Question 1

After noticing the fast-fashion trend, a company adopted shorter production cycles and an online product-launch calendar. Why is this a strategy?

Accepted Answer

Because it sets a broad course of action in response to a market trend The correct answer is A. A strategy is a broad plan that sets a course of action in response to the business environment. Here, changing production cycles and launch timing to respond to a market trend shows a broad business direction, not merely a routine rule or technical procedure.

Question 2

A company identifies a fast-growing online market but has limited digital skills. What should it assess most carefully while formulating its strategy?

Accepted Answer

बाजार के अवसर और आंतरिक क्षमता के बीच तालमेल — Fit between the market opportunity and internal capability The company should check whether its digital skills and other resources are adequate to pursue the online-market opportunity. A strategy is more practical when the opportunity fits the organisation’s capabilities.

Question 3

A company creates special experience centres for premium customers but keeps its prices low. What should it examine as part of its strategy?

Accepted Answer

क्या कीमतें और ग्राहकों को दिया जाने वाला मूल्य-स्थान निर्धारण आपस में मेल खाते हैं — Whether pricing matches the intended customer positioning Low prices and premium experience can be a deliberate combination, but the company should ensure that its pricing supports the customer positioning it intends to create. The question is about strategic alignment, not assuming that low prices are necessarily wrong.

Question 4

A food brand introduces a sugar-free product line and reduces its older sugary offerings in response to growing health awareness. What does this illustrate?

Accepted Answer

बाहरी सामाजिक बदलाव के अनुसार उत्पाद-दिशा बदलना — Changing product direction in response to an external social change Growing health awareness is a change in the social environment. Adjusting the product range in response to that change is a strategic response to an external trend.

Question 5

A company plans to enter small cities over the next three years and proposes using local distributors and a low-data app. What does this plan mainly illustrate?

Accepted Answer

दीर्घकालीन बाजार-दिशा और उसे लागू करने के लिए संसाधनों के चयन का — A long-term market direction and the choice of resources to pursue it The three-year expansion sets a longer-term direction, while the proposed distributors and app indicate how the company intends to pursue it. Together, these are strategic choices rather than just a budget, rule or procedure.

Question 6

Which statement correctly distinguishes a strategy from an objective?

Accepted Answer

रणनीति उद्देश्य हासिल करने की व्यापक दिशा बताती है, जबकि उद्देश्य अपेक्षित परिणाम बताता है — Strategy gives the broad direction for achieving an objective, while an objective states the result sought An objective states what result the organisation seeks; a strategy broadly describes how it will work towards that result. Therefore, option A correctly separates the desired outcome from the broad course of action.

Question 7

A company copied a competitor's low-price strategy but had no cost control system. What is the main strategic risk?

Accepted Answer

Internal capability fit is weak The direct answer is Option B: internal capability fit is weak. A strategy is not good merely because another competitor uses it successfully. It must match the firm’s own resources, skills, systems, cost structure, and ability to implement it. A low-price strategy normally requires tight cost control, efficient operations, suitable suppliers, and enough financial strength to earn a profit at a lower price. In the example, the company copied the low-price approach but had no cost-control system. Step by step: the chosen strategy is low pricing; low pricing requires low and controlled costs; the company lacks that capability; therefore the strategy does not fit its internal capabilities and creates a risk of losses or poor performance. Option A is a meaningless physical statement about a door and has no strategic connection. Option B is correct because it identifies the mismatch between the plan and the company’s internal strength. Option C concerns receipt printing and is irrelevant to competitive strategy. Option D concerns attendance and is also unrelated. Remember: never copy a rival blindly; first ask whether your own resources and systems can support the strategy.

Question 8

In which situation would a company have the strongest reason to review its strategy?

Accepted Answer

सरकार ने उत्पादों पर लेबल लगाने के नए नियम लागू किए — The government introduced new product-labelling rules New labelling rules change the legal conditions under which the company sells its products. The company should review whether its current plans and practices still comply and remain suitable.

Question 9

A company has clearly identified its target customers, but its strategy does not explain what value it will offer them. What is the main weakness?

Accepted Answer

मूल्य-प्रस्ताव स्पष्ट नहीं है — The value proposition is unclear Identifying whom to serve does not explain why those customers should choose the company. The strategy also needs a clear value proposition: the benefit or value offered to the target customers.

Question 10

A company focuses on innovative products by drawing on its strong research capability. Which strategic idea does this illustrate?

Accepted Answer

आंतरिक ताकत का उपयोग — Using an internal strength Research capability is a strength within the company. Using that strength to develop innovative products illustrates a strategy built around an internal capability.

Question 11

A fashion brand responds to rapidly changing trends by deciding to focus on the fast-fashion market and redesigning its sourcing and product-development approach. Why is this a strategic response?

Accepted Answer

क्योंकि यह बाजार के रुझानों के अनुसार व्यापक व्यावसायिक दिशा और काम करने का तरीका बदलता है — Because it changes the broad business direction and approach in response to market trends The brand is not merely changing a routine task: it is choosing a market focus and changing how it develops and sources products to respond to trends. Those broad choices make it a strategic response.

Question 12

A company plans to adopt a subscription model to reduce its reliance on one-time sales. Which strategic issue does this primarily concern?

Accepted Answer

राजस्व मॉडल की दिशा — The direction of the revenue model A subscription model changes how the company expects to earn revenue, moving away from relying only on one-time purchases. Choosing this approach is a strategic decision about the business’s revenue model.

Question 13

Why should a business consider both competitors’ prices and customer preferences when formulating a strategy?

Accepted Answer

To develop a fuller understanding of the market The prices charged by competitors and the preferences of customers are both relevant market factors. Considering them helps a business understand the market and make better-informed strategic choices.

Question 14

A company promises high-quality service but has not prepared the systems or trained staff needed to deliver it. What does this illustrate?

Accepted Answer

A gap between strategy and implementation A promise in a strategy must be supported by the systems and trained people needed to carry it out. Without them, there is a gap between the intended strategy and its implementation.

Question 15

A company sets an expansion target but does not decide which market to enter or what resources to use. What is missing from its strategy?

Accepted Answer

A clear course of action and resource allocation An expansion target states what the company wants to achieve. A strategy must also set out a course of action—such as which market to enter—and the resources needed to pursue it.

Question 16

An airline reduces operating costs by removing meals and other extras, then offers lower fares than its competitors. Which strategic approach does this illustrate?

Accepted Answer

Cost leadership The airline cuts costs by limiting extra services and uses the resulting cost advantage to offer lower fares. This illustrates cost leadership rather than a premium-differentiation approach.

Question 17

Which option describes a method rather than a strategy?

Accepted Answer

A specific presentation technique for explaining a product to a customer A presentation technique explains how to carry out a specific task. The other options describe broader choices about a business’s direction or market position, which are strategic in scope.

Question 18

If an external threat is serious but the related opportunity is attractive, what should a business do when formulating its strategy?

Accepted Answer

Assess the risk and decide whether to pursue the opportunity with suitable safeguards A strategy should consider both the potential benefit of an opportunity and the risk posed by a threat. Assessing the risk helps the business decide whether and how to pursue the opportunity, including what safeguards may be needed.

Question 19

An edtech company offers free lessons to build trust and earns revenue from paid mock tests. Which concept best describes how it provides value and earns revenue?

Accepted Answer

A business model The business model explains how the company provides value to customers and earns revenue. Here, free lessons help attract users and build trust, while paid mock tests provide a source of income.

Question 20

A company chose luxury packaging but target customers are price sensitive. What is the strategic weakness?

Accepted Answer

Mismatch between market segment and value offering Direct answer: Option A, there is a mismatch between the market segment and the value offering. A strategy should connect the customers an organisation wants to serve with the value, features and price it offers. Here the target customers are price sensitive, meaning they carefully compare prices and usually prefer acceptable value at an affordable cost. Luxury packaging can increase production and selling costs. The reasoning is: identify the customer segment; understand that this segment values affordability; observe that expensive packaging raises cost without necessarily adding valued benefit; conclude that the offering does not fit the customers’ needs. Option A is therefore correct. Option B is wrong because the example does not prove that the procedure is perfect; the issue is strategic market fit, not a routine procedure. Option C is wrong because a rule is a specific instruction, while the problem concerns the suitability of the company’s overall offering. A strong rule cannot repair a poor segment-value match. Option D is wrong because a receipt merely records a transaction and has no meaningful connection with packaging, customers or competitive strategy. The company should design packaging and pricing according to what its chosen segment values, while still protecting necessary product quality. Memory cue: “Right product value for the right customer.”

Question 21

Which option gives an operational decision first and a strategic decision second?

Accepted Answer

Dispatch today’s pending orders, then enter a new customer segment Dispatching pending orders is a routine, short-term operational task. Entering a new customer segment is a broader business direction and therefore a strategic decision.

Question 22

A business selects a customer segment in its strategy, but its chosen promotion channel does not reach that segment. What issue does this show?

Accepted Answer

A mismatch between the channel and the target segment The promotion channel must be able to reach the customers the business has chosen to target. If it cannot, the channel and target segment do not fit each other.

Question 23

Which option most clearly describes external analysis for strategy?

Accepted Answer

Studying trends in consumer income and the entry of a new competitor Consumer income trends and the entry of a competitor are factors outside the company that can affect demand and competition. Studying them is external analysis.

Question 24

A company identifies fast service as an internal strength and makes same-day delivery part of its brand promise. Which strategic use of the strength does this illustrate?

Accepted Answer

Turning an internal strength into a distinctive customer promise The correct answer is A. Fast service is an internal capability, and using it to promise same-day delivery turns that strength into a distinctive benefit for customers. This can help the company differentiate its offering.

Question 25

What is a likely strategic consequence if a company ignores a disruptive technology that changes its industry?

Accepted Answer

Its strategy may become less responsive to market change The correct answer is A. A disruptive technology can change customer expectations, products, or the way an industry operates. If the company ignores that change, its strategy may no longer fit the market and may weaken its competitiveness.

Strategy

Practice questions

01 After noticing the fast-fashion trend, a company adopted shorter production cycles and an online product-launch calendar. Why is this a strategy?

02 A company identifies a fast-growing online market but has limited digital skills. What should it assess most carefully while formulating its strategy?

03 A company creates special experience centres for premium customers but keeps its prices low. What should it examine as part of its strategy?

04 A food brand introduces a sugar-free product line and reduces its older sugary offerings in response to growing health awareness. What does this illustrate?

05 A company plans to enter small cities over the next three years and proposes using local distributors and a low-data app. What does this plan mainly illustrate?

06 Which statement correctly distinguishes a strategy from an objective?

07 A company copied a competitor's low-price strategy but had no cost control system. What is the main strategic risk?

08 In which situation would a company have the strongest reason to review its strategy?

09 A company has clearly identified its target customers, but its strategy does not explain what value it will offer them. What is the main weakness?

10 A company focuses on innovative products by drawing on its strong research capability. Which strategic idea does this illustrate?

11 A fashion brand responds to rapidly changing trends by deciding to focus on the fast-fashion market and redesigning its sourcing and product-development approach. Why is this a strategic response?

12 A company plans to adopt a subscription model to reduce its reliance on one-time sales. Which strategic issue does this primarily concern?

13 Why should a business consider both competitors’ prices and customer preferences when formulating a strategy?

14 A company promises high-quality service but has not prepared the systems or trained staff needed to deliver it. What does this illustrate?

15 A company sets an expansion target but does not decide which market to enter or what resources to use. What is missing from its strategy?

16 An airline reduces operating costs by removing meals and other extras, then offers lower fares than its competitors. Which strategic approach does this illustrate?

17 Which option describes a method rather than a strategy?

18 If an external threat is serious but the related opportunity is attractive, what should a business do when formulating its strategy?

19 An edtech company offers free lessons to build trust and earns revenue from paid mock tests. Which concept best describes how it provides value and earns revenue?

20 A company chose luxury packaging but target customers are price sensitive. What is the strategic weakness?

21 Which option gives an operational decision first and a strategic decision second?

22 A business selects a customer segment in its strategy, but its chosen promotion channel does not reach that segment. What issue does this show?

23 Which option most clearly describes external analysis for strategy?

24 A company identifies fast service as an internal strength and makes same-day delivery part of its brand promise. Which strategic use of the strength does this illustrate?

25 What is a likely strategic consequence if a company ignores a disruptive technology that changes its industry?

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