Strategic Business Units in the process of Strategic Planning Marketing
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.
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Posted in Business Ideas, Business level | 
Tags: business level, business unit, organizational structure, strategic business
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