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