Which option gives the correct difference between strategy and budget?
Correct answer: C
Strategy gives direction and budget states amount. In exams keep broad plan and numerical plan separate.
Business Studies
Strategy
रणनीति
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.
Medium · Level 2 · 25 questions
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Medium · Level 2
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- Strategy is expense limit and budget is market direction
- Both are only commands
- Strategy is broad direction and budget is numerical resource plan
- Strategy is technique and budget is sequence
Medium · Level 2
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- Procedure
- Rule
- Method
- Strategy
Medium · Level 2
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- Selling existing product in a new geographical market
- Making employee identity card
- Writing machine cleaning method
- Stating bill approval sequence
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- Rule
- Strategy
- Method
- Procedure
Medium · Level 2
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- Rule compliance
- Office procedure
- Product development
- Expense prohibition
Medium · Level 2
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- Because rules always change
- Because employee names change
- Because budget is never made
- Because external environment can change
Medium · Level 2
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- Strategy
- Procedure
- Rule
- Method
Medium · Level 2
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- It is only a daily attendance list
- It is a broad plan based on external and internal analysis
- It is a small technique of one task
- It is only a prohibitive command
Medium · Level 2
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- Rule strategy
- Budget strategy
- Product improvement strategy
- Procedure strategy
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- Writing daily accounts of existing shop
- Repeating a rule
- Fixing only expense amount
- Company entering a completely new product area
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- Attracting customers with faster delivery and better warranty
- Checking employee pass
- Method of oiling machine
- Making expense register
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- Because office colour is written in it
- Because it also considers external market and competition
- Because it is never linked with objectives
- Because it is only salary list
Medium · Level 2
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- Budget reduction
- Rule making
- Focus on customer segment
- Daily attendance
Medium · Level 2
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- Procedure
- Rule
- Method
- Strategy
Medium · Level 2
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- Strategy
- Budget
- Procedure
- Rule
Medium · Level 2
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- Strategy is technique of one task and procedure is expense
- Strategy is broad direction and procedure is order of steps
- Strategy is penalty and procedure is prohibition
- Both are only budgets
Medium · Level 2
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- Rule making
- Method selection
- Strategic improvement
- Daily attendance
Medium · Level 2
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- Entering a new market
- Changing customer segment
- Creating a brand different from rival
- Explaining standard technique of cutting metal
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- Direct distribution strategy
- Employee rule
- Salary budget
- Work technique
Medium · Level 2
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- When new chairs come to office
- When market technology and customer preferences change rapidly
- When file colour changes
- When attendance register is new
Medium · Level 2
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- Budget control
- Procedure
- Focus strategy
- Rule
Medium · Level 2
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- Procedure
- Rule
- Method
- Diversification strategy
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- Differentiation strategy
- Procedure
- Daily rule
- Cleaning method
Medium · Level 2
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- So that strategy can give direction for achieving targets
- So that objectives always remain hidden
- So that budget ends
- So that rules become penalties
Medium · Level 2
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- Launching a new range of organic products when demand rises
- Stopping entry without pass
- Writing expense limit
- Machine cleaning technique
A company decides to focus on essential products and reduce luxury products after expecting recession. What is this?
Correct answer: D
Changing product direction according to economic environment is strategy. In exams understand economic change as strategy.
In which situation is market development strategy visible?
Correct answer: A
Taking an existing product to a new market is market development. In exams identify new market with existing product.
In which plan does a company try to match its resources with opportunities?
Correct answer: B
Strategy matches resources with opportunities. In exams treat resources with opportunities as strategy.
A dairy company decides to launch nutritious flavoured milk for children. This is linked with which strategic direction?
Correct answer: C
Launching a new product for selected customers is product development strategy. In exams identify new product direction as strategy.
Why should strategy be flexible?
Correct answer: D
Strategy should adjust according to changing environment. In exams treat flexibility as a need of strategy.
A company adopts eco friendly packaging to look different from its competitor. What is this?
Correct answer: A
A direction to create a distinct identity is strategy. In exams understand differentiation through packaging as strategy.
Which statement best states the nature of strategy?
Correct answer: B
Strategy is a broad plan based on internal and external analysis. In exams treat analysis based broad plan as strategy.
A company plans to add new features to an existing product to increase sales in the same market. This is linked with which strategy?
Correct answer: C
Improving an existing product is product improvement strategy. In exams understand new features in existing product as strategy.
In which situation is diversification strategy visible?
Correct answer: D
Entering a new product area can be diversification. In exams connect new product plus new area with diversification.
Which option shows that the purpose of strategy is to gain competitive advantage?
Correct answer: A
Offering distinct benefits to attract customers is competitive strategy. In exams connect competitive advantage with strategy.
Why is strategy not only an internal plan?
Correct answer: B
Strategy analyses external market and competition. In exams understand strategy as an outward looking plan.
An app company decides to provide simple interface and phone support for elderly customers. Which strategic thinking does this show?
Correct answer: C
Focusing on a specific customer group is strategic focus. In exams treat customer segment focus as strategy.
If a company plans to find new uses when market demand declines then what is it?
Correct answer: D
Changing market direction when demand declines is strategy. In exams identify demand change response as strategy.
A company considers strong research capability as its strength and chooses innovation based competition. Which plan does this show?
Correct answer: A
Choosing competitive direction based on internal strength is strategy. In exams treat strength based direction as strategy.
What is the correct difference between strategy and procedure?
Correct answer: B
Strategy gives broad direction while procedure states sequence. In exams keep direction and sequence separate.
A company identifies weak distribution network as its weakness and decides to partner with local distributors. This relates to what?
Correct answer: C
Making broad direction to correct a weakness is strategy. In exams understand weakness response as strategy.
Which statement shows a method rather than strategy?
Correct answer: D
A method is a prescribed procedure or technique for performing a task, whereas a strategy is a broad plan for achieving organisational objectives. Explaining a standard technique for cutting metal describes how a task is done, so it is a method. In contrast, entering a new market or creating a distinct brand reflects a competitive strategy. Exam tip: A statement explaining ‘how to do a task’ usually indicates a method; a statement showing the broader direction of action indicates a strategy.
A company decides to reduce dependence on wholesalers and sell directly to customers. This is linked with which strategy?
Correct answer: A
Reaching customers directly is distribution strategy. In exams understand channel restructuring as strategy.
In which situation may strategy need to be changed?
Correct answer: B
Changing market and technology affect strategy. In exams connect dynamic environment with strategy flexibility.
A restaurant starts fast lunch service and monthly meal plan only for office employees. Which strategy does this show?
Correct answer: C
Creating service for a specific customer group is focus strategy. In exams identify segments like office employees.
If a company brings a new product for a new customer category then this is most related to which strategy?
Correct answer: D
New product and new customer area point towards diversification. In exams remember new product plus new market.
A company focuses on better design and experience instead of low price competition. Which strategy is this?
Correct answer: A
Better design and experience create distinct identity. In exams connect differentiation with unique value.
Why should strategy be linked with objectives?
Correct answer: A
Strategy gives the broad route to achieve objectives. In exams treat strategy without objective as incomplete.
Which option shows a strategy using an opportunity?
Correct answer: A
Rising demand is an opportunity and new range is strategy. In exams treat opportunity based action as strategy.
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