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CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

Sundaram Textiles Ltd's board decides to enter the technical textiles market over the next ten years, committing large capital and changing its product mix. Which feature of strategic decisions does this chiefly illustrate?

The case illustrates that strategic decisions involve major resource commitment and long-term consequences that are hard to reverse. Entering a new market over ten years with heavy capital and a changed product mix is top-management, organisation-wide, not a short-term or single-department operational decision.

  1. AThey are short-term and easily reversible
  2. BThey are taken only by supervisors on the shop floor
  3. CThey have major resource commitment and long-term, hard-to-reverse consequencesCorrect
  4. DThey affect only one functional department

Explanation

A ten-year entry into a new market with heavy capital commitment shows that strategic decisions involve large resources and are difficult to reverse. Short-term, reversible or single-department decisions are operational in nature.

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