An Organization 's Strategic Business Units

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To evaluate an organization 's Strategic Business Units (SBU), the Boston Consulting Group developed a portfolio performance framework. Initially starting with the firm’s organizational mission and its need to make necessary steps towards making strategies for its SBU to run smoothly with equal importance it gets on the basis of its output generation and few other aspects. A firm takes series of steps to make its strategies successful. At first firm clearly define its organizational mission—It is the long-term commitment to a specific type of business and a place it has in the market. Then, it establishes strategic business units (SBUs), self-contained divisions, product lines, or product departments with specific market focuses and…show more content…
That simple question requires firm in depth knowledge of its SBU’s and limitation that possess by each planning tool. Coming towards the core, evaluation of SBU and performance tool that is made by Boston consulting group. Simple pictorial illustration Resources of business properly allocated to business unit where they are located in the grid. • Cash Cow - a business having high market share in mature market it has a lot of marginal profit and can generate lot of cash flow. Cash cow are the products businesses usually strive for. • Star - a business having high market share in growing market. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their
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