A Level - Business Strategy (1)

What is the primary purpose of a business strategy?

• To manage day-to-day tasks

• To set long-term direction and achieve objectives

• To supervise employees’ performance

• To record financial transactions

Which of the following is NOT a feature of a business strategy?

• Long-term planning

• Focus on competitive advantage

• Concern with everyday routine decisions

• Alignment with business objectives

Why is strategy important for businesses?

• It guarantees profits in the short term

• It helps businesses respond to changes in their environment

• It prevents competitors from entering the market

• It reduces the need for employee training

Which of the following is a business strength?

• Weak brand image

• Loyal customer base

• High employee turnover

• Low-quality products

Resources in business strategy include:

• Only financial capital

• Tangible and intangible assets available to the business

• Market competitors

• Government tax policies

Which of the following best describes the competitive environment?

• External factors that affect supply chain only

• Rival firms and industry conditions influencing competition

• Internal management structures

• The social activities of employees

A firm with unique technology has a competitive advantage because:

• It pays lower taxes

• It controls a valuable and hard-to-imitate resource

• Its staff work longer hours

• It advertises more than competitors

Which factor would most likely increase competitive pressure?

• Rising demand in the market

• High barriers to entry

• Many substitute products available

• Strong customer loyalty

Which of the following is a SMART objective?

• "Increase sales someday"

• "Become the best company in the world"

• "Grow revenue by 10% within 12 months"

• "Hire more staff soon"

What does the "R" in SMART objectives stand for?

• Reliable

• Relevant

• Reasonable

• Repeated