Corporate and Division Strategic Planning - Quiz

1. Which of the following describes a star SBU in the BCG Matrix?

A unit with high market share in a high-growth market

A unit with low potential for revenue generation

A unit with low market share in a high-growth market

A unit in a low-growth market

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

Generating steady cash flow with little investment required

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

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

Struggling to compete in a low-growth market

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

To manage employee performance

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

To reduce operational costs

To outline financial targets

4. Each SBU should:

Have its own competitors and market strategies

Focus on internal process improvement

Share market strategies with other SBUs

Compete only within the company

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

An external supplier

A technology development unit

A team responsible for employee management

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

6. In the context of SBUs, how is success typically measured?

By the number of products sold

By reducing marketing budgets

By the number of employees hired

Through profitability and competitive performance

7. The main objective of resource allocation in corporate strategic planning is:

Reducing marketing expenses

Cutting down on employee numbers

Expanding all SBUs equally

Maximizing long-term profitability by investing in high-potential business units

8. What tool is commonly used to determine resource allocation among SBUs?

SWOT analysis

Customer satisfaction surveys

Market segmentation grid

BCG Matrix (Boston Consulting Group Matrix)

9. Strategic planning for SBUs involves:

Reducing investments across all SBUs

Aligning all SBUs to the same marketing strategy

Assigning each business unit a specific role in achieving corporate objectives

Focusing solely on internal processes

10. An effective corporate mission statement is:

Broad but clear in terms of guiding strategic planning

Focused only on short-term goals

Long and complex

Written for internal purposes only

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