#1
Which of the following is NOT a common business expansion strategy?
Downsizing
ExplanationIt involves reducing operations rather than expanding.
#2
What does SWOT analysis stand for in business strategy?
Strengths, Weaknesses, Opportunities, Threats
ExplanationIt assesses internal strengths and weaknesses and external opportunities and threats.
#3
Which of the following is NOT a component of Ansoff's Matrix?
Market Stagnation
ExplanationIt's not a component of Ansoff's model of growth strategies.
#4
What does the acronym 'ROI' stand for in business?
Return on Investment
ExplanationIt measures the profitability of an investment.
#5
Which of the following is a characteristic of a differentiation strategy?
Offering unique features or attributes valued by customers
ExplanationIt emphasizes uniqueness to attract customers.
#6
What is the primary goal of a horizontal integration strategy?
To acquire or merge with competitors in the same industry
ExplanationIt consolidates market share by merging with similar businesses.
#7
Which market entry strategy involves a company indirectly exporting its products to a foreign market via third-party intermediaries?
Indirect Exporting
ExplanationIt utilizes intermediaries rather than direct involvement.
#8
In Porter's Five Forces analysis, which force evaluates the impact of substitute products on a company's profitability?
Threat of Substitutes
ExplanationIt analyzes the threat posed by alternative products.
#9
Which strategy involves reducing the size of a company's operations and assets to improve financial performance?
Downsizing
ExplanationIt's a cost-cutting measure to enhance efficiency.
#10
What does the acronym 'PESTEL' stand for in business analysis?
Political, Economic, Social, Technological, Environmental, Legal
ExplanationIt considers various external factors affecting business.
#11
Which of the following is NOT a factor typically considered in a PESTLE analysis?
Supply chain management
ExplanationIt's not a usual component of PESTLE analysis.
#12
In the context of business strategy, what does the term 'core competency' refer to?
The skills, knowledge, and resources that give a company a competitive advantage
ExplanationIt's what a company does uniquely well compared to its competitors.
#13
What is a 'Blue Ocean Strategy' in business?
Creating uncontested market space and making competition irrelevant
ExplanationIt focuses on innovation to create new demand.
#14
What is 'first-mover advantage' in business strategy?
Being the first company to enter a market and establish a strong competitive position
ExplanationIt leverages being the initial entrant in a market.
#15
What is the primary focus of a cost leadership strategy?
Competing based on price by minimizing costs
ExplanationIt aims to offer the lowest prices in the market.
#16
What is 'strategic positioning' in business strategy?
The process of identifying a unique market niche and establishing a competitive advantage
ExplanationIt's about carving a distinctive place in the market.
#17
What is 'corporate governance' in the context of business strategy?
The framework of rules and practices by which a company is directed and controlled
ExplanationIt defines the structure for managing a company's affairs.