Corporate and Division Strategic Planning - Quiz

1. Strategic planning for SBUs involves:

Assigning each business unit a specific role in achieving corporate objectives

Reducing investments across all SBUs

Focusing solely on internal processes

Aligning all SBUs to the same marketing strategy

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

An external supplier

A team responsible for employee management

A technology development unit

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

3. 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

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

Reducing marketing expenses

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

Expanding all SBUs equally

Cutting down on employee numbers

5. Resource allocation to SBUs is based on:

Size of the SBU

Past financial performance

Geographic location

Strategic importance and growth potential

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

Being in a high-growth market with low market share

Needing heavy reinvestment to grow

Rapid growth and high profits

Providing a steady stream of cash with minimal investment

7. The corporate mission statement is crucial for:

Increasing product variety

Reducing advertising costs

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

Limiting customer engagement

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

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

Struggling to compete in a low-growth market

9. Market penetration as a growth strategy focuses on:

Increasing sales of existing products in current markets

Entering international markets

Introducing new products to new markets

Developing entirely new products

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

A strategic plan for achieving financial goals

A detailed marketing strategy

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

A list of specific product features

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