STRATEGIC BUSINESS UNIT(SBU)

Presented By:- Sunil Bawaskar Srinivas Kuna

Kushal Parekh Gaurav Shah

Nilesh Phadtare Dipesh Karale

Ashwini Markandeya

SYNOPSIS

DefinitionCharacteristics Of SBUAdvantagesDisadvantagesModels Of SBUBusiness Competitive AdvantageBusiness Strategies Based On Specialisation

DEFINITION

Strategic Business Unit or SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves as a defined external market where management can conduct strategic planning in relation to products and markets.

CHARACTERISTICS OF SBU

• The strategic business unit (SBU) is a separate, specialized subsystem in the company, which acts as an independent company.

• SBUs are small businesses with a high functional and decision-making autonomy.

• SBU units may or may not need to work closely with companies, from which they have been separated.

• SBUs can be used to prepare the diversified company's strategy.

ADVANTAGES

Minimizes problems

associated with sharing

resources across

functional areas

Increases operational and

strategic control, allowing

corporate level executives to

deal with strategic issues.

Facilitates development

for general managers

Increased focus on products and markets

Quick response to

environmental change

DISADVANTAGES

Increased expenditure invited through doubling of operations, personnel,

and investmentsDistortion of information

Dysfunctional antagonism amongst

divisions might detract from in general

corporate performance

Difficulty in maintaining a uniform

corporate image

Over emphasis on short term

performance

MODELS OF SBU

• The Boston Consultancy Group Matrix

• The General Electric Company/McKinsey Matrix

EXAMPLESTHE BCG MATRIX OF APPLE 1.STAR 3. CASH COWS- APPLE ITUNES IPHONE

2. QUESTION MARK MAC OS X LION 4. DOGS - MACBOOK

BUSINESS COMPETITIVE ADVANTAGE

• Porter’s Five Forces Model

Industry Competitors

Suppliers

New Entrants Customer

Substitutes

BUSINESS STRATEGIES BASED ON SPECIALISATION

• Marketing

• Finance

• International Business

• Human Resource

THANK YOU

ANY QUESTIONS ?