BUS203 Principles of Marketing Final Exam -
2026/2027 | 200+ Questions and Verified
Answers | Strayer University
SECTION 1: Strategic Diagnosis & Portfolio Planning
Q1:
Mini-Case:
EcoFash Co. (2026 revenues €480 M) owns four strategic business units (SBUs):
● SBU-A "GreenJeans" – market-leading organic-cotton denim, EU market growth 3
%, EcoFash share 28 %, generates €30 M free cash flow p.a.
● SBU-B "ReWear" – AI-driven apparel resale platform, EU market growth 35 %,
EcoFash share 8 %, burns €18 M cash p.a.
● SBU-C "Fiber2Go" – compostable active-wear, nascent category, global growth 60
%, EcoFash share 2 %, needs €25 M investment to reach break-even in 2028
● SBU-D "DenimCare" – plant-based detergent for denim, flat market 1 %, EcoFash
share 45 %, produces €12 M cash p.a.
The Board has set a 2027 strategic objective: "double group revenue while maintaining
net-positive cash generation."
Which portfolio re-allocation best supports this objective?
A. Divest ReWear and Fiber2Go; reinvest all cash into margin-expansion of GreenJeans
and DenimCare
,B. Harvest DenimCare; channel cash into GreenJeans brand extensions; maintain
current spend on ReWear and Fiber2Go
C. Use GreenJeans & DenimCare cash flows to fund scale-up of ReWear and Fiber2Go,
with phased milestones tied to CLV pay-back (Most Strategic)
D. Acquire a European fast-fashion retailer to gain shelf-space immediately, funded by
DenimCare cash
Correct Answer: C
Rationale:
C applies the BCG growth-share matrix and SOSTAC "Strategy" stage. GreenJeans &
DenimCare are Cash Cows whose surplus should fertilise high-growth Question Marks
(ReWear, Fiber2Go) to become Stars, doubling revenue. Option A forgoes 60 % & 35 %
growth arenas, violating the objective. B under-funds winners. D diversifies into
declining fast-fashion, conflicting with EcoFash’s sustainability DNA and regulatory
headwinds (EU 2026 eco-labelling).
Q2:
Mini-Case Table Excerpt:
2026 Customer Cohort Analysis (EcoFash ReWear Platform)
TableCopy
Cohort Customers Avg. Order Value 12-mo Retention CLV (€) CAC (€)
Gen-Z (18-24) 45,000 €42 62 % €110 €28
, Millennials
38,000 €55 71 % €175 €35
(25-40)
Gen-X (41-56) 22,000 €48 78 % €195 €40
Marketing has €1 M incremental budget. Paid-social CPMs are forecast to rise 18 % in
2027.
Which budget allocation maximizes sustainable value?
A. 70 % Gen-Z, 20 % Millennials, 10 % Gen-X – leverage cheap CPM and viral advocacy
B. 50 % Millennials, 30 % Gen-X, 20 % Gen-Z – balance CLV with modest CAC inflation
C. 60 % Millennials, 25 % Gen-X, 15 % Gen-Z – optimise CLV/CAC ratio and retention
stability (Most Strategic)
D. 40 % Gen-Z, 40 % Millennials, 20 % Gen-X – equal weight for fairness
Correct Answer: C
Rationale:
C maximises CLV/CAC (Millennials 5.0; Gen-X 4.9) while securing 71-78 % retention,
providing buffer against CPM inflation. A chases low CAC but lowest CLV and future
CPM surge. B ignores Gen-Z advocacy upside. D lacks economic prioritisation.
Q3:
McKinsey’s 7S Model audit of EcoFash reveals:
● Shared Values: Strong sustainability ethos
● Strategy: Clear (see Q1)
, ● Systems: Outdated ERP, siloed data lakes
● Staff: Digital-skills gap 38 %
● Skills: Limited AI/ML capability
● Structure: Functional silos; no cross-SBU agile squads
● Style: Top-down, risk-averse
Which "S" intervention is the enabler for successful execution of the chosen portfolio
strategy?
A. Reorganise into matrix structure (SBU × Region) to clarify authority lines
B. Upskill staff and embed AI-driven decision support (Most Strategic)
C. Re-engineer ERP first to create real-time dashboards
D. Shift leadership style to laissez-faire to spur innovation
Correct Answer: B
Rationale:
B addresses Skills and Staff, unlocking AI-driven CLV modelling, dynamic pricing, and
predictive inventory—critical for scaling high-growth SBUs (ReWear, Fiber2Go). Without
human capital, new structure (A) or ERP (C) remains under-utilised. D risks loss of
governance in high-growth context.
Q4:
Mini-Case Dashboard:
EcoFash marketing funnel (last 90 days):
● Awareness: 18 M impressions, 2.4 % CTR
● Consideration: 430k landing-page visits, 38 % email sign-up
● Conversion: 72k first purchases, AOV €67, CPA €38
2026/2027 | 200+ Questions and Verified
Answers | Strayer University
SECTION 1: Strategic Diagnosis & Portfolio Planning
Q1:
Mini-Case:
EcoFash Co. (2026 revenues €480 M) owns four strategic business units (SBUs):
● SBU-A "GreenJeans" – market-leading organic-cotton denim, EU market growth 3
%, EcoFash share 28 %, generates €30 M free cash flow p.a.
● SBU-B "ReWear" – AI-driven apparel resale platform, EU market growth 35 %,
EcoFash share 8 %, burns €18 M cash p.a.
● SBU-C "Fiber2Go" – compostable active-wear, nascent category, global growth 60
%, EcoFash share 2 %, needs €25 M investment to reach break-even in 2028
● SBU-D "DenimCare" – plant-based detergent for denim, flat market 1 %, EcoFash
share 45 %, produces €12 M cash p.a.
The Board has set a 2027 strategic objective: "double group revenue while maintaining
net-positive cash generation."
Which portfolio re-allocation best supports this objective?
A. Divest ReWear and Fiber2Go; reinvest all cash into margin-expansion of GreenJeans
and DenimCare
,B. Harvest DenimCare; channel cash into GreenJeans brand extensions; maintain
current spend on ReWear and Fiber2Go
C. Use GreenJeans & DenimCare cash flows to fund scale-up of ReWear and Fiber2Go,
with phased milestones tied to CLV pay-back (Most Strategic)
D. Acquire a European fast-fashion retailer to gain shelf-space immediately, funded by
DenimCare cash
Correct Answer: C
Rationale:
C applies the BCG growth-share matrix and SOSTAC "Strategy" stage. GreenJeans &
DenimCare are Cash Cows whose surplus should fertilise high-growth Question Marks
(ReWear, Fiber2Go) to become Stars, doubling revenue. Option A forgoes 60 % & 35 %
growth arenas, violating the objective. B under-funds winners. D diversifies into
declining fast-fashion, conflicting with EcoFash’s sustainability DNA and regulatory
headwinds (EU 2026 eco-labelling).
Q2:
Mini-Case Table Excerpt:
2026 Customer Cohort Analysis (EcoFash ReWear Platform)
TableCopy
Cohort Customers Avg. Order Value 12-mo Retention CLV (€) CAC (€)
Gen-Z (18-24) 45,000 €42 62 % €110 €28
, Millennials
38,000 €55 71 % €175 €35
(25-40)
Gen-X (41-56) 22,000 €48 78 % €195 €40
Marketing has €1 M incremental budget. Paid-social CPMs are forecast to rise 18 % in
2027.
Which budget allocation maximizes sustainable value?
A. 70 % Gen-Z, 20 % Millennials, 10 % Gen-X – leverage cheap CPM and viral advocacy
B. 50 % Millennials, 30 % Gen-X, 20 % Gen-Z – balance CLV with modest CAC inflation
C. 60 % Millennials, 25 % Gen-X, 15 % Gen-Z – optimise CLV/CAC ratio and retention
stability (Most Strategic)
D. 40 % Gen-Z, 40 % Millennials, 20 % Gen-X – equal weight for fairness
Correct Answer: C
Rationale:
C maximises CLV/CAC (Millennials 5.0; Gen-X 4.9) while securing 71-78 % retention,
providing buffer against CPM inflation. A chases low CAC but lowest CLV and future
CPM surge. B ignores Gen-Z advocacy upside. D lacks economic prioritisation.
Q3:
McKinsey’s 7S Model audit of EcoFash reveals:
● Shared Values: Strong sustainability ethos
● Strategy: Clear (see Q1)
, ● Systems: Outdated ERP, siloed data lakes
● Staff: Digital-skills gap 38 %
● Skills: Limited AI/ML capability
● Structure: Functional silos; no cross-SBU agile squads
● Style: Top-down, risk-averse
Which "S" intervention is the enabler for successful execution of the chosen portfolio
strategy?
A. Reorganise into matrix structure (SBU × Region) to clarify authority lines
B. Upskill staff and embed AI-driven decision support (Most Strategic)
C. Re-engineer ERP first to create real-time dashboards
D. Shift leadership style to laissez-faire to spur innovation
Correct Answer: B
Rationale:
B addresses Skills and Staff, unlocking AI-driven CLV modelling, dynamic pricing, and
predictive inventory—critical for scaling high-growth SBUs (ReWear, Fiber2Go). Without
human capital, new structure (A) or ERP (C) remains under-utilised. D risks loss of
governance in high-growth context.
Q4:
Mini-Case Dashboard:
EcoFash marketing funnel (last 90 days):
● Awareness: 18 M impressions, 2.4 % CTR
● Consideration: 430k landing-page visits, 38 % email sign-up
● Conversion: 72k first purchases, AOV €67, CPA €38
