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Amity School of Business
Module- 2
Strategic Planning
Dr. Deepa Kapoor
Amity School of Business
1
, Establishing Strategic Business
Click to edit Master title style Amity School of Business
Units (SBU)
• To make planning more effective, a large, diverse
organization may divide itself into smaller planning units
called Strategic Business Units
• The unit should:
• Be a separately identifiable business
• Have a distinct mission
• Have separate competitors
• Have a separate group of executives charged
with profit responsibility
• Have its own strategic plan
2
, Characteristics of SBUs
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• It is a single business or collection of related
businesses
• It has its own set of competitors
• It has a leader responsible for
– Strategic planning
– Profitability
– Efficiency
3
, Assigning Resources to SBUs
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• Once the SBUs have been defined, the next
step is to allocate resources to each
• One needs to take into consideration various
things (market size, growth potential, market
attractiveness, competition etc.) before deciding
on, how to allocate resources
• Two models used popularly for the same are:
1. BCG Matrix
2. GE 9 cell matrix
4
Amity School of Business
Module- 2
Strategic Planning
Dr. Deepa Kapoor
Amity School of Business
1
, Establishing Strategic Business
Click to edit Master title style Amity School of Business
Units (SBU)
• To make planning more effective, a large, diverse
organization may divide itself into smaller planning units
called Strategic Business Units
• The unit should:
• Be a separately identifiable business
• Have a distinct mission
• Have separate competitors
• Have a separate group of executives charged
with profit responsibility
• Have its own strategic plan
2
, Characteristics of SBUs
Click to edit Master title style Amity School of Business
• It is a single business or collection of related
businesses
• It has its own set of competitors
• It has a leader responsible for
– Strategic planning
– Profitability
– Efficiency
3
, Assigning Resources to SBUs
Click to edit Master title style Amity School of Business
• Once the SBUs have been defined, the next
step is to allocate resources to each
• One needs to take into consideration various
things (market size, growth potential, market
attractiveness, competition etc.) before deciding
on, how to allocate resources
• Two models used popularly for the same are:
1. BCG Matrix
2. GE 9 cell matrix
4
