Business Unit Strategic Planning - Quiz

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

Requires continuous investment for growth

Generates high revenue with minimal investment

Has low market share in a low-growth market

Has low market share in a high-growth market

2. SBU performance is measured primarily by:

Internal cost reductions

Customer satisfaction

Number of employees hired

Sales growth, profitability, and market share

3. Core competencies in a business unit provide:

A temporary competitive advantage

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

A method to limit marketing efforts

A way to reduce costs

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

The business unit’s employee performance

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

The product development strategy

The market growth rate of the business unit

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

Internal employee objectives

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

Short-term financial gains

Product innovation alone

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

Increase operational efficiency

Develop new products

Set employee performance targets

Assess the performance of different business units and allocate resources accordingly

7. A differentiation strategy in business unit planning involves:

Lowering prices to attract more customers

Offering unique product features that set the product apart from competitors

Limiting product variety

Reducing marketing efforts

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

Immediate revenue generation

Broad goals that reflect its core values and customer needs

Long-term profitability

Reducing employee size

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

Inefficient operations

High employee turnover

Increasing demand for eco-friendly products

Strong brand reputation

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

Expand into international markets

Introduce new technology at higher costs

Focus on premium pricing strategies

Provide products at the lowest possible cost to gain market share

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