Question 1

Which statement shows strategy in response to a threat?

Accepted Answer

Increasing warranty and quality service against cheap imported products Cheap imports are a threat and warranty service response is strategy. In exams identify threat response as strategy.

Question 2

A company decides to sell its product in affordable packs for student segment. This is linked with which strategy?

Accepted Answer

Target market and pricing strategy Student segment and affordable pack are market strategy. In exams understand customer segment plus price as strategy.

Question 3

Which statement gives the best definition of strategy?

Accepted Answer

It is a broad and competitive course of action to achieve long term objectives Strategy is a broad direction to achieve long term objectives. In exams treat broad competitive course of action as strategy.

Question 4

A company decides to sell its products directly to customers because of a new online competitor. Which type of plan is this?

Accepted Answer

Strategy Changing distribution direction in response to competition is strategy. In exams connect market response with strategy.

Question 5

Why does an institution match external opportunities with internal resources while making strategy?

Accepted Answer

To choose a suitable long term direction Strategy sets direction by matching resources and opportunities. In exams remember the match between opportunity and resources.

Question 6

A clothing company decides to focus on durable and high quality garments instead of cheap products. What does this show?

Accepted Answer

Strategy Creating a distinct identity through high quality is strategic direction. In exams understand quality based differentiation as strategy.

Question 7

A beverage company enters rural shops in summer with small packs and low price. This is an example of which strategy?

Accepted Answer

Target market and pricing strategy Rural customers and small packs show market strategy. In exams connect customer segment and price with strategy.

Question 8

An app company starts a service with large text simple language and phone support for senior citizens. Which strategic thinking does this show?

Accepted Answer

Customer segment focused strategy Creating service for a specific customer group is focus strategy. In exams focus on a specific segment is a sign of strategy.

Question 9

In which plan does an organisation choose its long term direction to gain competitive advantage?

Accepted Answer

Strategy Strategy is linked with competitive advantage and long term direction. In exams connect competitive advantage with strategy.

Question 10

A company decides to launch limited edition products for high income customers. Which plan does this show?

Accepted Answer

Strategy High income segment and limited edition decide market position. In exams treat premium positioning as strategy.

Question 11

What does threat mean while making strategy?

Accepted Answer

External challenge that may harm business The core idea is that a threat is an unfavourable factor or development outside the organisation that may reduce its performance or create difficulty. In strategic planning, managers study the external environment because competitors, changing customer needs, laws, technology, or economic conditions can affect the business. A threat is therefore a possible danger, not simply an internal routine activity.

Option A is correct because it describes an external challenge that may harm the business. The colour of an office chair, one employee’s leave, and a machine-cleaning procedure do not represent the broad external danger meant by a strategic threat. Such factors may be operational details, but they are not the external environmental condition identified in this question.

Question 12

A company decides to compete through innovative products based on its strong technical team. This relates to what?

Accepted Answer

Strength based strategy Competing by using internal strength is strategy. In exams understand strength based action as strategy.

Question 13

In which situation is product development strategy visible?

Accepted Answer

Making a new improved product for the same market A new or improved product for the same market is product development. In exams identify new product for existing market.

Question 14

A stationery company decides to target small offices instead of students. What does this show?

Accepted Answer

Strategy Changing target customer segment is a strategic decision. In exams treat customer segment change as strategy.

Question 15

What is the correct difference between strategy and method?

Accepted Answer

Strategy is broad direction and method is technique of one task Strategy states market direction and method states the way of doing work. In exams keep direction and technique separate.

Question 16

A car company decides to focus on electric models after fuel prices rise. This is an example of which plan?

Accepted Answer

Strategy Changing product direction after economic change is strategy. In exams understand external change response as strategy.

Question 17

Which statement shows market development strategy?

Accepted Answer

Selling existing medicine to hospitals in a new state Taking an existing product to a new market is market development. In exams remember existing product plus new market.

Question 18

Why is strategy not merely a list of daily tasks?

Accepted Answer

Because it gives long term and broad direction The direct answer is A, because strategy gives long-term and broad direction. Strategy is an overall approach used to reach important organisational goals in a changing environment. It helps decide where the organisation wants to go, how it will compete, and how resources should be used over time. A daily task is much narrower: it describes one routine action, such as recording attendance or cleaning a room. Option A is correct because it identifies the future-oriented and wide scope of strategy. Option B is wrong because writing attendance is a routine administrative task, not a complete organisational direction. Option C is wrong because a strategy is not always a small command; it is generally a broad framework, not a single order. Option D is wrong because cleaning technique is a specific operational method, not a long-term competitive or organisational plan. The exam distinction is simple: daily task tells what to do today; strategy explains the broad route toward a future goal.

Question 19

A company plans to give premium identity to handmade products by working with local artisans. Which strategy is this?

Accepted Answer

Differentiation strategy Handmade and premium identity make the product distinct. In exams treat unique identity as differentiation.

Question 20

If a company invests in digital platform instead of physical stores after seeing rising online demand then what is it?

Accepted Answer

Strategy Changing channel direction according to market demand is strategy. In exams connect online demand response with strategy.

Question 21

Which option is a budget rather than strategy?

Accepted Answer

Expense limit of rupees 12 lakh on advertising next year The third option is a numerical expense limit so it is budget. In exams do not treat amount limit as strategy.

Question 22

A company decides to offer long warranty and free installation to increase customer trust. This can be a strategy linked with which aim?

Accepted Answer

Gaining competitive advantage A strategy is a broad plan chosen to achieve an important organisational aim, especially in relation to customers and competitors. Offering a long warranty and free installation can increase the value customers receive and make the company’s offer more attractive than rival offers. If customers see greater trust and support in the product, the company may gain an advantage in the market. Therefore, option A, gaining competitive advantage, is the appropriate strategic aim. The decision is not merely a routine office activity; it is directed toward improving the company’s position.

The warranty reduces customers’ concern about possible product problems, while free installation adds convenience and service value. Together, these benefits can help the company differentiate its offering and build trust. Daily attendance, file ordering, and explaining machine technique do not describe the market-oriented purpose of this decision. The question asks what aim this strategy may serve, so the answer should identify the competitive result rather than an unrelated operational task. Hence option A follows.

Question 23

Why is weakness analysis necessary while making strategy?

Accepted Answer

So that improvement direction can be chosen according to weakness Knowing weakness helps form strategic direction for improvement. In exams connect weakness response with strategy.

Question 24

A company enters both a new product and a new customer group. Which strategy does this most show?

Accepted Answer

Diversification strategy New product and new market indicate diversification. In exams treat new product plus new market as diversification.

Question 25

A grocery platform makes 30 minute delivery in nearby colonies its main direction. This is linked with which strategy?

Accepted Answer

Fast service based strategy Competitive advantage is being created through fast service. In exams understand delivery speed as strategic advantage.

Strategy

Practice questions

01 Which statement shows strategy in response to a threat?

02 A company decides to sell its product in affordable packs for student segment. This is linked with which strategy?

03 Which statement gives the best definition of strategy?

04 A company decides to sell its products directly to customers because of a new online competitor. Which type of plan is this?

05 Why does an institution match external opportunities with internal resources while making strategy?

06 A clothing company decides to focus on durable and high quality garments instead of cheap products. What does this show?

07 A beverage company enters rural shops in summer with small packs and low price. This is an example of which strategy?

08 An app company starts a service with large text simple language and phone support for senior citizens. Which strategic thinking does this show?

09 In which plan does an organisation choose its long term direction to gain competitive advantage?

10 A company decides to launch limited edition products for high income customers. Which plan does this show?

11 What does threat mean while making strategy?

12 A company decides to compete through innovative products based on its strong technical team. This relates to what?

13 In which situation is product development strategy visible?

14 A stationery company decides to target small offices instead of students. What does this show?

15 What is the correct difference between strategy and method?

16 A car company decides to focus on electric models after fuel prices rise. This is an example of which plan?

17 Which statement shows market development strategy?

18 Why is strategy not merely a list of daily tasks?

19 A company plans to give premium identity to handmade products by working with local artisans. Which strategy is this?

20 If a company invests in digital platform instead of physical stores after seeing rising online demand then what is it?

21 Which option is a budget rather than strategy?

22 A company decides to offer long warranty and free installation to increase customer trust. This can be a strategy linked with which aim?

23 Why is weakness analysis necessary while making strategy?

24 A company enters both a new product and a new customer group. Which strategy does this most show?

25 A grocery platform makes 30 minute delivery in nearby colonies its main direction. This is linked with which strategy?

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