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 high market share in a high-growth market

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

A unit with low potential for revenue generation

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

Having its own set of competitors

Sharing the same strategies as other SBUs

Being responsible for its own profits and losses

Operating within a specific market

3. Which of the following is NOT a typical characteristic of a question mark SBU?

Requiring substantial investment

High cash generation

High growth potential

Low market share

4. The corporate mission statement is crucial for:

Reducing advertising costs

Limiting customer engagement

Increasing product variety

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

5. SBUs can be defined by their:

Market segmentation

Competitors, customers, and product offerings

Geographic location only

Size of employee base

6. An effective corporate mission statement is:

Broad but clear in terms of guiding strategic planning

Written for internal purposes only

Long and complex

Focused only on short-term goals

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

Market segmentation grid

Customer satisfaction surveys

SWOT analysis

BCG Matrix (Boston Consulting Group Matrix)

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

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

Reducing marketing expenses

Cutting down on employee numbers

Expanding all SBUs equally

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

Generating steady cash flow with little investment required

Struggling to compete in a low-growth market

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

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

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