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Strategic Business Unit

Strategic Business Unit



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Published by cancer4u28

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Published by: cancer4u28 on Jan 01, 2008
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Strategic Business Unit 
The idea was developed by Mckinsey & Co. (Consulting Firm) & General Electric in 1971.
Separate operating entities within an organization.
 After defining mission, a company establishes SBU’s which is sel contained division, product line or product department within an organization.
To be identified an SBU, an entity should,
Be a separate identifiable business 
Have a distinct mission 
Have its own competitors 
Have its own executive group with profit responsibility In 1990 AT&T had 19 business units 
General Electric & SBU’s are electrical motors, Major appliances, Je Engines Lighting Equipments Commercial Credit and Broadcasting.
 Analyzing SBU’s 
Several different planning models are there 
1.The Boston Consulting Group Matri
The Boston Consulting Group Matrix identifies four types of SBU’s: Star, cash cow, problem child (question Mark) and dog.
 A star is a leading SBU (high market share) is an expending industry (High growth) 
 A cash cow is a leading SBU (high market share) in a relatively matured or declining industry (low growth) 
 A problem child or question mark is an SBU that has made little impact in the market place (low market share) is an expanding industry (high growth).

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