ITPEC FE Business Strategy Management Questions with Answers

Business Strategy Management

51 questions · Fundamental Engineering

Apr 2026 · Question 49

Company A (a software company) acquires Company B (a data analytics company). After the acquisition, the resulting company implements the following:

•Cross-sells Company A’s software tools to company B’s customers to boost revenue.
•Integrates Company B’s algorithms into Company A’s products to enhance functionality.
•Cuts redundant office leases to save $3 million annually.

Which of the following is the phenomenon that creates greater value than the sum of what each company could have achieved independently?

a)Horizontal integrationb)Market penetrationc)Synergy effectd)Vertical integration

Apr 2026 · Question 50

A company expands into new markets by allowing independent business owners to operate under its brand name and quality standards including store management obligations. These local business owners pay royalties for using the brand name and getting business support from the company while investing in and managing their own stores. From a marketing strategy perspective, which of the following describes this arrangement?

a)Direct distributionb)Franchisingc)Licensingd)Wholesaling

Apr 2026 · Question 51

Which of the following is an example of the strategic target and key performance indicator from the viewpoint of internal business processes in a Balanced Scorecard (BSC)?

a)Since establishing a continuing relationship with the main customers is the target, the number of complaints is the indicator.b)Since improvement in manufacturing productivity of the product is the target, a reduction in the number of days in manufacturing is the indicator.c)Since improvement in product development capability is the target, time for classroom training on product development areas is the indicator.d)Since sustainable growth is the target, backlog of orders is the indicator.

Oct 2025 · Question 49

Which of the following is an explanation of benchmarking that is used for corporate management?

a)It refers to a qualitative and quantitative understanding of a company’s own products, services, and operations through comparison with those of competitors or advanced companies.b)It refers to drastically reforming the quality and structure of a company by redesigning its business processes from a customer viewpoint and by taking full advantage of information technology.c)It refers to the ability to plan and manage the allocation of company-wide management resources in an effective and integrated manner in order to improve management efficiency.d)It refers to the concentration of management resources on the unique skills and technologies of a company that can generate profit and that are superior to those of other companies.

Oct 2025 · Question 50

Which of the following is an explanation of relationship marketing?

a)It is a marketing technique of setting a time limit for a short period, ranging from a few hours to a few days, and selling products on the Internet only during that period.b)It is a marketing technique of using the GPS function of a smartphone to send advertisements from stores near the current location.c)It is a marketing technique that aims at a diversified approach to consumers by using several media such as television, newspapers, and magazines.d)It is a marketing technique that aims to acquire stable sales over a long period of time from each customer by maintaining a good connection with the customer.

Oct 2025 · Question 51

Which of the following is an explanation of ERP?

a)It is a method or concept by which wholesalers and manufacturers expand their business transactions with retail stores by supporting the business activities of retail stores.b)It is a method or concept for performing business transactions with consumers or between companies through the use of electronic networks such as the Internet.c)It is a method or concept that aims to drastically increase sales, profit, and customer satisfaction by improving the efficiency and quality of sales through the use of IT in sales activities.d)It is a method or concept that aims to improve management efficiency by planning and controlling the management resources of an entire company in an effective and comprehensive manner.

Apr 2025 · Question 50

Which of the following is a characteristic of the growth stage in a product life cycle?

a)Demand decreases, and the withdrawal of some companies is observed. A decision needs to be made regarding whether it is possible to gain a strong foothold at this stage. Migration into an alternative market is also considered.b)Demand is occasional, and exploiting new demand is key to success. Conviction for succeeding in a specific target market is necessary.c)Demand reaches a peak, and the differentiation of the product and segmentation of the market become clear. The competition between competitors also intensifies, and it becomes important to add new product types and reduce costs.d)The market starts to understand the value of the product. Both the product line and distribution channels need to be expanded. This stage sees an increase in sales and also requires investment.

Apr 2025 · Question 51

Which of the following is a description of cost-plus pricing?

a)It determines a competitive price by referring to the industry average and the pricing of competitors.b)It determines a price by adding a certain margin to the manufacturing cost and the purchasing cost.c)It determines a price that ensures a certain profit margin after all costs are covered on the basis of a target volume of sales.d)It determines an appealing price by researching the quality and price that customers accept.

Apr 2025 · Question 52

Which of the following is an explanation of Supply Chain Management (SCM)?

a)Customer information that are collected through various channels is consolidated and utilized to establish closer relationships with customers.b)Employees’ skills and behavior characteristics are grasped, and management such as appropriate personnel assignment and evaluation from the perspective of human resources strategy is performed.c)Intellectual assets of individuals, such as know-how and experience, are shared across the organization to be used for creative work.d)The entire series of business operations, from purchasing and production to sales and distribution, is reexamined both within the company and among companies in view of total optimization in order to shorten delivery times and minimize inventory.

Oct 2024 · Question 50

In innovation theory, consumers are classified into five (5) groups innovators, early adopters, early majority, late majority, and laggards according to the timing of their purchase of a new product. Which of the following is the appropriate explanation of the early adopters?

a)A group that accepts a new product, service, or other such offering at an early phase, has a large impact on consumers, is sensitive to trends, and makes decisions after collecting information themselvesb)A group that accepts a new product, service, or other such offering at the soonest phase without worrying about risksc)A group that is skeptical about the adoption of a new product or new technology and only adopts it after seeing it being adopted by most people around themd)A group that is the most conservative, has limited interest in movements in society and tends to adopt new trends only after they become common or, in some cases, remains firm in refusing their adoption

Oct 2024 · Question 51

Which of the following is a definition of Customer Relationship Management (CRM)?

a)A framework used to support and integrate processes, people, and information across an organization to provide a unified gateway for information and a knowledge base for employees, partners, and customersb)A technology for managing all of a company’s relationships and interactions with customers and potential customers in order to improve business relationshipsc)A type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operationsd)The broad range of activities required to plan, control, and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible

Apr 2024 · Question 47

Which of the following is a description of knowledge management?

a)Conduct business by a flat organizational structure that has as few hierarchical levels as possible for quick decision making.b)Conduct business by utilizing its core strength in know-how and technology that are unique to the company and cannot be imitated by others.c)Conduct business that enhances overall capabilities to solve problems by sharing knowledge that is scattered throughout the company.d)Implement management innovation in the company on the basis of a comparative analysis with companies that have achieved superior performance.

Apr 2024 · Question 49

Which of the following is a strategy that concentrates resources in the segment of a specific customer or specific product in order to achieve specialization?

a)Challenger strategyb)Follower strategyc)Leader strategyd)Niche strategy

Apr 2024 · Question 50

Which of the following is an explanation of core competence that is adopted in business administration?

a)It refers to a qualitative and quantitative understanding of its products, services, and operations through comparisons with the strongest competitor or advanced companies.b)It refers to dramatical improvements in the costs, quality, service, and speed of a company by fundamentally reviewing and radically redesigning its business processes.c)It refers to the company’s unique skills, technologies, and other strenghts that are superior to other companies, which serve as a source of competitive advantage.d)It refers to the management of the allocation of company-wide management resources in an effective and integrated manner so as to achieve an improvement in management efficiency.

Apr 2024 · Question 51

Which of the following is an appropriate explanation of telemarketing?

a)It refers to direct marketing that includes calling people at home and asking for donations, opinions, or purchases.b)It refers to direct marketing that sells products and services and builds customer relationships over the Internet.c)It refers to direct marketing that sends offers, announcements, reminders, or other items to a person at a particular address.d)It refers to direct marketing that sends sales alerts, links to website updates, appointments, or delivery reminders to large groups of people.

Oct 2023 · Question 66

A company has products that are at the peak of profitability and sales. As a result, many competitors develop similar products to the market. Therefore, a company must develop new products to meet new demands and market opportunities. Which of the following is a state of such events in the product life cycle?

a)Decline stageb)Growth stagec)Introduction staged)Maturity stage

Oct 2023 · Question 68

Which of the following is a business management technique that is used to develop specific targets and measures to implement a planned strategy, in consideration of the appropriate mutual relationships among four perspectives (i.e., financial, customer, business process, and learning and growth)?

a)Balanced scorecardb)Growth matrixc)Product portfolio managementd)SWOT analysis

Oct 2023 · Question 69

Which of the following is the purpose of SCM?

a)To construct favorable customer relationships through unified management, including customer information, purchasing history, and complaints, and also through meticulous customer responseb)To improve management efficiency through integrated management of all information concerning core business operations such as production, sales, inventory, and accountingc)To improve the efficiency of sales activity through unified management of customer information, business meeting schedules, and business meeting status including progress statusd)To reduce costs and shorten delivery periods through integrated management of information across multiple companies or organizations from procurement to sales

Apr 2023 · Question 67

Which of the following is a characteristic of the maturity stage in the product life cycle?

a)Demand decreases and some companies start withdrawing. A company determines whether it can be a strong player in this stage and considers advancing into alternative markets.b)Demand grows, and the product differentiation and segmentation of the market become evident. Competition intensifies, and it becomes important to add new models and reduce cost.c)Demand is partial, and cultivation of new demand is the key to success or failure. It is necessary to persuade specific targets with conviction.d)The market begins to understand the value of a product. Both the product line and the channel must be expanded. Sales increase, but investment is also needed in this stage.

Apr 2023 · Question 68

Which of the following is mostly tacit knowledge?

a)A list of countries and their capitalsb)An inventory of assetsc)Contents of a washing machine manuald)How to ride a bicycle

Oct 2022 · Question 66

In a growth matrix proposed by Ansoff, which of the following is a strategy for expanding a business with an existing product in an existing market?

a)Diversificationb)Market developmentc)Market penetrationd)Product development

Oct 2022 · Question 67

PEST analysis is used to analyze the external environment in determining a business strategy. Which of the following is an appropriate set of external environmental factors that PEST analysis analyzes?

a)Politics, Economics, Society, Technologyb)Politics, Enterprises, Society, Timec)Price, Economics, Satisfaction, Technologyd)Price, Enterprises, Safety, Time

Apr 2022 · Question 65

Which of the following is an explanation of the core competence?

a)Corporate activities that comply with laws, various regulations, and social norms for managing businessb)The business domain decided from the viewpoint of the market, technology, and products (or services)c)The overall business and system optimization methods for achieving the purpose of organizational activitiesd)The predominant abilities in the company’s business area, which competitors cannot imitate

Apr 2022 · Question 66

Companies are classified on the basis of their competitive position in the market. There are typically four types: leader, challenger, follower, and nicher. Which of the following is the most appropriate characteristic of a leader’s strategy?

a)Applying a differentiation strategy to all aspects of products, services, advertising, price and distribution channels or indirectly attacking the competitor’s weaknesses or the gaps in the competitor’s market coverageb)Capturing a specific market that high-ranking companies do not target and concentrating management resources in order to secure and maintain predominance in the marketc)Determining the challenger company’s real ability in the market and prioritize securing stable profits over expanding the market share by doing as the leader company doesd)Proposing a new product and its usage method to consumers in order to increase the total demand while maintaining or expanding the market share

Apr 2022 · Question 67

Which of the following is an explanation of the introduction stage of the product life cycle?

a)It is the stage at which companies sell products to early adopters. Companies adopt strategies to enhance product recognition.b)It is the stage at which growth in demand slows. Companies try to maintain their market share and secure profits through various means, such as improving product quality.c)It is the stage at which sales and profit gradually decline. Companies refrain from making additional investments and consider withdrawing from the market.d)It is the stage at which sales increase rapidly. The market becomes active and competition intensifies because of new market participants.

Apr 2022 · Question 68

Which of the following is the purpose of CRM?

a)Acquisition of customer loyalty and maximization of customer lifetime valueb)Ascertainment of the sales information for each product at the time of salesc)Determination of the order quantity and order timing of material requirred for manufacturingd)Reduction in loss of sales opportunities due to inventory shortage

Apr 2021 · Question 61

Which of the following is an explanation of CRM?

a)It is a business approach for significantly improving the efficiency of the entire supply chain through the real time exchange of information regarding production, inventory, procurement, sales, distribution, etc.b)It is a concept to optimize customer loyalty by sharing information throughout all customer channels within a company and improving customer satisfaction by raising the level of service.c)It is a method for improving business efficiency by planning and managing business resources throughout the company effectively and comprehensively.d)It is a method for wholesale dealers or manufacturers to increase business transactions with retail stores by supporting their business activities, and increasing their sales and profits.

Apr 2021 · Question 66

Which of the following is an explanation of core competence?

a)The basic mindset and action guidelines behind management activitiesb)The business opportunities and threats in the environment around a companyc)The management resources that form the source of competitive advantage over other companiesd)The objectives to be achieved through the execution of a business strategy

Apr 2021 · Question 67

In a product life cycle, which of the following is a stage where the withdrawal of some companies is observed when the demand peaks, and decision-making is necessary to determine whether it is possible to gain a strong foothold?

a)Decline stageb)Growth stagec)Introduction staged)Maturity stage

Apr 2021 · Question 68

When an IT vendor uses a “Balanced Scorecard” to promote a solution business, which of the following is an example of the learning and growth KPI goal? Here, “solution” means “to support a customer through information technology and professional services that are offered by experts so that the customer can achieve its management objectives.”

a)To increase the number of customer proposals by a factor of 1.5 over that of the previous year by preparing an environment for reusing proposals to augment the number of registered solution casesb)To increase the sales volume in the consulting business for information strategy planning and system planning for it to account for 15% or more of the total sales of the companyc)To set an average satisfaction score of 3.5 out of five (5) or more in a satisfaction survey of customers for whom a service is offeredd)To train 30 employees as IT professionals in order to focus on the consulting services in the information strategy

Oct 2021 · Question 66

Which of the following is a technique that is used to identify and evaluate the internal and external factors that are helpful or harmful to the objectives of business organizations or projects?

a)Five forces analysisb)PPM analysisc)SWOT analysisd)Value chain analysis

Oct 2021 · Question 67

The sales prices of products are decided according to different sales price setting methods. Which of the following approaches sets a high sales price by using the consumer psychology that high quality equals to high price?

a)Cost plus pricingb)Differential pricingc)Marketing price following pricingd)Prestige pricing

Oct 2021 · Question 68

Company T sells three (3) products: A, B, and C. Currently, products A, B, and C have 10,000, 20,000, and 80,000 purchasers every month, respectively. There is a plan to change the product line and sell four (4) new products, P, Q, R, and S, from next year. Accordingly, a trial calculation was made on the proportion of existing customers that will purchase the new products and the number of new customers. Which of the following is an appropriate conclusion from the trial calculation? Here, numerical values up to one (1) decimal point in each line of the table below represent the proportion of people who will change to the new product from the corresponding old product.

a)Among the purchasers of product A, 1,000 people are estimated to purchase the new product Q.b)Of the prospective purchasers of the new product P, 50% are estimated to be purchasers of product A.c)The number of new customers of the new product S are estimated to be fewer than the number of people who will purchase the new product S among the purchasers of product C.d)The purchasers of product B are estimated to purchase any one (1) of the new products P, Q, R, and S.

Oct 2021 · Question 70

Among the different business systems supported by technology, which of the following analyzes routes of distribution, tracking and load tendency?

a)LMSb)OMSc)TMSd)WMS

Apr 2020 · Question 67

In a growth matrix proposed by Ansoff, which of the following is a strategy for an organization that tries to expand a business by introducing new products into new markets?

a)Diversificationb)Market developmentc)Market penetrationd)Product development

Apr 2020 · Question 68

Which of the following is an external factor related to company’s products, identified by SWOT analysis?

a)Strengths in product functionsb)Strengths in sales powerc)Threats by new entrantsd)Weaknesses in product quality

Apr 2020 · Question 69

Heskett classified customers into four categories and explained the importance of improving customer satisfaction. Which of the following types of customers is dissatisfied and, if given a chance, would encourage others to switch as well?

a)Captiveb)Mercenaryc)Propagandistd)Terrorist

Oct 2020 · Question 66

According to the “competitive strategy” proposed by Philip Kotler, which of the following describes a company that has no high market share but utilizes quantitatively large management resources?

a)Market challengerb)Market followerc)Market leaderd)Market nicher

Oct 2020 · Question 69

Which of the following is appropriate as a description of Customer Relationship Management (CRM) software?

a)It mainly provides online tools for sales, customer service, and marketing.b)It mainly provides partner relationship management.c)It only supports direct-marketing campaigns.d)It provides information and tools to make call center, help desk, and customer support staff more efficient mainly by phone.

Oct 2019 · Question 62

Which of the following is an explanation of SCM (Supply Chain Management)?

a)Customer information collected through various channels is consolidated and utilized to establish closer relationships with customers.b)Employees’ skills and behavioral characteristics are managed for appropriate personnel assignment and evaluation from the perspective of human resources strategy.c)Intellectual assets of individuals, such as know-how and experience, are shared as inspiration for creative work.d)The sequence of business operations, from purchasing and production to sales and distribution, is reexamined across companies in view of total optimization, so as to minimize inventory and accelerate delivery.

Oct 2019 · Question 68

Which of the following is an external factor concerning an in-house product identified using SWOT analysis?

a)Cost competitivenessb)Functional strengthsc)Quality-related weaknessesd)Threats owing to a new entry

Oct 2019 · Question 69

According to the “competitive strategy” proposed by Philip Kotler, which of the following describes a company that has no high market share, but has the strategic aim to increase income and acquire a unique position by focusing management resources on particular products and services?

a)Market challengerb)Market followerc)Market leaderd)Market nicher

Oct 2019 · Question 70

Which of the following is a technique for separating company activities into core activities and support activities for each business function, and analyzing which activities generate the profit derived from the products and services provided to customers?

a)3C analysisb)Five forces analysisc)SWOT analysisd)Value chain analysis

Oct 2019 · Question 71

Which of the following is an explanation of knowledge management?

a)A flat organization structure with minimal hierarchical layers is maintained to accelerate decision-making.b)Comparative analysis with other successful companies is performed to drive management innovation.c)Knowledge scattered across an enterprise is shared to improve overall problem-solving capability.d)Management is centered on proprietary know-how and technology that are not easy for other companies to imitate.

Apr 2019 · Question 69

Which of the following marketing approaches is for the push strategy?

a)A manufacturer distinguishes customers into profitable and non-profitable ones so that the manufacturer can provide priority services to the profitable customers.b)A manufacturer does his/her best to predict what customers want before producing an item or service.c)A manufacturer receives requests from customers for their own version of products or services they want, so that the manufacturer can produce them.d)A manufacturer tries to achieve much closer and one-to-one contact with the customers for producing new products.

Oct 2018 · Question 62

The table below shows the result of analyzing the activities of a sales representative on one (1) particular day. By installing Sales Force Automation (SFA), preparation time for customer visits can be reduced by 0.1 hours per customer visit. In order to increase the number of customer visits to six (6) per day without changing the total working hours and the hours per customer visit, how many hours must be reduced from “Other operation”?

Time analysis of the working hours for a day

a)0.3b)0.5c)0.7d)1.0

Oct 2018 · Question 68

In SWOT analysis, which of the following is generally positioned as a threat?

a)Entry of strong companies in the marketb)High growth rate of business domainc)High production efficiency as compared with other competitorsd)Low market share

Oct 2018 · Question 69

Which of the following is a leader strategy among the competitive strategies of a company?

a)Concentrating limited management resources in a specialized market into which other companies do not enter despite the presence of potential demandb)Employing a differentiation strategy from various viewpoints such as products, services, sales promotion, and distribution channels, with the aim of seizing the market sharec)Employing an omnidirectional strategy targeting all market customers with the aim of maintaining or improving profit and reputation, and securing optimum market shared)Suppressing the cost of development and advertising, and aiming for continued existence in the market by observing the strategies of target companies and simulating them promptly

Apr 2018 · Question 68

Which of the following is the purpose of analyzing business plans and competitive advantages through portfolio management that uses the matrix shown in the figure?

a)To evaluate tactics for maintaining a competitive edge in the market by improving product qualityb)To evaluate the change in the market by considering seasonal fluctuation factors and geographical distribution in order to set an objectivec)To evaluate the competitors’ move in the market so that the promotion effect, set as an objective, can be measuredd)To evaluate the position of the company’s business as the basis for setting an objective and prioritizing resource allocation

Apr 2018 · Question 69

Which of the following is an explanation of core competence?

a)Corporate activities that follow laws, various regulations, and social norms for performance managementb)Overall system and operation optimization techniques to achieve the purposes of organizational activitiesc)Predominant abilities that cannot be imitated by competitors in a company’s area of activityd)The development region of a business that is decided upon based on the viewpoint of the market, technology, and products (or services)

Apr 2018 · Question 70

Which of the following is the basic strategy of a niche in a competitive position?

a)A differentiation strategy necessary for a leader attack, such as a share pursuitb)An imitation strategy that quickly responds to market opportunitiesc)An omni-directional strategy that covers the entire market and secures the highest shared)A specialization strategy that aims at the specialization of the product and market