Strategic Responses to External Factors

What is one way businesses respond to external environmental pressures?

• By ignoring them

• By understanding and adapting to them

• By increasing internal conflicts

• By reducing employee benefits

Which of the following is NOT listed as a type of external pressure?

• Political

• Economic

• Social

• Personal

Which of the following is a type of strategic response that focuses on reducing costs or offering unique products?

• Cost leadership or differentiation

• Market research

• Customer service improvement

• Employee training

What type of strategic response involves adopting new technologies and processes?

• Innovation and digital transformation

• Cost leadership

• Market exit

• Strategic alliances

Which strategic response includes downsizing, diversification, or exiting the market?

• Downsizing, diversification, market exit

• Innovation and digital transformation

• Cost leadership or differentiation

• Strategic alliances or mergers

Which company is given as an example of cost leadership in the provided material?

• Apple

• Ryanair

• Samsung

• Google

What is the main purpose of partnerships or mergers between businesses?

• To expand their market, share resources, or gain competitive advantage

• To reduce the number of employees

• To increase product prices

• To avoid paying taxes

What does downsizing mean in a business context?

• Reducing operations to cut costs or refocus

• Entering new industries or product lines

• Leaving unprofitable or risky markets

• Increasing the number of employees

What is diversification in business strategy?

• Entering new industries or product lines

• Reducing operations to cut costs

• Leaving unprofitable markets

• Focusing only on existing products

What does market exit refer to?

• Leaving unprofitable or risky markets

• Expanding into new markets

• Increasing product lines

• Hiring more staff