Human Capital Management

Corporate Parenting Analysis

Transitional business unit's complexity creates a sort of need for value creation through the aggregation into a complex corporate enterprise of various businesses, working together giving it a character of a multi business organization. Such business units are often also described as a Strategic business Unit (SBU). A strategic business unit (SBU) is a portion of a company, in an enterprising external market segment can act independently of other fields of enterprise. Strategic business units are closely related market-product-market combinations with clearly defined task. They provide the overall business success of a separate post. Several of these strategic business units of different companies operate in a strategic business area (SBA). Strategic Business Unit (SBU, called strategic business unit) a separate part of the organization, which therefore has more definite 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 a diversified company's strategy. The main reason for extracting strategic business units is to merge into one organizational structure of a wide variety of activities in order to achieve the necessary competitive advantage .These separate business entities have their own management, and line managers with separate business functions, and generate profit from their own functions and activities. These SBU's are an important part of a large enterprise, and one parent corporation is responsible for making all the corporate decisions, and is known as the Corporate Parent. Corporate parenting analysis is basically a part of the corporate decision making, where the corporate parent decides what SBU is profitable and should be part of the corporate portfolio, and which SBU needs to be let go.

Strategic Business Unit Basically can be seen as a "planning unit", defined in terms of needs and strategic opportunities. Authors like (slack, 1991) extend this concept to the operational level, bringing the SBU - Strategic Business Unit truly a feature of a business unit within the meaning of the term, with all the implications, such as management autonomy operational strategy and other operations directed. Thus, we can say that result in relatively independent business units, with characteristics of negotiation and utilization of market opportunities.

The focus of operations generally known to have advantages that go beyond simple walk in the experience curve, involving external aspects of customer service, understanding and assimilation easier paradigmatic demands of competitiveness. Thus, an operations system becomes more focused to the understanding of persons due to more limited scope of analysis.

Corporate Parenting Analysis lies in determining the potential for profits of many SBU's different in the portfolio of a company, based on their competitive positions current and future changes expected in factors such as market size, product quality and new product launches.

Additionally, the more diverse the businesses are operated, the various factors related to different areas of the company such as customers, competition, ...