A strategic business unit (SBU) is an autonomous division within a larger corporation that is focused on a specific product or market segment. SBUs have their own marketing plans and budgets to drive their individual profitability, while still being accountable to the larger parent company. They allow corporations to be flexible and responsive to changing economic conditions by delegating control over key performance factors to the independent SBU level.
Strategic Business Unit Defined
A strategic business unit is a fully functional and distinct unit of a business that develops its own strategic vision and direction.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
Strategic Business Unit Defined
A strategic business unit is a fully functional and distinct unit of a business that develops its own strategic vision and direction.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU).
Business Portfolio Analysis is an organisational strategy formulation technique that is based on the philosophy that Organisations should develop strategy..... much as they handle investment portfolios..
This presentation covers one of the process of Strategic Management; Strategic Implementation. There are 2 sub divisions; Functional Implementation and Structural Implementation. This section deals with Structural Implementation in detail.
How to guide - selecting an organizational structure for marketingDemand Metric
Does your marketing department have a solid infrastructure? Do all of your company’s marketing professionals understand their role/function in the organization? Is the chain of command easily understood or only loosely communicated to marketing staff?
Organizational (org) structures provide a framework within a company that ensures all employees are aware of their role and how they fit into the ecosystem of the business. Org structures present themselves on a spectrum anywhere from a traditional, top-down approach to more collaborative, flexible approaches. Org structures vary by company size, industry and business needs. Ideally, each company will create its structure based on their specific requirements and continue to update the org structure as changes occur, both internally and externally.
As marketing departments become more complex, with new technologies and initiatives appearing all the time, it is important that Marketing builds and maintains an org structure that will enhance their current and future plans.
This How-To Guide was designed to help you understand what the common org charts look like, the pros and cons of each structure and how to select the best org structure for your company.
- See more at: http://www.demandmetric.com/content/selecting-org-structure-marketing
In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU).
Business Portfolio Analysis is an organisational strategy formulation technique that is based on the philosophy that Organisations should develop strategy..... much as they handle investment portfolios..
This presentation covers one of the process of Strategic Management; Strategic Implementation. There are 2 sub divisions; Functional Implementation and Structural Implementation. This section deals with Structural Implementation in detail.
How to guide - selecting an organizational structure for marketingDemand Metric
Does your marketing department have a solid infrastructure? Do all of your company’s marketing professionals understand their role/function in the organization? Is the chain of command easily understood or only loosely communicated to marketing staff?
Organizational (org) structures provide a framework within a company that ensures all employees are aware of their role and how they fit into the ecosystem of the business. Org structures present themselves on a spectrum anywhere from a traditional, top-down approach to more collaborative, flexible approaches. Org structures vary by company size, industry and business needs. Ideally, each company will create its structure based on their specific requirements and continue to update the org structure as changes occur, both internally and externally.
As marketing departments become more complex, with new technologies and initiatives appearing all the time, it is important that Marketing builds and maintains an org structure that will enhance their current and future plans.
This How-To Guide was designed to help you understand what the common org charts look like, the pros and cons of each structure and how to select the best org structure for your company.
- See more at: http://www.demandmetric.com/content/selecting-org-structure-marketing
Management Accounting studies the preparation and use of cost accounting information for managerial decision-making and control purposes. This course provides students with the tools needed to understand and address the important problems facing management accountants today. In order to keep up with the class, students should go over the relevant chapters and problems prior to each class. This must then be followed by a more in-depth review of the material and practice of problems after the class.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
Corporate ParentingDesigning the corporate HQ MGT 214 CorpAlleneMcclendon878
Corporate Parenting
Designing the corporate HQ
MGT 214 Corporate Strategy
Spring 2021
Dr. Paul Kirwan
1
Recurring theme…
The goal of the corporate strategist is to exploit synergies through administrative control that cannot be replicated by mere investors.
Corporate advantage comes broadly from either portfolio assembly (“selection”) or portfolio modification (“synergy”).
2
Recurring theme…
“Synergy” is an umbrella term to describe the various ways in which the cash flows and discount rates of businesses in a portfolio can be modified through administrative influence.
Synergy is the means through which corporate advantage is created relative to a typical investor who can assemble the same portfolio of investments (without exercising administrative influence over them, as she lacks the decision rights to do so).
3
Introduction
This chapter explores how the appropriate influence model for HQ is contingent on the choice of how corporate advantage is being pursued.
The appropriate influence model is defined as the way HQ influences individual businesses in the portfolio
4
Introduction
The HQ, where the corporate strategists reside, is ultimately the custodian of corporate advantage.
Its goal is to ask (and help answer) the question of why the collection of businesses they administer is worth more than what they would be worth if operated independently.
5
Understanding HQ
“HQ” refers to:
the corporate HQ in a multi-divisional corporation
any administrative unit making strategic decisions that cut across multiple businesses
Including regional, national, or divisional HQ
the holding company of a portfolio of companies (as in a business group)
the organizational or physical location of shared service units.
6
Holding Company Structure, simple example
7
Heineken’s Premium Brand Portfolio, simple example
8
Basic facts about the corporate HQ
Studies decompose the variance in profitability to:
(1)business unit,
(2)corporate parent, and
(3)industry level factors
Found that the corporate parent factor represents around 10 to 20 percent of total variance (and 20 to 25 percent of explained variance), using the most recent techniques (McGahan and Porter, 2002).
This is in between that for industry and that for business unit.
9
Basic facts about the corporate HQ
This may be a significant under-estimate of the impact of the corporate HQ because of data limitations and the methodology, which mainly has to do with the fact that many business unit specific factors actually originate through HQ decisions.
The size of the corporate HQ relative to the total size of the corporation varies enormously across sectors and geographies.
Primary drivers of differences in HQ size are the scale of shared service functions provided to the businesses in the portfolio, as well as the extent of linkage influence exercised by the HQ.
10
Basic facts about the corporate HQ
The cost of the corporate ...
GE McKinsey Matrix: Easily prioritize investments among your Business Units o...Aurelien Domont, MBA
Description
The GE-McKinsey Matrix is a portfolio management tool that helps corporations prioritize investments among their business units. It provides guidance on whether to invest, protect, harvest, or divest from a business unit based on its market attractiveness and competitive strength. The matrix is useful for corporations with a large portfolio of strategic business units.
The GE-McKinsey Matrix was developed in the 1970s by General Electric in collaboration with McKinsey & Company. The matrix compares groups of products with their competitive power and market attractiveness. The portfolios themselves are comprised of the full suite of products or services that a business offers to the market. The matrix allows a large, decentralized company to determine where best to invest its cash by judging each strategic business unit according to whether it will do well in the future. The GE-McKinsey Matrix is fundamentally a portfolio analysis that helps corporations make strategic decisions on a corporate level.
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
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Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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2. An autonomous division or organizational unit,
small enough to be flexible and large enough to
exercise control over most of the factors
affecting its long-term performance.
Because strategic business units are more they
allow the owning conglomerate to respond
quickly to changing economic or market
situations.
3. A strategic business unit (SBU) is a profit
centre which focuses on product offering
and market segment.
SBUs typically have a discrete marketing
plan, analysis of competition, and
marketing campaign, even though they
may be part of a larger business entity.
4. An SBU may be a business unit within a
larger corporation, or it may be a business
unto itself or a branch. Corporations may be
composed of multiple SBUs, each of which is
responsible for its own profitability.
General Electric is an example of a company
with this sort of business organization.
SBUs are able to affect most factors which
influence their performance. Managed as
separate businesses, they are responsible to
a parent corporation. General electric has
49 SBUs.
5. There are three factors that are generally
seen as determining the success of an
SBU
1.the degree of autonomy given to each
SBU manager,
2.the degree to which an SBU shares
functional programs and facilities with
other SBUs, and
3.the manner in which the corporation is
because of new changes in market.