1. Strategic planning is the managerial process of creating and maintaining a fit between the organization’s objectivesandresources and the evolving market opportunities. a. True b. False ANSWER: True 2. Describe the nature of strategic planning. ANSWER: (Answers will vary). Strategic planning is the managerial process of creating and maintaining a fit betweentheorganization’s objectives, available resources, and the evolving market opportunities. Strategic marketingmanagement addresses two questions: (1) what the organization’s main activity is at a given time and(2)howthe organization will achieve its goals. The goal of strategic planning is long-run profitability andgrowth. Thus, strategic decisions require a long-term commitment of resources. A strategic error can threaten a firm’s survival. On the other hand, good strategic planning can helpprotectand grow the resources of the firm. 3. An operating decision is unlikely to have a great impact on the long-run profitability of a company. a. True b. False ANSWER: True 4. Fourlotts Inc. is a renowned technological firm. It manages many strategic business units (SBUs) in whicheachSBU:a. has its own return on investment. b. shares the same goals and employs the same strategies as Fourlotts Inc. c. plans collaboratively with Fourlotts Inc.’s other SBUs. d. refrains from performing manufacturing functions. ANSWER: a 5. When properly created, a strategic business unit (SBU) of a large company: a. has a specific target market. b. plans collaboratively with other SBUs of the company. c. has no competitors. d. shares the mission of its parent company. ANSWER: a 6. A strategic business unit (SBU) is a single bus