Business Policy and Strategy Mcqs

Choose the Correct Option

1. 1. Which of the following is NOT one of Porter’s Five Forces?

a. Supplier power

b. Buyer power

c. Rivalry among existing competitors d. The threat of new entrants

e. The threat of complementary products

Answer: 

2. 2. Which of the following is NOT one of the four components of a SWOT analysis?

a. Strengths

b. Weaknesses

c. Opportunities

d. Threats e. Profits

Answer: 

3. 3. Which of the following is NOT one of the four generic strategies identified by Porter?

a. Cost leadership

b. Differentiation

c. Focus

d. Integration

e. Best cost

Answer:

4. 4. Which of the following is a type of diversification strategy?

a. Intensive growth

b. Retrenchment

c. Joint ventures

d. Divestment

e. None of the above

Answer: 

5. 5. Which of the following is a type of corporate-level strategy?

a. Cost leadership

b. Retrenchment

c. Differentiation

d. Related diversification

e. None of the above

Answer: 

6. 6. Which of the following is NOT one of the three main types of international strategies?

a. Global standardization strategy

b. Multidomestic strategy

c. Transnational strategy

d. Hybrid strategy

e. Export strategy

Answer: 

7. 7. Which of the following is NOT one of the four steps in the strategy formulation process?

a. Establishing a grand strategy

b. Evaluating external opportunities/threats

c. Analyzing the internal organization

d. Establishing a mission and vision

e. Implementing the chosen strategy

Answer:

8. 8. Which of the following is a characteristic of a successful strategic plan?

a. It is specific and measurable

b. It is realistic

c. It is flexible and adaptable

d. It has clear objectives and action steps

e. All of the above

Answer: 

9. 9. Which of the following is NOT one of the key components of the balanced scorecard approach to strategic management?

a. Financial perspective

b. Customer perspective

c. Internal business process perspective d. Learning and growth perspective

e. Industry perspective

Answer:

10. 10. Which of the following is a potential disadvantage of a joint venture strategy?

a. The partners may have conflicting objectives

b. It can be difficult to find suitable partners

c. It can be expensive to establish and maintain

d. The partners may have different cultural backgrounds

e. All of the above

Answer: 

1. 1. Which of the following is a key component of a company’s external environment?

a. Organizational culture

b. Strategic alliances

c. Economic conditions

d. Company structure

Answer: 

2. 2. Which of the following is a primary advantage of a decentralized organizational structure?

a. Improved communication and coordination

b. Centralized decision-making

c. Faster decision-making

d. Better cost control

Answer: 

3. 3. Which of the following is NOT a characteristic of a successful strategic leader?

a. Visionary

b. Risk-averse

c. Decisive

d. Innovative

Answer: 

4. 4. Which of the following is NOT one of the four stages of the organizational life cycle?

a. Introduction

b. Growth

c. Maturity

d. Decline

e. Expansion

Answer: 

5. 5. Which of the following is NOT one of the four types of corporate-level strategies?

a. Concentration

b. Conglomerate

c. Diversification

d. Retrenchment

Answer:

6. 6. Which of the following is a potential disadvantage of a cost leadership strategy?

a. Increased bargaining power with suppliers

b. Increased flexibility in responding to changes in the market

c. Decreased innovation

d. Higher profit margins

Answer: 

7. 7. Which of the following is NOT one of the four elements of the VRIO framework?

a. Value

b. Rarity c. Inimitability

d. Organization

e. Organization

Answer: 

8. 8. Which of the following is a potential advantage of a differentiation strategy?

a. Increased flexibility in responding to changes in the market

b. Decreased customer loyalty

c. Higher profit margins

d. Lower production costs

Answer: 

9. 9. Which of the following is NOT a potential advantage of a merger or acquisition strategy?

a. Increased market power

b. Access to new technologies

c. Cost savings through economies of scale

d. Lower risk

e. Increased diversification

Answer:

10. 10. Which of the following is NOT one of the three components of sustainable competitive advantage?

a. Valuable resources and capabilities

b. Inimitability

c. Sustainability

d. Non-substitutability

Answer: 

1. 1. A __________ analysis examines a company’s internal and external environments to identify its strengths, weaknesses, opportunities, and threats.

a. SWOT

b. PESTEL

c. BCG matrix

d. Porter’s Five Forces

Answer:

2. 2. A company’s __________ identifies its purpose and its reason for being.

a. Strategy

b. Vision

c. Mission

d. Objectives

Answer:

3. 3. A __________ strategy involves expanding a company’s operations into new markets or product lines.

a. Retrenchment

b. Concentration

c. Diversification

d. Differentiation

Answer: 

4. 4. A __________ strategy involves lowering a company’s costs in order to offer lower prices than its competitors.

a. Cost leadership

b. Differentiation

c. Focus

d. Integration

Answer: 

5. 5. The __________ is a tool used to identify a company’s strategic business units and the position of each unit in the market.

a. BCG matrix

b. Ansoff matrix

c. SWOT analysis

d. PESTEL analysis

Answer: 

6. 6. A __________ strategy involves focusing on a specific customer segment or niche market.

a. Retrenchment

b. Concentration

c. Diversification

d. Differentiation

Answer:

7. 7. A company’s __________ includes all of the activities it undertakes to create and deliver value to customers.

a. Supply chain

b. Business model

c. Marketing mix

d. Competitive advantage

Answer: 

8. 8. The __________ framework is used to analyze a company’s resources and capabilities to determine whether they can lead to sustainable competitive advantage.

a. VRIO

b. PESTEL

c. Ansoff

d. BCG

Answer: 

9. 9. A __________ strategy involves a company partnering with another company to jointly pursue a business opportunity.

a. Joint venture

b. Merger

c. Acquisition

d. Strategic alliance

Answer: 

10. 10. The __________ strategy involves creating a unique and superior product or service that is valued by customers and cannot be easily replicated by competitors.

a. Cost leadership

b. Differentiation

c. Focus

d. Integration

Answer:

Differences Between Strategies and Policies

Strategies and policies are both important tools that organizations use to achieve their goals and objectives. However, there are some key differences between the two.

A policy is a set of guidelines, rules, or procedures that an organization follows to achieve a particular outcome. It is a set of directives that outline what an organization should or should not do. Policies are usually set at a high level and provide a framework for decision-making. For example, an organization may have a policy on how to handle customer complaints or how to deal with harassment in the workplace.

On the other hand, a strategy is a plan of action designed to achieve a specific goal or set of goals. It is a broader approach to achieving an objective, and it involves making choices about how to allocate resources, where to focus efforts, and how to achieve competitive advantage. Strategies are typically longer-term than policies and involve a deeper analysis of the organization’s strengths, weaknesses, opportunities, and threats. For example, an organization may have a strategy to expand into new markets or focus on innovation to stay ahead of competitors.

In summary, policies are specific guidelines or procedures that an organization follows, while strategies are broader plans of action designed to achieve specific goals. Policies are usually set at a high level and provide a framework for decision-making, while strategies involve making choices about how to allocate resources and achieve competitive advantage.