Corporate and Division Strategic Planning - Quiz

1. Which of the following describes a star SBU in the BCG Matrix?

A unit in a low-growth market

A unit with low potential for revenue generation

A unit with high market share in a high-growth market

A unit with low market share in a high-growth market

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

By the number of employees hired

Through profitability and competitive performance

By the number of products sold

By reducing marketing budgets

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

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

To manage employee performance

To outline financial targets

To reduce operational costs

4. Strategic planning for SBUs involves:

Aligning all SBUs to the same marketing strategy

Focusing solely on internal processes

Reducing investments across all SBUs

Assigning each business unit a specific role in achieving corporate objectives

5. An effective corporate mission statement is:

Written for internal purposes only

Long and complex

Focused only on short-term goals

Broad but clear in terms of guiding strategic planning

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

Technology-oriented

Market-oriented

Profit-driven

Production-oriented

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

Geographic location and competitor performance

Sales volume and profit margin

Employee size and product diversity

Market growth rate and relative market share

8. The corporate mission statement is crucial for:

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

Increasing product variety

Reducing advertising costs

Limiting customer engagement

9. Resource allocation to SBUs is based on:

Size of the SBU

Strategic importance and growth potential

Past financial performance

Geographic location

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

Struggling to compete in a low-growth market

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

Generating steady cash flow with little investment required

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

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