Strategic Planning and Business Portfolio Design Quiz

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Questions and Answers

What are the four steps involved in strategic planning?

Mission definition, team building, market research, product promotion

Defining mission, setting objectives, designing business portfolio, developing functional plans (correct)

Setting goals, analyzing competition, resource allocation, tactical implementation

Mission statement, market analysis, product development, financial planning

What should the company's mission be consistent with?

Market environment (correct)

Employee satisfaction

Short-term financial goals

Competitors' strategies

What guides decisions about the business portfolio?

Profit margin

Employee feedback

Detailed supporting goals and objectives (correct)

Market trends

What is the purpose of analyzing and adjusting the current business portfolio?

To produce a business portfolio that best fits the company's strengths and weaknesses to opportunities in the environment Signup and view all the answers

What do many companies now design for portfolio planning?

More-customized portfolio-planning approaches Signup and view all the answers

What is the focus of strategic planning?

Long run survival and growth Signup and view all the answers

What is the primary focus of market segmentation?

Identifying consumers with similar response to marketing efforts Signup and view all the answers

What does market targeting involve?

Evaluating each segment’s attractiveness and selecting one or more segments to enter Signup and view all the answers

What is the starting point for effective positioning?

Differentiation and creating superior customer value relative to the competition Signup and view all the answers

What does marketing analysis provide inputs to?

Corporate strategic planning and marketing planning Signup and view all the answers

What does a detailed marketing plan translate corporate and marketing strategies into?

A tangible blueprint Signup and view all the answers

What does marketing control involve?

Setting specific marketing goals, measuring performance, and taking corrective action Signup and view all the answers

What are the key components of a marketing plan?

Executive summary, current marketing situation, threats and opportunities, objectives and issues, marketing strategies, execution plans, budgets, and controls Signup and view all the answers

What is the main concern regarding the four Ps concept?

It takes the seller’s view of the market, not the buyer’s view Signup and view all the answers

What is essential for designing an integrated marketing mix to reach target consumers?

Market segmentation, targeting, differentiation, and positioning Signup and view all the answers

What is crucial for evaluating the results of marketing strategies and ensuring that objectives are achieved?

Marketing return on investment (ROI) and marketing control Signup and view all the answers

What plays a crucial role in a company's strategic planning by providing a marketing concept philosophy and identifying attractive market opportunities?

Marketing Signup and view all the answers

What is important for effective marketing in terms of departmental organization?

Functional marketing organization, geographic organization, product management organization, or market management organization Signup and view all the answers

What are the redefined four As in marketing, as mentioned in the text?

Acceptability, Affordability, Accessibility, Awareness Signup and view all the answers

What is the role of marketing leaders, such as the chief marketing officer, in the strategic planning process at the corporate level?

They play a key role in developing the mission and strategic plan. Signup and view all the answers

What is the purpose of business portfolio analysis in strategic planning?

To evaluate and plan for the future of the products and businesses that make up the company. Signup and view all the answers

What are the four quadrants in the growth-share matrix developed by the Boston Consulting Group (BCG)?

Stars, Cash cows, Question marks, Dogs Signup and view all the answers

How are most standard portfolio analysis methods evaluating strategic business units (SBUs)?

On the attractiveness of the SBU’s market or industry and the strength of the SBU’s position in that market or industry. Signup and view all the answers

What is the starting point of the strategic planning process at the corporate level?

Defining the company's overall mission Signup and view all the answers

What are the four strategies a company can pursue for each Strategic Business Unit (SBU)?

Invest, hold, harvest, or divest Signup and view all the answers

What is the role of dogs in the Growth-Share Matrix?

Low-growth, low-share businesses that may absorb managerial energy and attention Signup and view all the answers

What does the product/market expansion grid identify?

Growth opportunities through market penetration, development, product development, or diversification Signup and view all the answers

What is the logic of marketing strategy aimed at achieving?

Creating customer value and achieving profitable customer relationships Signup and view all the answers

How do SBUs change positions in the growth-share matrix over time?

Starting as question marks, becoming stars, then cash cows, and eventually dying off or turning into dogs Signup and view all the answers

What is market segmentation primarily concerned with?

Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors Signup and view all the answers

Study Notes

Strategic Planning and Business Portfolio Design

The Growth-Share Matrix categorizes business units as question marks, stars, cash cows, and dogs based on market share and market growth.
Question marks require a lot of cash and management must decide which ones to build into stars and which to phase out.
Dogs are low-growth, low-share businesses that may absorb managerial energy and attention.
Cash cows are cash-generating machines, but a portfolio with only cash cows is not sustainable in the long run.
The company must determine the future role of each Strategic Business Unit (SBU) and can pursue one of four strategies for each SBU: invest, hold, harvest, or divest.
SBUs change positions in the growth-share matrix over time, starting as question marks, becoming stars, then cash cows, and eventually dying off or turning into dogs.
Many companies have moved to more customized and decentralized approaches to strategic planning, tailored to their specific situations and led by cross-functional teams.
Marketing plays a crucial role in achieving profitable growth, identifying market opportunities, and crafting strategies for capturing them.
The product/market expansion grid is a portfolio-planning tool that identifies growth opportunities through market penetration, development, product development, or diversification.
Market penetration, development, product development, and diversification are strategies for achieving growth in different market segments or with new products.
Marketing strategy is the logic by which the company aims to create customer value and achieve profitable customer relationships.
Market segmentation involves dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

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Description

Test your knowledge of strategic planning and business portfolio design with this quiz. Explore concepts such as the Growth-Share Matrix, strategic business unit strategies, product/market expansion grid, marketing's role in growth, and market segmentation. Assess your understanding of portfolio planning and marketing strategies for sustainable business growth.