...what is Strategic Business Unit? What are conditions required for creating an SBU? How is performance of SBU measured? What are the advantages and disadvantages of creating SBUs? Ans. Strategic business units are self-contained divisions formed within an organization for dealing with specific business concerns. These units pull together the diverse parts of the concerned organization while cutting across the geographical and diverse lines for serving a specific market in a more efficient manner. These strategic business units are also referred to as independent business units or strategic planning units. The main philosophical concept behind the formation of strategic business units is to serve a clear and defined market segment along with a clear and defined strategy. These business units have to contain all the needs and corporate capabilities of the respective organization. The entire portfolio of the concerned business has to be managed by allocation of managerial and capital resources for serving the overall interest of the entire organization. This helps in developing a balance in the earnings, sales and the assets at a level which is controlled and acceptable for taking the right amount of risks. The strategic business unit (SBU) is created with the application of set criteria which consist of the competitors, price models, customer groups and the overall experience of the company. It is also sometimes seen that a number of different verticals present in the same organization...
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...The Case Study for PROJ587 will place the student in the role of a senior manager in charge of one of your company’s Strategic Business Units (SBU). Your first task in this new position is to develop a project portfolio management process and then use this process to select projects for your SBUs portfolio. The Case Study will involve the application of the tools and techniques of multi-project/program management and will deal with the analysis and establishment of project management systems based on the structure of the project. The expected outputs from this Case Study will be in the form of a two part written report due week five. Background The senior management of your company has already made the strategic decisions to allocate annual funding to each of the Strategic Business Units (SBU) within the company. You have been hired to manage one of the companies SBUs. Your new company is a mid cap company with revenues of approximately $350 million dollars a year. This company, like many others, is struggling in today’s economy. It realizes in order to survive it needs to both expand and control costs at the same time. You are new to this industry. This company’s vision is to become the “go to” support or the “provider of choice” for the cruise ship industry throughout the world. This company currently is in the travel and hotel support industry. As such, you supply support services to the travel and hotel industry such as linen services to...
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...Business Model and Strategic Plan Leroy Kennedy Bus/ 475 August 21, 2014 Ramzy Noel Business Model and Strategic Plan A Business Model discusses the broad range of informal and formal descriptions to represent core aspects of a business including its customers, purpose, process, offering, strategy, infrastructure, organizational structures, trading practices, operational processes, and policies. ("Business Model", 2014).. The Strategic Plan of a business is the process of how the business is going to go forward in implementing the goals of the business model. The Strategic Plan outlines and transfers the information of the business model into an engine that drives that model and brings it into fruition. This Strategic Plan should include a SWOT Analysis that defines the strengths, weaknesses, opportunities, threats, and trends. In conducting a SWOTT Analysis of Weis Manufacturing some of the legal and regulatory laws they would have to get away from is distinguishing itself from a daycare which is under more strict rules than the division is planning to offer. Regulatory laws governing childcare is more than the division can bargain for because it brings the risk of a lawsuit from a child being hurt. Economic conditions that may affect Weis vary depending on the economy at any given time. When the economy is booming people are more readily to spend money but when the economy is failing people are tight with their money. One advantage this new division will have is...
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...Business STRATEGIC 1. How can a company overcome the limitations of being in a fragmented industry? Fragmented industry consists of many small and medium sized companies or firms. There is few scale economies and hence large company cannot have advantage overall advantage. Furthermore the lack of scale economies low barriers to entry characterize many fragmented industries and new entry keeps the industry fragment.. Similarly transportation cost may keep the industry fragmented. Entrepreneurs are eager to gain the cost advantage of pursuing a low cost strategy of a fragmented industry. The required rate of return from consolidating industry is often huge. A fragmented industry is a sector of business without a distinct industry leader to control market trends. This business phenomenon happens frequently in local markets with small businesses, including restaurants, auto repair shops and construction companies. A small business owner can use several proactive strategies to overcome industry fragmentation and begin to distinguish her company in the minds and wallets of consumers. A fragmented industry is an entrepreneur's dream, and offers unbelievable opportunity compared to more homogeneous industries. Restaurants, Home Improvement Outlets and Homebuilders, and other Mom-and-Pop endeavors are good examples. Tons of small competitors and no consistent supply chain. Compare this to the a handful...
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...Elements of dispute Inter-personal a. Vali and Sugriva: They had a dispute over the kingdom and Sugriva’s wife. Intra-personal a. Rama had an internal conflict on taking sides with Sugriva and killing Vali from behind b. Vali had an internal conflict between the love for his brother and anger against him c. Tara had an internal conflict over saving the kingdom after Vali’s death and taking sides with Sugriva Avert and Covert agenda Vali Vali had an overt agenda to retain the kingdom and to kill Sugriva. His covert agenda was to keep Sugriva’s wife with himself and also to show how powerful he was. Sugriva Sugriva had an overt agenda to become the king and to take his wife back from Vali. He also wanted to let the world know that Vali’s accusations were not true. He had a covert agenda to marry Tara. Ram Ram’s overt agenda was to gather Sugriva’s help in his quest for Sita and to show the world that he helps the weaker ones. He had a covert agenda to warn Raavan by killing the Vali, who was the only one to have defeated Raavan. Tara Tara had an overt agenda of saving Vali and the kingdom. After the death of Vali, she decided to save the kingdom and considered her own safety. She had a covert agenda to become the next queen and to make her son the next heir to the throne. Handling of disputes by principal characters Tara, Ram and Sugriva were good in handling disputes. Tara always took the situation at place and acted accordingly. Ram did get what he wanted and...
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...manufactures earthen wires and table wares as its main line business and started trading in May 1997 after purchasing the asset of T.G. Delamere & Co Ltd. The company has as its managing director Malcon Lewis and John Wilshaw as production manager. The company focused on premium prices and economy earthen ware as its strategy to penetrate the market. After the buy over, the structure and strategy of the business was changed to increase profitability and the company also applied diversification and innovation to gain competitive advantage in a competitive market. With the strategy and product diversification, the company was not getting the desired result. Two years after (in 1999), the company engaged the services of MPC project to strengthen its profit margin. Strategies adopted: In 1997, the management of Delamere Ltd wrote a revised business strategy and a new business plan which is summarized below: • To continue manufacturing Pottery products with higher technology and equipment to achieve efficient and flexible production. The company intends to achieve this strategy through planning, efficiency, factory layout, sales forecast, fuel utilization, reduced cost, quality and enhanced communication. • To improve on quality and saleability of pottery brands by product and service improvement programme. • To improve profitability by improving gross margins and additional turnover. Every business develops new products to gain competitive advantage....
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...Strategic Business Plan ukessays.com /essays/business/developing-a-strategic-business-plan.php Developing a Strategic Business Plan Either in the start up process or when re-inventing one's business development, the design of a strategic business plan is an indispensable step towards a successful and viable business. Strategic planning involves setting up a sound and multifaceted plan or strategy to follow over a defined time period.It can involve all aspects of the business, or just a small part of it i.e. a selected department such as the marketing department.However, this does not mean that strategic business planning is only for large scale businesses since it can also benefit the small business, especially at start up, when the business sets its first goals and establishes itself in the business landscape. Writing up a business plan is an important step of a starting business, since most lending bodies will not authorize loans in absense of a detailed business plan.Why is it important? Imagine sailing off for a voyage in the sea and not planning for resources or supplies that you might need. Developing a business plan is the only way to determine the allocation needs, personnel, utilities, marketing goals, outreach and all valuable aspects that make your business useful and unique in the sea of business. However, strategic planning is a process employed in any time period in a formal business administration, since it usually comprises of a long range planning process of...
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...Strategic Management & Business Policy, 13e (Wheelen/Hunger) Chapter 1 Basic Concepts in Strategic Management 1) Strategic management is one decision that determines the short-term performance of a corporation. Answer: FALSE Diff: 1 Page Ref: 5 Topic: The Study of Strategic Management 2) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Diff: 2 Page Ref: 5 Topic: The Study of Strategic Management 3) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Diff: 1 Page Ref: 6 Topic: The Study of Strategic Management 4) One of the benefits of strategic management is a clearer sense of vision for the firm. Answer: TRUE Diff: 2 Page Ref: 6 Topic: The Study of Strategic Management 5) To be effective, strategic management must be a formal process. Answer: FALSE Diff: 3 Page Ref: 7 Topic: The Study of Strategic Management 6) Globalization is the internationalization of markets and corporations. Answer: TRUE Diff: 1 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management 7) As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage. Answer: FALSE Diff: 2 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management ...
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...Strategic plan for TAG Motorsports Todd Guthrie BUS/475 June 25, 2012 Becky Shokraii Strategic plan for TAG Motorsports The economy may not be conducive to opening a new business however; the need for a local motorcycle manufacturer and repair business outweighs the economic outlook. TAG Motorsports will open with a vision, mission, and values that determine the strategic direction of the organization. A SWOTT analysis, balanced scorecard initiatives, communication plan, and monitor and control measures, as well as recommended actions for improved corporate citizenship are included. Mission of TAG Motorsports TAG Motorsports is a locally owned motorcycle manufacturer and repair business. It will manufacture custom motorcycles and trikes, as well as service all other manufacturers’ products. The mission statement for the business is “TAG Motorsports builds custom motorcycles and trikes, services and repairs all other manufacturers’ products, and treats their customers in an honest, transparent, and trusting environment”. This mission statement describes the firm’s product, market, and technological areas of emphasis, and it does so in a way that reflects the values and priorities of the firm’s strategic decision makers (Pearce II & Robinson, 2009). The vision of the company parallels the mission statement. Vision of TAG Motorsports The vision statement of TAG Motorsports clearly supports the organizations plans and goals. The vision statement for TAG Motorsports...
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...get more out of life. The company constantly enhancing company’s brands to deliver more intense, rewarding product experiences. It invests nearly €1 billion every year in cutting-edge research and development, and has five laboratories around the world that explore new thinking and techniques to help develop its products. (www.unilever.com) Oxfam: Oxfam GB is a leading international NGO with a worldwide reputation for excellence in the delivery of aid and development work. Its purpose is to work with others to overcome poverty and suffering. Oxfam GB is a member of Oxfam International. 14 organisations with over 3,000 partners is around 100 countries working under Oxfam International. Building on its mission, values, and beliefs, the Strategic Plan has been developed to cover its work over the next three years. Its aim in the Plan is to increase its impact. The intention...
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...Strategic Business Plan Kendra Pegues BUS-485 Professor Slade 12/14/14 Cappuccino on Wheelz is going to be one of the best coffee shops around. Being that we will also be a mobile coffee shop also I think the customers are going to love it. Cappuccino on Wheelz will probably be the first coffee shop, mobile and delivery service ever. We are trying to reach out to those who are not able to get out and get the type of coffee they want and for those drinkers who be at work thinking about a latte, cappuccino or coffee. We want to better serve the city and make our customers happy so they will return and bring friends. Better service and a great location means that our customers will be happy and relaxed. When making a business we are going to need to figure out what is it going to take in order for us to please and satisfy our customers? So we are going to create a menu that once you look at it you have no other choice but to order we are going to have pastries and doughnuts to go with the cappuccino or coffee. The worry about opening a business is will the company succeed? In saying that I feel if we stay on the business side and put our customers first we would be good. We also have to understand that we are going to have competitors in operating this business. In the business world there are going to be competitors that are really going to put forth the effort in order to find out what our business is doing better that they can improve on. I think that making sure we maintain...
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...1. . Your answer should be an analysis based on the use of appropriate models and theories relating to ABC's capabilities (internal environment), environment (external and competitive environment) and purposes (Values, mission, objectives, stakeholders and culture). You should summarise your findings by developing a range of strategic options using a SWOT analysis. ABC Optical SWOT: New Market: Latin and South America? Asia? Existing Market: US PEST analysis: Political(政治): Government policies, taxation changes, foreign trade regulations, political risk in foreign markets, changes in trade blocks. WTO negotiations. Remember to local issues: Planning Permissions, Trading Licenses. Result: No Economic: business cycles, interest rates, personal disposable income, exchange rates, unemployment rates, GDP trends. Remember to local issues - closure of a factory, grants, poor/excellent transport links. Proximity to a University or Science Park Result: Situational Social: population changes, income distribution, lifestyle changes, consumerism, changes in culture and fashion. Consider local issues: Ethnic groups, local languages, local customs and holidays. Result: customers need more high volume, high added value optic devices (e.g. telecommunication industry) Technological: new discoveries and technology developments, ICT innovations, rates of obsolescence, increased spending on R&D. Result: Photonics SWOT: Internal Strengths: -Impeccable customer service/satisfaction...
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...Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small, and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In an organization of any size or complexity, employees' responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. Over time these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions are illustrated graphically in an organizational chart. The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets). DEVELOPMENT OF THE TRADITIONAL ORGANIZATIONAL STRUCTURE Understanding the historical context from which some of today's dominant organizational structures have developed helps to explain why some structures are the way they are. For instance, why are the old, but still operational steel mills such as U.S. Steel and Bethlehem...
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...CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS TO BUSINESS Working Capital Management Strategies Working capital strategies has in the past been a responsibility designated to those managers in the accounting and finance departments. However, today’s economy is changing those roles and many managers who traditionally were not part of this process are being called upon to take proactive steps in reducing the risk associated with working capital. Working capital may be a foreign term to some managers and so we should first begin by defining this term. Generally working capital represents those current assets such as cash, marketable securities, accounts receivable, inventory and pre-paid expenses. Furthermore net working capital would take the calculation further and reduce working capital by the current liabilities such as accounts payable, short term borrowings and accrued liabilities. Understanding these terms is crucial because a company’s daily activities typically result in dramatic fluctuations in the accounts comprising working capital. The manager’s ability to anticipate the fluctuation and proactively make decisions to curtail the negative impact of such fluctuations will help maintain liquidity even in the toughest of circumstances. A company’s ultimate long-term success is based upon all departments within the organization coming together to fulfill its business purpose or mission. The same ideology should be used in managing the company’s working capital...
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...hotel California by the Eagles On a dark desert highway, cool wind in my hair, warm smell of colitis, rising up through the air. Up ahead in the distance, I saw a shimmering light. My head grew heavy and my sight grew dim, I had to stop for the night. There she stood in the doorway; I heard the mission bell and I was thinking to myself, "This could be Heaven or this could be Hell". Then she lit up a candle and she showed me the way. There were voices down the corridor, I thought I heard them say, “Welcome to the Hotel California. It’s such a lovely place, such a lovely face. Plenty of room at the Hotel California, any time of year, you can find it here”. Her mind is Tiffany-twisted, she has the Mercedes bends. She has a lot of pretty, pretty boys she calls friends. How they dance in the courtyard, sweet summer sweat. Some dance to remember, some dance to forget. So I called up the Captain, "Please bring me my wine.” He said, "We haven't had that spirit here since nineteen sixty nine." Still those voices are calling from far away. Wake you up in the middle of the night just to hear them say, “Welcome to the Hotel California. It’s such a lovely place, such a lovely face. They’re living it up at the Hotel California. What a nice surprise, bring your alibis.” There are mirrors on the ceiling, the pink champagne on ice. Then she said "We are all just prisoners here, of our own device.” In the master's chambers, they gathered for the feast. They stab it with their steely knives...
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