Top 10 Business Strategy Questions with Answers

In the dynamic landscape of business, strategic decision-making is paramount for success. The formulation of a robust business strategy requires a thorough understanding of various elements that influence an organization’s direction. This compilation explores the top 10 pivotal business strategy questions and provides insightful answers to guide entrepreneurs, executives, and decision-makers. From market positioning to risk management, these questions delve into crucial aspects that shape an organization’s competitive edge and resilience in an ever-evolving business environment. Navigating these strategic inquiries is essential for crafting effective plans that drive growth, innovation, and sustainable success.

Now, let’s move on to the Top 10 Business Strategy Questions with Answers

Q1. Identifying and assessing a company’s resource strengths and weaknesses and its external opportunities and threats is called:

Select one:
a. Asset/Liability analysis
b. Strategic resource assessment
c. SWOT analysis
d. Company resource mapping

Q2. Which one of the following is NOT one of the 5 generic types of competitive strategy?

Select one:
a. Low-cost provider strategy
b. Broad differentiation strategy
c. Best-cost provider strategy
d. Market share dominator strategy

Q3. Which one of the following increases the competitive pressures associated with the threat of entry?

Select one:
a. When buyers have a high degree of loyalty to the brands and product offerings of existing industry members
b. When buyer demand for the product is growing fairly slowly
c. When newcomers can expect to earn attractive profits
d. When few outsiders have the expertise and resources to overcome entry barriers

Q4. Competitive pressures stemming from the threat of entry are weaker when:

Select one:
a. The nature of the industry entails few scale economies
b. There are more than 3 entry barriers
c. The industry outlook is risky or uncertain
d. None of the above

Q5. A company resource weakness or competitive deficiency:

Select one:
a.Prevents a company from having any distinctive competence
b. Usually stems from having a missing link or links in the industry value chain
c. Causes a company to fall into a lower strategic group than it otherwise could compete
d. All of the above X

Q6. Which of the following is NOT one of the 5 typical sources of competitive pressures?

Select one:
a. The power and influence of industry driving forces
b. The bargaining power of suppliers and seller-supplier collaboration
c. The threat of new entrants into the market
d. The attempts of other companies/industries to win customers over to their substitute products

Q7. The state of competition in an industry is a function of:

Select one:
a. The competitive pressures associated with rivalry among competing sellers to attract customers and their attempt to win
buyers over to their substitute products
b. Competitive pressures associated with the threat of new entrants into the marketplace
c. Competitive pressures associated with the bargaining power of suppliers and customers
d. All of these

Q8. The bargaining leverage of suppliers is greater when:

Select one:
a. Only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes
b. A large number of suppliers exist and when it is easy for industry members to switch to attractive substitutes
c. Industry members incur low costs in switching their purchases from one supplier to another
d. The supplier industry is composed of a large number of relatively small suppliers

Q9. Identifying and appraising a company’s resource strengths and weaknesses and its external opportunities and threats is called:

Select one:
a. Command performance
b. SWOT analysis
c. Asset/Liability analysis
d. Driving forces analysis

Q10. The generic types of competitive strategies include:

Select one:
a. Build market share, maintain market share, and surrender market share
b. Low-cost provider, broad differentiation, focused low-cost, focused differentiation, and best-cost provider
c. Low-cost/Low-price, high quality/high price, medium-cost/medium price
d. Offensive strategies and defensive strategies