Business Unit Strategic Planning - Quiz

1. In the context of business unit strategic planning, strategic objectives should be:

Specific, measurable, achievable, relevant, and time-bound (SMART)

Focused only on financial goals

Broad and non-specific

Vague and flexible

2. A SWOT analysis in strategic planning is used to evaluate:

The internal strengths and weaknesses and external opportunities and threats facing the business unit

Financial statements

Marketing budgets

Competitors only

3. The GE-McKinsey Matrix helps companies decide:

The pricing strategy of products

The profitability of specific employees

The logistics strategy for inventory management

The attractiveness of an industry and the strength of business units within it

4. Market penetration strategy involves:

Focusing on internal cost reduction

Developing new products for new markets

Increasing sales of existing products in current markets

Expanding into new geographic regions

5. A business unit’s mission statement should emphasize:

Product innovation alone

Internal employee objectives

Short-term financial gains

The unit’s purpose, goals, and how it creates value for customers

6. In business unit strategic planning, strategic fit refers to:

The market growth rate of the business unit

The business unit’s employee performance

The product development strategy

The alignment between the business unit’s strategy and its available resources or capabilities

7. SBU performance is measured primarily by:

Internal cost reductions

Sales growth, profitability, and market share

Number of employees hired

Customer satisfaction

8. Competitive advantage in business unit strategic planning can be achieved by:

Offering unique value that competitors cannot easily imitate

Focusing solely on existing markets

Limiting marketing campaigns

Reducing operational costs only

9. In the BCG Matrix, a dog is an SBU that:

Generates high revenue with minimal investment

Has low market share in a high-growth market

Has low market share in a low-growth market

Requires continuous investment for growth

10. The first step in business unit strategic planning is:

Allocating resources

Developing a marketing plan

Defining the business mission

Conducting market research

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