Sb Us[1]
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Strategic Business Units
S B U
ByMythili VenugopalSrikumar V
A Unit comprising of one or more products having a common market base whose manager has complete responsibility for integrating all functions into strategy against an identifiable competitor.
A Strategic Business Unit is….
Characteristics of SBUs
Should have a unique business mission that is distinct from other SBUs.
Identifiable set of customers & clearly definable competitors.
Should manage its resources in an optimum way in all its areas.
Should neither be too large or too small.
Structure of SBU
CEO
SBU I SBU II SBU III
Human Resource
FINANCE MARKETING PRODUCTION
Advantages of SBUs
Intra Competition. Corporate Image. Better Management. Higher Efficiency. Better Customer Services.
Limitations of SBUs
May lead to unhealthy competition Restricts Creativity Can be Myopic Gives rise to an additional management
level.
CASE STUDY
MAHINDRA AND MAHINDRA
Mahindra & Mahindra has six SBUs
Automotive: Covers the entire range of activities of the erstwhile "jeep" division. This sector is headed by Alan Durante.
Farm Equipment: Covers the entire range of activities of tractors and tractor equipment. This sector is headed by K. J. Devasia.
Trade & Financial Services Sector: Covers the entire trading, export and financial services-related activities of the company. This sector is headed by Bharat Doshi.
Infrastructure Development Sector: Covers the hotels and property and construction of the company. This sector is headed by Arun Nanda.
Information technology and Telecom Sector: Covers the company's forays into the sunrise industries of IT and telecommunications. These sectors are headed by Ulhas Yargop.
Automotive components sector: Covers the entire activities of the company in manufacture of molded components, propeller shafts, etc. This sector is headed by B M Kataria.
CASE STUDY
BAJAJ ELECTRICALS
‘Bajaj Electricals’ has five SBUs
Appliances:- It deals with production of Iron, Owens, Mixers, Toasters, Stoves, Coolers, Water Heaters & other household appliances
Engineering and projects:- Bajaj Electricals undertakes setting up of illumination system of large corporations or any major industry which needs lighting – sports stadium, power transmission, signage, Towers etc..
Luminaries:-This SBU deals with the illumination – Modern workspace lighting, Commercial lighting, Retail lighting etc..
‘Bajaj Electricals’ has five SBUs
Fans:-This SBU offers wide range of Fans - Ceiling, Table, Pedestal etc…
Lighting:-Bajaj Lighting deals with the comprehensive range of lamps.
CMD Shekhar BajajSBUs heads Mr. P.S Tandon, Mr. Lalit Mehta, Mr. G P Satsangi, Mr. A.S Radhakrishna and Mr. Harsh Mittal respectively.
GE Matrix – Bajaj Electricals
Business Strengths
Mar
ket
Att
ract
iven
ess
Low
High
LowHig
h
Appliances
FansLuminaries
Lighting
CASE STUDY
GLENMARK PHARMACEUTICALS
GLENMARK PHARMACEUTICALS
Domestic BusinessAPIInternational OperationsResearch And Development
CASE STUDY
Bharat Petroleum Corporation Limited (BPCL)
BPCL products
Benzene Petro Cards Bitumen Lal Raja Speed Sulphur Jet fuel
Bharat Gas LPG Piped LPG Mak Ultra Glide 2T /4T e-banking Consultancy
BPCL - six SBUs
Refinery SBURetail SBULubricants SBUAviation SBULPG SBUIndustrial & Commercial SBU
SBU ProductRefinery SBU Benzene, Bitumen, Sulphur
Retail SBU LPG, Petrol, Diesel
Petro Cards, Speed
Aviation SBU Jet Fuel
Lubricants SBU Lal Raja, Mak Ultra, Glide 2T/4T
LPG Gas Bharat Gas, Piped Gas
Industrial & Commercial SBU e-banking, Consultancy
THANK YOU