Chapter 8 Review - Business Strategy

What is the purpose of setting SMART objectives?

• SMART objectives help a business set clear, focused goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, making it easier to track progress and stay on target.

• SMART objectives are used to increase the number of employees in a business regardless of their skills.

• SMART objectives are designed to make business goals more complicated and harder to achieve.

• SMART objectives are only used for financial planning and have no impact on other business areas.

What is the difference between strategy and tactics?

• Strategy is a long-term plan to achieve big goals (e.g. entering new markets). Tactics are short-term actions taken to support the strategy (e.g. launching a local ad campaign).

• Strategy is about daily operations, while tactics are about long-term vision.

• Strategy and tactics are both short-term plans for immediate results.

• Strategy is only used in sports, while tactics are used in business.

What is a SWOT analysis used for?

• SWOT helps a business understand its internal strengths and weaknesses, and external opportunities and threats, to make better strategic decisions.

• SWOT is used to calculate a company's annual revenue.

• SWOT is a method for designing marketing materials.

• SWOT is a tool for measuring employee satisfaction.

Give TWO examples of externalities on a business.

• A change in government tax policy could increase costs for a business. A rise in interest rates may reduce consumer spending & borrowing, lowering demand for some products.

• A business launching a new advertising campaign to increase sales. A company hiring more employees to expand production.

• A business deciding to change its logo. A company updating its website design.

• A business offering discounts to attract more customers. A company moving to a new office location.

What is meant by a “competitive advantage”?

• A competitive advantage is something a business does better than rivals, like lower prices, better service, or unique products, helping it succeed in the market.

• A competitive advantage is a government policy that restricts imports to protect local businesses.

• A competitive advantage is when a business copies its competitors to match their success.

• A competitive advantage is a temporary increase in sales due to seasonal demand.

According to the passage, what is business strategy about?

• Business strategy is about how a company plans to move from where it is to where it wants to be.

• Business strategy is about daily operational tasks within a company.

• Business strategy is about the personal goals of employees.

• Business strategy is about the history of the company.

What does a good business strategy provide?

• More employees

• Clear direction, focus, and alignment toward the same SMART objectives

• Higher salaries

• More products

Business strategy connects big decisions to the company’s ________.

• long-term goals

• daily expenses

• employee count

• office location

What factor affecting business strategy is described as follows: 'Limited money, time, or people can restrict which strategies a business can follow or how far they can go. For example, a small local bakery might want to open more branches, but due to limited capital, it chooses to improve online delivery instead.'

• Resources Available

• Market Trends

• Government Regulations

• Technological Advancements

Which of the following is an example of a business adapting to the competitive environment?

• A bakery improving online delivery due to limited capital

• PepsiCo selling its cereal division to focus on beverages

• Esso launching its 'Pricewatch' campaign in response to UK supermarkets offering cheaper petrol

• Patagonia investing in sustainable materials