Business Unit



Business Unit

Business Unit and its Purpose

Business Unit (BU) is a part of the organization, which thus has better pinpoint competitive strategy, as well as suppliers and customers, which would be difficult to achieve without a strategic business unit. These units may or may not need to work closely with companies, which have been separated or refer to their formal structure. Strategic business units can be used to determine the strategy of the company diversified (Robbins, 2001). The main reason for the isolation of strategic business units is to merge into one organizational structure of a wide variety of activities in order to achieve the necessary competitive advantage. It includes all changes in the organization treated as an investment in order to achieve the objectives at the strategic level. Appointed to support strategic activities and obtain liquidity between the implemented organizational changes and daily activities of the organization. Portfolio encompasses, among others, implemented in the structures of the organization of programs and projects.

Most companies, even smaller ones, operate in diverse businesses. But these may not always be clear: a company with 12 divisions, for example, is not necessarily running 12 businesses. A division may include, for example, two or three different businesses. So it is important that the parent set all business for each of them can be managed as a single unit with its own strategy (Schermerhorn, Osborn & Hunt, 2010).

Members in Business Unit

Following are the members in the Mar and Spencer business unit:

CEO (Chief Executive Officer)

EVP (Executive Vice President)

VP (Vice President)

AVP (Assistant Vice President)

Marketing Manager

Strategy Analyst

Project Manager

Relationship between BU and other Organizations

Many theorists have introduced the company's human capital as a source of sustainable competitive advantage to it and the management of human capital as the ultimate determinant of organizational performance. If the conclusions of previous studies ...