Corporate and Division Strategic Planning - Quiz

1. An SBU classified as a Star in the BCG Matrix is:

In a low-growth market but has a high market share

Struggling to compete in a low-growth market

In a high-growth market with a high market share and requires continued investment

Generating steady cash flow with little investment required

2. What is the purpose of defining a corporate mission?

To reduce operational costs

To outline financial targets

To define the company’s purpose and its long-term goals

To manage employee performance

3. Which of the following best describes a company’s mission?

A strategic plan for achieving financial goals

A broad statement of the organization’s purpose and what it seeks to achieve

A detailed marketing strategy

A list of specific product features

4. SBUs can be defined by their:

Size of employee base

Geographic location only

Competitors, customers, and product offerings

Market segmentation

5. The BCG Matrix classifies SBUs into categories based on:

Market growth rate and relative market share

Geographic location and competitor performance

Employee size and product diversity

Sales volume and profit margin

6. Cash cows in the BCG Matrix are known for:

Needing heavy reinvestment to grow

Being in a high-growth market with low market share

Providing a steady stream of cash with minimal investment

Rapid growth and high profits

7. Resource allocation to SBUs is based on:

Past financial performance

Geographic location

Size of the SBU

Strategic importance and growth potential

8. What is an SBU (Strategic Business Unit)?

A technology development unit

A team responsible for employee management

An external supplier

A division of a company focused on a specific market or product

9. Which of the following is NOT a typical characteristic of a question mark SBU?

Low market share

Requiring substantial investment

High cash generation

High growth potential

10. Market penetration as a growth strategy focuses on:

Developing entirely new products

Increasing sales of existing products in current markets

Entering international markets

Introducing new products to new markets

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