MCQS Business Policy and Strategy
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1-What are a company’s values?
A) Moral beliefs and principles that guide its behavior and decision-making
B) Ethical beliefs and principles that guide its behavior and decision-making
C) Core beliefs and principles that guide its behavior and decision-making
D) Fundamental beliefs and principles that guide its behavior and decision-making
Answer: (C) Core beliefs and principles that guide its behavior and decision-making
2-What is the environment?
A) The internal and external factors that can impact a company’s operations and performance
B) The context in which a company operates
C) The background of a company
D) The surroundings of a company
Answer: (A) The internal and external factors that can impact a company’s operations and performance
3-What is a cost leadership strategy?
A) A strategy in which a company differentiates itself from its competitors by offering unique and valuable products or services
B) A strategy in which a company tries to be the low-cost provider in its industry
C) A strategy in which a company focuses on a specific market or customer segment
D) A strategy in which a company seeks to establish a unique position in a market or industry
Answer: (B) A strategy in which a company tries to be the low-cost provider
4-What is the first step in the formulation of business policy and strategy?
A). Analysis of the external environment
B). Analysis of the internal environment
C). Selection of goals and objectives
D). Development of action plans
Ans: (B) Analysis of the internal environment
5-What is the primary focus of corporate-level strategy?
A.) Allocation of resources among business units
B). Development of new products
C.) Diversification into new markets
D.) Cost reduction in existing business units
Ans A. Allocation of resources among business units
6- Which of the following is NOT a commonly used generic business-level strategy?
B). Differentiation
C.) Market development
D.) Diversification
Ans (C) Market development
7- What is the primary objective of a cost leadership strategy?
A). To achieve the lowest cost structure in an industry
B). To achieve superior quality compared to competitors
C). To achieve a unique market position
D). To achieve a strong market position through diversification
Ans: (A) To achieve the lowest cost structure in an industry
8- A differentiation strategy requires a firm to:
A). Offer unique and valuable products
B). Offer products that are similar to competitors at a lower price
C). Offer products that are similar to competitors at a higher price
D). Offer products that are similar to competitors at the same price
Ans: ( A) Offer unique and valuable products
9-What is the objective of a focused (niche) strategy?
A). To achieve a strong market position in a narrow market segment
B). To achieve a broad market position
C). To achieve a strong market position through diversification
D). To achieve a low-cost structure in an industry
Ans: ( A) To achieve a strong market position in a narrow market segment
10-What is the primary focus of a diversification strategy?
A. Entering new industries with different products and markets
B. Developing new products for existing markets
C. Improving efficiency in existing business units
D. Allocating resources among business units
Ans: (A) Entering new industries with different products and markets
1– Business policy refers to the overall plan of action that guides the decision-making and actions of a company and sets its ———— and outlines the methods by which it will achieve these objectives.
a. plans
b. strategies
c. objectives
d. targets
Answer: (C) Objectives
2- A company’s ———— is a statement that defines its purpose and the customers it serves.
a. vision statement
b. mission statement
c. value statement
d. target statement
Answer: (B) Mission statement
3- A company’s ————— is a brief statement that reflects its aspirations and the future it envisions for itself.
a. goal statement
b. vision statement
c. mission statement
d. target statement
Answer: (B) Vision statement
4- SWOT analysis stands for __________, Weaknesses, Opportunities, and Threats.
a. Strengths, Weaknesses, Opportunities, and Trends
b. Skills, Weaknesses, Opportunities, and Threats
c. Strengths, Weaknesses, Opportunities, and Threats
d. Successes, Weaknesses, Opportunities, and Trends
Answer: C) Strengths, Weaknesses, Opportunities, and Threats
5- Business-level strategy refers to the actions a company takes to achieve its objectives in a specific __________.
a. market
b. industry
c. sector
d. field
Answer: (B) Industry
6- Corporate-level strategy deals with the overall scope of a company’s operations, including the management of its multiple __________.
a. departments
b. divisions
c. businesses
d. units
Answer: (C) Businesses
7- The process of crafting and implementing business policies and strategies is known as __________ management.
a. strategic
b. tactical
c. operational
d. financial
Answer: (A) Strategic
8– A company’s values are its —————- beliefs and principles that guide its behavior and decision-making.
a. moral
b. ethical
c. core
d. fundamental
Answer: (C) Core
9- ———- refers to the internal and external factors that can impact a company’s operations and performance.
a. Environment
c. Context
c. Background
d. Surroundings
Answer: (B) Cost leadership
10- A —————– strategy is one in which a company differentiates itself from its competitors by offering unique and valuable products or services.
a. cost leadership
b. differentiation
c. focus
d. niche
Answer: (B) Differentiation
| A | B |
| 1. SWOT analysis | A. A tool used to analyze a company’s competitive environment |
| 2. Porter’s Five Forces | B. A framework for analyzing a company’s resources and capabilities |
| 3. Concentric diversification | C. Strategy of entering a new industry related to a company’s current business |
| 4. Strategic management process | D. A series of steps used to develop and implement a company’s strategy |
| 5. BCG matrix | E. A portfolio analysis tool used to evaluate a company’s product line |
| 6. Cost leadership | F. Strategy of achieving competitive advantage by being the lowest-cost producer in an industry |
| 7. Differentiation | G. Strategy of achieving competitive advantage by offering unique or superior value to customers |
| 8. Corporate-level strategy | H. Strategy that focuses on the overall scope and direction of a company |
| 9. Functional-level strategy | I. Strategy that focuses on how to implement a company’s overall strategy |
| 10. Vertical integration | J. Strategy of expanding a company’s operations either backward or forward in the industry value chain |
About Business Policy and Strategy
Business Policy and Strategy is a field of study that focuses on how organizations formulate and implement strategies to achieve their goals. It involves understanding the external environment in which a company operates, as well as the company’s internal resources and capabilities. Business Policy and Strategy is an interdisciplinary field that draws upon a variety of other disciplines, including economics, management, psychology, and sociology, among others.
The study of Business Policy and Strategy is important because it helps organizations to achieve their goals, whether those goals are to increase profits, gain market share, or create social impact. By understanding the external environment and the internal capabilities of a company, managers can develop and implement effective strategies to achieve those goals. Business Policy and Strategy also involve evaluating the effectiveness of a company’s current strategies and making adjustments as necessary to ensure continued success.
Some of the key concepts and frameworks used in Business Policy and Strategy include SWOT analysis, Porter’s Five Forces, the BCG matrix, corporate-level strategy, and functional-level strategy. Business Policy and Strategy is a constantly evolving field, as new technologies and market forces emerge and organizations seek to adapt to changing circumstances.
