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CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management

Rohit Pharma has a clear mission and annual plans, but top management keeps changing the strategy every few months as competitors move, leaving employees confused. Meanwhile a rival, Sagar Labs, adjusts only tactics while holding its long-term direction. Which statement correctly assesses the situation using the strategic management concept of strategic intent and flexibility?

Rohit lacks consistency of strategic intent, while Sagar balances a stable long-term direction with adaptive tactics. Strategy provides lasting direction, whereas tactics are short-term and can be adjusted, so Rohit's frequent strategy changes create confusion rather than genuine flexibility.

  1. ARohit's approach shows strategic flexibility and is ideal because strategy should change continuously
  2. BSagar's approach is wrong because tactics must never be adjusted
  3. CRohit lacks consistency of strategic intent, while Sagar balances stable direction with adaptive tacticsCorrect
  4. DBoth are identical since strategy and tactics mean the same thing

Explanation

Strategic intent requires a stable long-term direction, while tactics, being short-term and adaptive, may change. Rohit changes the strategy itself frequently, causing confusion and lacking consistency. Sagar keeps direction and varies tactics, which is the sound balance. Strategy and tactics are not the same.

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