns the allocation of resources

C The decision concerns competitive tactics

D The decision concerns the implementation of a business’s plans

E The decision concerns the scope of a business’s activities

Answer

A, B, E

Explanation:

Strategic decisions are high-level choices that shape the organization’s direction. The answer document identifies A (implications for operational decisions), B (resource allocation), and E (scope of activities) as correct. These reflect strategic decisions’ broad impact, resource focus, and role in defining business boundaries. Option C (competitive tactics) is more tactical, and D (implementation) is operational, not strategic.

Tags: business scope, Resource Allocation, strategic decision
Level: Level 1

Topic: Introduction to business strategy

Uploader: Samuel Duah