Question 1

A strategy sets out the objectives of the business

Accepted Answer

False

Question 2

A strategy is a short term plan

Accepted Answer

A strategy is a long-term plan designed to achieve a particular goal, as opposed to short-term tactics or immediate actions.

Question 3

Which of the following is not a feature of a strategy?&#10;A) High risk&#10;B) Easy to reverse&#10;C) Long term&#10;D) Made by senior managers&#10;

Accepted Answer

A strategy typically refers to a high-level plan designed to achieve one or more goals under conditions of uncertainty. It often involves setting priorities, focusing energy and resources, and ensuring that stakeholders are working toward common goals. Here's a breakdown of the features mentioned in the question:
a. High risk: While some strategies may involve high risk, it is not a defining feature of all strategies. Strategies can range from very conservative to very aggressive, depending on the goals and the risk tolerance of the organization.
b. Easy to reverse: This is generally not a feature of a strategy. Strategies are often long-term plans that involve a significant commitment of resources and time. They are usually not easy to reverse because they can involve complex changes in direction, investments, and may have long-term implications for an organization.
c. Long term: This is a typical feature of a strategy. Strategies are often designed with a long-term perspective in mind, aiming to achieve sustainable competitive advantage and long-term success.
d. Made by senior managers: While senior managers are often involved in the creation and approval of strategies, they are not the only ones who contribute to the strategic planning process. Input can come from various levels within an organization, and successful strategies often involve collaboration and buy-in from multiple stakeholders.
Based on the above, the answer to the question "Which of the following is not a feature of a strategy?" is:
b. Easy to reverse
Strategies are generally not designed to be easily reversible; they are meant to set a direction for the long term and involve careful planning and commitment.

Question 4

A diversification strategy involves&#10;A) An existing product in an existing market&#10;B) An existing product in a new market&#10;C) A new product in an existing market&#10;D) A new product in a new market

Accepted Answer

Diversification strategy involves introducing a new product into a new market, expanding a company's reach and risk by stepping out of its existing products and markets.

Question 5

A market development strategy involves&#10;A) An existing product in an existing market&#10;B) An existing product in a new market&#10;C) A new product in an existing market&#10;D) A new product in a new market

Accepted Answer

The answer of A market development strategy involves&#10;A) An existing...

Question 6

A market penetration strategy involves&#10;A) An existing product in an existing market&#10;B) An existing product in a new market&#10;C) A new product in an existing market&#10;D) A new product in a new market

Accepted Answer

A market penetration strategy focuses on increasing sales of an existing product in an existing market, often by competing more effectively or appealing to a larger segment of the market.

Question 7

In Porter's model, higher buyer power is likely to increase profits of established businesses

Accepted Answer

Higher buyer power typically means that buyers have more leverage to negotiate lower prices or better terms, which can reduce the profits of established businesses.

Question 8

In Porter's model, higher supplier power is likely to reduce profits of established businesses

Accepted Answer

Higher supplier power means suppliers can demand higher prices for their inputs, which can increase costs for businesses. This can reduce the profit margins of established businesses if they are unable to pass these costs onto their customers.

Question 9

In Porter's model a higher entry threat is likely to reduce profits of established businesses

Accepted Answer

In Porter's Five Forces model, a higher threat of new entrants means more competition, which typically leads to reduced profits for established businesses as they may have to lower prices or increase costs to maintain market share.

Question 10

PESTEL analysis stands for Political, Endemic, Social, Threats, Economic and Legal factors

Accepted Answer

PESTEL analysis stands for Political, Economic, Social, Technological, Environmental, and Legal factors.

Question 11

An emergent strategy is what happens, a planned strategy is what was intended

Accepted Answer

The answer of An emergent strategy is what happens, a...

Deck 9: Strategic Planning and the Economy