Top 10 Business Strategy Questions with Answers

Business strategy is a critical component of any organization’s success. It encompasses the decisions and actions a company takes to achieve its long-term goals, maintain a competitive advantage, and adapt to a dynamic market environment. To help you navigate the complex world of business strategy, we have compiled a list of the top 10 business strategy questions along with concise answers. These questions cover a broad range of strategic topics, from market positioning to innovation, and are designed to provide valuable insights for both established companies and startups. By exploring these questions and their answers, you can gain a deeper understanding of the principles and practices that drive successful business strategies in today’s ever-evolving global marketplace.

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

Q1. The competitive moves and business approaches a company’s management uses to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives are referred to as:

Select one:
a. Mission statement
b. Vision
c. Competitive advantage
d. Strategy

Q2. The competitive moves and business approaches a company’s management uses to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives are referred to as:

Select one:
a. Mission statement
b. Vision
c. Competitive advantage
d. Strategy

Q3. A company’s strategy evolves over time as a consequence of:

Select one:
a. Changing market conditions and changing customer needs and expectations
b. The need to abandon some strategy features that are no longer working well
c. The need to respond to the actions and competitive moves of rival firms
d. All of the above

Q4. A company’s mission statement typically addresses which of the following?

Select one:
a. Describing “who we are and what we do” 
b. Putting together a story line of why the business will be a moneymaker
c. The approach the company should take to achieve sustainable competitive advantage
d. Discussing the objectives and level of performance the company wants to achieve

Q5. A company can be said to have competitive advantage if:

Select one:
a. It has a different value chain than rivals
b. It has some type of edge over rivals in attracting customers and coping with competitive forces 
c. It earns the largest profit in the industry
d. It has more resource strengths than weaknesses

Q6. Just how strong the competitive pressures are from substitute products depends on:

Select one:
a. Whether the available substitutes are products or services
b. The speed with which buyer needs and expectations are changing
c. Whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes 
d. Whether the producers of substitutes have ample budgets for new product R & D

Q7. The managerial purpose of setting objectives include:

Select one:
a. Converting the strategic vision into specific performance targets
b. Establishing deadlines for achieving performance results
c. Challenging the organization to perform at full potential and deliver the best results
d. All of these

Q8. A company’s business model:

Select one:
a. Explains how it intends to achieve high profit margins
b. Indicates how the strategy will result in achieving the targeted strategic objectives
c. Clarifies how the business will provide customers with value and why the business will generate revenues sufficient to cover costs and produce attractive profits
d. Sets forth the actions it will employ to achieve market leadership

Q9. A company’s resources are competitive assets that are owned or controlled by the company and include:

Select one:
a. Financial resources
b. Tangible resources such as distribution centers and manufacturing equipment
c. Intangible assets such as brand recognition and buyer loyalty
d. All of these

Q10. When a company is good at performing a particular internal activity, it is said to have:

a. A competitive advantage
b. A competence
c. A resource-based strategy
d. Benchmark