Which statement shows strategy in response to a threat?
Cheap imports are a threat and warranty service response is strategy. In exams identify threat response as strategy.
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SubjectsBusiness Studies
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 3 · 25 questions
TOPIC PRACTICE
Up to 25 questions from this page. Select your focus, then start.
Cheap imports are a threat and warranty service response is strategy. In exams identify threat response as strategy.
Student segment and affordable pack are market strategy. In exams understand customer segment plus price as strategy.
Strategy is a broad direction to achieve long term objectives. In exams treat broad competitive course of action as strategy.
Changing distribution direction in response to competition is strategy. In exams connect market response with strategy.
Strategy sets direction by matching resources and opportunities. In exams remember the match between opportunity and resources.
Creating a distinct identity through high quality is strategic direction. In exams understand quality based differentiation as strategy.
Rural customers and small packs show market strategy. In exams connect customer segment and price with strategy.
Creating service for a specific customer group is focus strategy. In exams focus on a specific segment is a sign of strategy.
Strategy is linked with competitive advantage and long term direction. In exams connect competitive advantage with strategy.
High income segment and limited edition decide market position. In exams treat premium positioning as strategy.
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.
Competing by using internal strength is strategy. In exams understand strength based action as strategy.
A new or improved product for the same market is product development. In exams identify new product for existing market.
Changing target customer segment is a strategic decision. In exams treat customer segment change as strategy.
Strategy states market direction and method states the way of doing work. In exams keep direction and technique separate.
Changing product direction after economic change is strategy. In exams understand external change response as strategy.
Taking an existing product to a new market is market development. In exams remember existing product plus new market.
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.
Handmade and premium identity make the product distinct. In exams treat unique identity as differentiation.
Changing channel direction according to market demand is strategy. In exams connect online demand response with strategy.
The third option is a numerical expense limit so it is budget. In exams do not treat amount limit as strategy.
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.
Knowing weakness helps form strategic direction for improvement. In exams connect weakness response with strategy.
New product and new market indicate diversification. In exams treat new product plus new market as diversification.
Competitive advantage is being created through fast service. In exams understand delivery speed as strategic advantage.
QUIZ COMPLETE