Questions and Answers
What does SBU stand for?
What is a strategic plan?
Mission, Goals/objectives, Design business portfolio, Market plan development
What is a business portfolio?
A collection of businesses and products that make up the organization
What is portfolio analysis?
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Which of the following are SBU classifications according to the Boston Consulting Group?
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What is the purpose of the G.E. Matrix?
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Which of the following is NOT a growth strategy?
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Study Notes
Strategic Business Units (SBUs)
- SBUs are distinct units within an organization with their own objectives and independent operational plans, such as colleges at YSU.
Strategic Plan Components
- A strategic plan includes four main components:
- Defining mission
- Establishing goals and objectives
- Designing a business portfolio
- Developing a market plan
Business Portfolio
- A business portfolio consists of a collection of businesses and products that contribute to the overall organization.
Portfolio Analysis
- Portfolio analysis involves evaluating various organizational units, identifying underperforming units, and ultimately refining the focus to SBUs.
SBU Classifications: Boston Consulting Group
- SBUs are classified based on growth potential:
- Stars: High growth areas, generating substantial revenue.
- Cash Cows: Established units producing steady revenue to support operations.
- Question Marks: Units with low market share that require significant investment to grow.
- Dogs: Units with no growth potential or promising future.
SBU Classifications: G.E. Matrix
- The G.E. Matrix classifies SBUs based on business strength and industry attractiveness, enabling visualization through a plotted matrix.
Growth Strategies
- Four primary growth strategies define how to expand offerings:
- Market Penetration: Selling the same product to the same target market to boost sales.
- Market Development: Introducing the same product to a new target market.
- Product Development: Creating new products for the same target market.
- Diversification: Entering new business areas, which entails a risk of losing strategic focus.
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Description
Test your knowledge on strategic business units and their components in marketing. This quiz covers key concepts such as strategic plans and business portfolios. Perfect for students studying marketing strategies at YSU.
