DIFFERENCE BETWEEN STRATEGIC BUSINESS UNIT (SBU) AND NORMAL BUSINESS UNIT

 An organizational SBU often has the following characteristics:

(i) It has its own set of customers - it must have its own set of customers because each strategic business unit serves its own strategic customers who are different from other business units.

DIFFERENCE BETWEEN STRATEGIC BUSINESS UNIT (SBU) AND NORMAL BUSINESS UNIT

(ii) It should have a clear set of competitors, which it is trying to outperform.

SBUs are sometimes called strategic competitive units. This is because the unit deals with competition issues related to creation of competitive
advantage for the organization. It must clearly set its competitors because
outperform competitors, competitors must be known and the strategies they are using must also be known.

(iii) It should have its own strategic planning manager responsible for its success. The manager should be a specialist in the area the SBU is set to compete.

(iv) Its performance must be measureable in terms of profit and loss, i.e. it must be a true profit center. Justification is required to confirm the unit is set strategically on general profits. Hence if there are no clear ways of
measuring performance, justification may be difficult.

(v) It must have its own strategic planned performance achievement – there should be clearly set levels of achievement like SMART objective to guide direction of effort and performance for the SBU.

RELATED POSTS

9 CONDITIONS FAVOURING IRRIGATION FARMING IN EGYPT

5 CAUSES OF RURAL-RURAL MIGRATION IN KENYA

10 AIMS OF KILOMBERO VALLEY IRRIGATION SCHEME

4 FEATURES OF MAP STATEMENT SCALE

10 ADVANTAGES OF OIL PRODUCTION IN THE MIDDLE EAST

7 DISADVANTAGES OF AIR TRANSPORT

10 PROBLEMS FACING COFFEE FARMING IN KENYA

IMPACTS OF POVERTY ON ENVIRONMENT

10 PROBLEMS FACING COTTON FARMING IN UGANDA

COMPARISON BETWEEN FISHING IN KENYA AND JAPAN

Comments

Post a Comment

Popular posts from this blog

5 TYPES OF HUMAN ACTIVITIES

Image
  Human activities are functions, tasks, or works done by human beings over time for achieving certain purposes. In total there are five types of human activities namely primary human activities, secondary human activities, tertiary human activities, quaternary human activities, and quinary human activities. These types of human activities together with their examples are going to be explained one by one below. The following are five types of human activities Primary human activities are human activities that involve extracting raw materials directly from the earth. Examples of primary activities are farming, fishing, lumbering, and livestock keeping. Secondary human activities these are human activities that involve the processing of raw materials into useful products. These activities involve converting raw materials into finished products and are mainly performed in urban areas. they accelerate the development of primary activities because they provide the market for products fr...
Read more

10 FACTORS INFLUENCING POPULATION DISTRIBUTION IN EAST AFRICA

Image
THE FOLLOWING ARE FACTORS INFLUENCING POPULATION DISTRIBUTION IN EAST AFRICA Climate Areas that receive heavy and reliable rainfall which support the growth of crops have attracted people in large numbers e.g. shores of Lake Victoria, Kenya highlands, slopes of Mt. Elgon and Kigezi highlands while areas that receive low and unreliable rainfall attract very few people e.g. Karamoja, Turkana land and Miombo woodlands. Soils areas with deep and well-drained fertile soils that support agriculture have attracted dense settlements e.g. Mbale, Kabale, shores of Lake Victoria while areas with infertile soils have sparse populations e.g. Nyika plains, North Eastern Kenya and Masai land. Altitude/relief areas with very high altitudes e.g. top of Mt. Elgon and Rwenzori, Bundibugyo have a sparse population because of the high pressure, difficulty in constructing houses and roads. However low altitude areas have attracted large settlements due to ease in constructing settlements and roads. Howeve...
Read more

ROCK CYCLE - DEFINITION

Image
  Rock cycle is the cycle in which rocks tend to change from one type to another. For instance, igneous rocks may change to metamorphic rocks or sedimentary rocks ; sedimentary rocks to metamorphic or igneous rocks, etc. It is a relationship in which rocks tend to change from one type of rock to another.  Necessary conditions for rock cycle to take place 1. the molten rocks are erupted from the interior of the earth and then cool and solidify to form igneous rocks. 2. the igneous rocks are subjected to denudation process to form sedimentary rocks. 3. either igneous or sedimentary rocks undergo metamorphism, due to prolonged heat and pressure, to form metamorphic rocks. 4. metamorphic or igneous rocks can undergo weathering process through erosion and transportation of sediments which are further deposited in layers in the ocean or lake floors where they are cemented and consolidated to form sedimentary rocks and vice versa. 5. metamorphic or sedimentary rocks can be subjec...
Read more