Business Unit Strategic Planning - Quiz

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

Marketing budgets

Competitors only

Financial statements

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

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

Vague and flexible

Focused only on financial goals

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

Broad and non-specific

3. Business Unit Strategic Planning primarily focuses on:

Developing specific strategies for individual business units

Reducing operational costs

Employee recruitment

Overall company growth

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

The product development strategy

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

The market growth rate of the business unit

The business unit’s employee performance

5. A cost leadership strategy in business unit planning aims to:

Provide products at the lowest possible cost to gain market share

Expand into international markets

Introduce new technology at higher costs

Focus on premium pricing strategies

6. A differentiation strategy in business unit planning involves:

Lowering prices to attract more customers

Limiting product variety

Offering unique product features that set the product apart from competitors

Reducing marketing efforts

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

Immediate revenue generation

Reducing employee size

Long-term profitability

Broad goals that reflect its core values and customer needs

8. Portfolio analysis in business unit strategic planning helps to:

Increase operational efficiency

Develop new products

Assess the performance of different business units and allocate resources accordingly

Set employee performance targets

9. An example of an external opportunity in a SWOT analysis could be:

Strong brand reputation

Increasing demand for eco-friendly products

Inefficient operations

High employee turnover

10. The GE-McKinsey Matrix helps companies decide:

The profitability of specific employees

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

The logistics strategy for inventory management

The pricing strategy of products

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