Question 1

A sweets brand makes low sugar products and clear nutrition labels its main market direction after diabetes awareness rises. What type of strategy is this?

Accepted Answer

Customer health concern based strategy Changing product and information direction according to health concern is strategy. In exams identify customer concern response.

Question 2

If strategy is premium quality then which decision will be most aligned?

Accepted Answer

Investing in quality certification and superior material Premium quality strategy is supported by superior inputs and testing. In exams check strategic alignment.

Question 3

A company reduces dependence on e commerce marketplace and strengthens its own app and loyalty data. This relates to which strategy?

Accepted Answer

Direct channel and customer data strategy Own app increases channel control and data ownership. In exams identify direct channel strategy.

Question 4

In which situation is strategy based on external opportunity?

Accepted Answer

Starting rural solar service after government subsidy Government subsidy is an external opportunity and rural solar service is strategy. In exams treat opportunity based expansion as strategy.

Question 5

A news platform adopts short video explainers and mobile first design to gain young viewers. What is this?

Accepted Answer

Audience and channel strategy Direction of young audience and mobile channel is strategy. In exams understand audience plus channel choice as strategy.

Question 6

Which option gives the correct difference between strategy and rule?

Accepted Answer

Strategy is broad direction and rule is binding command Strategy can have flexibility while rule has no discretion. In exams remember direction versus command.

Question 7

A company launches a dairy free dessert category after observing rising plant based food trend. This is linked with which strategy?

Accepted Answer

trend based product development strategy Creating product category after observing new trend is strategy. In exams identify trend based new product.

Question 8

If diversification strategy is adopted without skill and market research then what is the danger?

Accepted Answer

Higher risk and chance of failure Capability and research are necessary in new product and new market. In exams connect diversification risk with capability.

Question 9

A company responds to a competitor's subscription model with a one time ownership plan. This relates to what?

Accepted Answer

competitive response strategy Changing own business model in response to competitor model is strategy. In exams identify competitive response.

Question 10

If a company changes target segment then which question is most necessary in strategy evaluation?

Accepted Answer

Is the new target segment aligned with the company’s value proposition, capabilities and resources? When the target segment changes, the key evaluation is whether the company’s value proposition meets the new customers’ needs and whether its capabilities and resources can serve that segment effectively. Fewer competitors alone does not make a strategy viable; the company must have strategic fit. Exam tip: for strategy-evaluation questions, check market need, organisational capability and resource fit together.

Question 11

A company targets high income customers but keeps product quality ordinary. Which problem does this show?

Accepted Answer

strategic inconsistency A strategy should connect the organisation’s chosen market, its customer expectations, and the value offered by its product. High-income customers commonly form a segment with stronger expectations about quality, reliability, service, or distinctive benefits. If a company deliberately targets that segment but offers an ordinary product without a convincing special value, its target market and product promise do not fit each other. This mismatch is a strategic inconsistency.

Option A is therefore the correct choice. The issue is not rule clarity, because no instruction or restriction is being discussed. It is not procedure strength, since no sequence of steps is given. “Method purity” is also not a standard planning concept that explains the case. The key reasoning is to compare the selected customer segment with the quality and value proposition: an ambitious target requires an offering suitable for that target.

Question 12

A courier company creates micro hubs and local riders for same day delivery in cities. This is an example of which strategy?

Accepted Answer

Distribution efficiency strategy Micro hubs and local riders build delivery capability. In exams treat distribution design as strategy.

Question 13

Which option correctly identifies both strategy and programme?

Accepted Answer

Adopting online channel is strategy and a group of launch training ads dates is programme Strategy is broad direction and programme is activity package. In exams keep direction and activity set separate.

Question 14

An institution makes micro learning videos and quick quizzes its main direction after observing short attention span of students. This is linked with which strategy?

Accepted Answer

student behaviour based strategy Changing content model after student behaviour changes is strategy. In exams treat behaviour trend response as strategy.

Question 15

If strategy is based on customer trust then which indicator will be most useful to check success?

Accepted Answer

Repeat purchase and complaint reduction Effect of trust strategy appears in customer behaviour and complaints. In exams choose relevant indicators.

Question 16

A company adopts standard design bulk purchase and process automation to support low cost strategy. This is an example of what?

Accepted Answer

strategy and action alignment A strategy describes the broad way in which a company plans to compete and reach its objectives. A low-cost strategy aims to produce or provide goods and services at lower cost than competitors. For that strategy to work, day-to-day decisions should support cost control, efficiency, and large-scale operations rather than conflict with them.

Option A is correct because standard designs simplify production, bulk purchasing can reduce the cost per unit, and process automation can improve efficiency and reduce repeated labour costs. These are practical actions aligned with the low-cost strategy. They are not examples of a rule, secrecy in a procedure, or a mismatch of methods. The example therefore shows strategy and action alignment.

Question 17

In which situation is an objective written instead of strategy?

Accepted Answer

Increase customer retention from 68 percent to 82 percent next year The first statement is a measurable target so it is objective. In exams do not treat percentage target as strategy.

Question 18

A company starts bundled service and extended warranty after seeing threat from substitute products. Which strategy does this show?

Accepted Answer

substitute threat response strategy Substitute products are threat and bundled service is response. In exams understand threat response as strategy.

Question 19

If strategy is premium experience then which support system is most necessary?

Accepted Answer

trained service staff और consistent quality process / प्रशिक्षित सेवा कर्मचारी और समान गुणवत्ता प्रक्रिया Service capability and quality consistency are necessary for premium experience. In exams check strategy implementation support.

Question 20

A company creates weather insurance and seed advisory package for rain dependent farmers. What is this?

Accepted Answer

need based integrated strategy A service package according to farmers' risk needs is strategy. In exams connect customer risk need with strategy.

Question 21

Which statement gives the correct approach of strategy evaluation?

Accepted Answer

Strategy should be checked through sales customer response cost and objective fit Strategy is evaluated through many relevant indicators. In exams remember multi indicator review.

Question 22

Which statement gives the most precise expert definition of strategy?

Accepted Answer

It is a flexible broad course of action chosen by considering resources capabilities opportunities thre Strategy connects internal and external analysis with objectives. In exams remember broad flexible competitive course keywords.

Question 23

If a company's strategy is to build trust in the rural market then which decision will align with it most?

Accepted Answer

Creating local language support and village level service partners Local support and service presence support rural trust strategy. In exams check strategy action fit.

Question 24

A company makes product description videos and size recommendation tool its main online selling direction after seeing high return rate. This relates to which strategy?

Accepted Answer

customer problem reduction strategy High return rate is a customer problem and tool based solution is strategic direction. In exams treat pain point response as strategy.

Question 25

In which situation is mismatch between strategy and resources most clear?

Accepted Answer

Premium international expansion strategy but trained staff and capital are not available Capital and trained staff are needed for a major premium expansion strategy. In exams check strategic feasibility with resources.

Strategy

Practice questions

01 A sweets brand makes low sugar products and clear nutrition labels its main market direction after diabetes awareness rises. What type of strategy is this?

02 If strategy is premium quality then which decision will be most aligned?

03 A company reduces dependence on e commerce marketplace and strengthens its own app and loyalty data. This relates to which strategy?

04 In which situation is strategy based on external opportunity?

05 A news platform adopts short video explainers and mobile first design to gain young viewers. What is this?

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

07 A company launches a dairy free dessert category after observing rising plant based food trend. This is linked with which strategy?

08 If diversification strategy is adopted without skill and market research then what is the danger?

09 A company responds to a competitor's subscription model with a one time ownership plan. This relates to what?

10 If a company changes target segment then which question is most necessary in strategy evaluation?

11 A company targets high income customers but keeps product quality ordinary. Which problem does this show?

12 A courier company creates micro hubs and local riders for same day delivery in cities. This is an example of which strategy?

13 Which option correctly identifies both strategy and programme?

14 An institution makes micro learning videos and quick quizzes its main direction after observing short attention span of students. This is linked with which strategy?

15 If strategy is based on customer trust then which indicator will be most useful to check success?

16 A company adopts standard design bulk purchase and process automation to support low cost strategy. This is an example of what?

17 In which situation is an objective written instead of strategy?

18 A company starts bundled service and extended warranty after seeing threat from substitute products. Which strategy does this show?

19 If strategy is premium experience then which support system is most necessary?

20 A company creates weather insurance and seed advisory package for rain dependent farmers. What is this?

21 Which statement gives the correct approach of strategy evaluation?

22 Which statement gives the most precise expert definition of strategy?

23 If a company's strategy is to build trust in the rural market then which decision will align with it most?

24 A company makes product description videos and size recommendation tool its main online selling direction after seeing high return rate. This relates to which strategy?

25 In which situation is mismatch between strategy and resources most clear?

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