Question 1

A company sets a target to increase market share in three years and makes premium service and long warranty the main direction against cheap imports. Which plan does this main direction show?

Accepted Answer

Strategy Long warranty and premium service are competitive directions so this is strategy. In exams distinguish target from competitive route.

Question 2

A food brand finds that urban youth are buying healthy snacks and shifts focus from fried products to protein based snacks. Which type of plan is this?

Accepted Answer

Strategy Changing product direction based on customer trend is strategy. In exams treat market trend response as strategy.

Question 3

In which situation is the difference between strategy and policy most clearly visible?

Accepted Answer

Strategy sets broad competitive direction and policy gives general decision guidance Strategy states how to compete in the market while policy guides decisions. In exams keep competitive direction and guidance separate.

Question 4

A bank combines its strong digital technology with rising online needs of rural customers and chooses mobile loan service direction. This uses which analysis?

Accepted Answer

Match of internal strength and external opportunity Digital technology is internal strength and rural online need is external opportunity. In exams connect strength opportunity fit with strategy.

Question 5

A company sets a target to increase sales by 20 percent next year and adopts a local seller network in small towns to achieve it. What is the local seller network?

Accepted Answer

Strategy Local seller network is the broad direction to achieve the target. In exams measurable target is objective and route is strategy.

Question 6

A hotel makes fast check in private workspace and early breakfast its main service direction for business travellers. Which strategy does this show?

Accepted Answer

Focused service strategy Creating service for a specific customer group is focus strategy. In exams attention on a narrow segment indicates focus strategy.

Question 7

If a company only writes earning more profit and then chooses the direction of reducing price then earning more profit and reducing price direction are respectively what?

Accepted Answer

Objective and Strategy Earning profit is the target and reducing price is competitive direction. In exams keep what to achieve and how to compete separate.

Question 8

An electronics manufacturer treats weak service network as a major weakness and builds 24 hour service centres to compete with rivals. This relates to what?

Accepted Answer

Weakness based strategic improvement Changing competitive direction after identifying weakness is strategy. In exams understand weakness response as strategy.

Question 9

Which statement most clearly shows market development strategy?

Accepted Answer

Selling existing spices in a new state's retail market Taking an existing product to a new geographical market is market development. In exams remember existing product plus new market.

Question 10

A pharmaceutical company enters the new area of diabetes monitoring devices after seeing rise in lifestyle diseases. Which strategy does this indicate?

Accepted Answer

Diversification strategy Entering a new product area can be diversification. In exams connect new product area with diversification.

Question 11

Why is it wrong to treat strategy as fixed and unchangeable?

Accepted Answer

Because external environment and competition can change Strategy should adjust according to changing environment. In exams treat flexibility as a necessary feature of strategy.

Question 12

A construction material company starts giving certified strength test reports to stand apart from cheap local alternatives. Which strategy is this?

Accepted Answer

Differentiation strategy Certified reports create a trusted distinct identity. In exams treat trust based unique value as differentiation strategy.

Question 13

A company invests in low cost automated machines and adopts large scale production with low price policy. This is linked with which strategy?

Accepted Answer

Cost leadership strategy Competing through large scale low cost is cost leadership. In exams identify low cost advantage as strategy.

Question 14

An education platform creates intensive courses only for repeat competitive exam students instead of targeting all students. This is an example of which strategy?

Accepted Answer

Focus strategy Focusing on a very specific customer group is focus strategy. In exams identify narrow market segment.

Question 15

While making strategy change in government policy can be seen as what?

Accepted Answer

External opportunity or threat Government change is part of external environment and may become opportunity or threat. In exams treat regulatory change as strategy input.

Question 16

A company adopts refill station model due to environmental concerns and chooses the direction of reducing plastic packaging. This relates to which plan?

Accepted Answer

Strategy Changing business model in response to environmental concern is strategy. In exams understand sustainability response as strategy.

Question 17

If a company's strategy is to build a premium brand but its budget is limited only to low price advertisements then which problem is visible?

Accepted Answer

Mismatch between strategy and resources Strategy should be supported by resources and budget. In exams always check strategy resource fit.

Question 18

Which statement shows only an objective rather than strategy?

Accepted Answer

Increasing market share by 4 percent next year The second statement is a measurable target so it is objective not strategy. In exams understand percentage target as objective.

Question 19

A toy company makes non toxic certified toys its main market direction after safety concerns increase. This is an example of which strategic response?

Accepted Answer

Customer concern based strategy Changing product direction according to customer safety concern is strategy. In exams identify concern based positioning as strategy.

Question 20

Which option is a combined strategic response to internal weakness and external threat?

Accepted Answer

Building regional hubs after seeing weak distribution network and fast rival delivery Weak network is internal weakness and fast rival delivery is external threat. In exams understand combined SWOT response as strategy.

Question 21

A company plans to add smart sensors to an existing product and sell it to the same industrial customer group. This is most related to which strategy?

Accepted Answer

Product development strategy Improving product for an existing market is product development. In exams identify improved product for existing market.

Question 22

What does competitive advantage mean in strategy?

Accepted Answer

Giving customers better or different value than rivals Competitive advantage is gained by giving better or different value to customers. In exams connect superior value with strategy.

Question 23

An insurance company makes transparent claim tracking and simple language policy summary its market direction to reduce customer distrust. What is this?

Accepted Answer

Strategy Making market direction in response to customer trust problem is strategy. In exams treat trust building direction as strategy.

Question 24

If a company sticks to an old strategy despite rapidly changing technology then what is the risk?

Accepted Answer

Strategy may become irrelevant Changing technology may require strategy revision. In exams connect dynamic environment with strategic flexibility.

Question 25

Which option shows method rather than strategy?

Accepted Answer

Spray technique of powder coating on metal Spray technique is a method of one task not strategy. In exams keep technique and broad direction separate.

Strategy

Practice questions

01 A company sets a target to increase market share in three years and makes premium service and long warranty the main direction against cheap imports. Which plan does this main direction show?

02 A food brand finds that urban youth are buying healthy snacks and shifts focus from fried products to protein based snacks. Which type of plan is this?

03 In which situation is the difference between strategy and policy most clearly visible?

04 A bank combines its strong digital technology with rising online needs of rural customers and chooses mobile loan service direction. This uses which analysis?

05 A company sets a target to increase sales by 20 percent next year and adopts a local seller network in small towns to achieve it. What is the local seller network?

06 A hotel makes fast check in private workspace and early breakfast its main service direction for business travellers. Which strategy does this show?

07 If a company only writes earning more profit and then chooses the direction of reducing price then earning more profit and reducing price direction are respectively what?

08 An electronics manufacturer treats weak service network as a major weakness and builds 24 hour service centres to compete with rivals. This relates to what?

09 Which statement most clearly shows market development strategy?

10 A pharmaceutical company enters the new area of diabetes monitoring devices after seeing rise in lifestyle diseases. Which strategy does this indicate?

11 Why is it wrong to treat strategy as fixed and unchangeable?

12 A construction material company starts giving certified strength test reports to stand apart from cheap local alternatives. Which strategy is this?

13 A company invests in low cost automated machines and adopts large scale production with low price policy. This is linked with which strategy?

14 An education platform creates intensive courses only for repeat competitive exam students instead of targeting all students. This is an example of which strategy?

15 While making strategy change in government policy can be seen as what?

16 A company adopts refill station model due to environmental concerns and chooses the direction of reducing plastic packaging. This relates to which plan?

17 If a company's strategy is to build a premium brand but its budget is limited only to low price advertisements then which problem is visible?

18 Which statement shows only an objective rather than strategy?

19 A toy company makes non toxic certified toys its main market direction after safety concerns increase. This is an example of which strategic response?

20 Which option is a combined strategic response to internal weakness and external threat?

21 A company plans to add smart sensors to an existing product and sell it to the same industrial customer group. This is most related to which strategy?

22 What does competitive advantage mean in strategy?

23 An insurance company makes transparent claim tracking and simple language policy summary its market direction to reduce customer distrust. What is this?

24 If a company sticks to an old strategy despite rapidly changing technology then what is the risk?

25 Which option shows method rather than strategy?

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