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    Strategic Business Unit

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    cancer4u28
    The document discusses strategic business units (SBUs), which were developed by McKinsey & Co. and General Electric in 1971. An SBU is a self-contained division, product line, or department within a company that has its own mission, competitors, executive group, and profit responsibility. The document provides examples of GE's SBUs and discusses two models for analyzing SBUs: the Boston Consulting Group Matrix and the Product/Market Opportunity Matrix. It applies the Product/Market Opportunity Matrix to Coca-Cola's business units to demonstrate the four alternative marketing strategies.

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    Strategic Business Unit

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    cancer4u28
    8K views7 pages
    The document discusses strategic business units (SBUs), which were developed by McKinsey & Co. and General Electric in 1971. An SBU is a self-contained division, product line, or department within a company that has its own mission, competitors, executive group, and profit responsibility. The document provides examples of GE's SBUs and discusses two models for analyzing SBUs: the Boston Consulting Group Matrix and the Product/Market Opportunity Matrix. It applies the Product/Market Opportunity Matrix to Coca-Cola's business units to demonstrate the four alternative marketing strategies.

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    The document discusses strategic business units (SBUs), which were developed by McKinsey & Co. and General Electric in 1971. An SBU is a self-contained division, product line, or department within a company that has its own mission, competitors, executive group, and profit responsibility. The document provides examples of GE's SBUs and discusses two models for analyzing SBUs: the Boston Consulting Group Matrix and the Product/Market Opportunity Matrix. It applies the Product/Market Opportunity Matrix to Coca-Cola's business units to demonstrate the four alternative marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    8K views7 pages

    Strategic Business Unit

    Uploaded by

    cancer4u28
    The document discusses strategic business units (SBUs), which were developed by McKinsey & Co. and General Electric in 1971. An SBU is a self-contained division, product line, or department within a company that has its own mission, competitors, executive group, and profit responsibility. The document provides examples of GE's SBUs and discusses two models for analyzing SBUs: the Boston Consulting Group Matrix and the Product/Market Opportunity Matrix. It applies the Product/Market Opportunity Matrix to Coca-Cola's business units to demonstrate the four alternative marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 7

    Strategic Business Unit

    The idea was developed by Mckinsey & Co. (Consulting Firm) &
    General Electric in 1971.
    Separate operating entities within an organization.
    After defining mission, a company establishes SBU’s which is self
    contained division, product line or product department within an
    organization.
    To be identified an SBU, an entity should,


    Be a separate identifiable business
    Have a distinct mission
    Have its own competitors
    Have its own executive group with profit responsibility
    In 1990 AT&T had 19 business units
    General Electric & SBU’s are electrical motors, Major appliances, Jet
    Engines Lighting Equipments Commercial Credit and Broadcasting.
    Analyzing SBU’s
    Several different planning models are there
    1. The Boston Consulting Group Matrix
    The Boston Consulting Group Matrix identifies four
    types of SBU’s: Star, cash cow, problem child (question
    Mark) and dog.
    A star is a leading SBU (high market share) is an
    expending industry (High growth)
    A cash cow is a leading SBU (high market share) in a
    relatively matured or declining industry (low growth)
    A problem child or question mark is an SBU that has
    made little impact in the market place (low market
    share) is an expanding industry (high growth).
    The Product / Market
    Opportunity Matrix
    It identifies four alternative
    marketing strategies that may be
    used to maintain and / or increase
    sales of business units and
    products : market penetration,
    product development, market
    development, and diversification.
    The Product / Market Opportunity Matrix
    Applied to Coca Cola
    Market Penetration
    More adults use in commercials, you can not beat the feeling at theme
    new Coke ads aimed at core market of 12-24 years olds.
    Market Development
    Company products marketed in 155 countries around the world greater
    emphasis placed on consumers in China, South America, Eastern Europe,
    Africa and the Middle East.
    Product Development
    Improving product quality adding new brands and flavors (such as
    Minute Maid Soda and Cherry Coke, Decaffeinated versions of coke and
    tab).
    Diversification
    Producing juice, coffee, tea, bottled water and frozen foods Manufacturing
    water – treatment and conditioning acquiring an operating Columbia
    picture, Embassy communications, and Marry Griffin Enterprises.
    General Electric Business Screen
    Definition: It examines industry attractiveness and
    company business strengths.

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