Bmit

Introduction
This paper will describe strategies and business model theories including what Strategic Business Units (SBU) are and how they affect the companies they serve. This paper has included PVH Corp. Calvin Klein unit as the case study and demonstrates the economic crisis in Europe and the United States (U.S.) and how they are able to maintain sustainability in these difficult times.
Strategies and Business Model Theories
The business model innovation (where companies tend to fail) goes away from sustaining innovation (where companies succeed). The business model innovation typology (BMIT) is divided into three areas: technology (determines incremental, architectural, and radical innovations), value network (is a company’s personal relationship with its customers, suppliers and competitors), financial hurdle rate (expresses the relationship of a given projects financial projections to the lowest practical return) (Koen, Bertels, & Elsum, 2011).
If companies want to be successful in creating new business models they must leave behind their old strategies and develop new training skills for their employees. The financial hurdle rate is the main needle mover when it comes to whether a company is going to be successful in either BMIT or sustaining innovation (Koen, Bertels, & Elsum, 2011).
Generally speaking a business model is as good as the executives who use it or re-evaluate it. If these executives fully comprehend the model and how it should work throughout the entire company they will be rewarded with very useful assessments from their employees. A business model does not include competition, because that is considered a strategy. By developing a successful strategy that deals specifically with competition companies can expect to be set apart from their competitors naturally. Understanding these differences of using business model and strategies correctly will help companies be sustainable (Margretta, 2002).
Strategic Business Units