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    Strategic Business Units (Sbus)

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    Rahul Jain
    This document discusses strategic business units (SBUs). It defines an SBU as any part of a business organization that is treated separately for strategic management purposes. An SBU must have a unique mission, identifiable competitors, an external market focus, and control over its business functions. The advantages of using SBUs include allowing for in-depth business planning at each unit and making accountability easily identifiable. However, having too many SBUs can make management difficult and create unhealthy competition for resources. The document also summarizes strategies for finance, marketing, human resources, and operations that should be analyzed for each SBU.

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    Strategic Business Units (Sbus)

    Uploaded by

    Rahul Jain
    39 views10 pages
    This document discusses strategic business units (SBUs). It defines an SBU as any part of a business organization that is treated separately for strategic management purposes. An SBU must have a unique mission, identifiable competitors, an external market focus, and control over its business functions. The advantages of using SBUs include allowing for in-depth business planning at each unit and making accountability easily identifiable. However, having too many SBUs can make management difficult and create unhealthy competition for resources. The document also summarizes strategies for finance, marketing, human resources, and operations that should be analyzed for each SBU.

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    SBUs

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    This document discusses strategic business units (SBUs). It defines an SBU as any part of a business organization that is treated separately for strategic management purposes. An SBU must have a unique mission, identifiable competitors, an external market focus, and control over its business functions. The advantages of using SBUs include allowing for in-depth business planning at each unit and making accountability easily identifiable. However, having too many SBUs can make management difficult and create unhealthy competition for resources. The document also summarizes strategies for finance, marketing, human resources, and operations that should be analyzed for each SBU.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    39 views10 pages

    Strategic Business Units (Sbus)

    Uploaded by

    Rahul Jain
    This document discusses strategic business units (SBUs). It defines an SBU as any part of a business organization that is treated separately for strategic management purposes. An SBU must have a unique mission, identifiable competitors, an external market focus, and control over its business functions. The advantages of using SBUs include allowing for in-depth business planning at each unit and making accountability easily identifiable. However, having too many SBUs can make management difficult and create unhealthy competition for resources. The document also summarizes strategies for finance, marketing, human resources, and operations that should be analyzed for each SBU.

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    STRATEGIC BUSINESS UNITS (SBUs)

    Christ University, Bangalore


    Flow of Presentation

    • Behavioral Issues in
    Strategy
    Implementation
    • Operational Strategy
    • Financial Strategy
    • Marketing Strategy
    • Human Resource
    Strategy

    Christ University, Bangalore 2


    Strategic Business Unit (SBU)

    • According to Sharplin, “SBU means “ any part of a business


    organization which is treated separately for strategic management
    purposes
    • Refer the diagram of SBU organizational structure in the Text Book

    Christ University, Bangalore 3


    Strategic Business Unit

    • An SBU may be of any size


    • An SBU must have:
     A unique mission
     Identifiable competitors
     An external market focus,
    and,
     Control its business function
     Also refer Page 7.26 of
    Sontakki Text

    Christ University, Bangalore 4


    Strategic Business Unit

    • Advantages of an SBU
    1. In- depth business
    planning is possible at
    each SBU
    2. Accountability can easily
    be identified at business
    level
    3. Well suited for an
    organization with distinct
    business

    Christ University, Bangalore 5


    Strategic Business Unit

    • Disadvantages of SBU:
    • Too many SBUs may
    cause difficulty in
    efficient management
    • Assigning responsibility
    and accountability for
    SBU heads may be
    difficult
    • This structure may create
    unhealthy competition
    for corporate resources

    Christ University, Bangalore 6


    Financial Strategy
    • Proper functioning of different functions
    of an organization is highly dependent on
    the availability and utilization of
    financial resources
    • Analysis of finance and accounting
    capabilities should be done taking into
    consideration the following factors:
    a) Financial resources and strength
    b) Capital structure and cost of capital
    c) Relation with shareholders, bankers etc.
    d) Financial planning and budgeting
    e) Accounting system and audit procedure
    f) Tax planning and tax advantages
    • Also refer V. S. P. Rao Text for more
    Christ University, Bangalore notes 8
    Marketing strategy
    • Marketing function is a key area for the
    success of an organization
    • Analysis of marketing capabilities should be
    done taking the following areas into
    consideration:
    a) Market share of the organization
    b) Product line
    c) Pricing strategy
    d) Nature of the product
    e) Channels of distribution
    f) Brand image
    g) Market research
    h) Packaging
    i) Marketing policy
    9
    j) Also refer V. S. P. Rao Text for more notes
    Christ University, Bangalore
    Human Resource Strategy
    • Human resource is practically significant for the success of an
    organization
    • Analysis of human resource capabilities should be done taking the
    following areas into consideration:
    a) Employment
    b) Training
    c) Development
    d) Reward system
    e) Employee participation
    f) Employee empowerment
    g) Industrial and human relations
    h) Also refer V. S. P. Rao Text for more notes

    Christ University, Bangalore 10


    Operational Strategy
    • Production function must be adjusted based on
    the marketing research
    • Analysis of operational capabilities should be
    done taking the following areas into
    consideration:
    a) Cost of operation
    b) Capacity utilization
    c) Production facilities
    d) Cost and availability of raw material and
    components
    e) Plant location
    f) Purchasing and inventory control
    g) Operation procedures
    h) Production control and management information
    i) AlsoUniversity,
    Christ refer V. S.Bangalore
    P. Rao Text for more notes 11

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