Strategic Business Units (SBU)

Examples

 

 

 

 

Panasonic

In 1933, Konosuke Matsushita, founder of Panasonic, devised a new management system, dividing the company into three autonomous business units: radios, lighting & batteries, and synthetic resins/electro-thermal products... More

 

Strategic Business Units (SBU)

Strategy at the Business Unit Level

Business Architect

 

 

 

Hewlett-Packard

Hewlett-Packard set the pattern for a divisional structure of an innovative organization long ago. Divisions aggregated into units such as Test and Measurement Organization are the core dominant organizational entities of the company. This large-scale organizational model was designed to sustain innovation, customer intimacy and satisfaction.

 

 

 

Fidelity Investments

Fidelity Investments fundamentally believes that employees practice Kaizen most enthusiastically when they feel a deep sense of ownership in the work.

Fidelity fosters this feeling of ownership by dividing power in the company among small divisions (each called a company or a business unit) with aggressive entrepreneurial leadership. Each of these Fidelity companies is responsible for its own management systems, its own strategies and activities – and its own results... More

 

Kaizen

6W of Kaizen Implementation

Kaizen Mindset

Kaizen Practices

Kaikaku-Kaizen Journey

Kaizen and Innovation

Kaizen Culture

 

 

 

British Petroleum

To enhance organizational capability, BP reduced or removed central functions, and business units were empowered to chose their own routes to implement changes.

The units aim at accomplishing the overall strategy of BP, but enjoy complete autonomy in their operations.

They are free to develop their own processes and solutions according to their local requirements.

In order to integrate the efforts of the business units engaged in the same business activities, they were organized into peer groups.

They met periodically to discuss the performance of their businesses.

The purpose of the reorganization was to facilitate knowledge sharing and build synergies, i.e. to exchange knowledge and synergize creative capabilities and expertise of the employees working in different business units of BP.

 

 

 

Dell

At Dell, market segmentation increased sustainable competitive advantage of the company. Segmentation initially started as a sales concept to most effectively meet the needs of different groups of customers. It soon evolved into a series of complete business units, each with its own sales, service, finance, IT, technical support, and manufacturing arms.

"It really makes sense for our business," says Michael Dell. "Our direct connection to our customers enables us to understand the different needs of different customers. Segmentation takes closed feedback loops and makes it even smaller and more intimate. It refines our relationship with our customers."

 

Dell Inc.

Disruptive Innovative Model of Dell

Competitive Advantage

Customer-focused Culture

Fast-Paced Flexible Culture

How To Win Customer Loyalty

Experimentation

Reward System