Business Strategy Fundamentals Quiz

Which of the following is an example of an unrealistic business objective, according to the material?

• Increasing market share from 10% to 30% in 12 months

• Increasing market share from 10% to 15% in 12 months

• Maintaining current market share

• Reducing costs by 2% in a year

How does the business environment influence business strategy?

• It determines the color of the company logo

• It sets the price of products

• It affects the achievability of objectives and the setting of strategy

• It decides the number of employees to hire

Which of the following is NOT typically a concern of corporate level strategy?

• Setting objectives for overall financial performance

• Deciding on proposed mergers or acquisitions

• Planning daily work schedules for employees

• Allocating resources to different business divisions

Divisional strategy is primarily concerned with:

• Directing the divisions within an organisation to meet overall corporate objectives

• Setting the company’s mission statement

• Recruiting new employees

• Designing product packaging

Tactical decisions are best described as:

• Medium term decisions made by middle managers to achieve objectives stated in a strategic plan

• Long term decisions made by the board of directors

• Short term decisions made by entry-level employees

• Decisions about company branding only

Which of the following statements about tactical decisions is TRUE?

• They are adaptable and can change to adjust to changing market conditions

• They are always fixed and cannot be changed

• They are only made by top-level executives

• They do not affect the achievement of corporate objectives

A company wants to increase its market share by widening distribution channels. This is an example of:

• A tactical decision

• A functional strategy

• A corporate plan

• A mission statement

Which of the following is NOT a component of a SWOT analysis?

• Strengths

• Opportunities

• Finances

• Threats

Why might a business regularly carry out a SWOT analysis, even after developing its initial strategy?

• To reveal changes that could affect future business success and adapt strategy accordingly

• To increase the number of products offered

• To reduce employee salaries

• To comply with government regulations

Which section of the SWOT analysis table would you use to list factors that are beyond the business's control and could negatively impact it?

• Strengths

• Weaknesses

• Opportunities

• Threats