A fintech company decides to provide digital credit service to small merchants with low banking access. Which strategy does this show?
Targeting underserved merchants is market inclusion strategy. In exams connect underserved segment with 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 6 · 25 questions
TOPIC PRACTICE
Up to 25 questions from this page. Select your focus, then start.
Targeting underserved merchants is market inclusion strategy. In exams connect underserved segment with strategy.
Strategy must adjust in a changing environment. In exams treat flexibility as a need of strategy.
Broad direction of both product and distribution is strategy. In exams understand product plus channel decision as strategy.
Changing product direction after safety concern is strategy. In exams treat customer concern response as strategy.
Strategy is analysis based broad direction. In exams remember opportunity threat resources competition keywords.
Government subsidy is an opportunity and rural solar kits are strategic action. In exams understand opportunity based expansion as strategy.
New product and new market indicate diversification. In exams remember new product plus new market.
The direct answer is Option C: distribution efficiency strategy. A courier company must move parcels from collection points to sorting centres and then to customers. When it creates small local pickup points, customers travel a shorter distance to hand over parcels, collection becomes quicker, and the company can arrange routes more efficiently. This improves the distribution channel and supports faster delivery. Therefore the action is linked with distribution efficiency strategy. Option A, process method, is not the best answer because the example is mainly about where goods are collected and how they move through the delivery network, not a technical production process. Option B, office rule, is only an internal instruction and does not describe the company’s market or delivery arrangement. Option C is correct because local points improve the reach, speed, and efficiency of distribution. Option D, salary budget, concerns planned employee pay and has no direct connection with pickup locations. The key idea is to identify the business area affected: pickup points affect the distribution channel, so the relevant strategy is distribution efficiency.
Objective is target and strategy is broad route to target. In exams remember objective and strategy link.
The direct answer is D: strategy. A strategy is a broad direction chosen to achieve an important organisational purpose. Here, the healthcare company is not merely deciding one small work step; it is changing how the service reaches customers by offering diagnostic tests at home. The purpose is to reduce hospital visits, so the decision gives the company a new service model and direction. Option D is correct. Option A, method, usually means the specific way of carrying out a task; it is narrower than this overall direction. Option B, rule, is a compulsory instruction about what must or must not be done. Option C, budget, is a statement of expected income and expenditure, not a service choice. The home-testing decision may later require methods, rules, and a budget, but the main choice itself is a strategy. Memory cue: a major direction or new business model is usually strategy.
Changing market direction due to an external challenge like tariff is strategy. In exams treat regulation response as strategy.
A firm chooses its direction by observing competitors. In exams treat competitor analysis as part of strategy.
Live doubt solving gives distinct value so it is differentiation. In exams connect unique feature with differentiation.
Changing sourcing and pack direction in response to cost pressure is strategy. In exams treat cost pressure response as strategy.
Changing service mix according to tourist market is strategy. In exams understand market adaptation as strategy.
Strategy is broad direction and rule is binding command. In exams remember direction versus command.
Digital service direction according to small farmers' needs is strategy. In exams treat user need based direction as strategy.
Choosing target market is strategy and measurable sales target is objective. In exams keep direction and target separate.
Changing business model based on environmental concern is strategy. In exams understand sustainability response as strategy.
Market and technology changes may require strategy revision. In exams connect dynamic environment with strategy change.
Focusing on a specific segment like business travellers is focus strategy. In exams treat niche service package as strategy.
Certificates create trusted distinct identity. In exams understand trust based differentiation as strategy.
Strategy is a broad competitive course of action. In exams treat long term objective and competition as strategy keywords.
Doorstep service creates a distinct market identity so it is strategy. In exams understand differentiation through service as strategy.
The third option gives general guidance for decisions so it is policy. In exams distinguish guidance from market direction.
QUIZ COMPLETE