Business Unit Strategic Planning
- Business Unit Strategic Planning primarily focuses on:
- A) Overall company growth
- B) Developing specific strategies for individual business units
- C) Employee recruitment
- D) Reducing operational costs
Answer: B) Developing specific strategies for individual business units
- What is a Strategic Business Unit (SBU)?
- A) A division of a company with its own mission, objectives, and strategies
- B) A department focused on human resources
- C) A new product development team
- D) An external marketing agency
Answer: A) A division of a company with its own mission, objectives, and strategies
- The first step in business unit strategic planning is:
- A) Allocating resources
- B) Defining the business mission
- C) Conducting market research
- D) Developing a marketing plan
Answer: B) Defining the business mission
- A well-defined business mission should:
- A) Focus on product pricing
- B) Clearly state the business’s purpose and goals
- C) Be broad and vague
- D) Focus solely on internal operations
Answer: B) Clearly state the business’s purpose and goals
- A SWOT analysis in strategic planning is used to evaluate:
- A) Competitors only
- B) The internal strengths and weaknesses and external opportunities and threats facing the business unit
- C) Marketing budgets
- D) Financial statements
Answer: B) The internal strengths and weaknesses and external opportunities and threats facing the business unit
- In SWOT analysis, which of the following represents internal factors?
- A) Opportunities and threats
- B) Strengths and weaknesses
- C) Market trends
- D) Competitor actions
Answer: B) Strengths and weaknesses
- An example of an external opportunity in a SWOT analysis could be:
- A) Strong brand reputation
- B) Increasing demand for eco-friendly products
- C) High employee turnover
- D) Inefficient operations
Answer: B) Increasing demand for eco-friendly products
- The second stage of business unit strategic planning after defining the mission is:
- A) Developing financial statements
- B) Conducting a SWOT analysis
- C) Allocating resources
- D) Hiring new employees
Answer: B) Conducting a SWOT analysis
- In the context of business unit strategic planning, strategic objectives should be:
- A) Broad and non-specific
- B) Specific, measurable, achievable, relevant, and time-bound (SMART)
- C) Focused only on financial goals
- D) Vague and flexible
Answer: B) Specific, measurable, achievable, relevant, and time-bound (SMART)
- A business unit’s growth strategy can involve:
- A) Market penetration, market development, product development, or diversification
- B) Reducing employee salaries
- C) Limiting product offerings
- D) Increasing operational costs
Answer: A) Market penetration, market development, product development, or diversification
- Market penetration strategy involves:
- A) Developing new products for new markets
- B) Increasing sales of existing products in current markets
- C) Expanding into new geographic regions
- D) Focusing on internal cost reduction
Answer: B) Increasing sales of existing products in current markets
- In business unit strategic planning, a competitive advantage is defined as:
- A) Offering lower prices than competitors
- B) The ability to perform in ways that competitors cannot easily imitate or match
- C) Reducing marketing efforts
- D) Focusing solely on product features
Answer: B) The ability to perform in ways that competitors cannot easily imitate or match
- A differentiation strategy in business unit planning involves:
- A) Offering unique product features that set the product apart from competitors
- B) Lowering prices to attract more customers
- C) Limiting product variety
- D) Reducing marketing efforts
Answer: A) Offering unique product features that set the product apart from competitors
- In business unit planning, cost leadership refers to:
- A) Offering the lowest prices in the market
- B) Reducing product quality
- C) Focusing on premium pricing
- D) Limiting market reach
Answer: A) Offering the lowest prices in the market
- A focus strategy in business unit strategic planning targets:
- A) A broad market
- B) A specific market niche or segment
- C) A large customer base
- D) Internal business operations
Answer: B) A specific market niche or segment
- Strategic business unit planning primarily aims to:
- A) Increase short-term profits
- B) Develop long-term strategies that align with corporate goals and market conditions
- C) Focus only on reducing operational costs
- D) Improve employee satisfaction
Answer: B) Develop long-term strategies that align with corporate goals and market conditions
- Portfolio analysis in business unit strategic planning helps to:
- A) Develop new products
- B) Assess the performance of different business units and allocate resources accordingly
- C) Set employee performance targets
- D) Increase operational efficiency
Answer: B) Assess the performance of different business units and allocate resources accordingly
- Market development strategy in a business unit involves:
- A) Offering existing products in new markets
- B) Creating new products for current markets
- C) Focusing only on current customer segments
- D) Reducing production costs
Answer: A) Offering existing products in new markets
- Product development strategy refers to:
- A) Developing new products for current markets
- B) Expanding into new geographic regions
- C) Reducing operational complexity
- D) Limiting product innovation
Answer: A) Developing new products for current markets
- A business unit’s mission statement should focus on:
- A) Long-term profitability
- B) Immediate revenue generation
- C) Broad goals that reflect its core values and customer needs
- D) Reducing employee size
Answer: C) Broad goals that reflect its core values and customer needs
- The BCG Matrix is commonly used in business unit planning to:
- A) Determine employee performance
- B) Allocate resources based on market growth and market share
- C) Develop new marketing channels
- D) Focus solely on financial performance
Answer: B) Allocate resources based on market growth and market share
- In the BCG Matrix, a question mark represents:
- A) A high-market-share business in a high-growth market
- B) A low-market-share business in a high-growth market
- C) A stable business with consistent revenue
- D) A mature business in a declining market
Answer: B) A low-market-share business in a high-growth market
- In business unit strategic planning, diversification refers to:
- A) Expanding current products into new markets
- B) Developing new products for new markets
- C) Focusing on reducing operational costs
- D) Increasing product prices
Answer: B) Developing new products for new markets
- The GE-McKinsey Matrix helps companies decide:
- A) The profitability of specific employees
- B) The attractiveness of an industry and the strength of business units within it
- C) The pricing strategy of products
- D) The logistics strategy for inventory management
Answer: B) The attractiveness of an industry and the strength of business units within it
- Strategic objectives for a business unit should focus on:
- A) Reducing production costs only
- B) Achieving specific, measurable goals that align with the unit’s mission
- C) Expanding the workforce
- D) Increasing employee training
Answer: B) Achieving specific, measurable goals that align with the unit’s mission
- Core competencies in a business unit provide:
- A) A temporary competitive advantage
- B) A unique set of skills and resources that distinguish the business from its competitors
- C) A way to reduce costs
- D) A method to limit marketing efforts
Answer: B) A unique set of skills and resources that distinguish the business from its competitors
- A growth-share matrix classifies business units based on:
- A) Customer satisfaction
- B) Market growth and market share
- C) Financial profitability
- D) Employee retention rates
Answer: B) Market growth and market share
- SBU performance is measured primarily by:
- A) Customer satisfaction
- B) Sales growth, profitability, and market share
- C) Number of employees hired
- D) Internal cost reductions
Answer: B) Sales growth, profitability, and market share
- Marketing strategy in business unit planning focuses on:
- A) Managing employee performance
- B) Creating value for customers through targeted marketing efforts
- C) Reducing product prices
- D) Limiting customer interaction
Answer: B) Creating value for customers through targeted marketing efforts
- In business unit strategic planning, strategic fit refers to:
- A) The alignment between the business unit’s strategy and its available resources or capabilities
- B) The market growth rate of the business unit
- C) The product development strategy
- D) The business unit’s employee performance
Answer: A) The alignment between the business unit’s strategy and its available resources or capabilities
- Portfolio analysis in business unit strategic planning helps to:
- A) Improve operational efficiency
- B) Evaluate the performance of various business units and decide resource allocation
- C) Set employee goals
- D) Focus on cost reduction
Answer: B) Evaluate the performance of various business units and decide resource allocation
- A cost leadership strategy in business unit planning aims to:
- A) Provide products at the lowest possible cost to gain market share
- B) Focus on premium pricing strategies
- C) Introduce new technology at higher costs
- D) Expand into international markets
Answer: A) Provide products at the lowest possible cost to gain market share
- Customer value in business unit strategic planning focuses on:
- A) Reducing production costs
- B) Delivering superior value to customers through product features, pricing, and quality
- C) Increasing the employee size
- D) Focusing on financial reports
Answer: B) Delivering superior value to customers through product features, pricing, and quality
- Scenario planning in strategic planning is:
- A) A tool used to forecast employee productivity
- B) A method for anticipating and preparing for future market changes and uncertainties
- C) A cost-cutting measure
- D) A focus on immediate market share growth
Answer: B) A method for anticipating and preparing for future market changes and uncertainties
- The Ansoff Matrix in business unit planning helps identify:
- A) Market growth strategies based on market and product combinations
- B) Customer satisfaction strategies
- C) Employee training needs
- D) Short-term profitability goals
Answer: A) Market growth strategies based on market and product combinations
- Competitive advantage in business unit strategic planning can be achieved by:
- A) Offering unique value that competitors cannot easily imitate
- B) Reducing operational costs only
- C) Focusing solely on existing markets
- D) Limiting marketing campaigns
Answer: A) Offering unique value that competitors cannot easily imitate
- A business unit’s strategic plan should focus on:
- A) Short-term financial results
- B) Achieving long-term growth and profitability through competitive strategies
- C) Employee hiring plans
- D) Reducing product quality
Answer: B) Achieving long-term growth and profitability through competitive strategies
- A business unit’s mission statement should emphasize:
- A) Internal employee objectives
- B) The unit’s purpose, goals, and how it creates value for customers
- C) Short-term financial gains
- D) Product innovation alone
Answer: B) The unit’s purpose, goals, and how it creates value for customers
- Strategic flexibility in business unit planning refers to:
- A) Limiting market research
- B) The ability of a business unit to adapt to changing market conditions and customer needs
- C) Focusing on one product line only
- D) Reducing employee involvement in decision-making
Answer: B) The ability of a business unit to adapt to changing market conditions and customer needs
- In the BCG Matrix, a dog is an SBU that:
- A) Has low market share in a high-growth market
- B) Has low market share in a low-growth market
- C) Generates high revenue with minimal investment
- D) Requires continuous investment for growth
Answer: B) Has low market share in a low-growth market
- A star in the BCG Matrix represents:
- A) A low-growth, high-market-share business unit
- B) A high-market-share business unit in a high-growth market
- C) A low-investment, high-profit business
- D) A declining business segment
Answer: B) A high-market-share business unit in a high-growth market
- Strategic business unit planning is most effective when:
- A) It focuses exclusively on cost reduction
- B) It aligns the business unit’s objectives with the overall corporate strategy
- C) It reduces marketing efforts
- D) It limits new product development
Answer: B) It aligns the business unit’s objectives with the overall corporate strategy
- A cash cow in the BCG Matrix is a business unit that:
- A) Operates in a high-growth market with low market share
- B) Generates consistent cash flow with high market share in a low-growth market
- C) Requires high investment to maintain market share
- D) Is a new product with high growth potential
Answer: B) Generates consistent cash flow with high market share in a low-growth market
- Strategic control in business unit planning refers to:
- A) Evaluating the outcomes of the business unit’s strategy and making adjustments as needed
- B) Reducing operational costs
- C) Limiting marketing campaigns
- D) Hiring new employees
Answer: A) Evaluating the outcomes of the business unit’s strategy and making adjustments as needed
- A focus strategy is best suited for:
- A) Targeting a broad customer base
- B) Serving a niche market with specialized products or services
- C) Reducing product variety
- D) Cutting marketing budgets
Answer: B) Serving a niche market with specialized products or services
- In business unit planning, market segmentation is used to:
- A) Identify and target different customer groups with unique marketing strategies
- B) Reduce the number of products offered
- C) Focus on operational cost reductions
- D) Avoid competitive analysis
Answer: A) Identify and target different customer groups with unique marketing strategies
- Differentiation in business unit strategy involves:
- A) Offering a broad range of products at low prices
- B) Creating unique products or services that provide superior value to customers
- C) Focusing on reducing marketing budgets
- D) Increasing the number of competitors
Answer: B) Creating unique products or services that provide superior value to customers
- A value proposition in business unit planning refers to:
- A) The pricing strategy of the business unit
- B) The set of benefits or value that a company promises to deliver to customers
- C) A financial performance report
- D) A cost-cutting initiative
Answer: B) The set of benefits or value that a company promises to deliver to customers
- Strategic business unit planning should include:
- A) Only financial objectives
- B) Clear strategies for competing in the market and satisfying customer needs
- C) A focus on reducing the employee base
- D) Limiting product development efforts
Answer: B) Clear strategies for competing in the market and satisfying customer needs
- Business unit strategy is most effective when:
- A) It focuses solely on internal cost reductions
- B) It balances market opportunities with the business unit’s strengths and resources
- C) It reduces investment in innovation
- D) It focuses only on short-term financial gains
Answer: B) It balances market opportunities with the business unit’s strengths and resources
