Corporate and Division Strategic Planning - Quiz

1. A strategic business unit (SBU) is defined by all the following EXCEPT:

Operating within a specific market

Having its own set of competitors

Being responsible for its own profits and losses

Sharing the same strategies as other SBUs

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

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

To outline financial targets

To reduce operational costs

To manage employee performance

3. Strategic planning for SBUs involves:

Focusing solely on internal processes

Assigning each business unit a specific role in achieving corporate objectives

Aligning all SBUs to the same marketing strategy

Reducing investments across all SBUs

4. Resource allocation to SBUs is based on:

Past financial performance

Size of the SBU

Strategic importance and growth potential

Geographic location

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

Being in a high-growth market with low market share

Rapid growth and high profits

Providing a steady stream of cash with minimal investment

Needing heavy reinvestment to grow

6. 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

Expanding all SBUs equally

Reducing marketing expenses

7. An SBU classified as a Star in the BCG Matrix is:

Struggling to compete in a low-growth market

In a low-growth market but has a high market share

Generating steady cash flow with little investment required

In a high-growth market with a high market share and requires continued investment

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

By the number of products sold

By reducing marketing budgets

Through profitability and competitive performance

By the number of employees hired

9. Each SBU should:

Have its own competitors and market strategies

Compete only within the company

Focus on internal process improvement

Share market strategies with other SBUs

10. A corporate mission that focuses on satisfying customer needs is considered:

Production-oriented

Market-oriented

Profit-driven

Technology-oriented

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