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WorksheetsChapter 8 Review - Business Strategy
Total questions: 99
Worksheet time: 2hrs 39mins
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
Companies should build strategies around what they’re already good at, rather than risking failure in unfamiliar areas. For example, PepsiCo sold its cereal division after buying Quaker Oats, so it could focus on its strength in beverages like ________.
Gatorade
Sprite
Red Bull
Coca-Cola
Which factor affecting business strategy is described as: 'A business aiming to maximise profits might follow different strategies than one focused on social impact or long-term goals. For example, Patagonia invests in sustainable materials and environmental causes as part of its mission, even if it reduces short-term profits.'
Business Objectives
Market Competition
Technological Advancements
Government Regulations
Which of the following is the first stage in the process of strategic management?
Strategic Analysis
Strategic Choice
Strategic Implementation
Strategic Evaluation
What is the main focus of the Strategic Analysis stage in strategic management?
Making long-term decisions
Understanding the current position of the business, including strengths, weaknesses, market position, competition, and external threats
Putting the plan into action
Hiring new staff
In the Strategic Choice stage, a company decides where it wants to go and how to get there by making ________, long-term decisions.
bold
timid
random
short-term
Which stage of strategic management involves turning big decisions into real actions by ensuring the right resources, timing, and evaluation?
Strategic Analysis
Strategic Choice
Strategic Implementation
Strategic Planning
Give an example of Strategic Implementation as described in the process of strategic management.
A business hires new staff and increases its marketing budget to support expansion into Asia.
A company analyzes its competitors to identify market trends.
A business sets long-term goals for the next five years.
A manager evaluates the effectiveness of a completed project.
What is the main difference between strategy and tactics?
Strategy is a short-term plan, tactics are long-term actions.
Strategy is the big-picture, long-term plan made by top leadership to guide the business towards its goals, while tactics are the smaller, short-term actions taken to help achieve that plan.
Tactics are made by top leadership, strategy is made by staff.
There is no difference.
Which of the following best describes the timeframe for a strategy?
Short to medium term
Long term
No specific timeframe
Immediate
An example of a strategy is to ________, while an example of a tactic is to start a marketing campaign in Country Y.
Develop new markets abroad
Design a new logo
Hire a new intern
Send a press release
Which is more difficult to reverse once implemented?
Strategy
Tactics
Who are typically the decision makers for strategy?
Directors and senior managers
Junior employees
External consultants only
Interns
According to the passage, what do senior managers and business leaders use to help identify, develop, and choose the most effective strategies for long-term success?
A range of tools and techniques.
Only their intuition.
Short-term financial reports.
Random selection methods.
What is a SWOT Analysis?
A tool that identifies a business’s internal strengths/weaknesses and external opportunities/threats.
A marketing strategy for increasing sales.
A financial analysis tool for budgeting.
A method for hiring employees.
In SWOT Analysis, strengths and weaknesses are considered ______ factors, while opportunities and threats are considered ______ factors.
internal, external
external, internal
personal, professional
primary, secondary
Which of the following is NOT a key feature of SWOT Analysis?
Used to match strategy to capability
Often a starting point for planning
Guarantees business success
Helps overcome weaknesses to create new opportunities
According to the example provided, Apple uses its strengths in the context of SWOT Analysis by:
leveraging innovation to maintain a competitive edge
focusing solely on cost reduction
ignoring market trends
avoiding investment in research and development
Which of the following is a limitation of SWOT Analysis mentioned in the evaluation?
It is too complex to use
It can be subjective and overly basic
It is not widely used
It is only for large businesses
SWOT Analysis is a ______ and widely used tool, but it needs more detail for thorough evaluation.
simple
complex
expensive
outdated
Which category of SWOT analysis does 'Specialist marketing expertise' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'A new, innovative product or service' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Location of the business' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Quality products and processes' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Lack of marketing expertise' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Undifferentiated products or services' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Poor-quality goods or services' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Damaged reputation and weak brand image' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'A developing market such as the internet' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Mergers, joint ventures or strategic alliances' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Moving into new market segments that offer improved profits' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'A new international market' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'A market vacated by an ineffective competitor' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'A new competitor in the home market' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Price wars with competitors' belong to?
Strengths
Weaknesses
Opportunities
Threats
Which category of SWOT analysis does 'Taxation of the product or service' belong to?
Strengths
Weaknesses
Opportunities
Threats
What is PEST Analysis?
A tool used to analyse the micro environment of a business
A tool used to analyse the macro environment of a business
A tool used to analyse the internal environment of a business
A tool used to analyse the financial environment of a business
Which factors does PEST Analysis look at?
Political, Economic, Social, Technological
Product, Environment, Sales, Technology
People, Economy, Strategy, Tools
Price, Equity, Service, Time
PEST Analysis helps with external risk assessment.
True
False
PEST Analysis is useful before major ________ changes.
strategic
operational
financial
technical
Which of the following is NOT a feature of PEST Analysis?
Identifies opportunities and threats
Helps with external risk assessment
Focuses only on internal company data
Useful before major strategic changes
According to the evaluation, PEST Analysis must be regularly updated.
True
False
PEST Analysis complements SWOT analysis but does not replace it.
True
False
In the example provided, which factor is associated with the rising demand for eco-friendly transport?
Political
Economic
Social
Technological
One of the Political & Legal factors in PEST Analysis is the ________ of the government.
stability
location
population
currency
Likely legal changes impacting on this industry is a factor under the ________ category in PEST Analysis.
Political & Legal
Economic
Social
Technological
Environmental regulations are considered under the ________ category in PEST Analysis.
Political & Legal
Technological
Economic
Social
Employment law is a factor in the ________ category of PEST Analysis.
Political & Legal
Economic
Social & Cultural
Technological
Competition regulations are part of the ________ factors in PEST Analysis.
Political & Legal
Economic
Social
Technological
Consumer protection laws are included in the ________ category of PEST Analysis.
Political & Legal
Economic
Social
Technological
Government attitude to free market and legal control over business is a ________ factor in PEST Analysis.
Political & Legal
Technological
Economic
Social
Rate of economic growth is an ________ factor in PEST Analysis.
Economic
Political
Technological
Social
Exchange rate stability is considered under the ________ category in PEST Analysis.
Economic
Political
Social
Technological
Country’s membership of free-trade areas is a factor in the ________ category of PEST Analysis.
Economic
Technological
Social
Political
Membership of a common currency (e.g. the euro) is an ________ factor in PEST Analysis.
Economic
Political
Technological
Social
Tax rates and likely changes are part of the ________ factors in PEST Analysis.
Economic
Technological
Legal
Environmental
Interest rates and likely changes are included in the ________ category of PEST Analysis.
Economic
Political
Social
Technological
Inflation rates and stage of the business cycle is a(n) ________ factor in PEST Analysis.
Economic
Technological
Legal
Environmental
Demographic changes, such as ageing or youthful population, are ________ factors in PEST Analysis.
Social
Technological
Economic
Political
Dominant religion and its impact on marketing strategies is a ________ factor in PEST Analysis.
Social
Technological
Economic
Legal
Education standards and impact on labour skills are considered under the ________ category in PEST Analysis.
Social
Political
Technological
Economic
Roles of men and women in society are ________ factors in PEST Analysis.
Social
Technological
Economic
Political
Social and environmental concerns among population are included in the ________ category of PEST Analysis.
Social
Technological
Economic
Political
Labour/social mobility and migration levels are ________ factors in PEST Analysis.
Social
Political
Technological
Economic
One or many languages spoken is a ________ factor in PEST Analysis.
Social
Technological
Economic
Political
New technology allowing products to be made more cheaply is a ________ factor in PEST Analysis.
Technological
Political
Economic
Social
Government support for research spending is considered under the ________ category in PEST Analysis.
Technological
Political
Economic
Social
Impact of internet access and speed on marketing and strategy is a ________ factor in PEST Analysis.
Technological
Political
Economic
Social
Cost of renewable energy compared to fossil fuels is a ________ factor in PEST Analysis.
Technological
Legal
Cultural
Demographic
Speed of technological obsolescence is included in the ________ category of PEST Analysis.
Technological
Political
Economic
Social
Importance of product innovations to consumers is a ________ factor in PEST Analysis.
Technological
Political
Economic
Social
Process innovations and impact on competitiveness is a ________ factor in PEST Analysis.
Technological
Political
Economic
Social
What is Porter's Five Forces?
A marketing strategy
A framework to analyse an industry, its competitiveness and potential profitability
A financial statement
A business law
Which of the following is NOT assessed by Porter's Five Forces?
Supplier power
Threat of substitutes
Product pricing
Barriers to entry
Buyer power
Porter's Five Forces helps make decisions about ________ or not.
entering/staying in a market
hiring new employees
setting product prices
choosing a marketing slogan
Which of the following is a key feature of Porter's Five Forces?
Focuses on marketing campaigns
Focuses on strategic business units (SBUs)
Focuses on employee satisfaction
Focuses on product design
Which of the following is an evaluation point of Porter's Five Forces?
Only shows one moment in time
Provides long-term predictions
Focuses on product development
Increases company profits automatically
In the example provided, why is supplier power strong in the airline market?
There are many suppliers
There are few alternatives for aircraft manufacturers
Airlines have low costs
Passengers have high bargaining power
Low entry barriers allow new airlines to enter the market easily.
True
False
Barriers to Entry: How easy is it for new competitors to join the industry? High threat of entry when: ________ are low.
Economies of scale
Switching costs
Brand loyalty
Government regulations
Barriers to Entry: How easy is it for new competitors to join the industry? High threat of entry when: Technology is ________.
affordable
complex
outdated
exclusive
Barriers to Entry: How easy is it for new competitors to join the industry? High threat of entry when: Distribution is ________.
accessible
restricted
expensive
complex
Barriers to Entry: How easy is it for new competitors to join the industry? High threat of entry when: There are no ________/patent restrictions.
legal
financial
technological
marketing
Barriers to Entry: How easy is it for new competitors to join the industry? High threat of entry when: There is low product differentiation (little ________ needed).
branding
capital
technology
regulation
Buyers Power: How much influence do customers have? Buyer power increases when: Many small, similar ________ exist.
suppliers
customers
products
markets
Buyers Power: How much influence do customers have? Buyer power increases when: It's cheap and easy to switch ________.
suppliers
products
customers
locations
Suppliers Power: Suppliers have the upper hand when: It's expensive to switch (e.g., Mac vs. ________).
Microsoft
Amazon
Suppliers have the upper hand when: They have strong brands (e.g., Nike, ________).
Cadbury
Shell
Ford
IKEA
SWOT Analysis is often used as a starting point for planning in businesses.
True
False
Threat of Substitutes: Can customers switch to different products? Substitutes are a threat when: New tech offers alternatives (e.g., satellite TV vs. ________).
antenna
microwave
refrigerator
printer
