Question 1

In which situation does flexibility in strategy become necessary?

Accepted Answer

When customer preferences and technology change quickly Strategy must adjust in a changing environment. In exams connect dynamic environment with strategy flexibility.

Question 2

A sports brand decides to make affordable sports kits for school teams. Which strategic decision does this show?

Accepted Answer

Choosing customer segment and price direction School teams and affordable price are market strategy. In exams understand segment plus pricing as strategy.

Question 3

Which statement shows a strategy using an opportunity?

Accepted Answer

Launching a health snack range after seeing rising fitness interest Fitness interest is an opportunity and health snack range is strategic action. In exams treat opportunity based action as strategy.

Question 4

A company focuses on local taste and reliable service after seeing threat from foreign imports. What is this?

Accepted Answer

Strategy Foreign imports are a threat and local differentiation is response strategy. In exams identify threat response as strategy.

Question 5

Strategy is most related to what?

Accepted Answer

Future direction and resource use Strategy decides future direction and use of resources. In exams connect resource use and direction with strategy.

Question 6

A company plans to sell its old successful product in new cities. This is an example of which strategy?

Accepted Answer

Market development strategy Selling old product in new cities is market development. In exams identify existing product and new market.

Question 7

Which statement best identifies strategy?

Accepted Answer

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

Question 8

If a company adopts scented packaging to create a different identity from its rival then which strategy is it?

Accepted Answer

Differentiation strategy Adopting a special feature to create distinct identity is differentiation. In exams understand unique feature as differentiation.

Question 9

A company plans to use smaller packs and alternative material due to rising raw material cost. This relates to what?

Accepted Answer

Strategy according to cost situation Changing product and material direction in response to rising cost is strategy. In exams understand cost pressure response as strategy.

Question 10

Which option is a procedure rather than strategy?

Accepted Answer

Order of application checking test and interview in recruitment The second option states order of steps so it is procedure. In exams do not treat sequence as strategy.

Question 11

Why are customer preferences studied while making strategy?

Accepted Answer

To choose product and market direction according to customers Customer preference affects market direction. In exams understand customer preference as strategy input.

Question 12

A bicycle company launches a light urban bicycle range for working people after petrol becomes costly. This is an example of which plan?

Accepted Answer

Strategy Changing product direction after seeing fuel cost and customer need is strategy. In exams treat economic trend response as strategy.

Question 13

A company makes a famous sportsperson its promotional face to improve weak brand identity. What is this?

Accepted Answer

Strategic brand improvement Changing promotional direction in response to weak brand identity is strategy. In exams understand brand weakness response as strategy.

Question 14

In which strategy does a company sell its product at low price due to low cost?

Accepted Answer

Cost leadership strategy Keeping low price based on low cost is cost leadership strategy. In exams identify low cost advantage.

Question 15

If a company's target is to increase profit and it adopts a broad direction of reducing cost then what is the cost reduction direction?

Accepted Answer

Strategy Profit target is objective and broad direction of reducing cost is strategy. In exams keep target and route separate.

Question 16

Which option shows strategy in response to a threat?

Accepted Answer

Adding tax advisory service due to new tax rules New tax rules are external threat or challenge and adding service is strategy. In exams treat external challenge response as strategy.

Question 17

An institution uses a government digital education scheme to start low cost online courses. Which strategy does this show?

Accepted Answer

Opportunity based strategy Government scheme is an opportunity and online courses are strategic response. In exams treat opportunity as strategy input.

Question 18

Which statement shows an objective rather than strategy?

Accepted Answer

Increase market share by 5 percent next year The second statement is a measurable target so it is objective. In exams understand percentage target as objective.

Question 19

A furniture company focuses on foldable furniture for small homes. What does this show?

Accepted Answer

Need based strategy Product direction is chosen after seeing the need of small homes. In exams treat customer need based direction as strategy.

Question 20

Which is the correct match of internal strength and external opportunity in strategy?

Accepted Answer

Strong research team and rising demand for new technology Strong research team is internal strength and demand for new technology is external opportunity. In exams connect such fit with strategy.

Question 21

A company decides to show certified material and test reports to stand apart from low quality cheap alternatives. This relates to what?

Accepted Answer

Differentiation strategy Certified material creates trusted distinct identity. In exams understand trust based differentiation as strategy.

Question 22

If market demand is falling then which decision can be strategic?

Accepted Answer

Finding new customer uses and new areas Finding new uses and areas during falling demand changes market direction. In exams treat demand fall response as strategy.

Question 23

When can confusion between strategy and policy occur?

Accepted Answer

When a statement gives general decision guidance instead of broad market direction General decision guidance is policy not strategy. In exams keep guidance and market direction separate.

Question 24

A company decides to promote the product only for environment conscious youth. This is an example of which strategy?

Accepted Answer

Focus strategy Focusing on a specific youth group is focus strategy. In exams understand narrow target group as focus strategy.

Question 25

Which statement gives an exam useful definition of strategy?

Accepted Answer

It is a broad course of action chosen after studying market opportunities threats and resources Strategy is an analysis based broad course of action. In exams treat opportunities threats and resources as strategy keywords.

Strategy

Practice questions

01 In which situation does flexibility in strategy become necessary?

02 A sports brand decides to make affordable sports kits for school teams. Which strategic decision does this show?

03 Which statement shows a strategy using an opportunity?

04 A company focuses on local taste and reliable service after seeing threat from foreign imports. What is this?

05 Strategy is most related to what?

06 A company plans to sell its old successful product in new cities. This is an example of which strategy?

07 Which statement best identifies strategy?

08 If a company adopts scented packaging to create a different identity from its rival then which strategy is it?

09 A company plans to use smaller packs and alternative material due to rising raw material cost. This relates to what?

10 Which option is a procedure rather than strategy?

11 Why are customer preferences studied while making strategy?

12 A bicycle company launches a light urban bicycle range for working people after petrol becomes costly. This is an example of which plan?

13 A company makes a famous sportsperson its promotional face to improve weak brand identity. What is this?

14 In which strategy does a company sell its product at low price due to low cost?

15 If a company's target is to increase profit and it adopts a broad direction of reducing cost then what is the cost reduction direction?

16 Which option shows strategy in response to a threat?

17 An institution uses a government digital education scheme to start low cost online courses. Which strategy does this show?

18 Which statement shows an objective rather than strategy?

19 A furniture company focuses on foldable furniture for small homes. What does this show?

20 Which is the correct match of internal strength and external opportunity in strategy?

21 A company decides to show certified material and test reports to stand apart from low quality cheap alternatives. This relates to what?

22 If market demand is falling then which decision can be strategic?

23 When can confusion between strategy and policy occur?

24 A company decides to promote the product only for environment conscious youth. This is an example of which strategy?

25 Which statement gives an exam useful definition of strategy?

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