Question 1

A company finds that its technical team is strong but distribution network is weak. It chooses a mixed model of direct online selling and service partners. Which strategic thinking does this show?

Accepted Answer

Internal analysis based strategy Choosing direction after studying strengths and weaknesses is strategic thinking. In exams connect internal analysis with strategy.

Question 2

If a company's objective is to increase rural sales but its strategy is based only on expensive metropolitan showrooms then what is the problem?

Accepted Answer

Mismatch between objective and strategy To increase rural sales, the strategy should reach rural customers through measures such as local distributors, smaller retail outlets, or mobile sales units. Expensive metropolitan showrooms mainly serve urban customers, so the strategy does not support the stated objective. Efficient resource use would be possible only if the strategy effectively reached the target market. Exam tip: check whether the target area and target customers in a strategy match the objective.

Question 3

A pharmaceutical company plans to enter rare disease medicines after getting new government approval. Which strategic element is this?

Accepted Answer

Use of external opportunity Government approval is an external opportunity and the new area is strategic direction. In exams treat opportunity based move as strategy.

Question 4

A company chooses lifelong service support instead of reducing price to compete with a low price rival. This is an example of which strategy?

Accepted Answer

Differentiation strategy Service support creates distinct value so this is differentiation. In exams understand unique value as strategy.

Question 5

A food delivery platform starts night subscription meal service for people working late. Which strategy does this show?

Accepted Answer

Focused customer segment strategy Focusing on a specific customer group and time need is focus strategy. In exams connect niche need with strategy.

Question 6

If strategy is based on premium experience but employees are not trained in customer service then what risk exists?

Accepted Answer

Risk of implementation failure Capability and training are needed to implement strategy. In exams check strategy implementation fit.

Question 7

A company adopts local language promotion in semi urban markets after seeing intense competition in big cities. This is linked with which strategy?

Accepted Answer

Market repositioning strategy The company changed market focus after observing competition. In exams treat market repositioning as strategy.

Question 8

In which situation is strategy re evaluation most necessary?

Accepted Answer

When strategy raises sales but complaints and return rate rise sharply Strategy should be evaluated through multiple outcomes. In exams check customer outcomes along with sales.

Question 9

A company partners with local health distributors to sell an existing product to rural hospitals in a new state. This is an example of which strategy?

Accepted Answer

Market development strategy Taking an existing product to a new market is market development. In exams identify existing product plus new market.

Question 10

What is the most correct use of competitor analysis in strategy making?

Accepted Answer

Deciding own competitive direction after studying rivals' position A company chooses its response after understanding competitors. In exams treat competitor analysis as strategic input.

Question 11

A toy company makes certified wooden toys its main direction after safety concerns for children increase. Which type of strategy is this?

Accepted Answer

Customer concern based strategy Changing product direction in response to safety concern is strategy. In exams understand customer concern response as strategy.

Question 12

Which option correctly identifies strategy and policy?

Accepted Answer

Targeting rural market is strategy and respectful treatment of rural customers is policy Targeting market is strategic direction and behaviour guidance is policy. In exams keep market direction and decision guidance separate.

Question 13

If a company adopts a low cost strategy then which decision aligns most with it?

Accepted Answer

Standardising production process to reduce waste Efficiency and waste reduction support low cost strategy. In exams check strategy action alignment.

Question 14

A company chooses both a new product and a new customer group to reduce dependence on the old market. Which strategy does this indicate?

Accepted Answer

Diversification strategy New product and new market indicate diversification. In exams remember product market combination.

Question 15

A health app makes medicine reminders and doctor call support its main features for senior citizens. Which strategic thinking does this show?

Accepted Answer

segment need based strategy Service design based on specific needs of senior citizens is strategy. In exams connect segment need with strategy.

Question 16

If the strategy is direct app selling but the company still depends only on third party marketplace discounts then what is the problem?

Accepted Answer

Mismatch between strategy and channel action Direct selling strategy should be supported by own channel actions. In exams check channel strategy fit.

Question 17

A publishing institution starts comic based learning books after seeing declining reading habit among children. Which strategic response is this?

Accepted Answer

Customer behaviour change based strategy Changing product format when customer behaviour changes is strategy. In exams treat behaviour trend response as strategy.

Question 18

Which is the correct example of converting an external threat into an opportunity in strategy?

Accepted Answer

Launching small business security service when cyber fraud rises Cyber fraud is a threat and security service creates opportunity. In exams identify threat to opportunity response.

Question 19

A retail brand leaves mall store model and adopts neighbourhood quick store model to compete on convenience. What is this?

Accepted Answer

Location and convenience based strategy Store format and convenience positioning are strategic direction. In exams treat location format choice as strategy.

Question 20

If the strategy is to increase customer trust then which indicator is most suitable to measure strategy success?

Accepted Answer

repeat purchase rate और complaint reduction / दोबारा खरीद दर और शिकायत घटाव Result of trust can be seen in customer behaviour and complaints. In exams check strategy through relevant indicators.

Question 21

In which situation is product development strategy clear?

Accepted Answer

Adding smart feature to old product for existing customers Improving product for existing market is product development. In exams remember improved product existing market.

Question 22

An insurance firm loses customers due to difficult claim process and then makes simple digital claim tracking its main direction. This relates to what?

Accepted Answer

customer pain point based strategy Strategic service direction is changed after seeing customer pain point. In exams identify pain point response as strategy.

Question 23

Which statement correctly identifies both strategy and budget?

Accepted Answer

Targeting premium segment is strategy and expense limit of rupees 30 lakh on brand campaign is budget Target segment direction is strategy and amount limit is budget. In exams keep direction and numerical plan separate.

Question 24

If internal capability of the company is not considered while making strategy then what is the risk?

Accepted Answer

Strategy implementation may become difficult or impossible Strategy should match capabilities. In exams treat feasibility as part of strategic evaluation.

Question 25

A clean energy company starts a solar rental model for homes after seeing pollution concern and government subsidy. Which strategy is this?

Accepted Answer

External opportunity based strategy Pollution concern and subsidy are external opportunities. In exams connect opportunity fit with strategy.

Strategy

Practice questions

01 A company finds that its technical team is strong but distribution network is weak. It chooses a mixed model of direct online selling and service partners. Which strategic thinking does this show?

02 If a company's objective is to increase rural sales but its strategy is based only on expensive metropolitan showrooms then what is the problem?

03 A pharmaceutical company plans to enter rare disease medicines after getting new government approval. Which strategic element is this?

04 A company chooses lifelong service support instead of reducing price to compete with a low price rival. This is an example of which strategy?

05 A food delivery platform starts night subscription meal service for people working late. Which strategy does this show?

06 If strategy is based on premium experience but employees are not trained in customer service then what risk exists?

07 A company adopts local language promotion in semi urban markets after seeing intense competition in big cities. This is linked with which strategy?

08 In which situation is strategy re evaluation most necessary?

09 A company partners with local health distributors to sell an existing product to rural hospitals in a new state. This is an example of which strategy?

10 What is the most correct use of competitor analysis in strategy making?

11 A toy company makes certified wooden toys its main direction after safety concerns for children increase. Which type of strategy is this?

12 Which option correctly identifies strategy and policy?

13 If a company adopts a low cost strategy then which decision aligns most with it?

14 A company chooses both a new product and a new customer group to reduce dependence on the old market. Which strategy does this indicate?

15 A health app makes medicine reminders and doctor call support its main features for senior citizens. Which strategic thinking does this show?

16 If the strategy is direct app selling but the company still depends only on third party marketplace discounts then what is the problem?

17 A publishing institution starts comic based learning books after seeing declining reading habit among children. Which strategic response is this?

18 Which is the correct example of converting an external threat into an opportunity in strategy?

19 A retail brand leaves mall store model and adopts neighbourhood quick store model to compete on convenience. What is this?

20 If the strategy is to increase customer trust then which indicator is most suitable to measure strategy success?

21 In which situation is product development strategy clear?

22 An insurance firm loses customers due to difficult claim process and then makes simple digital claim tracking its main direction. This relates to what?

23 Which statement correctly identifies both strategy and budget?

24 If internal capability of the company is not considered while making strategy then what is the risk?

25 A clean energy company starts a solar rental model for homes after seeing pollution concern and government subsidy. Which strategy is this?

Was this question useful?

Student Reviews

Add Muft Shiksha to your Home Screen