Final answer:
The true statement about strategic decisions is that they are long-term in nature, meaning strategic decisions set the overarching direction and goals and are considered over a prolonged period.The correct answer is option 2
Step-by-step explanation:
The question relates to what is true about strategic decisions within an organization or state. When we analyze the given statements, we find that:
- Strategic decisions are indeed long-term in nature which corresponds with the definition of intertemporal decision making that involves considering the impact of decisions over a prolonged period. This supports Option 2, which states that strategic decisions are long-term in nature.
- In contrast to Option 1, strategic decisions typically come before operational decisions in the hierarchy of decisions. Strategic decisions set the overarching direction and goals for an organization, which operational decisions then support on a more day-to-day basis.
- Option 3 is not accurate as master production scheduling and material requirements planning are more tactical and operational within the production and supply chain management processes, not strategic.
- Regarding Option 4, it is important to note that strategic decisions are usually interconnected and often dependent on one another. They form a strategic plan that considers various aspects of an organization’s operations and environment.
Based on this analysis, the statement that is true with respect to strategic decisions is: Strategic decisions are long-term in nature.