Sb Us[1]

Strategic Business Units S B U By Mythili Venugopal Srikumar V

A Unit comprising of one or more products having a common market base whose manager has complete responsibility for integrating all functions into strategy against an identifiable competitor. A Strategic Business Unit is….

Characteristics of SBUs
Should have a unique business mission that is distinct from other SBUs.
Identifiable set of customers & clearly definable competitors.
Should manage its resources in an optimum way in all its areas.
Should neither be too large or too small.

Structure of SBU CEO SBU I SBU II SBU III Human Resource FINANCE MARKETING PRODUCTION

Advantages of SBUs
Intra Competition.
Corporate Image.
Better Management.
Higher Efficiency.
Better Customer Services.

Limitations of SBUs
May lead to unhealthy competition
Restricts Creativity
Can be Myopic
Gives rise to an additional management level.

CASE STUDY
MAHINDRA AND MAHINDRA

Mahindra & Mahindra has six SBUs
Automotive: Covers the entire range of activities of the erstwhile "jeep" division. This sector is headed by Alan Durante.
Farm Equipment: Covers the entire range of activities of tractors and tractor equipment. This sector is headed by K. J. Devasia.
Trade & Financial Services Sector: Covers the entire trading, export and financial services-related activities of the company. This sector is headed by Bharat Doshi.

Infrastructure Development Sector: Covers the hotels and property and construction of the company. This sector is headed by Arun Nanda.
Information technology and Telecom Sector: Covers the company's forays into the sunrise industries of IT and telecommunications. These sectors are headed by Ulhas Yargop .
Automotive components sector: Covers the entire activities of the company in manufacture of molded components, propeller shafts, etc. This sector is headed by B M Kataria .

CASE STUDY
BAJAJ ELECTRICALS

‘ Bajaj Electricals’ has five SBUs
Appliances :-
It deals with production of Iron, Owens, Mixers, Toasters, Stoves, Coolers, Water Heaters & other household appliances
Engineering and projects :-
Bajaj Electricals undertakes setting up of illumination system of large corporations or any major industry which needs lighting – sports stadium, power transmission, signage, Towers etc..
Luminaries :-
This SBU deals with the illumination – Modern workspace lighting, Commercial lighting, Retail lighting etc..

‘ Bajaj Electricals’ has five SBUs
Fans :-
This SBU offers wide range of Fans - Ceiling, Table, Pedestal etc…
Lighting :-
Bajaj Lighting deals with the comprehensive range of lamps.
CMD Shekhar Bajaj
SBUs heads Mr. P.S Tandon, Mr. Lalit Mehta, Mr. G P Satsangi, Mr. A.S Radhakrishna and Mr. Harsh Mittal respectively.

GE Matrix – Bajaj Electricals Business Strengths Market Attractiveness Low High Low High Appliances Fans Luminaries Lighting

CASE STUDY GLENMARK PHARMACEUTICALS

GLENMARK PHARMACEUTICALS
Domestic Business
API
International Operations
Research And Development

CASE STUDY
Bharat Petroleum Corporation Limited (BPCL)

BPCL products
Benzene
Petro Cards
Bitumen
Lal Raja
Speed
Sulphur
Jet fuel
Bharat Gas
LPG
Piped LPG
Mak Ultra
Glide 2T /4T
e-banking
Consultancy

BPCL - six SBUs
Refinery SBU
Retail SBU
Lubricants SBU
Aviation SBU
LPG SBU
Industrial & Commercial SBU

Bharat Gas, Piped Gas LPG Gas e-banking, Consultancy Industrial & Commercial SBU Lal Raja, Mak Ultra, Glide 2T/4T Lubricants SBU Jet Fuel Aviation SBU LPG, Petrol, Diesel Petro Cards, Speed Retail SBU Benzene, Bitumen, Sulphur Refinery SBU Product SBU

THANK YOU

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