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