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Identifying Strategic Business Units

Identifying Strategic Business Units

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Published by: soldasters on Feb 09, 2010
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08/01/2013

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“IDENTIFYING STRATEGICBUSINESS UNITS”
 
DEFINITION
S
trategic Business Unit
or
SBU
 
is understood asa
business
 
unit within the overall corporate identity which is
 
distinguishable from other
business
 
because it serves a defined
 
external market where management can conduct
strategic
 
planning
.
in relation to products and markets The uniquesmall
business
 
unit benefits that a firm aggressively promotes
. ,
in a consistent manner When companies become really large they
 
are best thought of as being composed of a number of businesses
( ).
or SBUs
 
INTRODUCTION……
Ø
& . ( ) &
The idea was developed by Mckinsey Co Consulting Firm
.
General Electric in 1971
Ø
.
Separate operating entities within an organization
Ø
,
After defining mission a company establishes SBU s which is
,
self contained division product line or product department
.
within an organization
Ø
, ,
To be identified an SBU an entity should
Ø
 
easeparateidentifiablebusiness
Ø
 
Have a distinct mission
Ø
 
Have its own competitors
Ø
 
Have its own executive group with profit responsibility
&
In 1990 AT T had 19 business units
Ø
& ,
General Electric SBU s are electrical motors Major
,
appliances Jet Engines Lighting Equipments Commercial Credit
.
and Broadcasting

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