Corporate and Division Strategic Planning - Quiz

1. SBUs can be defined by their:

Competitors, customers, and product offerings

Market segmentation

Size of employee base

Geographic location only

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

By the number of products sold

By the number of employees hired

By reducing marketing budgets

Through profitability and competitive performance

3. Cash cows in the BCG Matrix are known for:

Providing a steady stream of cash with minimal investment

Being in a high-growth market with low market share

Needing heavy reinvestment to grow

Rapid growth and high profits

4. Resource allocation to SBUs is based on:

Geographic location

Past financial performance

Strategic importance and growth potential

Size of the SBU

5. Strategic planning for SBUs involves:

Focusing solely on internal processes

Reducing investments across all SBUs

Assigning each business unit a specific role in achieving corporate objectives

Aligning all SBUs to the same marketing strategy

6. The BCG Matrix classifies SBUs into categories based on:

Employee size and product diversity

Sales volume and profit margin

Market growth rate and relative market share

Geographic location and competitor performance

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

Cutting down on employee numbers

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

Reducing marketing expenses

Expanding all SBUs equally

8. The corporate mission statement is crucial for:

Reducing advertising costs

Limiting customer engagement

Guiding the overall strategy and providing a clear direction for the company

Increasing product variety

9. An effective corporate mission statement is:

Broad but clear in terms of guiding strategic planning

Written for internal purposes only

Focused only on short-term goals

Long and complex

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

To manage employee performance

To outline financial targets

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

To reduce operational costs

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