LG Electronics: The Blue Ocean Strategy Case Study Reference No. A Strategic Business Unit (SBU) is a basic organisational unit for which it is meaningful to formulate a separate competitive strategy (Grant, 2002). A strategic business unit (SBU) is a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. This point is directly connected to the first one. YES I AM NEEDED IN MARKETING FAINANCE INFORMATION. Thus the first SBU does not get the independence to implement some important strategies. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, 4 Organizational units involved in marketing strategy, Core Competencies - Importance, Advantages and Limitations, 6 reasons why Strategic Business Units are Important, Role of strategic planning in an organization, 4 simple steps for implementing a strategic plan, The Importance of Strategic Planning in an Organization, Strategic Alliance: 4 Types, Examples, Advantages, and Disadvantages, Green Business strategies - SWOT of green business, Ansoff Matrix Theory Examples of Business Strategies for Future Growth. Hubspot developed an executed a perfect strategy where it created a market that didn’t even existed – inbound marketing. For example –  if an LCD manager knows that LED’s are more in demand now, he needs to communicate to the top management that he would also like a range of LED products to make the SBU even more profitable. All Rights Reserved. The SBU manager too plays a crucial role in this and hence he is recruited from the industry with extensive experience of that particular industry. Visit our, Copyright 2002-2020 Simplicable. Because the functionality, and the resources shared in these units are different. The most popular articles on Simplicable in the past day. Since the company have the presence in such wide variety of product portfolio, therefore, it makes sure that it has a presence in different segments like it has low end and high-end mobile phones, TV… These organizations are characterized by multiple categories and multiple product lines. Strategic business units are created based on the market segments catered by organisation and are generally created to increase profits. Strategic Planning is … LG is MOST likely using the _____ structure. 3 of such features are discussed below. (SBU) Strategic Business Units: Innoball. Definition: A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. This is not an example of the work produced by our Essay Writing Service. Reproduction of materials found on this site, in any form, without explicit permission is prohibited. The Oil & Gas unit of GE has its headquarter in London, United Kingdom. See more ideas about strategic business unit, marketing plan, marketing campaigns. Samsung is a conglomerate consisting of multiple strategic business units (SBU’s) with a diverse set of products. List three examples of Strategic Business Units (SBUs) for Coca Cola . A unit grouped as such to optimize the collective organizational capabilities among its constituent entities Some traditional characteristics It is a single business, often with its own P&L responsibilities, or collection of related businesses that can be planned separately from the rest of the corporation/other business units They are focused towards a set of products and are responsible for each and every decision / strategy to be taken for that particular set of products. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity. Yes. Listed below is the strategic planning process: A business strategy refers to the actions and decisions that a company takes to reach its business goals and be competitive in its industry. However, along with the reasons for using SBU’s there are also some powers which needs to be inferred on an SBU. 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