The role of SBU level executive is very important to strategic management since each product-market segment has a unique strategy.
Role of SBU Level
The role of SBU level executive is very important to strategic
management since each product-market segment has a unique strategy. These
executives are profit centre heads or divisional heads and are considered
the chief executives of a defined business unit for the purpose of strategic
management. An SBU level executive wields a lot of authority within the SBU and
also works in coordination with other SBUs.
Many public and private sector companies have
adopted the SBU concept in some form or the other “There are several
family-managed groups today who boast of their professionally-managed
organizations structure. Each of their companies has a chief executive who has
total responsibility and authority over the profit center.
Strategic planning at MRF Ltd used senior
management expertise by dividing them into five groups dealing with products
and markets, environment, technology, resources, and manpower. Each group had a
leader who helped to prepare position papers for presentation to the board. The
executive directors in the company were actively involved in SWOT analysis
through the help of managers and assistant managers.
At Shriram Fibers, the strategic planning system
covered the different businesses ranging from nylon yarn manufacture to the
provision of financial services. Strategic plans were formulated at the level
of each SBU as well as at the corporate level. The corporate planning department
at the head office coordinated the strategic planning exercise at the
SBU-level. Each SBU had its own strategic planning cell
Tags : Strategic Management - Concept Of Corporate Strategy
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