Question

Strategic management decisions relates to:
A. What to produce
B. How much to produce
C. Construction of building
D. How to produce
E. When to produce

• A. A only
• B. C only
• C. A, B and C only
• D. A, B, D and E only

Hint:

"Strategic" means long-term planning. Enterprise selection (A), scale of operation (B), and building infrastructure (C) are high-investment, long-term plans.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Farm management decisions are broadly categorized into strategic and operational decisions.
- Strategic (organizational) decisions are long-term, require significant capital, and are not easily reversible.
- Operational (tactical) decisions are short-term, repetitive, and deal with daily field management.

Step 2: Detailed Explanation:
Let us analyze the given decisions:
- What to produce (A): Deciding the primary enterprise mix (e.g., crops vs. dairy) is a major, long-term strategic decision defining the farm business.
- How much to produce (B): Determining the scale of the farm business requires establishing farm size, capacity, and resource limits. This is a strategic decision.
- Construction of building (C): Investing in permanent infrastructure (such as silos, farmhouses, or cold storage) involves large capital and is a classic long-term strategic investment.
- How to produce (D) and When to produce (E): These often involve short-term operational choices, such as crop planting dates, irrigation schedules, and daily fertilizer applications.
Therefore, A, B, and C are classified under strategic management decisions.

Step 3: Final Answer:
The strategic decisions are A, B, and C only, corresponding to Option (C).