Dear Readers, Here we have given Practice English Reading Comprehension quiz and questions for SBI Clerk and IDBI Executive 2018 Exams with detailed explanation. Candidates those who are preparing for Upcoming Bank Exams can make use of it.
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Directions (Q1-10): Read the following passage carefully and answer the questions given below it.
Business strategy is sometimes defined simply as a firm’s high level plan for reaching specific business objectives. Strategies succeed when they lead to business growth, a strong competitive position, and strong financial performance. When the high level strategy fails, however, the firm must either change strategy or prepare to go out of business.
A complete strategy describes specifically how the firm plans to meet its objectives, the strategy explains in practical terms how the firm differentiates itself from competitors, how it earns revenues, and where it earns margins.
Corporate strategy is fundamental to the success and sustainability of any organization.
Corporate strategy allows organisations to develop a clearer understanding of their own organisation and what’s required for them to succeed. It helps organisations understand their core capabilities, identify and address weaknesses and mitigate risks. It can help organisations better design themselves so that they can focus on the right things that are the most likely to deliver the best performance, productivity and profit both now and in the future.
Corporate strategies are usually confined to very large organizations with disparate systems that must be examined and catalogued so that the organization can march toward the future with a single mind.
That does not mean, of course, that smaller organizations should forgo the exercise. Indeed, some would say that a written corporate plan is just as important for an entrepreneur because he or she is often so busy dealing with day-to-day problems that it becomes difficult to act on some half-thought-out strategy that exists only as an idea.
The important elements that are included in corporate strategies are vision statement, mission statement, company’s resources and their scope, listing of corporate objective and listing of strategies to reach those objectives. A vision statement defines the objectives that will guide your internal decision making. A strong vision statement can help you maintain your business focus and give a sense of purpose to your business. Vision statement describes what a company wants to do now.
While a vision is often aspirational, a mission statement should outline how you will achieve your business plan. It should be in one or two sentences and should clearly state what market(s) you intend to serve, the products or services you want to provide and what makes you unique.
Organisations are complex entities. Every organization must address several levels, types or areas of strategic management. Moreover, for firm competing in more than one business area or market, a strategy of integration and interrelationships between these areas must be developed.
The expansion Strategy is adopted by an organization when it attempts to achieve a high growth as compared to its past achievements. In other words, when a firm aims to grow considerably by broadening the scope of one of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or jointly, then it follows the Expansion Strategy.
The retrenchment Strategy is adopted when an organization aims at reducing its one or more business operations with the view to cut expenses and reach to a more stable financial position. In other words, the strategy followed, when a firm decides to eliminate its activities through a considerable reduction in its business operations, in the perspective of customer groups, customer functions and technology alternatives, either individually or collectively is called as Retrenchment Strategy.
The stability Strategy is adopted when the organization attempts to maintain its current position and focuses only on the incremental improvement by merely changing one or more of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or collectively. The turnaround Strategy is a retrenchment strategy followed by an organization when it feels that the decision made earlier is wrong and needs to be undone before it damages the profitability of the company. Simply, turnaround strategy is backing out or retreating from the decision wrongly made earlier and transforming from a loss making company to a profit making company. The liquidation Strategy is the most unpleasant strategy adopted by the organization that includes selling off its assets and the final closure or winding up of the business operations.
The strategy can be difficult for many organisations to commence but its benefits are far-reaching and many.
1) According to the passage, why does a firm adopt the stability strategy?
a) to maximize the future profit
b) to reduce the expenses
c) to maintain the current position
d) to handle the business risk
e) to compete with rivals
2) According to the passage, in which of the followings, does the corporate strategy not help the organization?
a) mitigating the business risks
b) in increasing profit
c) determining the dividend policy
d) identifying and addressing the weakness of organisation
e) indentifying core capabilities of organisation
3) According to the passage, in order to rectify the wrong decision which firm took in the past, which of the following strategies will it adopt?
a) combination strategy
b) retrenchment strategy
c) expansion strategy
d) liquidation strategy
e) turnaround strategy
4) According to the passage, if the company wants to reduce its operations with a view to reach at stable financial position, which kind of strategy will it adopt?
a) economical strategy
b) combination strategy
c) grand strategy
d) stability strategy
e) retrenchment strategy
5) According to the passage, up to which of the following types of organizations are the corporate strategies limited?
a) small organisation
c) multinational organisations
d) large organisation
e) medium size organisation
6) According to the passage, where does a company describe about its target market(the portion of market it wants to serve)?
a) in strategic plan
b) in vision statement
c) fund flow statement
d) statement of owner’s equity
e) in mission statement
7) Choose the word which as same meaning as the word “mitigate”
8) Choose the word which as same meaning as the word “forgo”
e) cling to
9) Choose the word which as opposite meaning as the word “retreating”
a) moving back
10) Choose the word which as opposite meaning as the word “stable”
1) Correct Answer is: c)
It is clearly mentioned in the passage that the firm adopts the stability strategy when it wants to maintain its current position.
2) Correct Answer is: c)
According to the passage, corporate strategy does not help in determining the dividend policy as it is not mentioned in the passage.
3) Correct Answer is: e)
It is clearly mentioned in the passage, that in order to correct the wrong decision the firm adopts the turnaround strategy.
4) Correct Answer is: e)
It is clearly mentioned in the passage, that if the company wants to reduce its expenses it adopts the retrenchment strategy.
5) Correct Answer is: d)
It is clearly mentioned in the passage that corporate strategies are confined to very large organizations.
6) Correct Answer is: b)
It is clearly mentioned in the passage that in vision statement, company describes about its target market.
7) Correct Answer is: c)
The meaning of “mitigate” is “lessen / assuage”.
8) Correct Answer is: d)
The meaning of “forgo” is “miss/ omit / relinquish”.
9) Correct Answer is: c)
The meaning of “retreating” is “withdrawing” and its opposite is “advancing / progressing”.
10) Correct Answer is: d)
The meaning of “stable” is “constant /even” and its opposite is “unhinged /disturbed / uneven”.
Daily Practice Test Schedule | Good Luck
|Topic||Daily Publishing Time|
|Daily News Papers & Editorials||8.00 AM|
|Current Affairs Quiz||9.00 AM|
|Logical Reasoning||10.00 AM|
|Quantitative Aptitude “20-20”||11.00 AM|
|Vocabulary (Based on The Hindu)||12.00 PM|
|Static GK Quiz||1.00 PM|
|English Language “20-20”||2.00 PM|
|Banking Awareness Quiz||3.00 PM|
|Reasoning Puzzles & Seating||4.00 PM|
|Daily Current Affairs Updates||5.00 PM|
|Data Interpretation / Application Sums (Topic Wise)||6.00 PM|
|Reasoning Ability “20-20”||7.00 PM|
|English Language (New Pattern Questions)||8.00 PM|
|General / Financial Awareness Quiz||9.00 PM|