Stretegic Management

q.1

ans. Benefits of Strategic Planning Strategic planning serves a variety of purposes in organization, including to: 1. Clearly define the purpose of the organization and to establish realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation. 2. Communicate those goals and objectives to the organization’s constituents. 3. Develop a sense of ownership of the plan. 4. Ensure the most effective use is made of the organization’s resources by focusing the resources on the key priorities. 5. Provide a base from which progress can be measured and establish a mechanism for informed change when needed. 6. Bring together of everyone’s best and most reasoned efforts have important value in building a consensus about where an organization is going.

q.2:-Question 1 Explain the concept of SBU in a Multi Business Organization. Identify the Threelevels of Strategy-Corporate,Business and Functional. How do Goals and Objectives vary at each Level?

Answer-----Strategic business units are absolutely essential for multi product organizations.These business units are basically known as profit centers. They are focused towards a set of products and are responsible for each and every decision / strategy to be taken for that particular set of products. Strategic business units can be best explained with an example.Example of Strategic business units

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The best example of strategic business unit would be totake organizations like HUL, P&G or LG in focus. These organizations are characterized bymultiple categories and multiple product lines. For example, HUL may have a line of products inthe shampoo category, Similarly LG might have a line of products in the television category.Thus to track the investments against return, they may classify the category as a different SBUitself.

There are several reasons SBU‟s are used in an organization and they are mentioned in my poston the importance for...