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In this Class 12 Business Studies topic from the chapter Planning, students learn how a strategy provides a broad, future-oriented approach for achieving organisational objectives. They explore how managers select courses of action by considering business conditions, available resources, competition and changing circumstances. The topic also helps distinguish strategy from related planning elements such as policies, procedures, methods, rules, programmes and budgets, showing how each supports systematic decision-making and coordinated action.
Expert · Level 6 · 25 questions
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Expert · Level 6View options
Customer health concern based strategy
Employee rule
Accounting procedure
Cleaning method
Expert · Level 6View options
Buying cheapest raw material without testing
Investing in quality certification and superior material
Reducing customer support
Keeping brand message only on discount
Expert · Level 6View options
Direct channel and customer data strategy
cash budget
office rule
repair method
Expert · Level 6View options
Starting rural solar service after government subsidy
Stopping entry without helmet
Writing cash register sequence
Teaching machine cleaning technique
Expert · Level 6View options
Audience and channel strategy
Salary budget
Entry rule
editing method only
Expert · Level 6View options
Strategy is broad direction and rule is binding command
Strategy is no discretion command and rule is market direction
Both are only budgets
Both are machine techniques
Expert · Level 6View options
trend based product development strategy
salary rule
cash procedure
cleaning method
Expert · Level 6View options
Higher risk and chance of failure
Rules will always become strong
Budget will always be low
Procedure will automatically be perfect
Expert · Level 6View options
competitive response strategy
machine method
office rule
salary budget
Expert · Level 6View options
Is the new target segment aligned with the company’s value proposition, capabilities and resources?
Does the new segment merely have fewer competitors?
Are customers in the new segment younger than current customers?
Can the advertising colour be changed for the new segment?
Expert · Level 6View options
strategic inconsistency
rule clarity
procedure strength
method purity
Expert · Level 6View options
Distribution efficiency strategy
entry rule
salary budget
machine method
Expert · Level 6View options
Adopting online channel is strategy and a group of launch training ads dates is programme
Online channel is programme and launch dates are strategy
Both are rules
Both are methods
Expert · Level 6View options
student behaviour based strategy
cash rule
building budget
attendance procedure
Expert · Level 6View options
Repeat purchase and complaint reduction
office wall colour / Office wall colour
employee tea timing / Employee tea timing
file cover design / File cover design
Expert · Level 6View options
strategy and action alignment
rule confusion
procedure secrecy
method mismatch
Expert · Level 6View options
Increase customer retention from 68 percent to 82 percent next year
Retaining customers through loyalty benefits
Creating distinction through premium service
Creating direct app channel
Expert · Level 6View options
substitute threat response strategy
office rule
payment procedure
cleaning method
Expert · Level 6View options
trained service staff और consistent quality process / प्रशिक्षित सेवा कर्मचारी और समान गुणवत्ता प्रक्रिया
lowest quality material only
closing customer support
only discount message
Expert · Level 6View options
need based integrated strategy
salary budget
entry rule
machine method
Expert · Level 6View options
Strategy should be checked through sales customer response cost and objective fit
Strategy should be checked only through office colour
Strategy should never be reviewed
Strategy should be measured only by rule count
Expert · Level 6View options
It is a flexible broad course of action chosen by considering resources capabilities opportunities thre
It is only technique of one task
It is only expense limit
It is only binding command
Expert · Level 6View options
Creating local language support and village level service partners
Opening premium showrooms only in metros
Closing support for rural customers
Running only expensive celebrity ads
Expert · Level 6View options
cash budget
customer problem reduction strategy
office entry rule
packing method
Expert · Level 6View options
Premium international expansion strategy but trained staff and capital are not available
Doing local research for new market
Doing process automation for low cost strategy
Giving transparent policy for customer trust strategy
Question 1ExpertLevel 6
A sweets brand makes low sugar products and clear nutrition labels its main market direction after diabetes awareness rises. What type of strategy is this?
Correct answer: A
Changing product and information direction according to health concern is strategy. In exams identify customer concern response.
If a company changes target segment then which question is most necessary in strategy evaluation?
Correct answer: A
When the target segment changes, the key evaluation is whether the company’s value proposition meets the new customers’ needs and whether its capabilities and resources can serve that segment effectively. Fewer competitors alone does not make a strategy viable; the company must have strategic fit. Exam tip: for strategy-evaluation questions, check market need, organisational capability and resource fit together.
A company targets high income customers but keeps product quality ordinary. Which problem does this show?
Correct answer: A
A strategy should connect the organisation’s chosen market, its customer expectations, and the value offered by its product. High-income customers commonly form a segment with stronger expectations about quality, reliability, service, or distinctive benefits. If a company deliberately targets that segment but offers an ordinary product without a convincing special value, its target market and product promise do not fit each other. This mismatch is a strategic inconsistency.
Option A is therefore the correct choice. The issue is not rule clarity, because no instruction or restriction is being discussed. It is not procedure strength, since no sequence of steps is given. “Method purity” is also not a standard planning concept that explains the case. The key reasoning is to compare the selected customer segment with the quality and value proposition: an ambitious target requires an offering suitable for that target.
An institution makes micro learning videos and quick quizzes its main direction after observing short attention span of students. This is linked with which strategy?
Correct answer: A
Changing content model after student behaviour changes is strategy. In exams treat behaviour trend response as strategy.
A company adopts standard design bulk purchase and process automation to support low cost strategy. This is an example of what?
Correct answer: A
A strategy describes the broad way in which a company plans to compete and reach its objectives. A low-cost strategy aims to produce or provide goods and services at lower cost than competitors. For that strategy to work, day-to-day decisions should support cost control, efficiency, and large-scale operations rather than conflict with them.
Option A is correct because standard designs simplify production, bulk purchasing can reduce the cost per unit, and process automation can improve efficiency and reduce repeated labour costs. These are practical actions aligned with the low-cost strategy. They are not examples of a rule, secrecy in a procedure, or a mismatch of methods. The example therefore shows strategy and action alignment.
A company makes product description videos and size recommendation tool its main online selling direction after seeing high return rate. This relates to which strategy?
Correct answer: B
High return rate is a customer problem and tool based solution is strategic direction. In exams treat pain point response as strategy.
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