MCQs on Strategy Concepts

The greatest challenge for a successful organization is:

• Profit maximization

• Employee training

• Change

• Product innovation

Which of the following is an example of a business strategy mentioned in the text?

• Hiring more employees

• Price reduction to match competitors

• Launching an advertising campaign to convince customers of product superiority

• Increasing raw material stock

Strategy is called a contingent plan because it is:

• Fixed and unchangeable

• Designed to meet the demands of a difficult situation

• Always aimed at cost reduction

• Only for emergency use

Strategic decisions are mainly influenced by:

• Internal politics of the company

• Employee dress code

• Expected market trends, policy changes, and technology developments

• Office renovation plans

Which of the following is NOT typically a focus of strategic decisions?

• Changes in government policy

• Technological developments

• Expected trends in the market

• Office interior design

Strategy is called an interpretative plan because it:

• Translates financial statements

• Gives meaning to other plans in the light of specific situations

• Replaces all other organizational plans

• Focuses only on human resources

The main role of strategy in relation to the environment is to:

• Avoid interaction with external forces

• Determine the organization's direction

• Increase salaries

• Maintain internal discipline

Business strategy is mainly concerned with:

• Internal training programs

• Achieving competitive advantage

• Tax compliance

• Employee benefits

Strategy helps in understanding:

• How the organization plans to compete

• How to design the office layout

• How to manage payroll

• How to conduct annual meetings

Identification of a sustainable competitive advantage involves:

• Finding cost-cutting measures only

• Examining market opportunities and the firm's strengths compared to competitors

• Selecting the cheapest suppliers

• Outsourcing all activities