Business Unit Strategic Planning - Quiz

1. In the BCG Matrix, a question mark represents:

A stable business with consistent revenue

A low-market-share business in a high-growth market

A high-market-share business in a high-growth market

A mature business in a declining market

2. A business unit’s mission statement should focus on:

Broad goals that reflect its core values and customer needs

Long-term profitability

Immediate revenue generation

Reducing employee size

3. The GE-McKinsey Matrix helps companies decide:

The pricing strategy of products

The logistics strategy for inventory management

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

The profitability of specific employees

4. Core competencies in a business unit provide:

A temporary competitive advantage

A method to limit marketing efforts

A way to reduce costs

A unique set of skills and resources that distinguish the business from its competitors

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

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

The market growth rate of the business unit

The product development strategy

The business unit’s employee performance

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

Has low market share in a high-growth market

Generates high revenue with minimal investment

Requires continuous investment for growth

Has low market share in a low-growth market

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

Financial statements

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

Competitors only

Marketing budgets

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

Internal employee objectives

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

Product innovation alone

Short-term financial gains

9. Market penetration strategy involves:

Focusing on internal cost reduction

Developing new products for new markets

Expanding into new geographic regions

Increasing sales of existing products in current markets

10. A differentiation strategy in business unit planning involves:

Reducing marketing efforts

Limiting product variety

Lowering prices to attract more customers

Offering unique product features that set the product apart from competitors

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