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14. In response to a scheme of subsidy by the state government, a company started manufacturing E-Vehicles. Some of the customers were not at ease with battery life and time consumed in recharging the battery. Some of the customers were apprehensive about frequent incidents of battery catching fire. All these resulted in half-hearted response from the customers in evolving EV market. Here, the customers' response is indicating towards which one of the limitations of strategic management?

Options

AEnvironment is highly complex and turbulent.
BStrategic management is a time-consuming process.
CStrategic management is a costly process.
DIt is difficult to estimate the competitive response to the firm's strategy. (2 Marks)
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Correct Answer

Option AEnvironment is highly complex and turbulent.

All Options:

  • AEnvironment is highly complex and turbulent.
  • BStrategic management is a time-consuming process.
  • CStrategic management is a costly process.
  • DIt is difficult to estimate the competitive response to the firm's strategy. (2 Marks)

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Detailed Solution & Explanation

Correct Answer: Option **A**

**Explanation:**
Strategic management has certain limitations because it operates in a dynamic and unpredictable environment. One of these key limitations is that the **business environment is highly complex and turbulent**:
- The external environment is made up of numerous interrelated factors (customers, technology, competitors, safety standards, government policies). Because of this complexity, it is difficult for management to fully analyze and predict how these factors will shape up and interact.
- In the given scenario, the company starts manufacturing E-Vehicles in response to a government subsidy. However, customers respond half-heartedly because they are "not at ease with battery life and time consumed in recharging the battery," and are "apprehensive about frequent incidents of battery catching fire."
- These rapid shifts in customer preferences, safety concerns, and technology limitations show the volatile, unpredictable, and complex nature of the evolving market environment, which makes strategic planning difficult. Thus, it represents the limitation: **Environment is highly complex and turbulent**.

Hence, **Option A** is the correct answer.

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