Corporate and Division Strategic Planning - Quiz

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

To reduce operational costs

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

To manage employee performance

To outline financial targets

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

Needing heavy reinvestment to grow

Rapid growth and high profits

Being in a high-growth market with low market share

Providing a steady stream of cash with minimal investment

3. Resource allocation to SBUs is based on:

Past financial performance

Size of the SBU

Geographic location

Strategic importance and growth potential

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

Sharing the same strategies as other SBUs

Being responsible for its own profits and losses

Having its own set of competitors

Operating within a specific market

5. Market penetration as a growth strategy focuses on:

Developing entirely new products

Increasing sales of existing products in current markets

Entering international markets

Introducing new products to new markets

6. What is an SBU (Strategic Business Unit)?

A team responsible for employee management

A technology development unit

An external supplier

A division of a company focused on a specific market or product

7. Which of the following best describes a company’s mission?

A list of specific product features

A broad statement of the organization’s purpose and what it seeks to achieve

A detailed marketing strategy

A strategic plan for achieving financial goals

8. An effective corporate mission statement is:

Long and complex

Written for internal purposes only

Focused only on short-term goals

Broad but clear in terms of guiding strategic planning

9. What tool is commonly used to determine resource allocation among SBUs?

SWOT analysis

Customer satisfaction surveys

Market segmentation grid

BCG Matrix (Boston Consulting Group Matrix)

10. The corporate mission statement is crucial for:

Limiting customer engagement

Reducing advertising costs

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

Increasing product variety

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