Business Strategy Multiple Choice Questions (MCQ) and Answers pdf for the preparation of academic and competitive examinations.
Are you looking for multiple choice questions (MCQ) to test your knowledge of business strategy? Then you have come to the right place! This article provides a comprehensive list of business strategy MCQs and answers so you can easily test yourself.
What is Business Strategy
Business strategy is a term that is often thrown around in the corporate world, but what does it really mean? Simply put, a business strategy outlines how a company plans to achieve its goals and objectives. It involves analyzing the market, identifying opportunities and risks, and making decisions on how to allocate resources effectively.
A strong business strategy takes into account both internal factors such as strengths and weaknesses, as well as external factors like competition and market trends. It involves setting clear priorities and establishing a roadmap for success. A successful strategy should also be adaptable to changing circumstances and able to evolve over time.
Business Strategy Multiple Choice Questions and Answers
1. ___ is a general set of directions for the organization to achieve a desirable state in the future.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Strategy[/expand]
2. The three types of strategies adopted by an organization are ___, ___, and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Functional strategy, Business Strategy and Corporate Strategy[/expand]
3. Broad Vision and Dynamism are essential features of a business strategy. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
4. ___ of the organization can be defined as the reason for the existence of the organization and is an insight into the future.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Vision[/expand]
5. Objectives of an organization are close-ended and quantifiable. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
6. Two examples of external variables, which influence business policy are ___ and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Political or governmental policies, International environment, Economic forces (Any two)[/expand]
7. A well-defined strategy allows the organization to function with clockwork precision. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
8. The Business Strategy of an organization should be ironclad and opaque. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
9. ___ defines the products of the firm, the geographical area of its market, and the activities undertaken to establish the product.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Scope[/expand]
10. ___ refers to the expertise gained by a person through experience or education.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Knowledge[/expand]
11. ___ helps to connect the goals and scope of the organization with a competitive advantage so as to leverage its competitive advantage.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Logic[/expand]
12. If the strategy of the organization is inadequate, it will lead to a ___ vision of the organization.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Muddled[/expand]
13. ___ is broad-based and seeks to create an image of the company, basis its core values.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Mission[/expand]
14. The vision of the organization combines 3 basic elements of ___, ___, and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Organisation’s reason for existence, core values, and the huge but achievable goals which the organization has set itself in the future.[/expand]
15. The achievement of ___ indicates that the organization is preceding along the right course of growth.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Goals[/expand]
16. The relationship between a business firm and its environment is one of the ___ benefits.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Mutual benefit[/expand]
17. Business Policies are influenced by ___ sets of factors.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Two sets[/expand]
18. List out the various interest groups surrounding the business of a firm.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Suppliers, customers, and competitors[/expand]
19. A strategy is thought-oriented. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
20. A policy is action-oriented. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
21. Strategy is developed to mobilize the available resources in the best interest of the organization. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
22. Strategies and policies are directed toward achieving the objectives of an organization. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
23. The advantages derived by implementing Strategic management principles are broadly classified as ___ and ___ benefits.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Financial & non-financial[/expand]
24. The decisions are taken and policies implemented are ___ to see their effects.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: constantly evaluated[/expand]
25. One of the main reasons for having a vision is the motivational effect it is supposed to produce on the workforce. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
26. He should be able to adjust actions and decision-making to focus on critical initiatives and issues. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
27. A good vision is realistic only and not idealistic. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False (both idealistic and realistic)[/expand]
28. What is meant by the ‘strategic triangle’?
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Strategic triangle is the name given to the 3 important entities to be considered while formulating an effective strategy. They are – Company, Customer, and the Competitor.[/expand]
29. Strategy is always action-oriented. (State True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
30. The strategic management process is a continuous process (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
31. Strategic analysis is a part and parcel of the ___ process of organisations.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Knowledge creation[/expand]
32. What is the basic problem in many organisations?
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: The basic problem is that those who have the knowledge do not have the power and those who have the power do not have the knowledge.[/expand]
33. The purpose of carrying out a strategic analysis of policy is ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: evaluates the impact of its actions in its operating environment.[/expand]
34. ___ is known as the modern management Guru.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Peter F Drucker[/expand]
35. C K Prahlada is an eminent thinker from ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: India[/expand]
36. What is the difference between efficiency and effectiveness?
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Efficiency – doing things right and effectiveness – doing the right things[/expand]
37. Strategic analysis for policy basically deals with ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: analyzing the external environment[/expand]
38. List out the 3 processes involved in strategic management.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: The 3 stages are – strategy formulation, implementation, and evaluation.[/expand]
39. The strategies should be prioritized based on the seriousness of underlying issues. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
40. Both management and employees are involved in strategy evaluation (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
41. ___ is defined as a general set of directions for the corporate to achieve a desirable state in the future.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Business strategy[/expand]
42. SWOT analysis refers to the analysis of the organization’s ___.
a) Strength, Weakness, Opportunities, Threats
b) Skills, Weakness, Opportunities, Threats
c) Strength, Workload, Opportunities, Threats
d) Strength, Weakness, Opportunities, Thrusts
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: (a) Strength, Weaknesses, Opportunities, Threats[/expand]
43. The 3 strategies advocated by Porter for the business unit level are ___, ___, and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Cost leadership strategy, Differentiation strategy, and Focused strategy[/expand]
44. The new types of organizational structures are ___, ___, and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Virtual corporations, team organizations, and boundaryless organizations.[/expand]
45. ___ of any organization refers to the systematic process, which enables the transformation of inputs into finished products or services.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Operations[/expand]
46. The two types of global strategies pursued by multinational corporations ___ and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Multi-domestic strategy and Global Strategy[/expand]
47. ___ is the systematic process of choosing the most relevant course of action for achieving the corporate objectives of the company.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Strategy formulation[/expand]
48. A ___ provides clarity on the objectives of the company.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Vision statement[/expand]
49. ___ outline the methods to be adopted for fulfilling the objectives set in the vision statement.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Mission statement[/expand]
50. The process of making the employees understand the strategic direction of the company is called __.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Organizational alignment[/expand]
51. ___ has been defined as “The collective learning and coordination skills behind the firm’s product lines”.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Core competency[/expand]
52. Core competencies do not help in the value creation or value addition of the product. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
53. The core competence of Sony is ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Miniature electronics[/expand]
54. Core competencies should be difficult for competitors to imitate or duplicate. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
55. The term “Core Competency” has its origin in an article titled ___, written by C K Prahalad and Gary Hamel for the Harvard Business Review in 1990.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: “The Core Competence of the Corporation”[/expand]
56. On what does the success or failure of a business depend?
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Skill, energy, and business acumen[/expand]
57. What should be the characteristic features of a member of the Top Management Team?
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Business acumen, sound technical knowledge common-sense[/expand]
58. ___ is the medium through which the Management can expect to achieve its goals over a period of time.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Business policy[/expand]
59. What will happen to a business in the absence of a clear and sound business policy?
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Impossible to handle various issues relating to the business[/expand]
60. Mention the 4 environment categories in which a business mostly operates.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Political, Economic, Social, and Technological[/expand]
61. ___ can be defined as the process of exerting influence on others, especially peers and subordinates, in order to accomplish the common goals of the organization.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Leadership[/expand]
62. Leadership has to be effective on ___, ___, and ___ levels.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Team, Operational and Strategic levels[/expand]
63. The strategic leader motivates collectivism and maintains the balance between conflicting ideas. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
64. A good leader acts as ___ for his subordinates.
a) Mentee b) Mentor
c) Friend
d) Spiritual adviser
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: (b) Mentor[/expand]
65. A strategic leader needs to control every activity within the organization and not delegate any work to his subordinates. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
66. Good leaders are loyal to their organization and subordinates. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
67. Strategic leaders have a need to be motivated constantly. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
68. An effective leader has average intelligence and is emotional. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
69. A good leader keeps everything confidential and does not open up easily to others. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
70. A strategic leader confines himself in his field of operations and does not possess knowledge about other areas. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: False[/expand]
71. According to James Burns, leadership can be classified into ___ and ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Transactional and Transformational leadership[/expand]
72. The ability of transformational leaders to attract peers and sub-ordinates by commanding their attention is due to their personal ___.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Charisma[/expand]
73. Transactional leaders are good at short-term planning. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
74. ___ approach is practical, goal-oriented, and positive in nature.
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: Pragmatic approach[/expand]
75. The strategic leader increases the awareness of strategic planning within the managerial level and grooms future leaders. (True or False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
76. Strategy allows an organization to exert control over its own destiny. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
77. Strategy is an action that managers take to attain one or more of the organization’s goals. (True / False)
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: True[/expand]
78. Which of the following is concerned with assisting corporate and business strategies?
a. Business Management
b. Corporate Management
c. Sales Management
d. Strategic Management
[expand title=”Show Answer” swaptitle=”Hide Answer”]Answer: d. Strategic management[/expand]
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Conclusion
The Business Strategy Multiple Choice Questions and Answers pdf provides a comprehensive resource for individuals who want to understand the complex concepts related to business strategy.
It is an invaluable asset for anyone looking to develop their understanding of business strategy in order to create and implement successful strategies of their own.
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