Question 1

A company decides to increase its regional warehouses after observing a competitor's fast delivery service. This is an example of which plan?

Accepted Answer

Strategy Changing distribution direction in response to competitor service is strategy. In exams identify competitor response as strategy.

Question 2

Which option shows only an objective rather than strategy?

Accepted Answer

Increase online sales by 25 percent next year The second option is a measurable target so it is an objective not strategy. In exams understand percentage target as objective and broad direction as strategy.

Question 3

A cinema chain decides to introduce luxury seats and live events to compete with online entertainment. Which type of plan is this?

Accepted Answer

Strategy Changing service direction in response to online competition is strategy. In exams identify competition response as strategy.

Question 4

Why is external environment studied in strategy?

Accepted Answer

To choose direction according to opportunities and threats Strategy is made by considering opportunities and threats. In exams connect external environment with strategy.

Question 5

A medicine company decides to make small and affordable packs for rural health centres. What does this show?

Accepted Answer

Strategy Rural customers and pack size direction make it a strategic decision. In exams treat target market and product approach as strategy.

Question 6

Which option gives the correct difference between strategy and objective?

Accepted Answer

Objective states target and strategy states broad direction to achieve it Objective states what to achieve and strategy gives broad route. In exams keep target and route separate.

Question 7

A furniture company plans to sell light and foldable furniture for people living in rented homes. This is an example of which plan?

Accepted Answer

Strategy Choosing product direction according to a specific customer need is strategy. In exams understand need based product direction as strategy.

Question 8

In which situation is cost leadership strategy visible?

Accepted Answer

Company sells at low price through low cost production Competing in market on the basis of low cost is cost leadership. In exams identify low cost advantage.

Question 9

A stationery brand decides to launch a special exam kit for students appearing in exams. What is this?

Accepted Answer

Strategy Making a product for a specific customer group is strategy. In exams treat specific segment focus as strategy.

Question 10

An airline makes fast boarding and low waiting time its main identity for busy travellers. This is linked with which strategy?

Accepted Answer

Service differentiation strategy Creating distinct identity through fast service is differentiation strategy. In exams understand unique service benefit as strategy.

Question 11

Why are internal strengths used in making strategy?

Accepted Answer

So that the organisation can compete according to its capability Internal strength makes strategic direction practical. In exams treat strengths as strategy input.

Question 12

A bookseller starts same day local delivery and book recommendation service to compete with online companies. What is this?

Accepted Answer

Strategy Changing service and delivery direction in response to competition is strategy. In exams treat online rival response as strategy.

Question 13

Which option shows a rule rather than strategy?

Accepted Answer

Entry into chemical room without gloves is prohibited A rule is a specific and binding instruction that tells people what must or must not be done. The statement “entry into the chemical room without gloves is prohibited” directly imposes a safety requirement and forbids a particular action. Therefore, it is a rule, making option B correct. Rules are generally compulsory and are meant to ensure consistent conduct or safety. This statement does not describe how the organisation will compete in a market or serve a selected customer group.

The other choices describe strategic directions. Creating a separate service for senior customers identifies a target group and a service approach. Making local partners in a new market is a way of entering or developing that market. Adopting a low-cost distribution model aims to compete through lower costs. In contrast, the chemical-room statement contains a clear prohibition, which is the key sign of a rule. Thus option B is distinguished from the broader, market-oriented strategies.

Question 14

An electric charging company plans to set up fast charging stations on highways. Which strategic direction does this show?

Accepted Answer

Market expansion strategy Taking service to new locations is market expansion strategy. In exams treat new location expansion as strategy.

Question 15

Which is the correct difference between strategy and procedure?

Accepted Answer

Strategy is broad direction and procedure is order of steps Strategy states direction and procedure states sequence. In exams keep broad plan and steps separate.

Question 16

An organic cosmetics company launches a new natural range after demand for chemical free products increases. Which plan does this show?

Accepted Answer

Strategy Changing product direction by using rising demand opportunity is strategy. In exams understand opportunity based product move as strategy.

Question 17

In which situation is focus strategy visible?

Accepted Answer

Making product for a specific small customer group Focusing on a specific customer group is focus strategy. In exams connect niche group with focus strategy.

Question 18

A cloud kitchen starts late night meal delivery for employees working at night. This relates to which strategy?

Accepted Answer

Customer need based strategy Creating service according to a specific need and time is strategy. In exams treat customer need and timing as strategy.

Question 19

Which is an example of facing a threat in strategy?

Accepted Answer

Giving better warranty against cheap foreign products Cheap foreign products are a threat and better warranty is strategic response. In exams identify threat response as strategy.

Question 20

A wearable device company decides to make high accuracy fitness trackers for athletes. What does this show?

Accepted Answer

Strategy Product direction for a specific customer group like athletes is strategy. In exams treat specialised segment product as strategy.

Question 21

Which option shows an objective rather than strategy?

Accepted Answer

Increase market share from 6 percent to 10 percent in three years The first option is a measurable target so it is objective. In exams understand percentage target as objective.

Question 22

A publishing institution decides to focus on picture based easy science books for children. This is an example of which plan?

Accepted Answer

Strategy Deciding product and content direction for children is strategy. In exams treat audience specific product direction as strategy.

Question 23

Why is it necessary to identify weakness while making strategy?

Accepted Answer

To decide the direction for correcting weakness Strategy for improvement can be made by identifying weakness. In exams connect weakness analysis with strategy.

Question 24

A tourism company creates budget packages and local guide network for religious travellers. What is this?

Accepted Answer

Strategy Choosing a specific customer group and service model is strategy. In exams understand customer segment plus service model as strategy.

Question 25

Which option gives correct examples of strategy and budget?

Accepted Answer

Choosing new market is strategy and advertising expense limit is budget New market is broad direction and expense limit is numerical plan. In exams keep direction and amount separate.

Strategy

Practice questions

01 A company decides to increase its regional warehouses after observing a competitor's fast delivery service. This is an example of which plan?

02 Which option shows only an objective rather than strategy?

03 A cinema chain decides to introduce luxury seats and live events to compete with online entertainment. Which type of plan is this?

04 Why is external environment studied in strategy?

05 A medicine company decides to make small and affordable packs for rural health centres. What does this show?

06 Which option gives the correct difference between strategy and objective?

07 A furniture company plans to sell light and foldable furniture for people living in rented homes. This is an example of which plan?

08 In which situation is cost leadership strategy visible?

09 A stationery brand decides to launch a special exam kit for students appearing in exams. What is this?

10 An airline makes fast boarding and low waiting time its main identity for busy travellers. This is linked with which strategy?

11 Why are internal strengths used in making strategy?

12 A bookseller starts same day local delivery and book recommendation service to compete with online companies. What is this?

13 Which option shows a rule rather than strategy?

14 An electric charging company plans to set up fast charging stations on highways. Which strategic direction does this show?

15 Which is the correct difference between strategy and procedure?

16 An organic cosmetics company launches a new natural range after demand for chemical free products increases. Which plan does this show?

17 In which situation is focus strategy visible?

18 A cloud kitchen starts late night meal delivery for employees working at night. This relates to which strategy?

19 Which is an example of facing a threat in strategy?

20 A wearable device company decides to make high accuracy fitness trackers for athletes. What does this show?

21 Which option shows an objective rather than strategy?

22 A publishing institution decides to focus on picture based easy science books for children. This is an example of which plan?

23 Why is it necessary to identify weakness while making strategy?

24 A tourism company creates budget packages and local guide network for religious travellers. What is this?

25 Which option gives correct examples of strategy and budget?

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