The paper "Strategic Business Unit Analysis: Bunnings" is a great example of business coursework. According to Prahalad, and Hamel (2006, p. 273), a corporation is defined as an organisation that is directly engaged in the mobilisation process of resources for productive utilisation and, also for purposes of creating even more wealth and other related benefits for its immediate constituents and stakeholders. A corporation should not focus its entire operations in the intentional destruction of wealth, increase in the level of uncertainties or even cause possible levels of harm for its stakeholders.
This definition provides a distinctive and accurate description of reality and provides favourable guidance for management as well as directors in their day-to-day discharging of their duties (Hammer & Champy, 2009). The definition most important implication lies with the fact that corporate-based performance should likely be appraised from myriad sources of perspectives. It further calls for the managers to make proper efforts to come up with a significant and legitimate level number of stakeholders especially those that are non-contractual and involuntary and can this be easily ignored while making sure to listen and come up with solutions focusing on their immediate interests and concerns. Corporations are fairly defined by their immediate two fundamental principals that include; first, the size and socioeconomic power, which postulates that a leading international corporation always must have access to a great level of resources that includes; specialised knowledge; overwhelming bargaining power in regards to most of the stakeholders’ interest as well as extensive capacity to influence the operational environment (Devinney, 2009).
Secondly, a corporation focuses on the inaccuracy of the ownership model and, also it relative underlying implications.
It should be noted that shareholders are tasked with the responsibility of holding securities however; they do not provide a framework for conducting the day-to-day operations of the company (Bakan, 2012). A product portfolio is the immediate collection of all the underlying products or services being offered by a corporation within any given moment in time. While a product portfolio is made up of all the products offered within an organisation; a service portfolio is made of up of basically the kind of services that are being offered for profits (Johnstone, Dainty, & Wilkinson, 2009).
Both product and service portfolios consist of different types of product or service categories; product or service lines as well as the product or services that are offered at a point in time (Johnstone, Dainty, & Wilkinson, 2009). The focus of this paper is examining the competitive environment and business level strategy of a given a corporation. Business Unit Analysis A strategic business unit is basically a profit centre that is focused on activities related to product offering as well as practices market segmentation.
For most times, strategic business units possess a distinctive marketing plan; trading campaign and an independent analysis of competition despite the fact that they form a part of a larger business entity (Vorhies, Morgan, & Autry, 2009). It is important to note that large corporations will mostly be made up of a great number of strategic business units as each of them will be responsible for their profitability levels within any given operational year that is devised and dictated by the larger corporation group. Strategic business units (SBUs) are merely focused on the supply of both goods and services for a unique set of operations.
They are mostly identified by way of a market-based criterion where such important aspects as customers; channels and competition are analysed and defined; as well as identified by their capabilities-based criteria whereby SBUs are noted on the similarity of their respective strategic capabilities (Parmigiani & Holloway, 2011). Some of the purposes of SBUs include; decentralisation of underlying initiatives to relatively smaller units positioned within a corporation so that SBUs can enhance its own distinctive strategy; it provides an opportunity for significantly larger corporations to vary their immediate business strategies in accordance with different needs of external markets as well as fosters the aspect of accountability given that each of the SBU is certainly held responsible for the success or even failure of their respective strategies.
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