Introduction A Strategic Business Unit (SBU) is when a unit comprises one or more products having a common market base whose manager has complete responsibility for integrating all function in to a strategy against an identifiable competitor. An SBU is composed of a product or product lines having identifiable independence from other products or product lines in term of competition‚ prices‚ substitutability of product‚ style/quality‚ and impact of product withdrawal. (Kendrick‚ 2009) Sometimes
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and at the same time‚ maximizing returns for the organization. This focus causes a re-evaluation of many prevalent business practices‚ which may have obstructed a greater understanding of consumer needs and opportunities We start this article by understanding the concept of category management and then look at the reasons for the emergence of the concept and finally‚ at the business process in which it occurs. The Concept of Category Management: Category management is considered as the new science
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it appeared that NOL was ready to become an industry leader in the shipping industry. Thus this acquisition is a strategy through which NOL buys a controlling‚ 100 per cent‚ interest in APL with the intent of making the acquired firm a subsidiary business within its portfolio. Thus APL became a wholly owned subsidiary of Singapore based NOL‚ a global transportation and logistics company engaged in shipping and related businesses. Below is the study of the problems and strategies that NOL faced
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contract manufacturing‚ which turned the job shop business into an important industry. Solectron began to purchase the manufacturing facilities of its customers‚ which enabled them to sign long-term supply contracts with them as well as increasing supply to multiple other customers. By the end of the 90s‚ Solectron had three strategic business units- Technology Solutions‚ Global Manufacturing‚ and Global Services. Solectron focused their business on superior customer service and respect for the individual
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DYNACORP CASE The strategic design lens assumes organizations are deliberate‚ goal-achieving entities (Ancona‚ Kochan‚ Scully‚ Van Maanen‚ & Westney‚ 2005: M-2‚ 10). In this view‚ managers can achieve organizational goals by understanding the fundamentals of design and fitting design to strategy‚ as well as to the larger organizational environment (Ancona et al.‚ 2005: M-2‚ 12). In this paper‚ I discuss the five major elements of strategy – environmental fit‚ strategic intent‚ strategic grouping‚ strategic
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Case study Portfolio analysis and planning in a retail group Bear is a large department store in downtown St Gallen which has belonged to the family of the same name for three generations. Offering a full range of goods‚ it has been able to preserve its domonance in the region. Figure 1 presents the range of goods sold and estimates for current turnover. |Product goup |Turnover in mil. CHF
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Amanda Kluszczynski Strategic Business 59-620B Eveanne Lovero Kraft Questions March 12‚ 2015 1. What is Kraft Foods Inc.’s corporate strategy? How has its corporate strategy evolved since its independence in 2007? Kraft has a strong global strategy. They found themselves operating in more than 80 countries‚ which included 220 manufacturing and processing facilities and 228 distribution centers. Because of the different regulations in each country related to food‚ they found themselves in need
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www.hbr.org The Core Competence of the Corporation by C.K. Prahalad and Gary Hamel Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 The Core Competence of the Corporation 15 Further Reading A list of related materials‚ with annotations to guide further exploration of the article’s ideas and applications Reprint 90311 The Core Competence of the Corporation The Idea in Brief
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corporate parent can add value. Envisioning – The corporate parent can provide a clear overall vision or strategic intent for its business units. Coaching & Facilitating – The corporate parent can help business unit managers develop strategic capabilities. Providing Central services – A provider of capital investment. Intervening – The corporate parent can also intervene within its business units in order to ensure appropriate performance. This section will address the value adding activities of
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Directional Policy Matrix 1. Introduction Many large companies comprise several distinct divisions or strategic business units (SBUs). So one of the challenges facing the parent company of a multi-divisional company is to allocate resources to each division. So in order to make wise decisions on resource allocation‚ is there a tool that can assist senior executives determine the direction for each division or SBU? Actually there are two tools‚ the BCG matrix and the Directional Policy Matrix (DPM)
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