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Strategic Management - Concept Of Corporate Strategy

Role of SBU Level Executives - Strategic Business Unit and Functional Level Strategies

   Posted On :  25.06.2018 11:49 pm

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 Executives
 
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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