Millenium Business Solution

Archive for December, 2011

Criteria for the identification and definition of business units do not have to match those on the approach to strategy formulation. Being able to stand out as most important the following factors:

• The strategies formulated at the business level, so that the organizational structure, try to adapt to the needs and criteria for strategic planning.
• The existing structure within the company, may be the biggest constraint to define strategic business units. In diversified firms, the traditional divisional structure may be the main point of reference to the point that in many cases identifies the business unit concept of the division or with a group of them.
• The size of the company is another limiting factor so it makes no sense to define strategic business units too small, even with its own strategic sense, as they could not accumulate the resources and functions needed to justify their independent existence. Similarly no sense homogeneous strategic business units but that would be too large and unmanageable from an organizational standpoint.
• The material and human resources shared by different businesses, also affect the construction of business units, as the duplication of those can be extremely costly to the company, so it is necessary to group the shares on the same unit Strategic Business.

As can be seen in this approach to strategy implementation predominate practical criteria linked to the feasibility of implementing a competitive strategy, which is related not only to their form, but with the current organizational structure and with the usual design criteria.

In summary, agrees Ministry of Transport, (2000) that: “The Strategic Business Unit, is a basic tool of strategic management process, with multiple activities. It is a concept that arises as the unit of analysis intermediate between the global and functional level strategy to facilitate the strategic planning of the various activities of a company’s business. “

Strategic Business Units are the main ingredient of the well-known portfolio matrices were so successful in the seventies for strategic planning in diversified companies.

The portfolio, business portfolio folder or a company, usually includes a set of offerings spread over several Strategic Business Units: they are the center of planning for assist in fulfilling the mission of the organization to focus its efforts towards the main strategies.

If the arrival of Marketing means anything, it is the transition of trade: the predominance of interest that the seller, for consideration by the purchaser or consumer. According Santesmases, (1991) “Marketing is human activity that aims to satisfy the needs and wants through exchange processes, is therefore both a philosophy and technique.”

“As a philosophy, – continues Santesmases, (1991) – is a mindset, an attitude, a way of conceiving the terms of trade by the company or entity that offers its products to market. This conception of the needs and desires of consumers and designed to your satisfaction the most beneficial way for both the consumer and the entity. ” “As a technology, marketing is the specific mode of executing or carrying out the terms of trade, which is to identify, create, develop and serve the demand.”

The Strategic Planning Process Marketing companies play a critical role … marketing director has the most to contribute to the strategic planning process with leadership roles in defining the mission of the company, environmental analysis, competition and business situations, development of objectives, programs and strategies, product definition, market, distribution and quality plans to develop business strategies. This commitment extends to developing programs and operational plans that are fully linked to strategic planning. (Kotler, 1999)

One of the most useful and important marketing is to plan well in ensuring the future success of our company, based on responses to this we offer to the market demands, the environment in which we possessed constantly changing and evolving, the success of our company depends largely on our ability to adapt and anticipate these changes. We must be able to understand to what extent and how future changes will experience our environment affect the company and to establish appropriate strategies to make the most to our advantage.

For this, the company must define its goals based on the formulation of which is the company itself, what is its market-product and who are their customers. The company never should remain behind the market. (Muñiz, 2001)

The definition of the company and the business that is, the product sold or service provided, the market you are targeting, it is the starting point of strategic marketing.

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